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HomeMy WebLinkAboutR-93-0481J-93-506 rr�� 7/7/93 RESOLUTION NOP 3 — 481 A RESOLUTION, INCLUDING EXHIBITS A, B AND C, OF THE CITY OF MIAMI, FLORIDA, AUTHORIZING THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $32,0001000 FOR THE PURPOSE OF ADVANCE REFUNDING ALL OR A PORTION OF THE CITY'S $10,000,000 GENERAL OBLIGATION BONDS, DATED AUGUST 1, 1987, $18,400,000 GENERAL OBLIGATION BONDS DATED NOVEMBER 1, 1988, AND $10,000,000 GENERAL OBLIGATION BONDS DATED JULY 1, 1991; FIXING CERTAIN DETAILS OF SAID BONDS, INCLUDING THEIR FORM; PROVIDING THAT SUCH BONDS SHALL CONSTITUTE GENERAL OBLIGATIONS OF THE CITY AND THAT THE FULL, FAITH CREDIT AND TAXING POWER OF THE CITY SHALL BE IRREVOCABLY PLEDGED FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS; AGREEING TO COMPLY WITH CERTAIN TAX REQUIREMENTS; DIRECTING AND AUTHORIZING SALE OF THE BONDS BY A NEGOTIATED SALE; MAKING CERTAIN COVENANTS AND AGREEMENTS; APPROVING THE USE OF BOND INSURANCE AS REQUESTED BY THE PURCHASER OR DETERMINED BY THE CITY TO BE DESIRABLE; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT AND ESCROW DEPOSIT AGREEMENT; AUTHORIZING THE CITY MANAGER OR THE MAYOR OR THEIR RESPECTIVE DESIGNEES TO AWARD THE SALE OF THE BONDS AND TO DESIGNATE AN ESCROW AGENT, PAYING AGENT AND BOND REGISTRAR; APPROVING THE CONDITIONS AND CRITERIA OF SUCH SALE; APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT; AUTHORIZING CERTAIN OFFICIALS AND EMPLOYEES OF THE CITY TO TAKE ALL ACTIONS REQUIRED IN CONNECTION WITH THE ISSUANCE OF SAID BONDS; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1. Authority. This Resolution is enacted by The City of Miami, Florida (the "City") pursuant to Chapter 166 and 132, Florida Statutes, the Constitution of the State of Florida, including, but not limited to Article VII, Section 2 thereof, the Charter of the City of Miami, Florida and other applicable provisions of law. SECTION 2. Definitions. As used he context otherwise requires: ---I ATTACHMENT (S) CONTAINED MEETING OF J U L 2 2 1993 Resolution No. 93- 481 "Act" means the Charter of the City of Miami, but only to the extent not inconsistent with and not repealed by the provisions of Section 166.021, Florida Statutes; Chapter 166, Florida Statutes; Sections 132.33 -- 132.47, Florida Statutes; the Constitution of the State of Florida, including, but not limited to, Article VII, Section 2 thereof; and other applicable provisions of law. "Authorized Depository" means any bank, trust company, national banking association, savings and loan association, savings bank or other banking association selected by the City as a depository, which is authorized under Florida law to be a depository of municipal funds and which has complied with all applicable state and federal requirements concerning the receipt of City funds. "Bondholder" or "registered owner" means the person in whose name any Bond is registered on the registration book maintained by the Bond Registrar. "Bond Purchase Agreement" means that certain Bond Purchase Agreement between the City and the Original Purchaser substantially in the form attached hereto as Exhibit "A". "Bond Registrar" means the City, any agent appointed by the City Manager hereunder, or any other agent designated from time to time by the City, by ordinance or resolution, to maintain the registration book for the Bonds issued hereunder or to perform other duties with respect to registering the transfer of the Bonds. "Bonds" means the City of Miami, Florida General Obligation 'Refunding Bonds, Series 1993, authorized to be issued pursuant to this Resolution in an aggregate principal amount which shall not exceed $32,000,000. "City" means The City of Miami, Florida. "City Manager" means the City Manager or any Assistant City Manager of the City or the designee of the City Manager. "Clerk" means the City Clerk or any Deputy City Clerk of the City. "Code" means the Internal Revenue Code of 1986, as amended, and all temporary, proposed or permanent implementing regulations promulgated or applicable thereunder. "City Attorney" means the City Attorney of the City or any Deputy City Attorney or Assistant City Attorney. "Director of Finance" means the Director of Finance of the City or his designee. -2- 93- 481 "Escrow Agent" means the bank or trust company appointed by the City Manager hereunder, or such other bank or trust company as shall be designated by the City by subsequent ordinance or resolution adopted prior to issuance of the Bonds, to serve as escrow agent under the Escrow Deposit Agreement. "Escrow Deposit Agreement" means the Escrow Deposit Agreement, a proposed form of which is attached to this Resolution as Exhibit "B", pursuant to which the proceeds of the Bonds, together with investment earnings thereon and certain other funds and investments will be held in irrevocable escrow for the payment of the principal of and interest on the Refunded Bonds. "Financial Plan" means the plan showing the items required by and compiled in accordance with Section 132.36(d), Florida Statutes. "Fiscal Year" means the period commencing on October 1 of each year and ending on the succeeding September 30, or such other consecutive 12-month period as may hereafter be designated as the fiscal year of the City. "Governing Body" means the City Commission of the City. "Government Obligations" means non -callable direct obligations of the United States of America, or obligations which are fully and unconditionally guaranteed by the United States of America, provided, that the full faith and credit of the United States of America has been pledged to such direct obligation or guarantee. "Mayor" means the Mayor of the City or in his absence or inability to perform, the Vice Mayor of the City. "Official Statement" means that certain Official Statement with respect to the issuance of the Bonds. "Original Purchaser" means the First Boston Corporation, First Equity Corporation of Florida, Artemis Capital Group, Inc., Pryor McClendon Counts & Co., Inc. and Samuel A. Ramirez & Co., Inc. "Outstanding" or "Bond Outstanding" means all Bonds which have been issued pursuant to this Resolution except: (a) Bonds cancelled after purchase in the open market or because of payment at or redemption prior to maturity; (b) Bonds the payment or redemption for which cash funds or Government Obligations or any combination thereof shall have been theretofore irrevocably set aside in a special amount with the Paying Agent, whether upon or prior to the maturity of redemption date of any such Bond, in any -3- 93- 481 amount which, together with earnings on such Government Obligations, will be sufficient to pay the principal or interest on such Bonds at maturity or upon their earlier redemption; provided that, if such Bonds are to be redeemed before the maturity thereof, notice of such redemption shall have been given according to the requirements of this Resolution or irrevocable instructions directing the timely publication of such notice and directing the payment of the principal of and interest on all Bonds at such redemption dates shall have been given to the Paying Agents; (c) Bonds which are deemed paid pursuant to Section 5.H hereof; and (d) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered pursuant to this Resolution. "Paying Agent" means the Authorized Depository appointed by the City Manager hereunder to act as Paying Agent, or any other Authorized Depository designated by the City to serve as a Paying Agent for the Bonds issued hereunder that shall have agreed to arrange for the timely payment of the principal of, interest or and redemption premium, if any, with respect to the Bonds to the registered owners thereof, from funds made available therefor by the City, and any successors designated pursuant to this Resolution. "Preliminary Official Statement" means the Preliminary Official Statement with respect to the issuance of the Bonds, substantially in the form attached as Exhibit "C". "Refunded Bonds" means all or a portion, as set forth in the Bond Purchase Agreement, of the City's $10,000,000 General Obligation Bonds, dated August 1, 1987, $18,400,000 General Obligation Bonds, dated November 1, 1988, and $10,000,000 General Obligation Bonds dated July 1, 1991. "Tax Exempt Obligations" means obligations of states and their political subdivisions the interest on which is, under the Code, excluded from gross income for federal income tax purposes, including, but not limited to, stock of qualified regulated investment companies as such term is used in Internal Revenue Service Advance Notice 87-22, released on February 24, 1987. Words in this Resolution importing singular numbers shall include the plural number in each case and vice versa, and words importing persons shall include firms, corporations or other entities including governments or governmental bodies. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. -4- 93- 481 ,"I SECTION 3. ,Findings and Determin ions, It is hereby ascertained, determined and declared that: A. Pursuant to Ordinance No. 9781, enacted on January 26, 1984, as supplemented by Ordinance No. 9782, enacted on January 26, 1984, and as supplemented and amended by Ordinance No. 9905, enacted on March 21, 1985, and Ordinance No. 9977, enacted on April 11, 1985, and as supplemented by Resolution No. 84-319, adopted on March 29, 1984, Resolution No. 85-289, adopted on March 21, 1986, Resolution No. 84-628, adopted on June 14, 1984, Resolution No. 85-353, adopted on March 28, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Storm Sewer Bond Ordinances and Resolutions"), the City authorized the issuance of general obligation bonds in the aggregate principal amount of $30,000,000 for the purpose of paying the cost of storm sewer improvements (the "Storm Sewer Improvement Bonds"), which issuance was approved by the citizens of the City through a referendum held on March 13, 1984. B. Pursuant to Ordinance No. 9129, enacted on July 10, 1980, as amended by Ordinance No. 9131, also enacted on July 10, 1980, and Ordinance No. 10093, enacted on April 10, 1986, and as supplemented by Resolution No. 80-740, adopted on October 9, 1980, Resolution No. 80-774, adopted on October 30, 1980, Resolution No. 86-174, adopted on March 18, 1986, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Street Bond Ordinances and Resolutions"), the City authorized the issuance of $30,000,000 Street and Highway Improvement Bonds (the "Street Bonds") which issuance was approved by the citizens of the City through a referendum held on October 7, 1980. C. Pursuant to Ordinance No. 9787, enacted on January 26, 1984, as supplemented by Ordinance No. 9788, enacted on January 26, 1984, as amended by Ordinance No. 9904, enacted on October 10, 1984, and as supplemented by Resolution No. 84-318, adopted on March 29, 1984, Resolution No. 85-312, adopted on March 21, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Police Bond Ordinances and Resolutions"), the City authorized the issuance of its $20,000,000 Police Headquarters and Crime Prevention Facilities Bonds (the "Police Bonds"), which issuance was approved by the citizens of the City through a referendum held on March 13, 1984. D. Pursuant to Ordinance No. 9128, enacted on July 10, 1980, and Ordinance No. 10094, enacted on April 10, 1986, as supplemented by Ordinance No. 9130, enacted on July 10, 1980, as supplemented and amended by Ordinance No. 9977, enacted on April 11, 1985, and as supplemented by Resolution No. 80-740, adopted on October 9, 1980, Resolution No. 80-773, adopted on October 30, 1980, Resolution No. 86-175, -5- 93- 481 adopted on March-18, 1986, Resolution No. 84-628, adopted on June 14, 1984, Resolution No. 85-353, adopted on March 28, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Sanitary Sewer Bond Ordinances and Resolutions"), the City authorized issuance of its $45,000,000 Sanitary Sewer Improvement Bonds (the "Sanitary Sewer Bonds"), which issuance was approved by the citizens of the City through a referendum held on October 7, 1980. E. Pursuant to Ordinance No. 9296, enacted on July 23, 1981, as supplemented by Ordinance No. 9295, enacted on July 23, 1981, as amended by Ordinance No. 9406, enacted on April 1, 1982, Ordinance No. 9977, enacted on April 11, 1985, Ordinance No. 10291, enacted on July 9, 1987 and Ordinance No. 10487, enacted on October 6, 1988 and as supplemented by Resolution No. 81-1020, adopted on December 10., 1981, Resolution No. 81-766, adopted on September 10, 1981, Resolution No. 81-923, adopted on November 11, 1981, and Resolution No. 82-304, adopted on April 1, 1982 Resolution No. 88-1003, adopted on November 3, 1988 and Resolution No. 88-1043, also adopted on November 3, 1988 (collectively, the "Fire Facilities Bond Ordinances and Resolutions"), the City authorized the issuance of its $21,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (the "Fire Facilities Bonds"), which issuance was approved by the citizens of the City through a referendum held on November 3, 1981. F. The City issued its $18,400,000 General Obligation Bonds dated November 1, 1988 consisting of $1,500,00 Police Headquarters and Crime Prevention Facilities Bonds, $5,000,000 Storm Sewer Improvement Bonds, $5,000,000 Sanitary Sewer System Bonds, $3,900,000 Street and Highway Improvement Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (the 111988 Bonds"), pursuant to Ordinance No. 10487 enacted on October 6, 1988 as supplemented by Resolution No. 88-1043 adopted on November 3, 1988 (collectively, the "1988 Bond Ordinance"); G. The City issued its $10,000,000 General Obligation Bonds, dated July 1, 1991, consisting of $7,000,000 Sanitary Sewer System Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (the 111991 Bonds") pursuant to Resolution No. 91-449 adopted on June 20, 1993, as supplemented by Resolution No. 91-516 adopted on July 11, 1991 (collectively, the "1991 Bond Resolution"); H. The City issued its $10,000,000 General Obligation Bonds, dated August 1, 1987, consisting of $5,000,000 Street and Highway Improvement Bonds, $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds, $1,000,000 Storm Sewer Improvement Bonds and $2,500,000 Sanitary Sewer System Bonds (the 111987 Bonds") pursuant to Ordinance No. 10291, enacted on July 9, 1987 as supplemented am 93- 481 by Resolution No. 87-719 adopted on July 23, 1987 (collectively, the "1987 Bond Ordinance"). I. It is in the best interest of the City and its citizens and residents that there shall be issued and sold at this time its General Obligation Refunding Bonds, Series 1993 (the "Bonds") in an aggregate principal amount not to exceed $31,000,000, such Bonds to be dated, to be numbered, to be redeemable prior to their respective maturities, to be payable at the banks and to be sold, all as hereinafter provided. J. The proceeds of the Bonds will be used to advance refund the Refunded Bonds and to pay the cost of issuing the Bonds. K. The City Manager or Mayor, or their respective designee shall have the authority to fix the final details of the Bonds including the approval of certain documents in final form pursuant to the parameters set forth in this Resolution. L. Because of the characteristics of the Bonds, prevailing and anticipated market conditions and additional savings to be realized from an expeditious sale of the Bonds, it is in the best interest of the City to accept Original Purchaser's offer to purchase the Bonds at a private negotiated sale. M. The Original Purchaser will provide the City with a disclosure statement containing the information required by Section 218.385(2) and Section 218.385(6), Florida Statutes, prior to acceptance by the City of the Original Purchaser's offer to purchase the Bonds. N. the City is authorized under the Act to issue refunding bonds and to deposit the proceeds thereof in escrow to provide for the payment when due of the principal of, interest on and redemption premiums, if any, in connection with the Refunded Bonds. O. The Bonds shall only be issued at a lower net average interest cost rate than the net average interest cost rate of the Refunded Bonds, and the rate of interest borne by the Bonds shall not exceed the maximum interest rate established pursuant to the terms of Section 215.84, Florida Statutes. It is estimated that the present value of the total debt service savings anticipated to accrue to the City from the issuance of the Bonds, calculated in accordance with Section 132.35(2), Florida Statutes, shall be at least $1,000,000. P. The principal amount of the Bonds shall not exceed an amount sufficient to pay the sum of the principal amount -7- 93- 481 of the Refunded Bonds that are outstanding on the date of issuance of the' Bonds, the aggregate amount of unmatured interest payable on the Refunded Bonds to and including either the applicable maturity date thereof or the date that they are called for redemption, the applicable redemption premiums, if any, related to the Refunded Bonds that are called for redemption, and the costs of issuance of the Bonds, including, but not limited to, costs of bond insurance, if any, all in accordance with Section 132.35, Florida Statutes. Q. The sum of the present value of the total payments of principal and interest to become due on the Bonds (excluding all such principal and interest payments as will be made with moneys held by the Escrow Agent under the Escrow Deposit Agreement) and the present value of costs of issuance of the Bonds, if any, not paid with proceeds of the Bonds, will be less than the present value of the principal and interest payments to become due at their stated maturities, or earlier mandatory redemption dates, on the Refunded Bonds. R. The first installment of principal of the Bonds shall mature not later than the first stated maturity of the Refunded Bonds occurring after the issuance of the Bonds. S. The Bonds shall not be issued until such time as the Director of Finance of the City shall have filed a Financial Plan with the Governing Body setting forth the present value of the total debt service savings which will result from the issuance of the Bonds to refund the Refunded( Bonds, computed in accordance with the terms of Section' 132.35(2) Florida Statutes, and demonstrating mathematically that the Bonds are issued at a lower net average interest cost rate than the Refunded Bonds. SECTION 4. Auth rization of Issuance and Sale of th Bonds. There shall be issued and sold General Obligation Refunding Bonds entitled The City of Miami, Florida, General Obligation Refunding Bonds, Series 1993 in an aggregate principal amount not to exceed $32,000,000. Said Bonds shall be dated, shall mature, and be subject to redemption all as approved by the City Manager or Mayor or their respective designee pursuant to the terms of this Resolution, provided, however, that none of the Bonds shall mature later than the maturity date of the corresponding Refunded Bond, to which it relates. The City further hereby authorizes (i) the execution of the Escrow Deposit Agreement with the Escrow Agent, (ii) the deposit and pledge of a portion of the proceeds of the Bonds in an amount which, together with interest earnings thereon, and certain other funds of the City, if necessary, shall be sufficient to pay the principal of, redemption premiums, if any, and interest on the Refunded Bonds, (iii) the investment and Qs11 93- 48, reinvestment of a portion of the proceeds from the sale of Bonds in Government Obligations for the purpose of effecting the defeasance of the Refunded Bonds, (iv) the calling of the Refunded Bonds prior to their dates of maturity as set forth in the call schedule in the Escrow Deposit Agreement, (v) the disbursement of unneeded principal and income, if any, from the funds and accounts created and established pursuant to the Escrow Deposit Agreement to the City and the application of those funds for the payment of the principal of or interest on or for the redemption of the Refunded Bonds. SECTION 5. Details of Bonds. A. The Bonds shall be numbered consecutively from 1 upward preceded by the letter "R" prefixed to the number. The principal of and redemption premium, if any, on the Bonds shall be payable upon presentation and surrender, at the office of the Bond Registrar and Paying Agent. Interest on the Bonds shall be paid by wire transfer (as provided below) or by check or draft drawn upon the Bond Registrar and Paying Agent, and mailed to the registered owners of the Bonds at the addresses as they appear on the registration books maintained by the Bond Registrar and Paying Agent at the close of business on the 15th day (whether or not a business day) of the month next preceding the interest payment date (the "Record Date"), irrespective of any transfer or exchange of such Bonds subsequent to such Record Date and prior to such interest payment date, unless the City shall be in default in payment of interest due on such interest payment date. Each owner of bonds aggregating not less than $1,000,000 shall be entitled to the payment of such interest by wire transfer to a bank or other financial institution located within the continental United States, provided that wire instructions and name of bank and account therein have been provided to the Paying Agent by the owner prior to the Record Date. In the event of any such default, such defaulted interest shall be payable to the persons in whose names such Bonds are registered at the close of business on a special record date (which date shall also be the date for the payment of such defaulted interest) as established by notice deposited in the U.S. mail, postage prepaid, by the City to the registered owners of the Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names the Bonds are registered at the close of business on the fifth (5th) day (whether or not a business day) preceding the date of mailing. The registration of any Bond may be transferred upon the registration books upon delivery thereof to the principal office of the Bond Registrar and Paying Agent accompanied by a written instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Bond Registrar and Paying Agent, duly executed by the registered owner of the Bond or his attorney -in - fact or legal representative, containing written instructions as to the details of the transfer of such Bond, along with the social security number or federal employer identification number of such transferee. In all cases of a transfer of a Bond, the IM 93- 481 Bond Registrar and Paying Agent shall at the earliest practical time in accordance with the terms hereof enter the transfer of ownership in the registration books and shall deliver in the name of the new transferee or transferees a new, fully registered Bond or Bonds of the same maturity and of authorized denomination or denominations, for the same aggregate principal amount and payable from the same source of funds. The City and the Bond Registrar and Paying Agent may charge the registered owner of the Bond for the registration of every transfer or exchange of a Bond an amount sufficient to reimburse them for any tax, fee or any other governmental charge required (other than by the City) to be paid with respect to the registration of such transfer, and may require that such amounts be paid before any such new Bond shall be delivered. The City and the Bond Registrar and Paying Agent may deem and treat the registered owner of any Bond as of the applicable Record Date as the absolute owner of such Bond for the purpose of receiving payment of the principal thereof and the interest and premiums, if any, thereon. Bonds may be exchanged at the office of the Bond Registrar and Paying Agent for a like aggregate principal amount of Bonds, of other authorized denom- inations of the same series and maturity. B. The City Manager or the Mayor or their respective designee is hereby authorized and directed to award the sale of the Bonds to the Original Purchaser pursuant to and in accordance with the terms of the Bond Purchase Agreement and in the manner provided in Section 218.385, Florida Statutes, at an aggregate purchase price as approved by the City Manager or the Mayor or their respective designee of not less than 99% of the original; principal amount of the Bonds (excluding original issue discounts) (the "Minimum Purchase Price") and at a true interest cost rate ("TIC"), as approved by the City Manager or the Mayor or their respective designee not to exceed 5.90% (the "Maximum TIC"). C. The Bonds shall be dated such date, shall bear interest from the date thereof, payable semiannually, commencing on such date, at the rates, and shall mature in accordance with the maturity schedule, set forth or incorporated by reference in the Bond Purchase Agreement or the final Official Statement, as such dates, rates and maturity schedule may be approved by the City Manager or the Mayor or their respective designee, provided that the TIC shall not exceed the Maximum TIC, unless otherwise provided by a subsequent ordinance or resolution enacted or adopted, as the case may be, on or before delivery of the Bonds. The Bonds shall be issued as fully registered bonds in the denomination of $5,000 each or any integral multiple thereof. D. CUSIP numbers will be however, the validity, sale, delivery will not be affected in any manner by numbers on any of the Bonds. -10- imprinted on the Bonds; or acceptance of the Bonds any error in printing CUSIP 93-- 481 E. The Bonds shall be executed in the name of the City by the Mayor or'Vice Mayor of the City and the seal of the City shall be imprinted, reproduced or lithographed on the Bonds and attested to and countersigned by the Clerk or any Deputy Clerk of the City. In addition, the City Attorney or any Assistant City Attorney shall sign the Bonds, showing approval of the form and correctness thereof. The signatures of the Mayor, Vice Mayor, Clerk, Deputy Clerk, City Attorney and Assistant City Attorney on the Bonds may be by facsimile. If any officer whose signature appears on the Bonds ceases to hold office before the delivery of the Bonds, his signature shall nevertheless be valid and sufficient for all purposes. In addition, any Bond may bear the signature of, or may be signed by, such persons as at the actual time of execution of such Bond shall be the proper officers to sign such Bond although at the date of such Bond or the date of delivery thereof such persons may not have been such officers. only such of the Bonds as shall have endorsed thereon a certificate of authentication substantially in the form set forth in Section 5.L below, duly executed by the Bond Registrar and Paying Agent, shall be entitled to any right or benefit under this Resolution. No Bond shall be valid or obligatory for any purpose unless and until such certificate of authentication shall have been duly executed by the Bond Registrar and Paying Agent, and such certificate of the Bond Registrar and Paying Agent upon any such Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Resolution. The Bond Registrar and Paying Agent's certificate of authentication on any Bond shall be deemed to have been duly executed if signed by an authorized officer of the Bond Registrar and Paying Agent, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds that may be issued hereunder at any one time. F. If any Bond is mutilated, destroyed, stolen or lost, the City or its agent may, in its discretion, (i) deliver a duplicate replacement Bond or (ii) pay a Bond that has matured or is about to mature. A mutilated Bond shall be surrendered to and canceled by the Clerk of the City or his duly authorized agent. The registered owner of a Bond must furnish the City or its agent proof of ownership of any destroyed, stolen or lost Bond, post satisfactory indemnity, comply with any reasonable conditions the City or its agent may prescribe and pay the City or its agent' s reasonable expenses. Any such duplicate Bond shall constitute an original contractual obligation on the part of the City whether or not the destroyed, stolen or lost Bond shall be at any time found by anyone, and such duplicate Bond shall be entitled to equal and proportionate benefits and rights as to lien on, and source of payment of and security for payment from, the funds pledged to the payment of the Bond so mutilated, destroyed, stolen or lost. -11- 93-- 481 G. The Bonds shall be subject to redemption prior to their maturity at such times and in such manner as is set forth or incorporated by reference in the Preliminary Official Statement and/or the Bond Purchase Agreement or as shall be subsequently provided in the final Official Statement and/or the Bond Purchase Agreement approved by the City Manager pursuant to the authority and guidelines described herein or as established by subsequent resolution or ordinance of the Issuer adopted on or before the time of delivery of the Bonds. Notice of redemption shall be given by deposit in the U.S. mail of a copy of a redemption notice, postage prepaid, at least thirty (30) and not more than sixty (60) days before the redemption date to all registered owners of the Bonds or portions of the Bonds to be redeemed at their addresses as they appear on the registration books to be maintained in accordance with the provisions hereof. Failure to mail any such notice to a regis- tered owner of a Bond, or any defect therein, shall not affect the validity of the proceedings for redemption of any Bond or portion thereof with respect to which no failure or defect occurred. Such notice shall set forth the date fixed for redemption, the rate of interest borne by each Bond being redeemed, the date of publication, if any, of a notice of redemption, the name and address of the Bond Registrar and Paying Agent, the redemption price to be paid and, if less than all of the Bonds then outstanding shall be called for redemption, the distinctive numbers and letters, including CUSIP numbers, if any, of such Bonds to be redeemed and, in the case of Bonds to be redeemed in part only, the portion of the principal amount( thereof to be redeemed. If any Bond is to be redeemed in part only, the 'notice of redemption which relates to such Bond shall also state that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds in a principal amount equal to the unredeemed portion of such Bond will be issued. Any notice mailed as provided in this section shall be conclusively presumed to have been duly given, whether or not the owner of such Bond receives such notice. In addition to the mailing of the notice described above, each notice of redemption and payment of the redemption price shall meet the requirements set forth in (i), (ii) and (iii) below; provided, however, that notwithstanding any other provision of this Resolution to the contrary, failure of such notice or payment to comply with the terms of this paragraph shall not in any manner defeat the effectiveness of a call for redemption if notice thereof is given as otherwise prescribed above in this Section 5.G: (i) Each notice of redemption shall be sent at least thirty-five (35) days before the redemption date by registered or certified mail or overnight delivery -12- 93- 481 service or, telecopy to all registered securities depositories then in the business of holding substan- tial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. (ii) Each notice of redemption shall be published one time in THE BOND BUYER, New York, New York or, if such publication is impractical or unlikely to reach a substantial number of the holders of the Bonds, in some other financial newspaper or journal which regularly carries notices of redemption of other obligations similar to the Bonds, such publication to be made at least thirty (30) days prior to the date fixed for redemption. (iii) Upon the payment of the redemption price of the Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. The Bond Registrar and Paying Agent shall not be required to transfer or exchange any Bond after the publication and mailing of a notice of redemption nor during the period of fifteen (15) days next preceding publication and mailing of a notice of redemption. H. Notice having been given in the manner and underl the conditions hereinabove provided, the Bonds or portions of Bonds so called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption for such Bonds or portions of Bonds on such date. On the date so designated for redemption, moneys for payment of the redemption price being held in separate accounts by the Bond Registrar and Paying Agent in trust for the registered owners of the Bonds or portions thereof to be redeemed, all as provided in this Resolution, interest on the Bonds or portions of Bonds so called for redemption shall cease to accrue, such Bonds and portions of Bonds shall cease to be entitled to any lien, benefit or security under this Resolution, and the registered owners of such Bonds or portions of Bonds shall have no right in respect thereof except to receive payment of the redemption price thereof and, to the extent provided in the next subsection, to receive Bonds for any unredeemed portions of the Bonds. I. In case part but not all of an outstanding fully registered Bond shall be selected for redemption, the registered owner thereof shall present and surrender such Bond to the City or the Bond Registrar and Paying Agent for payment of the principal amount thereof so called for redemption, and the City -13- 93- 481 shall execute and deliver to or upon the order of such registered owner, without charge therefor, for the unredeemed balance of the principal amount of the Bond so surrendered, a Bond or Bonds fully registered as to principal and interest in an authorized denomination. J. Bonds or portions of Bonds that have been duly called for redemption under the provisions hereof, and with respect to which amounts sufficient to pay the principal of, premium, if any, and interest to the date fixed for redemption shall be delivered to and held in separate accounts by an escrow agent, any bank, trust company, national banking association, savings and loan association, savings bank or other banking association which is authorized under Florida law to be a depositary of municipal funds and which has qualified with all applicable state and federal requirements concerning the receipt of the City's funds (an "Authorized Depositary") or the Bond Registrar and Paying Agent in trust for the registered owners thereof, as provided in this Resolution, shall not be deemed to be outstanding under the provisions of this Resolution and shall cease to be entitled to any lien, benefit or security under this Resolution, except to receive the payment of the redemption price on or after the designated date of redemption from moneys deposited with or held by the escrow agent, Authorized Depositary or Bond Registrar and Paying Agent, as the case may be, for such redemption of the Bonds and, to the extent provided in the preceding subsection, to receive Bonds for any unredeemed portion of the Bonds. K. If the date for payment of the principal of, premium, if any, or interest on the Bonds shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Bond Registrar and Paying Agent is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are so authorized to close, and payment on such day shall have the same force and effect as if made on the nominal date of payment. L. The text of the Bonds and the form of assignment for such Bonds, the authentication certificate and the validation certificate to be endorsed thereon, shall be substantially in the following form, with such omissions, insertions and variations as may be necessary or desirable and authorized by this Resolution or by any subsequent resolution or ordinance adopted prior to the issuance thereof, or as may be approved and made by the officers of the City executing the same, such execution to be conclusive evidence of such approval, including, without limitation, such changes as may be required for the issuance of uncertificated public obligations: -14- 93- 481 No. R- [Form of Bond] UNITED STATES OF AMERICA STATE OF FLORIDA THE CITY OF MIAMI GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 Interest Maturity Date: Rate: REGISTERED OWNER: PRINCIPAL AMOUNT: Original Dated: CUSIP NO: DOLLARS The City of Miami, Florida (hereinafter called the "City"), for value received, hereby promises to pay to the Registered Owner identified above, or to registered assigns or legal representatives, on the Maturity Date identified above (or earlier as hereinafter provided), the Principal Amount identified above, upon presentation and surrender hereof, at the office of �.�. a o ALLI.I C.3.7V1.`i ul a5s1yi15, as Bond Registrar and Paying Agent (the "Bond Registrar"), at the office of the Bond Registrar in , Florida, and to pay interest on the principal sum from the date hereof, or from the most recent interest payment date to which interest has been paid, at the Interest Rate per annum identified above, until payment of the principal sum, or until provision for the payment thereof has been duly provided for, such interest being payable semiannually on the first day of and the first day of of each year, commencing on the first day of , Interest will be paid by wire transfer (as provided below), or by check or draft mailed to the Registered Owner hereof at his address as it appears on the registration books of the City maintained by the Bond Registrar at the close of business on the fifteenth (15th) day (whether or not a business day) of the month next preceding the interest payment date (the "Record Date"), irrespective of any transfer or exchange of such Bond subsequent to such Record Date and prior to such interest payment date, unless the City shall be in default in payment of interest due on such interest payment date. Each owner of bonds aggregating not less than $1,000,000 shall be entitled to the payment of such interest by wire transfer to a bank or other financial institution located within the continental United States, provided that wire instructions and name of bank and account therein have been provided to the Paying Agent by the _15_ 93- 431 owner prior to the Record Date. In the event of any such default, such defaulted interest shall be payable to the person in whose name such Bond is registered at the close of business on a special record date (which date shall also be the date for the payment of such defaulted interest) as established by notice by deposit in the U.S. mail, postage prepaid, by the City to the Registered Owners of Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names the Bonds are registered at the close of business on the fifth (5th) day (whether or not a business day) preceding the date of mailing. This Bond is one of an authorized issue of bonds in the initial aggregate principal amount of $ of like date, tenor and effect, except as to number, maturity (unless all bonds mature on the same date) and interest rate, issued to provide for the advance refunding of the City's, pursuant to the authority of and in,full compliance with the Constitution and laws of the State of Florida, including particularly Article VII, Section 2 of the Constitution; Chapters 166 and 132, Florida Statutes; Resolution No. , duly adopted by the City on , and certain other resolutions of the City (collectively, the "Resolution"), and other applicable provisions of law. This Bond is subject to all the terms and conditions of the Resolution. For the prompt payment of the principal of, redemption premium, if any, and interest on this Bond as the same shall become due, the full faith, credit and taxing power of the City are hereby irrevocably pledged. The Bonds of this series scheduled to mature one , or thereafter, shall be subject to redemption prior to their maturity at the option of the City on or after , in whole at any time or in part on any interest payment date, in inverse order of maturities and by lot within a maturity, at par, plus accrued interest from the most recent interest payment date to the redemption date. Notice of redemption is to be given by mailing a copy of the redemption notice by registered or certified mail at least thirty ( 30 ) but not more than sixty ( 60 ) days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the Bond Registrar's registration books. Failure to give such notice by mailing to any Bondholder, or any defect therein, shall not affect the validity of the proceedings for the redemption of any Bond or portion thereof with respect to which no such failure or defect has occurred. All such Bonds called for redemption and for the retirement of which funds are duly provided will cease to bear interest on such redemption date. Reference is made to the Resolution for the provisions, among others, relating to the terms, lien and security for the Bonds, the custody and application of the proceeds of the Bonds, -16- 99- 481 the rights and remedies of the holders of the Bonds, and the extent of and limitations on the City's rights, duties and obligations, to all of which provisions the registered owner hereof assents by acceptance hereof. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security benefit under the Ordinance until the Certificate of Authentication endorsed hereon shall have been signed by the Bond Registrar. The registration of this Bond may be transferred upon the registration books upon delivery thereof to the principal office of the Bond Registrar accompanied by a written instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Bond Registrar, duly executed by the owner of this Bond or by his attorney -in -fact or legal representative, containing written instructions as to the details of transfer of this Bond, along with the social security number or federal employer identification number of such transferee. In all cases of a transfer of a Bond, the Bond Registrar shall at the earliest practical time in accordance with the provisions of the Ordinance enter the transfer of ownership in the registration books and shall deliver in the name of the new transferee or transferees a new fully registered Bond or Bonds of the same maturity and of authorized denomination or denominations, for the same aggregate principal amount and payable from the same source of funds. The City and the Bond Registrar may charge the owner of such Bond for the registration of every transfer or exchange of a Bond an amount sufficient to reimburse them for any tax, fee or any other governmental charge required (other than by the City) to be paid with respect to the registration of such transfer, and may require that such amounts be paid before any such new Bond shall be delivered. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the corporate trust office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are so authorized to close, and payment on such day shall have the same force and effect as if made on the nominal date of payment. It is hereby certified and recited that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of Florida, that all acts, conditions and things required to exist, to happen, and to be performed precedent to the issuance of this Bond exist, have happened and have been performed in regular and due form and time as required by the laws and Constitution of the State of Florida applicable hereto, and that the issuance of the Bonds of -17- 93- 481 this issue does not violate any constitutional or statutory limitation or provision. IN WITNESS WHEREOF, the City of Miami, Florida, has issued this Bond and has caused the same to be signed by its Mayor either manually or with his facsimile signature, and attested and countersigned by the manual or facsimile signature of its City Clerk, and a facsimile of its seal to be reproduced hereon, all as of the first day of , (SEAL) ATTESTED AND COUNTERSIGNED: By City Clerk -18- THE CITY OF MIAMI, FLORIDA By: Mayor APPROVED AS TO FORM: By: City Attorney 93- 481 CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds designated in and executed under the provisions of the within mentioned Ordinance. as Bond Registrar Bv: Authorized Officer Date of Authentication: [Form of Abbreviations for Bonds] The following abbreviations, when used in the inscription on the face of the within Bond, shall be construed as though they were written out in full according to the applicable laws or regulations. TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with the right of sur- vivorship and not as tenants in common UNIFORM GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. -19- 93- 481 [Form of Assignment for Bonds] ASSIGNMENT FOR VALUE RECEIVED, the undersigned (the "Transferor"), hereby sells, assigns and transfers unto the ("Transferee"). PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints as attorney to register the transfer of the within Bond on the books kept for registration and registration of transfer thereof, with full power of substitution in the premises. Date: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a member firm of any other recognized national securities exchange or a commercial bank or a trust company. NOTICE: No transfer will be re- gistered and no new Bond will be issued in the name of the Transferee, unless the signa- tures) to this Assignment correspond(s) with the name as it appears upon the face of the within Bond in every particu- lar, without alteration or enlargement or any change whatever and the Social Security or Federal Employer Identification Number of the Transferee is supplied. [End of Form of Bond] -20- SECTION 6. Application of Bond Proceeds. The proceeds, including accrued interest and premium, if any, received from the sale of the Bonds shall be applied by the City simultaneously with delivery of The Bonds, as follows: (a) Accrued interest, if any, shall be deposited with the Paying Agent, who shall apply such moneys to pay interest on the Bonds as the same becomes due. (b) An amount which, together with investment earnings thereon and any other available funds of the City, is equal to the principal of and interest and redemption premiums, if any, on the Refunded Bonds when due in accordance with the schedules to be attached to the Escrow Deposit Agreement shall be transferred to the Escrow Agent for deposit into the Escrow Deposit Trust Fund created and established pursuant to the Escrow Deposit Agreement and shall be used and applied pursuant to and in the manner described in the Escrow Deposit Agreement to pay the principal and interest on the Refunded Bonds and to pay redemption premiums and costs with respect thereto. (c) The remainder of the proceeds shall be transferred to the Paying Agent and deposited in a separate fund designated "Cost of Issuance Fund" and shall be disbursed (i) for payment of expenses incurred in issuing the Bonds (including payment of the expenses of the City), and (ii) for the payment of the fees and expenses of the Escrow Agent. Any balance remaining after paying or provision for payment of such costs and expenses has been made shall be used solely to pay principal of and interest on the Bonds. SECTION 7. Investment of Proceeds of the Bonds. All proceeds of the Bonds held by the Escrow Agent shall be invested only in Government Obligations, as provided by the Escrow Deposit Agreement. Proceeds of the Bonds representing accrued interest on the Bonds transferred to the City pursuant to the provisions of Section 6 above may be invested by the City in Tax Exempt Obligations or such other investments as are permitted by applicable law. SECTION 8. Levy of Ad Valorem Tax; Payment and Pledge; Appropriation. In each fiscal year while any of the Bonds are outstanding, there shall be assessed, levied and collected a tax, without limitation as to rate or amount, on all taxable property within the corporate limits of the City (excluding homestead exemptions as required by applicable law), sufficient in amount to pay the principal of, premium, if any, and interest on the Bonds as the same shall become due. The tax assessed, levied and collected for the security and payment of the Bonds shall be assessed, levied and collected in the same manner and at the same -21- 93- 481 time as other taxes are assessed, levied and collected and the proceeds of said tax shall be applied solely to the payment of principal of, premium, if any, and interest on the Bonds. The full faith, credit and taxing power of the City are irrevocably pledged to the payment of the principal of, premium, if any, and interest on the Bonds. The City will diligently enforce its right to receive tax revenues and will diligently enforce and collect such taxes. the City will not take any action that will impair or adversely affect its rights to levy, collect and receive said taxes, or impair or adversely affect in any manner the pledge made herein or the rights of the holders of the Bonds. The City will appropriate from its general fund, not later than the twenty-ninth (29th) day of each month next preceding the dates upon which payments of the principal of, premium, if any, and interest on the Bonds shall be due, an amount sufficient to pay such principal of, premium, if any, and interest on the Bonds, as the case may be, and shall transfer such payments to the Paying Agent for payment to the Bondholders. SECTION 9. Compliance With Tax Requirements. The City hereby covenants and agrees, for the benefit of the owners from time to time of the Bonds, to comply with the requirements applicable to it contained in Section 103 and Part IV of Subchapter B of Chapter 1 of the Internal Revenue Code of 1986, as amended (the "Code"), to the extent necessary to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes. Specifically, without intending to limit in any way the generality of the foregoing, the City covenants and; agrees: (1) to pay to the United States of America from the funds and sources of revenues pledged to the payment of the Bonds, and from any other legally available funds, at the times required pursuant to Section 148(f) of the Code, the excess of the amount earned on all non -purpose investments (as defined in Section 148(f)(6) of the Code) over the amount which would have been earned if such non -purpose investments were invested at a rate equal to the yield on the Bonds, plus any income attributable to such excess (the "Rebate Amount"); (2) to maintain and retain all records pertaining to and to be responsible for making or causing to be made all determinations and calculations of the Rebate Amount and required payments of the Rebate Amount as shall be necessary to comply with the Code; (3) to refrain from using proceeds from the Bonds in a manner that would cause the Bonds, or any of them, to be classified as private activity bonds under Section 141(a) of the Code; and -22- 93- 481 t'\ (4) to refrain from taking any action that would cause the Bonds, or any of them, to become arbitrage bonds under Section 103(b) and Section 148 of the Code. The City understands that the foregoing covenants impose continuing obligations on the City to comply with the requirements of Section 103 and Part- IV of Subchapter B of Chapter 1 of the Code so long as such requirements are applicable. SECTION 10. Compliance With Refunded Bonds Ordinances and Resolutions. With respect to the Bonds, the City covenants and agrees that, except to the extent inconsistent herewith, it will perform and comply with all of the covenants, conditions, agreements or provisions applicable to the Refunded Bonds contained in the ordinances and resolutions pursuant to which the Refunded Bonds were issued as set forth in 3.A, 3.B, 3.C, 3.D and 3.E above and in particular, the 1987 Bond Ordinance, the 1988 Bond Ordinance and the 1991 Resolution and in the Refunded Bonds. The City further covenants and agrees that it will not modify or amend such ordinances and resolutions in any respect which will have an adverse affect on any of the Refunded Bonds. Notwithstanding the foregoing, however, nothing herein is intended to require the City to comply, in connection with the terms and provisions of the Bonds, with the covenants, conditions, agreements or provisions of such ordinances and resolutions that might apply to the Bonds unless the same be set forth in this Resolution or otherwise required by law, and to the extent that such ordinances and resolutions purport to affect the terms and provisions of the Bonds, such ordinances and resolutions are hereby amended to comply herewith with respect to the Bonds. SECTION 11. Bond Insurance. If it is determined to be in the best interest of the City, the Mayor or the City Manager, or their respective designee, is hereby authorized to negotiate with bond insurers to provide insurance for the Bonds, and to obtain a municipal bond insurance policy for the Bonds pursuant to terms, conditions, covenants and agreements required but such bond insurance, provided such terms, conditions, covenants and agreements do not adversely affect the interest of the owners of the Refunded Bonds, and such terms, conditions, covenants and agreements are approved by the City Attorney. Upon approval by the City Attorney, such terms, conditions, covenants and agreements to be set forth in the bond insurance policy shall be incorporated herein by reference and deemed a part hereof. SECTION 12. Approval of Bond Purchase Agreement. The form of the Bond Purchase Agreement presented by the Original Purchaser and attached hereto as Exhibit "A" is hereby approved, subject to such changes, insertions and omissions and such filling of blanks therein as may be approved and made in such Bond Purchase Agreement by the officers of the City executing the same, in a manner consistent with the provisions of this -23- 93- 481 Resolution, such execution to be conclusive evidence of such approval. Upon receipt of a disclosure statement, the City Manager or the Mayor or their respective designee are hereby authorized to accept the offer of the Original Purchaser to purchase the Bonds in the aggregate principal amount of not exceeding $31,000,000, at an average true interest cost rate not to exceed the Maximum TIC, and at a purchase price of not less than the Minimum Purchase Price, plus accrued interest thereon to the date of delivery, upon the terms and conditions set forth in the Bond Purchase Agreement. The Mayor or City Manager and the Clerk, or their respective designee, are hereby authorized to execute the Bond Purchase Agreement for and on behalf of the City pursuant to the terms hereof and of the Bond Purchase Agreement. SECTION 13. Approval of Form of Escrow De op sit Agreement; Aut,hori zati on of Appointment of Escrow Agent-. The form of the Escrow Deposit Agreement attached hereto as Exhibit "B" is -hereby approved, subject to such changes, insertions and omissions and filling of blanks therein as may be approved and made in such form of Escrow Deposit Agreement by the officers of the Issuer executing the same, in a manner consistent with the provisions of this Resolution, such execution to be conclusive evidence of such approval. The City Manager or the Mayor or their respective designee is hereby authorized and directed to appoint an Escrow Agent to act under the terms of the Escrow Deposit Agreement prior to the issuance of the Bonds, and the Mayor or City Manager and the Clerk are hereby authorized to execute the Escrow Deposit Agreement on behalf of the City with the Escrow Agent. Upon appointment of the Escrow Agent, the Mayor or City Manager is hereby authorized and directed to notify the Escrow Agent of its appointment as such prior to the issuances of the Bonds. SECTION 14. Appointment of Paying Agent and Bons] Registrar. The City Manager or the Mayor or their respective designee is hereby authorized and directed to appoint an initial Paying Agent and initial Bond Registrar (which can be the same entity) for the Bonds prior to the issuance of the Bonds. The Mayor or the City Manager and the Clerk are hereby authorized to execute an agreement or agreements for and on behalf of the City with the Paying Agent and the Bond Registrar in connection with such services. SECTION 15. Official Statement. The City hereby approves the form and content of the Preliminary Official Statement attached hereto as Exhibit "C". The use of such Preliminary Official Statement in connection with the marketing of the Bonds is hereby authorized. The Mayor or the Vice Mayor, or their respective designee is hereby authorized to approve and execute, on behalf of the City, an Official Statement relating to the Bonds with such changes from the Preliminary Official Statement, within the authorizations and limitations contained herein, as the Mayor or the City Manager, in their sole discretion, may approve, such execution to be conclusive evidence -24- 93- 481 f.) "N' of such approval. The Director of Finance, the Mayor or the City Manager, or their respective designee, are hereby authorized to deem the Preliminary Official Statement final for the purposes of Rule 15c2-12 of the Securities and Exchange Commission. SECTION 16. Election to Call Refunded Bonds; Puhliga- t on of Notice of Refundinq,. The City hereby elects to call and redeem the Refunded Bonds in accordance with the call schedule to be set forth in the Escrow Deposit Agreement as approved by the Mayor or the City Manager or their respective designee or as established by subsequent resolution of the City adopted on or before the time of delivery of the Bonds. Within 30 days after the delivery of the Bonds, the City will, and hereby authorizes and directs the Escrow Agent to, cause to be published one time in a newspaper published and of general calculation in Dade County, Florida and a financial journal of general circulation in the Borough of Manhattan, County and State of New York, a notice of refunding of the Refunded Bonds and the call schedule with respect thereto as set forth in the Escrow Deposit Agreement. The Escrow Agent is hereby authorized and directed, in the name of the City, to cause notice of such call to be given as required by law and by the terms of the Refunded Bonds. SECTION 17. Authorizations. The Mayor, the City Manager, the City Clerk, the City Attorney and the Director of Finance of the City and their respective designee are each designated as agents of the City in connection with the sale, issuance and delivery of the Bonds and are authorized and empowered, collectively or individually, to take all actions and steps and to execute all instruments, documents and contracts on behalf of the City that are necessary or desirable in connection with the sale, execution, issuance and delivery of the Bonds and which are not inconsistent with the terms and provisions of this Resolution. SECTION la. Modification or Amendment. This Resolu- tion may be modified and amended and all appropriate blanks appearing herein may be completed by the City from time to time prior to the issuance of the Bonds. Thereafter, no modification or amendment of this Resolution or of any resolution or ordinance amendatory hereof or supplemental hereto materially adverse to the holders of the Bonds may be made without the consent in writing of the owners of not less than a majority in aggregate principal amount of the outstanding Bonds, but no modification or amendment shall permit a change (a) in the maturity of the Bonds or a reduction in the rate of interest thereon, (b) in the amount of the principal obligation of any Bond, (c) that would affect the unconditional promise of the City to levy and collect taxes as herein provided, or (d) that would reduce such percentage of holders of the Bonds required above for such modifications or amendments, without the consent of all of the holders of the Bonds. For the purpose of Bondholders' voting rights or consents, the Bonds owned by or held for the account of the City, directly or indirectly, shall not be counted. -25- 93- 481 SECTION 19. Defe nce and Release. If, at any time after the date of issuance of the Bonds (a) all Bonds secured hereby or any maturity thereof shall have become due and payable in accordance with their terms or otherwise as provided in this Resolution, or shall have been duly called for redemption, or the City gives the Bond Registrar and Paying Agent irrevocable instructions directing the payment of the principal of, premium, if any, and interest on such Bonds at maturity or at any earlier redemption date scheduled by the City, or any combination thereof, (b) the full amount of the principal, premium, if any, and the interest so due and payable upon all of such Bonds then outstanding, at maturity or upon redemption, shall be paid, or sufficient moneys shall be held by the Bond Registrar and Paying Agent, any escrow agent or an Authorized Depositary in irrevocable trust for the benefit of such holders of the Bonds (whether or not in any accounts created hereby) which, when invested in direct obligations of the United States of America maturing not later than the maturity or redemption dates of such principal, premium, if any, and interest, will, together with the income realized on such investments, be sufficient to pay all such principal, premium, if any, and interest on said Bonds at the maturity thereof or the date upon which such Bonds are to be called for redemption prior to maturity, and (c) provision shall also be made for paying all other sums payable hereunder by the City, then and in that case the right, title and interest of Bondholders hereunder shall thereupon cease, determine and become void; otherwise, this Resolution shall be, continue and remain in full force and effect. Notwithstanding anything in this Section 19 to the contrary, however, the obligations of the City under Section 7 hereof shall remain in full force and effect until such time as such obligations are fully satisfied. SECTION 20. Severility. If any one or more of the covenants, agreements or provisions of this Resolution shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions of this Resolution or of the issued Bonds hereunder. SECTION 21. 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 parties hereto and the owners and holders of the Bonds issued under and secured by this Resolution, any right, remedy or claim, legal or equitable, under or by reason of this Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and exclusive benefit of the parties hereto and the owners and holders from time to time of the Bonds issued hereunder. -26- 93- 481 SECTION 22., Controlling Law; Members of Commission and Officials of City Not Liable. All covenants, stipulations, obligations and agreements of the City contained 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 covenant, stipulation, obligation or agreement contained herein 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 neither the members of the Commission nor any official executing the Bonds shall be liable personally on the Bonds or this Resolution or shall be subject to any personal liability or accountability by reason of the issuance or the execution by the Commission or such members thereof. SECTION 23. Qualification For The Depository Trust Company'. Notwithstanding any other provision hereof, the City, the Bond Registrar and Paying Agent are hereby authorized to take such actions as may be necessary from time to time to qualify the Bonds for deposit with The Depository Trust Company, including but not limited to those actions as may be set forth in a letter of representations prepared in such form as is customarily required from The Depository Trust Company, wire transfers of interest and principal payments with respect to the Bonds, utilization of electronic book entry data received from The Depository Trust Company in place of actual delivery of Bonds and provisions of notices with respect to Bonds registered by The Depository Trust Company (or any of its designees identified to the Issuer, the Bond Registrar or the Paying Agent) by overnight delivery, courier service, telegram, telecopy or other similar means of communication. No such arrangements with The Depository Trust Company may adversely affect the interests of any of the owners of the Bonds, provided, however, that the City and the Bond Registrar and Paying Agent shall not be liable with respect to any such arrangements they may make pursuant to this section. -27- 93- 481 SECTION 24., Effective Date. This Resolution shall be effective immediately upon its adoption. PASSED AND ADOPTED this 22nd day of , 1993. By: avier L. S arez Mayor ATTES By: M ty Hirai, City Clerk APPROVED AS TO FORM AND CORRECTNESS: By.IzAe"e,j) A QxUn o es II City Att ey 147CP1109H 062393/3/er IME PREPARED AND APPROVED BY: RAFAEL 0. DIAZ Deputy City A �ey 93- 481 EXHIBIT "A" THE CITY OF MIAMI, FLORIDA GENERAL OBLIGATION REFUNDING BONDS SERIES 1993 BOND PURCHASE AGREEMENT , 1993 Honorable Mayor and Members of the City Commission of The City of Miami, Florida 3006 Pan American Drive Miami, Florida 33133 Ladies and Gentlemen: The undersigned, The First Boston Corporation (the "Senior Managing Underwriter"), acting on behalf of itself and First Equity Corporation of Florida, Artemis Capital Group, Inc., Pryor, McClendon, Counts & Co. and Samuel A. Ramirez & Co., Inc. (collectively with the Senior Managing Underwriter, the "Underwriters"), hereby offer to enter into the following Bond Purchase Agreement with The City of Miami, Florida (the "City"), which, upon acceptance of this offer by the City, will be binding upon the City and the Underwriters. This offer is made subject to acceptance by the City by execution of this Bond Purchase Agreement prior to 5:00 p.m., New York City time, on the date hereof, and, if not so accepted, will be subject .to withdrawal by the Senior Managing Underwriter upon written notice to the City at any time prior to acceptance hereof by the City. The Senior Managing Underwriter represents that it is authorized on behalf of itself and the other Underwriters to enter into this Bond Purchase Agreement and that it is authorized to execute this Bond Purchase Agreement and to take any other actions which may be required hereby on behalf of the other Underwriters. All capitalized terms not otherwise defined herein shall have the same meanings as set forth in the Resolution (as hereinafter defined), and if not set forth in the Resolution, the same meanings as set forth in the Official Statement (as hereinafter defined). 1. Purchase and Sale of Bonds. (a) Subject to the terms and conditions and upon the basis of the representations, warranties and covenants hereinafter set forth, the Underwriters, jointly and severally, hereby agree to purchase from the City, and the City hereby agrees to sell to the Underwriters all (but not less than all) of the $ aggregate principal amount of The City of Miami General Obligation Refunding Bonds, Series 1993 (the "Series 1993 Bonds"), at the aggregate purchase price of $ (representing the principal amount of $ 93- 481 less an original issue discount of $ less an underwriters discount of $ ), plus accrued interest from , 1993, to the Closing Date (as hereinafter defined). The Series 1993 Bonds shall bear interest at the rates, be sold to the public at the prices and mature on the dates all as set forth on Schedule 1, attached hereto, and on the cover of the Official Statement. The Official Statement of the City relating to the Series 1993 Bonds, dated the date hereof, including the cover page, financial and statistical information included therein, and appendices thereto presented herewith, with such additional changes and amendments as shall be approved by the Senior Managing Underwriter and the City, acting through its City Manager or his designee, is hereinafter referred to as the "Official Statement." The Underwriters agree to make a bona fide public offering of the Series 1993 Bonds, solely pursuant to the Official Statement, at the initial offering prices set forth in the Official Statement, reserving, however, the right to change such initial offering prices as the Senior Managing Underwriter shall deem necessary in connection with the marketing of the Series 1993 Bonds and to offer and sell the Series 1993 Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at concessions to be determined by the Senior Managing Underwriter. The Underwriters also reserve the right to overallot or effect transactions that stabilize or maintain the market prices of the Series 1993 Bonds at levels above that which might otherwise prevail in the open market and to discontinue such stabilizing, if commenced, at any time. (b) The Series 1993 Bonds shall be substantially in the form described in, and issued and secured pursuant to, Resolution No. adopted by the Board of City Commissioners of the City (the "City Commission") on , 1993 (the "Resolution"). The Series 1993 Bonds are authorized to be issued pursuant to the Charter of the City, but only to the extent not inconsistent with and not repealed by the provisions of Section 166.021, Florida Statutes; Chapter 166, Florida Statutes, Sections 132.33-132.47, as amended; the Constitution! of the State of Florida, including, but not limited to, Article VII, Section 2 thereof; the' Resolution; and other applicable provisions of law (collectively, the "Act"). (c) The Underwriters have delivered to the City a letter containing the information required by Section 218.385 of the Florida Statutes, which letter is in the form attached hereto as Schedule II, and Public Entity Crimes Affidavits, which Public Entity Crimes Affidavit is in the form attached hereto as Schedule III. (d) The Series 1993 Bonds are being issued to advance refund a all or a portion of the City's $10,000,000 General Obligation Bonds, dated August 1, 1987 consisting of those bonds maturing on or after August 1, 1998, a portion of the City's $18,400,000 General Obligation Bonds, dated November 1, 1988 consisting of those bonds maturing on or after November 1, 1999 and a portion of the City's $10,000,000 General Obligation Bonds, Series 1991, dated July 1, 1991 consisting of those bonds maturing on or after July 1, 2002 (collectively, the "Refunded Bonds"), and to pay costs of issuance of the Series 1993 Bonds, including the premium for municipal bond insurance for the Series 1993 Bonds. The monies required to refund the Refunded Bonds will be derived from the proceeds of the sale of the Series 1993 Bonds [and other legally available funds of the City]. -2- 93- 481 Such monies will be irrevocably deposited with , as escrow agent for the Refunded Bonds (the "Escrow Agent") pursuant to an Escrow Deposit Agreement dated as of , 1993 (the "Escrow Deposit Agreement"), by and between the City and the Escrow Agent. The Escrow Deposit Agreement requires the Escrow Agent to use certain of the amounts escrowed thereunder to purchase direct obligations of the United States of America (such direct obligations of the United States of America to be purchased by the Escrow Agent with such monies being referred to collectively as the "Government Obligations"). The Government Obligations will mature at such times and in such amounts so that sufficient monies will be available from such maturing principal, together with interest income from the Government Obligations, and cash balances, if any, to make payments of interest on the Refunded Bonds, as they become due, and to redeem the Refunded Bonds in accordance with the terms of the Escrow Deposit Agreement. (e) Concurrently with the delivery of the Series 1993 Bonds, (the "Bond Insurer") will deliver to the Trustee for the benefit of the holders of the 1993 Bonds, a policy of insurance guaranteeing the timely payment of principal of and interest on the Series 1993 Bonds (the "Bond Policy"). (f) The City shall deliver to the Senior Managing Underwriter a copy of the Official Statement, attached as Exhibit A hereto and incorporated by reference herein, which shall be manually signed on behalf of the City by a duly authorized officer of the City on the date of execution of this Bond Purchase Agreement. Upon receipt by the Senior Managing Underwriter of the Series 1993 Bonds, an executed Escrow Deposit Agreement, an executed Official Statement, and an executed Bond Purchase Agreement and subject to the other conditions set forth herein, the Underwriters agree to purchase the Series 1993 Bonds at the Closing. (g) The City authorizes the Underwriters to use and distribute copies of the Official Statement and the information contained therein and copies of the Resolution in connection with the public offering and sale of the Series 1993 Bonds and agrees not to supplement or amend or cause to be supplemented or amended the Resolution, Escrow Deposit Agreement or the Official Statement, at any time prior to the Closing (as hereinafter defined), without the consent of the Senior Managing Underwriter. (h) The Preliminary Official Statement dated , 1993 relating to the original issuance of the Series 1993 Bonds has been prepared for use in connection with the public offer, sale and distribution of the Series 1993 Bonds by the Underwriters. The City hereby "deems final" (except for permitted omissions) the Preliminary Official Statement as of its date for purposes of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended, ("Rule 15c2-12"), and the Underwriters were and are authorized to use the Preliminary Official Statement in their marketing efforts. (i) Subject to Section 8 hereof, the City agrees to deliver, in a form acceptable to the Underwriters, such reasonable quantities of the printed Official Statement and the Resolution as the Underwriters may request for use in connection with the offering and sale -3- 93- 481 of the Series 1993 Bonds and to comply with the rules of the Municipal Securities Rulemaking Board and Rule 15c2-12. The printed Official Statement will be available to the Underwriters within seven (7) business days of the execution of this Bond Purchase Agreement and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriters. Delivery of such copies of the printed Official Statement within such seven (7) business day period shall constitute the City's representation that such printed Official Statement is complete as of the date of its delivery. The Underwriters agree to file the Official Statement with at least two Nationally Recognized Municipal Securities Information Repositories ("NRMSIR") which have been so designated by the Securities and Exchange Commission pursuant to Rule 15c2-12 not later than two business days after the Closing (as hereinafter defined), and will furnish a list of the names and addresses of each NRMSIR receiving a copy to the City. The filing of the Official Statement with each NRMSIR shall be in accordance with the terms and conditions applicable to such NRMSIR. The City hereby agrees and covenants to furnish ongoing reports and information to the Underwriters as are or may become customary in the industry for municipal obligations similar to the 1993 Bonds, and specifically to furnish to the Underwriters a copy of the City's audited financial statements. The City further hereby agrees and covenants to furnish to the Underwriters such other information as becomes available from time to time as would have been included in the Official Statement had the information been known at the time of the preparation thereof or if the event from which the information arises had occurred. The obligations of the City contained in this paragraph shall terminate 25 days after the End of the Underwriting Period (as defined in 5(w)(ii) hereof). The Underwriters shall give notice to the City on the date which is one day after the End of the Underwriting Period (as defined in 5(w)(ii) hereof) and the date after which the Underwriters no longer remain obligated to deliver Official Statements pursuant to paragraph (b)(4) of Rule 15c2-12. 0) If, prior to the End of the Underwriting Period (as defined in 5(w)(ii) hereof), any event known to the City relating to or affecting the City, the Resolution, or the 1993 Bonds shall occur which might affect the correctness or completeness of any statement of a material fact contained in the Official Statement, the City will promptly notify the Underwriters orally as soon as practicable to be followed in writing of the circumstances and details of such event. If, as a result of such event or any other event, it is necessary, in the opinion of Co -Bond Counsel (as hereinafter defined) or Co -Counsel to the Underwriters (as hereinafter defined), to amend or supplement the Official Statement in order to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading and any such Counsel shall have so advised the City, the City will forthwith prepare and furnish to the Underwriters a reasonable number of copies of an amendment of or a supplement to such Official Statement, in form and substance satisfactory to the Underwriters, which will so amend or supplement such Official Statement so that, as amended or supplemented, it will not contain any untrue statement of a material fact or omit to state any material fact -4- 93- 481 necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 2. Events Requiring Disclosure. If at any time prior to Closing and within the Disclosure Period (as defined in Section 5(w)(i) hereof) any event known to the City relating to or affecting the City, the Resolution or the Series 1993 Bonds shall occur which might affect the correctness or completeness of any statement of a material fact contained in the Official Statement (an "Event Requiring Notification"), the City will promptly notify the Senior Managing Underwriter in writing of the circumstances and details of such event. If, as a result of such event or any other event, it is necessary, in the opinion of the City Attorney, the City Manager, Co -Bond Counsel (as hereinafter defined), the Senior Managing Underwriter or Co -Counsel to the Underwriters (as hereinafter defined), to amend or supplement the Official Statement in order to state any material fact necessary in order to make the statements made therein, in .light of the circumstances under which they were made, not misleading and any such counsel shall have so advised the City, the City will, at its expense, take all actions necessary to carry out the full purpose and intent and to fully comply with Section 5(z) hereof. 3. Good Faith Check. The City hereby acknowledges receipt from the Senior Managing Underwriter of a corporate check in the aggregate amount of $ (the "Good Faith Check"), which is being delivered to the City as security for the performance by the Underwriters of their obligation to accept and pay for the Series 1993 Bonds at the Closing (as hereinafter defined) in accordance with the provisions of this Bond Purchase Agreement. The City agrees not to cash the Good Faith Check unless the Underwriters default on their obligations under this Bond Purchase Agreement. Upon compliance by the Underwriters with their obligations under this Bond Purchase Agreement, the Good Faith Check shall be returned to the 1 Underwriters at the Closing. If the City does not accept this offer, the Good Faith Check shall be immediately -returned to the Senior Managing Underwriter. In the event of the City's failure to deliver the Series 1993 Bonds at the Closing, or if the City shall be unable at or prior to the Closing to satisfy the conditions to the obligations of the Underwriters contained herein, or if the obligations of the Underwriters shall be terminated for any reason permitted by this Bond Purchase Agreement, the Good Faith Check shall be immediately delivered to the Senior Managing Underwriter. If the Underwriters fail other than for a reason permitted hereunder to accept and pay for the Series 1993 Bonds upon tender thereof by the City at the Closing as herein provided, the City may cash the Good Faith Check and retain the funds represented by such Good Faith Check as full liquidated damages, and not as a penalty, for such failure and for any and all defaults hereunder on the part of the Underwriters, and the retention of such funds shall constitute a full release and discharge of all claims, rights and damages for such failure and for any and all such defaults, it being understood by both the City and the Underwriters that actual damages in such circumstances may be difficult or impossible to compute. If the City shall be unable to satisfy the conditions or obligations contained in this Bond Purchase Agreement, or if the obligations of the Underwriters to purchase and accept delivery of the Series 1993 Bonds shall be terminated for any reason permitted by this Bond Purchase -5- 93- 481 Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriters nor the County shall be under further obligation hereunder. 4. Closing (a) The Closing (as hereinafter defined) will occur before 1:00 p.m., New York City time, on , 1993 or at such other time or on such earlier or later date as shall have been mutually agreed upon by the City and the Senior Managing Underwriter. Prior to the Closing on the Series 1993 Bonds, the City will deposit with The Depository Trust Company ("DTC") one Series 1993 Bond Certificate per maturity registered in the name of DTC's nominee, Cede & Co. representing 100% of the principal amount of such Series 1993 Bonds. The City shall provide DTC with a letter of representations prior to the issue being made eligible for deposit at DTC in the form required by DTC. The Senior Managing Underwriter, on behalf of the Underwriters, will accept such delivery and pay the purchase price of the Series 1993 Bonds by delivering to the City a check or checks or wire transfer payable to the order of the City in immediately available federal funds. Payment for and delivery of the Series 1993 Bonds as aforesaid shall be made at such place as shall be agreed upon between the City and the Senior Managing Underwriter. Such payment and delivery is herein called the "Closing" and the date of the Closing is herein called the "Closing Date." 5. Representations. Warranties. and Covenants of the City. The City, by its acceptance hereof, represents, warrants and covenants to each of the Underwriters as of the date hereof and the Closing Date that: (a) the City is, and will be on the Closing Date, duly organized and validly existing as a municipal corporation under the Constitution and laws of the State of Florida with the power and authority set forth in the Act; (b) the City had, has and will have, as the case may be, full legal right, power and authority (i) to adopt the Resolution and to execute and deliver this Bond Purchase Agreement, the Official Statement, the Escrow Deposit Agreement and any other agreement or instrument to which the City is a party, used or contemplated for use in consummation of the transactions contemplated hereby or by the Official Statement; (ii) to issue, sell, execute and deliver the Series 1993 Bonds to the Underwriters as provided in this Bond Purchase Agreement; (iii) to secure the Series 1993 Bonds in the manner contemplated by Resolution; and (iv) to carry out and consummate all other transactions contemplated by the aforesaid documents and instruments; and the City has complied or will have complied as of the Closing Date with all provisions of applicable law in all matters relating to such transactions; provided, however, that the City makes no representation as to the qualification of the Series 1993 Bonds under the Blue Sky laws of the various states or the legality of the Series 1993 Bonds for investment under the laws of the various states; (c) the City has duly adopted the Resolution and has duly authorized or ratified (i) the execution, delivery and performance of this Bond Purchase Agreement, the Escrow 93- 481 Deposit Agreement and the issuance, sale, execution and delivery of the Series 1993 Bonds; (ii) the distribution of the Official Statement; and (iii) the taking of any and all such action as may be required on the part of the City to carry out, give effect to and consummate the transactions contemplated by the aforesaid documents and instruments; provided, however, that no representation is made concerning compliance with the federal securities laws or securities or Blue Sky laws of the various states; (d) this Bond Purchase Agreement and the Escrow Deposit Agreement, when executed and delivered by the parties thereto, will, and the Resolution does constitute the legal, valid and binding obligations of the City enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, moratorium or other laws affecting creditor's rights generally or subject to the exercise of the state's police power and to judicial discretion in appropriate cases; (e) the City has complied, or will at the Closing be in compliance, in all respects with the Resolution; (f) when paid for by the Underwriters at the Closing in accordance with the provisions of this Bond Purchase Agreement, the Series 1993 Bonds will be duly authorized, executed, issued and delivered and will constitute legal, valid and binding obligations of the City enforceable in accordance with their terms and the terms of the Resolution, except as may be limited by bankruptcy, insolvency, moratorium or other laws affecting creditor's rights generally or subject to the exercise of the state's police power and to judicial discretion in appropriate cases; s (g) at the Closing, all approvals, consents and orders of and filings with any' governmental authority or agency which would constitute a condition precedent to the issuance of the Series 1993 Bonds or the execution and delivery of or the performance by the City of its obligations under this Bond Purchase Agreement, the Escrow Deposit Agreement, the Series 1993 Bonds or the Resolution will have been obtained or made and any consents, approvals and orders so received or filings so made will be in full force and effect; provided, however, that no representation is made concerning compliance with the federal securities laws or the securities or Blue Sky laws of the various states; (h) other than as disclosed in the Official Statement, the adoption and performance by the City of the Resolution and the authorization, execution, delivery and perfor- mance of this Bond Purchase Agreement, the Escrow Deposit Agreement, the Series 1993 Bonds, and any other agreement or instrument to which the City is a party, used or contemplated for use in consummation of the transactions contemplated hereby or by the Official Statement, and, to the best of the City's knowledge, compliance with the provisions of each such instrument, do not and will not conflict with, or constitute or result in (i) a violation of the Constitution of the State of Florida, or any existing law, administrative regulation, rule, decree or order, state or federal, or the City Charter or the City Code; or (ii) a breach of or default under a material provision of any agreement, indenture, mortgage, lease, note or other instrument to which the City, or its -7_ 93- 481 properties or any of the officers of the City as such is subject; or (iii) the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the revenues, credit, property or assets of the City under the terms of the Constitution of the State of Florida or any law, instrument or agreement; (i) the Preliminary Official Statement and Official Statement (including the financial and statistical data included therein and the Appendices thereto) will at all times prior to and including the Closing Date be true, correct and complete in all material respects and will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading; 0) at the Closing, the financial statements and other historical financial and statistical information contained in the Official Statement will fairly present the financial position and results of operations of the City as of the dates and for the periods therein set forth in accordance with generally accepted accounting principles applied consistently; (k) there shall not have been any material adverse change since September 30, 1992 in the results of operations or financial condition of the City or in the physical condition of the City, other than changes in the ordinary course of business or in the normal operation of the City; (1) between the date of this Bond Purchase Agreement and the time of Closing, the City will not execute any bonds, notes or other obligations for borrowed money, other than the proposed issuance or those the incurring of which is referred to explicitly in the Official ; Statement, without giving prior written notice thereof to the Senior Managing Underwriter. (m) the City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriters as the Underwriters may reasonably request to qualify the Series 1993 Bonds for offer and sale and to determine the eligibility of the Series 1993 Bonds for investment under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Senior Managing Underwriter may designate, provided that in connection therewith the City shall not be required to file a general consent to service of process or qualify to do business in any jurisdiction or become subject to service of process in any jurisdiction in which the City is not now subject to such service; (n) to the best of the City's knowledge and belief, other than as described in the Official Statement, as of the date hereof, there is no claim, action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court, public board or body pending, or, to the best knowledge of the City, threatened against or affecting the City: (i) to restrain or enjoin the issuance or delivery of any of the Series 1993 Bonds; (ii) in any way contesting or affecting: (1) the authority for the issuance of the Series 1993 Bonds; (2) the validity or enforceability of the Series 1993 Bonds, the Resolution, the Escrow Deposit Agreement, or this Bond Purchase Agreement; or (3) the power of the City to adopt the Resolution and to execute 93- 481 and deliver the Series 1993 Bonds, the Escrow Deposit Agreement, this Bond Purchase Agreement, or to consummate the transactions relating to the City contemplated by the Resolution, the Escrow Deposit Agreement and this Bond Purchase Agreement; (iii) in any way contesting the existence or powers of the City or the City Commission or the title to office of any member of the City Commission; or (iv) contesting in any way the completeness, accuracy or fairness of the Preliminary Official Statement or Official Statement. (o) no authorization, approval, consent or order of or filing or registration with any court or governmental agency or body is required for the valid authorization, execution, issuance, sale or delivery of the Series 1993 Bonds or the exclusion from gross income of interest thereon for federal income tax purposes or the valid adoption by the City of the Resolution or the execution and delivery of this Bond Purchase Agreement or Escrow Deposit Agreement, except such action as may be required to qualify the Series 1993 Bonds for sale under the Blue Sky or securities laws of any jurisdiction; (p) the City will not knowingly take or omit to take any action, which action or omission would adversely affect the exclusion from gross income for federal income tax purposes of the interest on the Series 1993 Bonds under the Internal Revenue Code of 1986, as amended; (q) to the best of the City's knowledge, since December 31, 1975, the City has not been in default in the payment of principal of, premium, if any, or interest on, any material direct City indebtedness or other obligations in the nature of material direct City indebtedness which it has issued, assumed or guaranteed as to payment of principal, premium, if any, or interest, other than described in the Official Statement; (r) any certificate signed by any official of the City and delivered to the Underwriters in connection with the issuance, sale and delivery of Series 1993 Bonds shall be deemed to be a representation and warranty by the City to each of the Underwriters as to the statements made therein; (s) the description of the Series 1993 Bonds in the Official Statement conforms in all material respects to the Series 1993 Bonds; (t) the City will apply the proceeds of the Series 1993 Bonds in accordance with the Resolution, and as contemplated by the Official Statement and Escrow Deposit Agreement, and upon the deposit of monies required by the Escrow Deposit Agreement, the Refunded Bonds will be deemed paid, and all payments due under the Refunded Bonds will be made solely from the moneys or securities deposited pursuant to the Escrow Deposit Agreement. (u) neither the City nor anyone authorized to act on its behalf, directly or indirectly, has offered the Series 1993 Bonds for sale to, or solicited any offer to buy, the Series 1993 Bonds from anyone other than the Underwriters; in 93- 481 (v) all proceedings of the City Commission relating to the adoption of the Resolution, the approval and authorization of the execution and delivery of the Escrow Deposit Agreement, this Bond Purchase Agreement and the Official Statement, and the approval and authorization of the issuance and sale of the Series 1993 Bonds were, or will be prior to Closing, conducted at duly convened meetings of the City Commission, with respect to which all required notices were duly given to the public at which quorums were at all material times present, and no authority or proceeding for the issuance of the Series 1993 Bonds has been or will be repealed, rescinded, or revoked. (w) (i) For the purposes of this Bond Purchase Agreement, the term "Disclosure Period" shall mean the earlier of (1) ninety (90) days from the End of the Underwriting Period, or (2) the time when the Official Statement is available to any person from a nationally recognized municipal securities information repository, but in no case less than twenty-five (25) days following the End of the Underwriting Period. (ii) For the purposes of this Bond Purchase Agreement, the term "End of the Underwriting Period" shall mean the later of such time as (1) the Closing, or (2) the time at which the Underwriters do not retain, directly or as members of an underwriting syndicate, an unsold balance of the Series 1993 Bonds for sale to the public. (iii) Both at the time of acceptance hereof by the City and (unless amended or supplemented as described in Section 5(z) hereof) at all times during the Disclosure Period the statements and the information contained in the Preliminary Official Statement and the Official Statement pertaining to the City and the use and application of the proceeds of the Series 1993 Bonds are and will be true, correct and complete in all material respects and the Official ! Statement, to the knowledge of the City, does not as of the date of acceptance hereof and will ' not (unless amended or supplemented as described in Section 5(z) hereof) at all times during the Disclosure Period, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading in any material respect. (x) prior to the execution of this Bond Purchase Agreement, the City delivered to the Underwriters copies of the Preliminary Official Statement which the City deemed to be final for purposes of Rule 15c2-12 as of the date thereof, except for the omission of no more than the following information: the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery date, ratings, and other terms of the Series 1993 Bonds depending on such matters. (y) if the Official Statement is supplemented or amended pursuant to Section 5(z) hereof, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to Section 5(z) hereof) at all times during the Disclosure Period, the Official Statement as so supplemented or amended will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the -10- 93- 481 statements contained therein, in the light of the circumstances under which they were made, not misleading. (z) during the Disclosure Period, the City will (i) not adopt any amendment of or supplement to the Official Statement to which, after having been furnished with a copy, the Underwriters shall reasonably object in writing, unless the City has obtained the opinion of Co -Bond Counsel (as hereinafter defined), stating that such amendment or supplement is necessary in order to make the Official Statement not misleading in light of the circumstances existing at the time that it is delivered to a purchaser, and (ii) if any event relating to or affecting the City shall occur which would or might cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the City shall notify the Underwriters thereof, and if as a result of which it is necessary, in the opinion of Co -Counsel to the Underwriters (as hereinafter defined), to amend or to supplement the Official Statement in order to make the Official Statement not misleading in light of the circumstances existing at the time it is delivered to a purchaser, the City shall forthwith prepare and furnish to the Underwriters (at the expense of the City) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriters and the City) which will amend or supplement the Official Statement so that such Official Statement, as amended or supplemented, will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading in any material respect. Unless otherwise notified in writing by the Underwriters on or prior to the Closing Date, the End of the Underwriting Period for the Series ; 1993 Bonds for all purposes of Rule 15c2-12 and Section 5(w)(ii) herein above, is the Closing Date. In the event such notice is given in writing by the Underwriters, the Underwriters agree to notify the City in writing following the occurrence of the End of the Underwriting Period for the Series 1993 Bonds. 6. Conditions of Closine. The Underwriters have entered into this Bond Purchase Agreement in reliance on the representations and agreements of the City herein. The obligations of the Underwriters hereunder shall be subject to the performance by the City of its obligations to be performed hereunder at or prior to the Closing, to the accuracy of and compliance with the representations, warranties and covenants of the City herein, in each case as of the time of delivery of this Bond Purchase Agreement and as of the Closing, and are also subject, in the discretion of the Senior Managing Underwriter, to the following further conditions: (a) at the Closing, (i) the Resolution, the Escrow Deposit Agreement and this Bond Purchase Agreement shall be in full force and effect and shall not have been repealed, amended, modified or supplemented, except as may have been agreed to in writing by the Senior Managing Underwriter, and the City shall have executed and there shall be in full force and effect and there shall have been taken in connection therewith and in connection with the issuance of the Series 1993 Bonds all such action as shall, in the opinion of A. Quinn Jones, City -11- 93- 481 Attorney of the City ("City Attorney"), Fine, Jacobson, Schwartz, Nash & Block, P.A. and the Law Offices of Manuel Alonso-Poch, P.A. ("Co -Bond Counsel") or Ruden, Barnett, McClosky, Smith, Schuster & Russell, P.A. and Kubicki, Draper, Gallagher & McGrane, P.A. ("Co -Counsel to the Underwriters"), be necessary in connection with the transactions contemplated hereby, (ii) the Series 1993 Bonds shall have been duly authorized, executed and delivered, (iii) the Official Statement shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Senior Managing Underwriter, and (iv) the City shall perform or have performed all of its obligations under or specified in this Bond Purchase Agreement, the Escrow Deposit Agreement, the Official Statement, and the Resolution; (b) At or prior to the Closing Date, the Underwriters shall have received the following: (i) the final approving opinion of Co -Bond Counsel, dated the Closing Date in substantially the form attached to the Official Statement as Appendix D and a letter of such Co -Bond Counsel, dated the Closing Date and addressed to the Senior Managing Underwriter on behalf of the Underwriters, to the effect that the foregoing opinion may be relied upon by the Underwriters to the same extent as if such opinion were addressed to them; (ii) the supplemental opinion of Co -Bond Counsel, dated the Closing Date and addressed to the Senior Managing Underwriter on behalf of the Underwriters, to the effect that: (1) the City is duly organized and validly existing as a political subdivision under the Constitution and laws of the State of Florida, with full legal right, power and authority to issue the Series 1993 Bonds and to perform all of its obligations under this Bond Purchase Agreement, the Series 1993 Bonds and the Resolution; (2) the City has duly authorized the execution and approved the distribution of the Official Statement; (3) this Bond Purchase Agreement and the Escrow Deposit Agreement have been duly authorized executed and delivered by the City and, assuming due authorization, execution and delivery by the other parties thereto, each constitute the legal, valid and binding agreement of the City enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy and other laws affecting creditors' rights and to the exercise of judicial discretion; (4) the Series 1993 Bonds and the Resolution are legal and valid obligations of the City which are binding and enforceable against the City in accordance with their terms; (5) the Refunded Bonds have been defeased and the pledge of ad valorem taxes for the repayment of the Refunded Bonds have been released; (6) any original issue discount on the Series 1993 Bonds is excluded from gross income for federal income tax purposes; (7) the Series 1993 Bonds constitute exempt securities within the meaning of Section 3(a)(2) of the Securities Act of 1933, as amended, and Section 304(a)(4)(B) of the Trust Indenture Act of 1939, as amended, and are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as a Trust Indenture pursuant to the Trust Indenture Act of 1939, as amended; (8) the statements contained in the Official Statement under the captions "DESCRIPTION OF THE SERIES 1993 BONDS" (excluding the information -12- 93-- 481 under the subheading "Book -Entry Only System"), "AUTHORIZATION AND SECURITY," "LEGAL DEBT LIMITATIONS," "TAX TREATMENT," "ORIGINAL ISSUE DISCOUNT," and "APPENDIX D - Summary of the Resolution," to the extent such statements purport to summarize portions of the Resolution, the Series 1993 Bonds, the law referred to therein, or the Escrow Deposit Agreement, constitute fair summaries of the portions of such documents and the law purported to be summarized therein, it being understood that in rendering such opinion, Co -Bond Counsel shall not be required to express an opinion with respect to other sections of the Official Statement and financial statements and other financial or statistical data included under any caption or in any appendix of the Official Statement; (iii) the opinion of Co -Counsel to the Underwriters dated the Closing Date, to the effect that the Series 1993 Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Resolution is exempt from qualification under the Trust Indenture Act of 1939, as amended. Such opinion shall also state that, based upon their participation in the preparation of the Official Statement as Co -Counsel to the Underwriters and without having undertaken to determine independently the accuracy or completeness of the contents of the Official Statement, nothing has come to the attention of such counsel which has caused them to believe that the Official Statement (except for the financial and statistical data included therein to which no view need be expressed) as of its date contained, or as of the Closing Date contains, any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading; (iv) the opinion of the City Attorney, dated the Closing Date, addressed to the City and to the Underwriters, in form and substance satisfactory to the Senior Managing Underwriter and Co -Counsel to the Underwriters to the effect that: (1) the City is a municipal corporation of the State of Florida duly organized and validly existing and has full legal right, power and authority to adopt and perform its obligations under the Resolution and to authorize, execute and deliver and to perform its obligations under this Bond Purchase Agreement and the Escrow Deposit Agreement; (2) the City has duly authorized, executed and delivered the Bond Purchase Agreement and the Escrow Deposit Agreement, and assuming the due authorization, execution and delivery of the Bond Purchase Agreement and the Escrow Deposit Agreement by the other parties thereto, such instruments constitute legal, binding and valid obligations of the City, enforceable in accordance with their respective terms; provided, however, the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and subject, as to enforceability thereof, to the exercise of judicial discretion in accordance with general principles of equity, (3) with respect to the information in the Preliminary Official Statement and the Official Statement contained under the headings "INTRODUCTORY STATEMENT," "PLAN OF REFUNDING," "AUTHORIZATION AND SECURITY," "LEGAL DEBT LIMITATIONS," "DEBT SUMMARY," "RECENT DEVELOPMENTS," -13- 93- 481 "LITIGATION" and "APPENDIX A - Description of the City of Miami," and based upon participation in the preparation of the Preliminary Official Statement and the Official Statement, the City Attorney has no reason to believe such information contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements made therein, in light of the circum- stances under which they were made, not misleading, it being understood that in rendering such opinion, the City Attorney shall not be required to express an opinion with respect to other sections of the Official Statement and financial statements and other financial or statistical data included under any caption or in any appendix of the Official Statement; (4) the Official Statement has been duly authorized, executed and delivered by the City, and the City has consented to the use of the Preliminary Official Statement and the Official Statement by the Underwriters, (5) the adoption of the Resolution and the authorization, execution and delivery of the Bond Purchase Agreement, Escrow Deposit Agreement and the Series 1993 Bonds, and compliance with the provisions hereof and thereof, will not conflict with, or constitute a breach of or default under any law, administrative regulation, consent decree, ordinance, resolution or any agreement or other instrument to which the City was or is subject, as the case may be, nor will such enactment, adoption, execution, delivery, authorization or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the City, except as set forth in the Official Statement, or under the terms of any law, administrative regulation, ordinance, resolution or instrument except as expressly provided by the Resolution, (6) all approvals, consents, authorizations and orders of any governmental authority or agency having jurisdiction in any matter which would constitute a condition precedent to the performance by the City of its obligations hereunder and under the Resolution, the Bond Purchase Agreement and the Escrow Deposit Agreement have been obtained and are in full force and effect, (7) the City is lawfully empowered to pledge its full faith, credit and taxing power to the repayment of the Series 1993 Bonds, and the Series 1993 Bonds are valid, binding and enforceable, in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors' rights generally and to the exercise of judicial discretion in accordance with general principles of equity, (8) except as disclosed in the Official Statement, as of the date of such opinion, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body (state or federal), pending or, to the knowledge of City Attorney threatened against the City, nor is there any basis therefor, (A) affecting the corporate existence of the City or the title to office of any officer of the City or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Series 1993 Bonds or the application of the proceeds thereof, or contesting or affecting as to the City the validity or performance of, or in any respect relating to, the Series 1993 Bonds, the Resolution, this Bond Purchase Agreement, the Escrow Deposit Agreement, or the pledge of the full faith, credit and taxing power of the City or the levy, assessment or collection of ad valorem taxes pledged to the payment of the Series 1993 Bonds, or contesting the exclusion from gross income for federal income tax purposes of interest on the Series -14- 93- 481 1993 Bonds, or contesting the completeness or accuracy of the Official Statement or any supplement or amendment thereto or contesting the powers of the City or any authority for the issuance of the Series 1993 Bonds, the adoption of the Resolution, or the execution and delivery by the City of this Bond Purchase Agreement or the Escrow Deposit Agreement; or (B) involving any of the property or assets under the control of the City that involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or the condition, financial or otherwise, of the City which could adversely affect the transactions contemplated hereby, and (9) such other matters as Co -Bond Counsel or Co -Counsel to the Underwriters shall reasonably request. (c) at the Closing, the Official Statement shall not have been amended, modified, or supplemented, except as may have been agreed to by the Underwriters; (d) at the Closing, the Underwriters shall receive a certificate or certificates, dated the Closing Date, signed by the Mayor or Vice Mayor, the City Manager and the Director of Finance of the City, in form and substance satisfactory to Co -Bond Counsel, the Senior Managing Underwriter and Co -Counsel to the Underwriters, in which such officials, to the best of their knowledge, state: (1) that the representations and warranties of the City herein contained are true and correct in all material respects as of the Closing, that the City has satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing, and that the information and statements with respect to the City contained in the Official Statement are true, correct and complete in all material respects for the purposes for which such Official Statement is to be used, and nothing has come to their attention that would lead them to believe that such information in the Official Statement includes any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) that no event affecting the City has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (3) that the financial statements and the other financial and statistical data relating to the City included in the Official Statement are true and correct as of the date of such certificate; (4) that no obligations issued or guaranteed by the City are in default as to payment of principal or interest or have been in default as to payment of principal or interest at any time after December 31, 1975; (e) at the Closing, the Underwriters shall receive a copy of the Resolution certified by the City Clerk or Deputy Clerk of the City as a true and correct copy of the original thereof, as currently in full force and effect and as not having been otherwise amended since its adoption, except as provided herein; (f) at the Closing, the Underwriters shall receive a copy of the executed Bond Policy from the Bond Insurer guaranteeing the scheduled payment of the principal of and interest, -15- 93- 481 when due, on the Series 1993 Bonds, consistent with the description of such policy in the Official Statement; (g) at the Closing, the Underwriters shall receive an opinion of counsel to the Bond Insurer, dated the Closing Date and addressed to the Underwriters, to the effect that (1) the Bond Insurer is a stock insurance corporation validly existing and in good standing under the laws of the State of and qualified to do business therein and is licensed and authorized to issue its Bond Policy under the laws of the State of Florida; (2) the Bond Policy is valid and binding upon the Bond Insurer and enforceable in accordance with its terms, subject to applicable laws affecting creditors' rights generally; (3) the Bond Insurer, as an insurance company, is not eligible for relief under the federal bankruptcy laws; any proceedings for the liquidation, conservation or rehabilitation of the Bond Insurer would be governed by the provisions of the insurance law of the State of ; and (4) the statements described in the Official Statement relating to the Bond Insurer and the Bond Policy accurately and fairly present the summary information set forth therein and do not omit any material fact with respect to the description of the Bond Insurer relative to the material terms of the Bond Policy or the ability of the Bond Insurer to meet its obligations under the Bond Policy. (h) at the Closing, the Underwriters shall receive a report in form and substance satisfactory to the Senior Managing Underwriter and Co -Counsel to the Underwriters, dated the Closing Date from , independent certified public accountants, verifying the accuracy of (1) the mathematical computations of the adequacy of the maturing principal amounts and interest of the Government Obligations held under the Escrow Deposit Agreement to pay, when due, the principal of, redemption premium, if any, and interest on the Refunded Bonds and to redeem the Refunded Bonds, (2) schedules furnished to such firms showing the outstanding principal amount, interest rates and redemption provisions of the` Refunded Bonds (such schedules to be verified by review of the original source documents), and (3) the mathematical computations supporting the conclusion that the Series 1993 Bonds are not "arbitrage bonds" under Sections 103(b) and 148 of the Internal Revenue Code of 1986, and the regulations prescribed or proposed thereunder; (i) at the Closing, the Underwriters shall receive a letter from Deloitte & Touche, independent certified public accountants, addressed to the City, dated the Closing Date, to the effect that they consent to the inclusion of the audited financial statement for fiscal year 1991-1992, or their most recent financial statement, as the case may be, of the City in the Preliminary Official Statement and the Official Statement and to the references made to them in the Preliminary Official Statement and the Official Statement; [0) at the Closing, the Underwriters shall receive a comfort letter from Deloitte & Touche, independent certified public accountants, addressed to the City to the effect that they have performed certain procedures with respect to the period from September 30, 1992, through a date not earlier than five days prior to the Closing Date and that on the basis thereof, nothing came to their attention that indicates that there has occurred any changes in the long term debt of any of the funds or account groups of the City, other than as disclosed in the Official -16- 93- 481 Statement or as occasioned by repayments of such indebtedness, and except for the changes dis- closed in "Appendix B - Financial Section of the Comprehensive Annual Financial Report of the City for the Fiscal Year ended September 30, 1992" included in the Official Statement or that there were any decreases, as compared with the corresponding period in the preceding year, in revenues of the various governmental funds of the City, except in all instances for decreases that the Official Statement discloses have occurred or may occur;] (k) at the Closing, the Underwriters shall receive an opinion of counsel to the Escrow Agent or a certificate of an officer of the Escrow Agent, dated the date of Closing and addressed to the Underwriters, to the effect that (1) the Escrow Agent is duly incorporated and validly existing in good standing under the laws of the United States of America as a national banking association, with full power and authority (corporate and other) to conduct its business and affairs as Escrow Agent, (2) the Escrow Agent has full right, power and authority to enter into the Escrow Deposit Agreement and to perform its obligations under, and carry out and consummate all of the transactions contemplated by the Escrow Deposit Agreement, (3) the Escrow Deposit Agreement has been duly authorized, executed and delivered by, the Escrow Agent, and assuming the due authorization, execution and delivery by the City of such instrument, the Escrow Deposit Agreement constitutes a legal, valid and binding obligation of the Escrow Agent enforceable in accordance with its terms, and (4) the execution and delivery by the Escrow Agent of the Escrow Deposit Agreement is not, and the performance of its obligations thereunder will not be, inconsistent with its charter or bylaws, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to it, and does not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument to which it is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any governmental authority or agency of the United States or the State' of Florida, or any subdivision or agency thereof, except such as have been obtained, given or accomplished; (1) at the Closing, the Underwriters shall receive letters from Moody's Investors Service and Standard & Poor's Corporation confirming that they have rated the Series 1993 Bonds "Aaa" and "AAA", respectively, and that such ratings are in effect on the date of Closing; (m) at the Closing, the Underwriters shall receive two copies of the Official Statement executed by a duly authorized officer of the City; (n) At the Closing, the Underwriters shall receive a copy of a certificate required by Section of the Resolution certified by a duly authorized clerk of the City; (o) at the Closing, the Underwriters shall receive at least two transcripts of the proceedings relating to the authorization and issuance of the Series 1993 Bonds that shall include certified or executed copies of the Resolution; -17- 93- 481 (p) the representations and warranties of the City contained in Section 5 hereof shall be true on and as of the Closing Date with the same effect as if such representations and warranties had been made on and as of the Closing Date and the City shall not be in default under this Bond Purchase Agreement; (q) at the Closing, the Underwriters shall receive such additional legal opinions, certificates (including such certificates as may be required by regulations of the Internal Revenue Service in order to establish the exclusion from income, for federal income tax purposes, of the interest on the Series 1993 Bonds, which certificates shall be satisfactory in form and substance to Co -Bond Counsel) and other evidence as the Senior Managing Underwriter, Co -Bond Counsel, or Co -Counsel to the Underwriters may reasonably deem necessary, provided such additional legal opinions, certificates and other evidence is requested by the Senior Managing Underwriter at least two business days before the Closing; If between the date of this Bond Purchase Agreement and the date of the Closing, an Event Requiring Notification shall have occurred, the City shall have notified the Senior Managing Underwriter as set forth in Section 2 hereof and furnished any documents required to be furnished by Section 2 hereof. The foregoing opinions, certificates and other evidence shall be in form and substance satisfactory to the Senior Managing Underwriter. If the City shall be unable to satisfy the conditions to the obligations of the Underwriters contained in this Bond Purchase Agreement, or if the obligations of the Underwriters shall be terminated for any reason permitted by this Bond Purchase Agreement, this s Bond Purchase Agreement shall terminate and neither the Underwriters nor the City shall be' under any further obligation hereunder, except as provided in Section 7 hereof and except that the Good Faith Check shall be returned to the Senior Managing Underwriter by the City. 7. Termination of Bond Purchase Agreement. The Senior Managing Underwriter may terminate this Bond Purchase Agreement, without liability therefor, by written notification to the City, if at any time subsequent to the date of this Bond Purchase Agreement and at or prior to the Closing: (a) the marketability of the Series 1993 Bonds or the market price thereof, in the opinion of the Senior Managing Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States or by any legislation (other than any actions taken by either House of Congress on or prior to the date hereof) (i) enacted or adopted by the United States, (ii) recommended to the Congress or otherwise endorsed for passage, by press release, other form of notice or otherwise, by the President of the United States, the Chairman or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, the Treasury Department of the United States or the Internal Revenue Service, or (iii) favorably reported out of the appropriate Committee for passage to either House of the Congress by any full Committee 93- 481 of such House to which such legislation has been referred for consideration, or by any decision of any court of the United States or by any order, rule or regulation (final, temporary or proposed) on behalf of the Treasury Department of the United States, the Internal Revenue Service or any other authority or regulatory body of the United States, or by a release or announcement or communication issued or sent by the Treasury Department or the Internal Revenue Service of the United States, or any comparable legislative, judicial or administrative development affecting the federal tax status of the City, its property or income, obligations of the general character of the Series 1993 Bonds, as contemplated hereby, or the interest thereon, or any tax exemption; or (b) any legislation, rule, or regulations shall be introduced in, or be enacted or adopted by any department or agency in the State of Florida, or a decision by any court of competent jurisdiction within the State of Florida shall be rendered which, in the reasonable opinion of. the Senior Managing Underwriter, materially adversely affects the market for the Series 1993 Bonds or the sale, at the contemplated offering prices, by the Underwriters of the Series 1993 Bonds to be purchased by them; or (c) any amendment to the Official Statement is proposed by the City or deemed necessary by Co -Bond Counsel, or the Senior Managing Underwriter which, in the reasonable opinion of the Senior Managing Underwriter, materially adversely affects the market for the Series 1993 Bonds or the sale, at the contemplated offering prices, by the Underwriters of the Series 1993 Bonds to be purchased by them; or (d) a national or international calamity or crisis shall have occurred or escalated which, in the sole opinion of the Senior Managing Underwriter adversely affects the market for the Series 1993 Bonds or the sale, at the contemplated offering prices, by the Underwriters of the Series 1993. Bonds to be purchased by them; or (e) legislation shall be enacted or adopted, or any action shall be taken by, or on behalf of, the Securities and Exchange Commission which, in the reasonable opinion of Co -Counsel to the Underwriters, has the effect of requiring the contemplated distribution of the Series 1993 Bonds to be registered under the Securities Act of 1933, as amended, or the Resolution to be qualified under the Trust Indenture Act of 1939, as amended, or any laws analogous thereto relating to governmental bodies, and compliance therewith cannot be accomplished prior to the Closing; or (f) legislation shall be introduced by amendment or otherwise in or be enacted by, the House of Representatives or the Senate of the Congress of the United States, or a decision by a Court of the United States of America shall be rendered, or a stop order, ruling, release, regulation, official statement or no -action letter by or on behalf of the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter of the Series 1993 Bonds shall have been proposed, issued or made (which is beyond the control of the Senior Managing Underwriter or the City to prevent or avoid) to the effect that the issuance, offering or sale of the Series 1993 Bonds, including all the underlying obligations as -19- 93- 481 contemplated hereby or by the Official Statement, or any document relating to the issuance, offering or sale of the Series 1993 Bonds is or would be in violation of any of the federal securities laws at Closing, including the Securities Act of 1933, as amended and then in effect, the Securities Exchange Act of 1934, as amended and then in effect, or the Trust Indenture Act of 1939, as amended and then in effect, or with the purpose or effect of otherwise prohibiting the offering and sale of obligations of the general character of the Series 1993 Bonds, or the Series 1993 Bonds, as contemplated hereby; or (g) there shall have occurred, after the signing hereof, either a financial crisis or a default with respect to the debt obligations of the City or proceedings under the federal or State of Florida bankruptcy laws shall have been instituted by the City, in either case the effect of which, in the reasonable judgment of the Senior Managing Underwriter, is such as to materially and adversely affect (i) the market price or the marketability of the Series 1993 Bonds, or (ii) the ability of the Underwriters to enforce contracts for the sale of the Series 1993 Bonds; or (h) a general banking moratorium shall have been declared by the United States, New York or Florida authorities, which in the reasonable opinion of the Senior Managing Underwriter, materially adversely affects the market for the Series 1993 Bonds or the sale, at the contemplated offering prices, by the Underwriters of the Series 1993 Bonds to be purchased by them; or (i) any national securities exchange, or any governmental authority, shall impose, as to the Series 1993 Bonds or obligations of the general character of the Series 1993 Bonds any material restrictions not now in force, or increase materially those now in force, with, respect to the extension of credit by, or the charge to the net capital requirements of the' Underwriters, or the establishment of material restrictions upon trading of securities, including limited or minimum prices, by any governmental authority or by any national securities exchange; or (j) legal action shall have been filed against the City wherein an adverse ruling would adversely affect the transactions contemplated hereby or by the Official Statement or the validity of the Series 1993 Bonds, the Resolution, this Bond Purchase Agreement, or the Escrow Deposit Agreement; provided, however, that as to any such litigation, the City may request and the Senior Managing Underwriter may accept an opinion by Co -Bond Counsel, or of other counsel acceptable to the Senior Managing Underwriter, that in such counsel's opinion the issues raised by any such litigation or proceeding are without substance or that the contentions of any plaintiffs therein are without merit; or (k) the rating of any of the Series 1993 Bonds shall have been downgraded below "AAA" by Standard & Poor's Corporation or "Aaa" by Moody's Investors Service after the date hereof, the effect of which, in the opinion of the Senior Managing Underwriter, is to affect materially and adversely the market prices of the Series 1993 Bonds or trading in any securities of the City shall have been suspended on any national securities exchange; or any -20- 93- 481 proceeding shall be pending or threatened by the Securities and Exchange Commission against the City; or a general suspension of trading on the New York Stock Exchange or the American Stock Exchange or other national securities exchange; or (1) any information shall have become known which, in the Senior Managing Underwriter's reasonable opinion, makes untrue, incorrect or misleading in any material respect any statement or information contained in the Official Statement, as the information contained therein has been supplemented or amended by other information, as of the date furnished or supplied to the Underwriters and until the end of the Disclosure Period thereafter, or causes the Official Statement, as so supplemented or amended, to contain an untrue, incorrect or misleading statement of a material fact or to omit to state a material fact required or necessary to be stated therein in order to make the statements made therein, in light of the circumstances under which they were made, not misleading and upon the receipt of notice of same by the City, the City fails to promptly amend or supplement the Official Statement in a manner which is reasonably acceptable in form and content to the Senior Managing Underwriter; or (m) an event occurs as a result of which the Official Statement, as then amended or supplemented, would include an untrue statement of a material fact or omit to state any material fact which is required or necessary to be stated therein in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading which, in the opinion of the Senior Managing Underwriter, requires an amendment or supplement to the Official Statement and, in the reasonable opinion of the Senior Managing Underwriter, materially adversely affects the marketability of the Series 1993 Bonds or the contemplated offering prices thereof and upon the receipt of notice by the City, the City fails to promptly amend or supplement the Official Statement in a manner which is reasonably acceptable in form and content to the Senior Managing Underwriter. 8. Expenses. (a) The City agrees to pay all expenses incident to the performance of its obligations hereunder, including, but not limited to, (i) the cost of the preparation, printing or other reproduction (for distribution prior to, on, or after the date of acceptance of this Bond Purchase Agreement) of copies of the Official Statement and Preliminary Official Statement, as provided herein, (ii) charges made by rating agencies for the rating of the Series 1993 Bonds, (iii) the fees and disbursements of Co -Bond Counsel, the Financial Advisor, the Fiscal Agent, the Escrow Agent and of any other experts or consultants retained by the City and (iv) the cost of any consent letters delivered by the City's accountants or consultants. (b) The Underwriters shall pay all expenses incident to their performance hereunder, including, but not limited to, (i) the cost of delivering the Series 1993 Bonds from New York, New York, to the purchasers thereof, (ii) the fees and disbursements of Co -Counsel to the Underwriters, and (iii) all other expenses incurred by them or any of them in connection with their offering and distribution of the Series 1993 Bonds and for the preparation, printing and separate distribution, if any, of the Blue Sky memoranda and legal investment surveys. -21- J3- 481 (c) In the event either the City or the Underwriters shall have paid obligations of the other as set forth in this Section, appropriate reimbursements and adjustments shall be made. [9. Escrow Deposit Agreement The Underwriters hereby agree to sell the Government Obligations identified on Schedule V hereof (the "Initial Escrow Securities") to the Escrow Agent for the account of the City, for settlement delivery on the Closing Date, and for deposit with the Escrow Agent under the Escrow Deposit Agreement. If the Underwriters are unable to deliver any or all of the Initial Escrow Securities, the Underwriters may deliver, and the City shall accept, or shall direct the Escrow Agent to accept in substitution for any or all of the Initial Escrow Securities an equal or greater principal amount of an earlier maturity of Government Obligations which provide payments of principal and interest to be received at the same time or earlier and in amounts equal to or greater than the corresponding payments that would have been received on the Initial Escrow Securities for which the substitution is made (the "Substitute Securities"), the principal of and interest on which, together with the principal and interest on the other Authorized Investments and any cash balance to be held by the Escrow Agent under the Escrow Deposit Agreement, will meet the requirements for payment of all principal of and interest on the Refunded Bonds when due in accordance with the terms of the Resolution and the Escrow Deposit Agreement.] 10. Truth in Bonding Statement The following truth -in -bonding statement prepared pursuant to Section 218.385, Florida Statutes, is for. informational purposes only and shall not alter or control the actual terms and conditions of the debt or obligations. The City is proposing to issue $ of its General Obligation Refunding Bonds, Series 1993 for the purpose of refunding certain General Obligation Bonds referred to as the Refunded Bonds herein. This debt or obligation is expected to be repaid over a period of ( ) years. At a forecasted interest rate of —%, total interest paid over the life of the debt or obligation will be $ The Series 1993 Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. Authorizing this debt or obligation will result in a reduction of the City's an amount of ad valorem revenues being able to finance the other services of the City each year for _ years. 11. Miscellaneous. (a) All notices, demands and formal actions hereunder shall be in writing and mailed, telegraphed, or delivered to: -22- 93- 481 The Underwriters: The First Boston Corporation Park Avenue Plaza, 37th Floor 55 East 52nd Street New York, New York 10055 Attention: D. Jeffrey Penney The City: The City of Miami Department of Finance 300 Biscayne Boulevard Way, Suite 210 Miami, Florida 33131 Attention: Finance Director (or such other addresses as may be designed in writing to the other party). (b) This Bond Purchase Agreement will inure to the benefit of and be binding upon the parties and their successors and assigns, and will not confer any rights upon any other person. The terms "successors" and "assigns" shall not include any purchaser of any of the Series 1993 Bonds from the Underwriters merely because of such purchase. (c) All the representations, warranties, covenants and agreements of the City in this Bond Purchase Agreement shall remain operative and in full force and effect as if made on the date hereof and the date of Closing, regardless of (i) any investigation made by or on behalf of any of the Underwriters, or (ii) delivery of and any payment for the Series 1993 Bonds hereunder. (d) The agreements contained in Sections 3 and Y thereof shall survive any termination of this Bond Purchase Agreement. (e) Section headings have been inserted in this Bond Purchase Agreement as' a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Bond Purchase Agreement and will not be used in the interpretation of any provisions of this Bond Purchase Agreement. (0 If any provision of this Bond Purchase Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions, or in all jurisdictions because it conflicts with any provisions of any constitution, statute, or rule of public policy, or for any other reasons, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case or circumstances, or of rendering any other provision or provisions of this Bond Purchase Agreement invalid, inoperative or unenforceable to any extent whatever. (g) This Bond Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. -23- 93- 481 (h) This Bond Purchase Agreement shall be governed by and construed in accordance with the laws of the State of Florida. (i) This Bond Purchase Agreement shall become effective upon the execution by the appropriate City officials of the acceptance hereof by the City and shall be valid and enforceable at the time of such acceptance. The First Boston Corporation By: Accepted as of the date first above written: THE CITY OF MIAMI, FLORIDA [SEAL] By: Attest: Clerk Approved as to form: BY: City Attorney -24- City Manager 93- 481 Aggregate Principal Amount: Dated as of , 1993 SCHEDULEI BOND TERMS Due: , as shown below Maturities and Interest Schedule $ Serial Bonds Principal Interest Price Principal Interest Price Year Amounts Rates or Yield Year Amoun Rates r4 Yield $ _% Term Bonds due , Price % (Accrued interest from , 1993 to be added) First Interest Payment Date: 1993 Optional Redemption Provisions: t Redemption Dates (dates uutusive) Redemption Price 93-- 481 Mandatory Redemption Net To City at Closing Face Amount Less: Original Issue Discount Less: Underwriters Discount Plus: Accrued Interest Net to City at Closing Schedule I-2 93- 481 SCHEDULE II DISCLOSURE LETTER Honorable Mayor and Members of the City Commission of The City of Miami, Florida 3006 Pan American Drive Miami, Florida 33133 Re: $ THE CITY OF MIAMI, FLORIDA GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 Ladies and Gentlemen: Pursuant to Section 218.385, Florida Statutes, and in reference to the issuance of the above -referenced bonds (the "Bonds"), The First Boston Corporation (the "Senior Managing Underwriter"), acting on behalf of itself and First Equity Corporation of Florida, Artemis Capital Group, Inc., Pryor, McClendon, Counts & Co. and Samuel A. Ramirez & Co., Inc. (collectively with the Senior Managing Underwriter, the "Underwriters") as named in the Bond Purchase Agreement (the "Bond Purchase Agreement"), dated , 1993, by and among the Underwriters and The City of Miami (the "City"), hereby makes the following disclosures to the City. The Underwriters are acting as investment bankers to the City for the public offering of( its General Obligation Refunding Bonds, Series 1993, issued in the aggregate principal amount of $ (the "Bonds"). 1. Expenses estimated to be incurred by the Underwriters in connection with the issuance of the Bonds: Co -Underwriters' Counsel Fees and Expenses Fed funds Day loan MSRB/PSA SPC Processing/clearing DTC Cusip Munifacts Travel Communications/computer misc. Total 93- 481 2. Names, addresses and estimated amounts of compensation of any person who is not regularly employed by, or not a partner or officer of, an underwriter, bank, banker or financial consultant or advisor and who enters into an understanding with either the City or the Underwriters, directly, expressly or impliedly, to act solely as an intermediary between the City and the Underwriters for the purpose of influencing any transaction in the purchase of the Bonds: 3. The amount of underwriting spread expected to be realized: Risk $_/ 1000 Average Takedown / 1000 Management fee charged by the Underwriters / 1000 Expenses �/1000 Total: _/ 1000 4. Any other fee, bonus and other compensation estimated to be paid by the Underwriters in connection with the Bonds to any person not regularly employed or retained by the Underwriters: 5. The name and address of the Underwriters connected with the Bonds: See attached list Very truly yours, The First Boston Corporation As Senior Managing Underwriter acting on behalf of the Underwriters, including itself Schedule II-2 9 3_ 481 NAMES AND ADDRESSES OF THE UNDERWRITERS The First Boston Corporation 200 South Biscayne Boulevard Suite 2940 Miami, Florida 33131-2307 First Equity Corporation of Florida 1400 Miami Center 201 South Biscayne Boulevard Miami, Florida 33131 Artemis Capital Group, Inc. One Boca Place, Ste 319A 2255 GIades Road Boca Raton, Florida 33431 Pryor, McClendon, Counts & Co., Inc. 2875 N.E. 191 Street, Suite 904 North Miami Beach, Florida 33180 Samuel A. Ramirez & Co., Inc. 61 Broadway, Suite 2924 New York, New York 10006 Schedule II-3 g 3- 481 SCHEDULE I[I SWORN STATEMENT UNDER SECTION 287.133(3)(a), FLORIDA STATUTES ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS. This sworn statement is submitted with Bid, Proposal or Contract No. for 2. This sworn statement is submitted (name of entity submitting sworn statement) whose business address is (If applicable) its Federal Employer Identification Number (FEIN) is (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement: 3. My name (please print name of individual signing) entity named above is and my relationship to the 4. 1 understand that a "public entity crime' as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or with the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. S. I understand the "convicted' or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or nolo contendere. 6. 1 understand that an "affiliate' as defined in Paragraph 287.133(1)(a), Florida Statutes means: 1. A predecessor or successor of a person convicted of a public entity crime; or 2. An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prime facie case that one person controls another person. A person who knowingly enters into it joint venture with a person who has been convicted of a public entity crime in Florida during the proceeding 36 months shall be considered an affiliate. 7. 1 understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 8. Based on information and belief, the statement which 1 have marked below is true in relation to the entity submitting this sworn statement. (Please indicate which statement applies). 93- 481 Neither the entity submitting this Sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in management of the entity, nor any affiliate of the entity have been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of the officers, directors, executive partners, shareholders, employees, members, or agents who are active in management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989, AND (Please indicate which additional statement applies). There has been a proceeding concerning the conviction before a hearing officer of the State of Florida, Division of Administrative Hearings. The final order entered by the hearing officer did not place the person or affiliate on the convicted vendor list. (Please attach a copy of the final order.) The person or affiliate was placed on the convicted vendor list. There has been a subsequent proceeding before a hearing officer of the State of Florida, Division of Administrative Hearings. The final order entered by the hearing officer determined that it was in the public interest to remove the person or affiliate from the convicted vendor list. (Please attach a copy of the final order). The person or affiliate has not been placed on the convicted vendor list. (Please describe any action taken by or pending with the Department of General Services). STATE OF City OF, (signature) Date: PERSONALLY APPEARED BEFORE ME, the undersigned authority, who, after first being sworn by me, affixed his/her signature in the space provided above on this day of , 19 My commission expires: Form PUR 7068 (Rev. 11/89) NOTARY PUBLIC 93- 481 SCHEDULE IV 93- 481 OFFICIAL STATEMENT EXHIBIT A 93- 481 EXHIBIT "B" THIS ESCROW DEPOSIT 1993, by and between The City "Escrow Agent"). AGREEMENT is dated , of Miami, Florida (the "City") and Florida, as Escrow Agent (the WHEREAS, The City has previously authorized and issued its general obligation bonds (the "Outstanding Obligations"), which mature in the amounts and on the dates and bear interest, all as more particularly described in Schedule A attached to, and made a part of, this Agreement; and WHEREAS, the City desires to refund and defease the Outstanding Obligations; and WHEREAS, pursuant to the terms of a Resolution adopted by the City on [ 1993 (the "Resolution"), the City has authorized the issuance of its City of Miami General Obligation Refunding Bonds, Series 1993 (the "Bonds"), a portion of the proceeds of which is to be deposited with the Escrow Agent to provide, together with other available moneys, and investment earnings thereon, for the advance refunding and defeasance of the Outstanding Obligations through the purchase of Governmentt Obligations (as such term is hereinafter defined), which will mature and produce investment income and earnings at such times and in such amounts, as will be sufficient to pay when due, upon the maturity or redemption thereof the principal of, redemption premium, if any, and interest on the Outstanding Obligations; and WHEREAS, in order to provide for the proper and timely application of the moneys deposited with the Escrow Agent along with, the maturing principal amount of the Government Obligations purchased with such monies, and investment income and earnings derived therefrom to the payment of the Outstanding Obligations, it is necessary for the City to enter into this Agreement with the Escrow Agent; NOW, THEREFORE, the City, in consideration of the foregoing and the mutual covenants herein set forth and in order to secure the payment of the principal of, redemption premium, if any, and interest on all of the Outstanding Obligations according to their tenor and effect, does by these presents hereby grant, warrant, remise, release, convey, assign, transfer, alien, pledge, set over and confirm unto the Escrow Agent and to its successors in the trust hereby created, and to it and its assigns forever, all and singular the property hereinafter described, to wit: 93- 481 DIVISION I All right, title and interest in and to $[_,000,000.00 deposited with the Escrow Agent and derived from the proceeds of the Bonds upon issuance and delivery of the Bonds and execution of and delivery of this Agreement and $[ ] deposited with the Escrow Agent and derived from other available moneys provided by the City. DIVISION II All right, title and interest in and to the Government Obligations described in Schedule B attached hereto and made a part hereof, together with the income and earnings thereon. DIVISION III Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional security hereunder by the City or by anyone in its behalf to the Escrow Agent for the benefit of the Outstanding Obligations. DIVISION IV All property which is by the express provisions of this Agreement required to be subject to the pledge hereof and any additional Property that may, from time to time hereafter, by delivery or by writing of any kind, by the City or by anyone int its behalf, be subject to the pledge hereof. TO HAVE TO HOLD, all and singular the Trust Estate (as such term is hereinafter defined), including all additional property which by the terms hereof has or may become subject to the encumbrances of this Agreement, unto the Escrow Agent, and its successors and assigns, forever in trust, however, for the benefit and security of the holders from time to time of the Outstanding Obligations, but if the principal of, redemption premium, if any, and interest on all of the Outstanding Obligations shall be fully and promptly paid when due, upon the maturity or redemption thereof, in accordance with the terms thereof, then this Agreement shall be and become void and of no further force and effect; otherwise the same shall remain in full force and effect; and upon the trusts and subject to the covenants and conditions hereinafter set forth. ARTICLE I DEFINITIONS -2- 93- 481 Section 1.01. In addition to words and terms elsewhere defined in this Agreement, the following words and terms as used in this Agreement shall have the following meanings, unless some other meaning is plainly intended. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in the Resolution. "Government Obligations" shall mean non -callable direct obligations of the United States of America, or obligations which are fully and unconditionally guaranteed in the United States of America, provided, that the full faith and credit of the United States of America has been pledged to such direct obligation or guarantee. "Trust Estate", "trust estate" or "pledged property" shall mean the property, rights and interests described or referred to under Divisions I, II, III and IV, above. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words importing the singular number shall include the plural number and vice versa unless the context shall otherwise indicate. The word "person" shall include corporations, associations, natural persons and public bodies unless the context shall otherwise indicate. Reference to a person other than a natural person shall include its successors. ARTICLE II ESTABLISHMENT OF ESCROW DEPOSIT TRUST FUND; FLOW OF FUNDS Section 2.01. Creation and Funding of Escrow Deposit Trust Fund. There is hereby created and established with the Escrow Agent a special and irrevocable trust fund designated the "City of Miami General Obligation Refunding Bonds, Series 1993 Escrow Deposit Trust Fund (the "Escrow Deposit Trust Fund"), to be held by the Escrow Agent and accounted for separate and apart from other funds of the City and of the Escrow Agent. Concurrently with the delivery of this Agreement, the City deposits or will cause to be deposited with the Escrow Agent and the Escrow Agent acknowledges receipt of immediately available moneys for deposit in the Escrow Deposit Trust Fund in the amount of $ [_, 0 ] , consisting of $ [_, ,_] from the proceeds of the Bonds and $[ , ] in other available moneys provided by the City which, when invested in Government Obligations will provide moneys sufficient to pay the principal of, redemption premium, if any, and interest on the Outstanding Obligations, when due and payable, whether at maturity or upon their redemption, as more particularly described in Schedule C attached to, and made a part of, this Agreement. -3- 93- 481 Section 2.02. Payment of Outstanding Qbligations. The Bond Proceeds and other available moneys received by the Escrow Agent will be sufficient to purchase $[_ , , ._] par amount of Government Obligations, all as listed in Schedule B attached to, and made a part of, this Agreement, which will mature in principal amounts and earn income at such times, all as described in Schedule B, so that sufficient moneys will be available to pay, as the same mature or are redeemed and become due, all principal of, redemption premium, if any, and interest on the Outstanding Obligations. Notwithstanding the foregoing, if the amounts deposited in the Escrow Deposit Trust Fund are insufficient to make said payments of premium, if any and redemption interest, the City shall deposit into the Escrow Deposit Trust Fund the amount of any deficiency immediately upon notice from the Escrow Agent. Section 2.03. Irrevocable Trust Created. The deposit of moneys and Government Obligations or other property hereunder in the Escrow Deposit Trust Fund shall constitute an irrevocable deposit of said moneys and Government Obligations and other property hereunder for the benefit of the holders of the Outstanding Obligations, subject to the provisions of this Agreement. The holders of the Outstanding Obligations shall, subject to the provisions of this Agreement, have an express lien on all moneys and principal of and earnings on the Government Obligations and other property in the, Escrow Deposit Trust Fund. The moneys deposited in the Escrow Deposit Trust Fund and the matured principal of the Government Obligations and other property hereunder and the interest thereon shall be held in trust by the Escrow Agent, and shall be transferred in the, necessary amounts as hereinafter set forth, to the Paying Agent (as defined in the Resolution) for the Outstanding Obligations for the payment of the principal of, redemption premium, if any, and interest on the Outstanding Obligations as the same become due and payable, whether at maturity or upon the redemption thereof, as more specifically set forth in Schedule C hereto. Section 2.04. Purchase of Government Obligations. The Escrow Agent is hereby directed immediately to purchase the Government Obligations listed on Schedule B, [Part I, with the proceeds of the Bonds described in Section 2.01 hereof and the Government Obligations listed on Schedule B, Part II, with the other available moneys described in Section 2.01 hereof.] The Escrow Agent shall purchase the Government Obligations solely from the moneys deposited in the Escrow Deposit Trust Fund as provided in Sections 2.01 and 2.02 hereof. The Escrow Agent shall apply the moneys deposited in the Escrow Deposit Trust Fund and the Government Obligations purchased with such moneys, together with all income or earnings in accordance with the provisions of this Agreement. The Escrow Agent shall have no power or duty to invest any moneys held hereunder or to take substitutions of the Government Obligations held hereunder or to -4- 93- 481 sell, transfer or otherwise dispose of the Government Obligations held hereunder except as provided in this Agreement. Section 2.05. Substitution of Certain GovernMeen._t (a) If so directed by the City on the date of delivery of this Agreement, the Escrow Agent shall accept in substitution for all or a portion of the Government Obligations listed in Schedule B, Government Obligations (the "Substituted Securities"), the principal of and interest on which, together with any Government Obligations listed in Schedule B for which no Substitution is made and moneys held uninvested by the Escrow Agent, will meet the requirements of payment of all principal of, redemption premium, if any, and interest on the Outstanding Obligations as set forth in Schedule C hereof. The foregoing notwithstanding, the substitution of Substituted Securities for any of the Government Obligations listed in Schedule B may be effected only upon compliance with Section 2.05(b) (1) and (2) below. (b) If so directed by the City at any time during the term of this Agreement, the Escrow Agent shall sell, transfer, exchange or otherwise dispose of, or request the redemption of, all or a portion of the Government Obligations then held in the Escrow Deposit Trust Fund and shall substitute for such Government Obligations other Government Obligations, designated by the City, and acquired by the Escrow Agent with the proceeds derived from the sale, transfer, disposition or redemption of or by the exchange of, such Government Obligations held in thet Escrow Deposit Trust Fund, but only upon the receipt by the Escrow Agent of: (1) an opinion of nationally recognized counsel in the, field of law relating to municipal bonds stating that such substitution will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Outstanding Obligations and the Bonds and is not inconsistent with the statutes and regulations applicable to the Outstanding Obligations and the Bonds; and (2) verification from an independent certified public accountant stating that the principal of and interest on the substituted Government Obligations, together with any Government Obligations and any uninvested moneys remaining in the Escrow Deposit Trust Fund will be sufficient, without reinvestment, to pay the remaining principal of, redemption premium, if any, and interest on the Outstanding Obligations as set forth in Schedule C hereof. Any moneys resulting from the salel transfer, disposition or redemption of the Government Obligations held -5- 93- 481 hereunder and the substitution therefor of other Government Obligations not necessary for the payment of such principal of, redemption premium, if any, and interest on the Outstanding Obligations, shall be deposited in the Interest Fund created and established in the Resolution. Section 2.06. Transfers from Escrow D=osit Trust Fund. As the principal of the Government Obligations shall mature and be paid, and the investment income and earnings thereon are paid, the Escrow Agent shall, no later than each interest or principal payment or redemption date for the Outstanding Obligations, as specified in Schedule C hereof, transfer from the Escrow Deposit Trust Fund to the Paying Agent for the Outstanding Obligations amounts sufficient to pay the principal of, redemption premium, if any, and interest on the Outstanding Obligations coming due, as specified in Schedule C hereof. Section 2.07. Investment of Certain Moneys Remaining in Escrow Deposit Trust Fund. Subject to the provisions of Section 2.04, the Escrow Agent shall invest and reinvest, at the written instruction of the City, in Government Obligations any moneys remaining from time to time in the Escrow Deposit Trust Fund until such time as they are needed. Such moneys shall be reinvested in such Government Obligations, maturing no later than the next interest payment date or principal payment date of the Outstanding Obligations, or for such shorter periods or at such interest rates, as the Escrow Agent shall be directed to invest by the City, which periods and interest rates shall be set forth in an opinion from nationally recognized counsel in the field of law relating to municipal bonds, to the City and to the Escrow Agent which opinion shall also be to the effect that such reinvestment of such moneys in such Government Obligations for such Period and at such interest rates will not, under the statutes and regulations applicable to the Outstanding Obligations and the Bonds, cause the interest on such Outstanding Obligations or Bonds to be included in gross income for federal income tax purposes and that such investment is not inconsistent with the statutes and regulations applicable to the Outstanding Obligations and the Bonds. Any interest income resulting from reinvestment of moneys pursuant to this Section 2.07 shall be deposited in the Interest Fund established under the Resolution and used for the purposes described therein. Section 2.08. Escrow Deposit Trust Fund Constitutes Trust. The Escrow Deposit Trust Fund created and established pursuant to this Agreement shall be and constitute a trust fund for the purposes provided in this Agreement and shall be kept separate and distinct from all other funds of the City and of the Escrow Agent and used only for the purposes and in the manner provided in this Agreement. 93- 481 Section 2.09. Transfer of Funds After All Paymen a Required by this Agreement are Made. After all of the transfers by the Escrow Agent to the Paying Agent for payment of the principal of, redemption premium, if any, and interest on the Outstanding Obligations provided in Schedule C have been made, all remaining moneys and securities, together with any income and interest thereon, in the Escrow Deposit Trust Fund shall be deposited in the Interest Fund established under the Resolution and used for the purposes described therein; provided, however, that no such transfers except transfers made in accordance with Sections 2.05 and 2.07 hereof shall be made until all of the principal of, redemption premium, if any, and interest on the Outstanding Obligations have been paid. ARTICLE III CONCERNING THE ESCROW AGENT Section 3.01. Liability of Escrow Agent. The Escrow Agent shall not be liable for the accuracy of the calculations as to the sufficiency of moneys and of the principal amount of the securities and the earnings thereon to pay the Outstanding Obligations. So long as the Escrow Agent applies any moneys, Government Obligations and interest earnings therefrom to pay the Outstanding Obligations as Provided herein, and complies fully with the terms of this Agreement, the Escrow Agent shall not be liable for any deficiencies in the amounts necessary to pay the Outstanding Obligations caused by such calculations. The Escrow Agent shall have no lien, security interest% or right .of set-off whatsoever upon any of the moneys or investments in the Escrow Deposit Trust Fund for the payment of fees or expenses for services rendered by the Escrow Agent under this Agreement. Section 3.02. Permitted Acts. The Escrow Agent and its affiliates may become the owner of or may deal in the Outstanding Obligations as fully and with the same rights as if it were not the Escrow Agent. Section 3.03. indemnification of Escrow Agent. The City hereby agrees to indemnify the Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity or any other expense, fee or charges of any character or nature, which it may incur or with which it may be threatened by reason of its acting as Escrow Agent, under this Agreement, except in the case of the Escrow Agents own negligence or willful misconduct. Section 3.04. Payment to Escrow Agent. The City shall pay to the Escrow Agent reasonable compensation for all services rendered by it hereunder and also all its reasonable expenses, -7- 93- 481 charges and other disbursements and those of its attorneys, agents and employees incurred in and about the administration and execution of the trusts hereby created, and the performance of its powers advances, counsel fees and other expenses reasonably made or incurred by the Escrow Agent in connection with such services. ARTICLE IV MISCELLANEOUS Section 4.01. Amendments to this Agreement. This Agreement is made for the benefit of the City and the holders from time to time of the Outstanding Obligations and it shall not be repealed revoked, altered or amended without the written consent,of all such holders, the Escrow Agent, [ I (the "Insurer") and the City, provided, however, that the City and the Escrow Agent may, without the consent of, or notice to, such holders, but with the written consent of the Insurer, enter into such agreements supplemental to this Agreement as shall not adversely affect the rights of such holders and shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; and (b) to grant to or confer upon the Escrow Agent for the benefit of the holders of the Outstanding Obligations any additional rights, remedies, powers or authority that may, lawfully be granted to or conferred upon the Escrow Agent. The Escrow Agent shall be entitled to rely upon an unqualified opinion of a nationally recognized counsel in the field of law relating to municipal bonds with respect to compliance with this section. Prior to any repeal, revocation, alteration or amendment of this Agreement, the City shall provide written, notice of such proposed repeal, revocation, alteration or amendment to [ Moody's Investors Service, Inc.] at the address set forth below: 99 Church Street New York, New York 10007 Attn: Municipal Rating Desk/Refunded Bonds Section 4.02. Severability. If any one covenants or agreements provided in this Agreement the City or the Escrow Agent to be performed should : or more of the on the part of be determined 93- 481 by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants) and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. Section 4.03. Ngtice of Refundi". The Escrow Agent shall, as soon hereafter as practicable, but in any event within thirty (30) days after the delivery of the Bonds, cause the notice attached hereto as Schedule D to be mailed to the registered holders of the Outstanding Obligations. Section 4.04. Agreement Binding. All the covenants, promises and agreements in this Agreement contained by or on behalf of the City or by or on behalf of the Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not. Section 4.05. Termination. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. Section 4.06. Execution by Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. Section 4.07. Governing Law. This Agreement shall be governed by the laws of the State of Florida. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officers and its corporate seal to be hereunto affixed and attested as of the date first above written. 147CP1172H The City of Miami, Florida By. [Escrow Agent] By. IM 93- 481 SCHEDULE A OUTSTANDING OBLIGATIONS 98- 481 SCHEDULE B Part I INVESTMENT OF BOND PROCEEDS Part II INVESTMENT OF OTHER AVAILABLE MONIES 93- 481 s SCHEDULE C SCHEDULE OF PAYMENTS ON OUTSTANDING OBLIGATIONS 93- 481 SCHEDULE D NOTICE OF DEFEASANCE THE CITY OF MIAMI GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 1993] Principal Maturity Interest Amount Rate CUSIP NOTICE IS HEREBY GIVEN to the owners of the above - described outstanding City of Miami General Obligation Refunding Bonds, Series 1993 (the "Bonds") that there has been deposited with [ ], as escrow agent solely for the holders of the Bonds (the "Escrow Agent"), pursuant to the terms of an Escrow Deposit Agreement dated as of [ , 1993 (the "Escrow Deposit Agreement") The City of Miami, Miami, Dade County, Florida, (hereafter The City) and the Escrow Agent, Government Obligations (as defined in the Escrow Deposit Agreement), the principal of and investment earnings thereon which, when due, will provide moneys sufficient to pay the principal of, redemption premium, if any, and interest on the Bonds, when due and payable, as more particularly described below, and that the Bonds are deemed to be paid in accordance with the terms of the Resolution providing for the issuance of the Bonds, adopted by the City on [ , 1993] (the "Resolution"), will no longer be outstanding and will no longer be entitled to the lien, benefit or security of the Resolution except to receive payments of principal of, redemption premium, if any, and interest from moneys provided pursuant to the Escrow Deposit Agreement. Pursuant to the terms of the Escrow Deposit Agreement, the Bonds maturing prior to [ 1, ] will be paid on their respective maturity dates at par, together with accrued interest thereon, and the Bonds maturing on and after [ 2000] shall be called for redemption on [ , ] at a redemption price of [ %] of par plus accrued interest thereon. Dated this day of FOR: The City of Miami BY: [ ] as Trustee and Escrow Agent , 1993. 93- 481 EXHIBIT "C" RBMSS&A PA PRELIMINARY OFFICIAL STATEMENT DK ri 1993 DRAFT: St2V93 E NEW ISSUE - BOOK ENTRY A RATINGS: See'Rathps' herein c Y THE CITY OF MIAIM, KbRIDA ~ GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 g , o Dated: .1993 Due: 1, N ss a wn`6aiow a.- " u Interest on The CRY of Miami, Florida General Obligation Refunding Bonds, Series 1993 the'Sodoe 1993 Bonds Is sennianrw o6 on 1 and 1, commendrq 1, 1 M (the 'Interest Payment Dates'. The Series I M Bonds are being Inregistereedd • boan--only form�anominations of SS 00 4 n�al amount, or any integral multiple thend. When executed and delvsred dw Series I Bonds w10 ., as norninw for The Doposkory Trust Company ('DTC'. Beneficial owners o� to 1 �9ci be registered M the name of Cede d Co g wBonds wit not receive certificates representing their Interests In the Swiss 190 Bonds purchased. Principal and Interest on the Series 1903 w Bonds will be paid to DTC or Its nominee, as the registered owner thereof, by a check of as Reglsirar and Paying the - O 'Registrar and Paying Agent'), maNed to the registered owner. The reyMered owner will r�such payments to DTC Participant. OTC " ;, P nts ", In turn, remit such payments to the beneficial owners of the Series 1993 Bonds. Sw 'THE SERIES 1993 g d BONDS -Book -Entry -Only System• herein. rU The Swiss 1993 Bonds are subject to optional redemption and scheduled mandatory redemption as provided herein. # The Series 1993 Bonds are being Issued to advance rehmd certain outstanding General Obligation Bonds of the C14v and to psy costs of Issuance of the Series 1993 Bonds, all as more fully described herein. Subject to the 111mlia contained In "AUTHORIZATION AND SECURITY" herein, the Series 1993 Bonds are general obllpatlo a of the City, for which No kit fallh. credp and taxing power are • Pl edged edand are payable from unlimited ad valorem Lxee on anIsutable property wlthhn the City (excluding homestead exemptkns as iogAred by Florlds low). PZment of the princlpd of and tatered on the Series 1993 Bonds wife be Insured by a manktpet boat tasareace polky to be Issued stnraltsaeeasl) c � with the delivery of the Series 1"3 Bonds by [Logo] 5 g See "Municipal Bond Insurance' herein. Y C 9 MATURITIES, AMOUNTS, INTEREST RATES AND PRICE OR YIELDS Ell(Accrued Interest to be added) 0° = Serial Bonds oL: u w " Interest Prices or 0 Amount Rate Yields ..g % .�CaE e c = % Term Bonds Due 1, w e>^ Traced at r% to Yield This cover page contains certain information for quk_k reference only. n Is not a summary. Potential purchasers should not ray upon this page independent of the body of this Official Statement, which must be read In its entirety before making an kdormed Investment decision. MThe Series i993 Bonds are offered when, as and N Issued and moelved by the Underwriters, suthject to the approval of legality by Fine Jacobson Schwartz Nash 8 Block Miami Florida and the Law Offices d Manuel Alonzo -Poch, PA. Mlaml� CoBond Counsel, e g " and to certain other codltions, and the of certain legal matters for fie Underwriters by their Co -Counsel. Ruden, Barnett, Mcdosky, u H Yc Smith, Schuster 6 Russel PA, Fort I , Florida and ublcid, Draper, Gallagher i Mcarans, PA. Miami, Flondda. Certain legal matters q in connection with the Saves 1993 Bonds will be passed upon for the City by A. OuFn Jones, 111, Esq. City Attorney. Howard Gary It Compa a• Miami, Florida and Raymond James d Associates. Inc., St. Petersburg, Flo&& are serving as Financial Advisors to tie City. It is expected thit $ the Series 1993 Bonds will be available for delivery in New York, New York, on or about . 1993. o c : In the opinion of Co -Bond Counsel, under exist statutes and court decisions, Interest on the Series 1993 Bonds Is not s w included In gross Income for federal Income taxpurposes, assuming compliance by the City with certain covenants and e ~ o o procedures, and Is not treated as an Item of tax preference for purposes of the aftemadve minimum tax imposed on kx#Wduals 1j w and corporations under the Internal Revenue Code of 1986, as amended. See however, 'TAX TREATMENT" herein for a c further discussion of certain other tax aspects. Co -Bond Counsel are further of the opinion that the Series 1993 Bonds and the a t Interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes Imposed by Chapter 220, Florida Statutes, as amended, on Interest, Income or profits on debt obligations owed by corporations, banks $ o `o and savings associations, as defined therein. r y a M THE FIRST BOSTON CORPORATION FIRST EQUITY CORPORATION OF FLORIDA g M ^ ARTEMIS CAPITAL GROUP, INC. PRYOR McCLENDON COUNTS 6 CO., INC. SAMUEL A. RAMIREZ & CO., INC. 02o0 0 g �r `o Dated: 1999 i 3 $ Z • naryge , subject to char". 0. 93— 481 • Y O q �-155 THE CITY OF MIAMI, FLORIDA MEMBER3 OF THE COMMISSION OF THE CITr The Honorable Xavier L. Suarez Mayor The Honorable Victor H. De Yurre Vice Mayor The Honorable Dr. Miriam Alonso Commissioner The Honorable Miller J. Dawkins Commissioner The Honorable J. L. Plummer, Jr. Commissioner CITY OFFICIALS City Manager Cesar H. Odio City Attorney A. Quinn Jones, III, Esq. Director of Finance Carlos E. Garcia, C.P.A. City Clerk Matty Hirai CO -BOND COUNSEL Fine Jacobson Schwartz Nash & Block Miami, Florida Law Offices of Manuel Alonzo -Poch, P.A. Miami, Florida FINANCIAL ADVISORS Howard Gary & Company Miami, Florida Raymond Jame• & Associates, Inc. St. Petersburg, Florida INDEPENDENT +CERTIFIED PUBLIC ACCOUNT Deloitte & Touche Miami, Florida f/1518DJG 93- 481 No dealer, broker,'salesperson or other person has been authorised by the City or the Underwriters to give any information or to sake any representations other than as contained herein, and, if given or made, such information or representations must not be relied upon as having been authorised by any of the foregoing. This Official Statement is not to be construed as a contract with the purchasers of the Series 1993 Bonds. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 1993 Bonds by any person to make such offer, solicitation or sale. The information set forth herein has been obtained from the City and other sources believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, the Underwriters or, an to inforsation from other sources, the City. The information and expressions of opinion stated herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in the affairs of the City since the date hereof or the earliest date as of which such information is given. This Preliminary Official Statement is in a form deemed final by the City for the purpose of SEC Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1993 BONDS AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THX OPEN MAR]IT. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. All summaries herein of documents and agreements are qualified in their entirety by reference to such documents and agreements, and all aummaries herein of the Series 1993 Bonds are qualified in their entirety by reference to the form thereof included in the aforesaid documents and agreements. NO REGISTRATION STATEMENT RELATING TO THE SERIES 1993 BONDS HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE -COMMISSION-) OR WITH ANY STATE SECURITIES COMMISSION. THE SERIES 1993 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. F/15188Ja 3 3- 481 Wax OF DOKTZwT8 Page Introductory statements, .........so............ 4........o.......... Plan of Refunding .................................................... Estimated sources and Uses of Funds.....................stood........ Description of the series 1993 Bonds ............ #.so ................. General.... **t. o . . . . . d d t . . • . • . . . . . . d . . . d ... • . .. . . • .. t . d .... •• **"so .. •so Redemption Provisions..o... ......... o... od.do..............o..... Optional Redemption .... 0....... 0.0......... 0................ Mandatory Sinking Fund Redemption ..... stood, ................. Notice of Redemption ........................................ Book -Entry -only System .... too ............ 0.0.0................... Authorization and Security...................ot....0.0...od.......a.. Authorization....o..d..................... d....... ............... Pledge of Ad Valorem Taxes.......*............ o.... d.d... so.... to Tax Tables....t.............................. o........... 0....... Debt Service on the series 1993 Bonds ................................ Legal Debt Limitations....o....... o.................................. The Florida Constitution ............... 0..... 0.0............. salt The city Charter .. . . . • . • . . ... . . . . . . . . . . t .... . . . . . . • .. • .0..0.0.0.6 Debt Summary, ... o....d.... ....... ........ ..... ..................d.... Selected Debt Data ................ o... .... do ........... o...... ... Debt statistics and Various Debt Rations.... 9....... *.also....... General obligation Bonds Authorized But Not Issued ............... Additional Finance Information Relating to the City of Miami.o ............. ...... o........... 0.................. 0. General Description of Financial Practices ..............salt..... Description of Revenues ...................... 0........... d....... Municipal Bond Insurance ............. o ....... t....... ......d........ . Recent Developments ...................................... d...... t.... Employee Benefits Liability.......... 0....... 0.............. 0...0 State Assessment Cap.* .......................................... * Tax Treatment.t...... .................... ......... s...... 000.d.ltoo.. Original Issue Discount ............... 0....... 0....... .... .l.o/..... 0 Ratings.... o ...................................... 0 .... o..o.000..o..o Litigation........................o.......................0.......... Financial Statements ...................... o................... *too ... Legal Matters ............. ...... d...... ................ oat/la/.... /dl Underwriting...........o...........o... .................... t......... Financial Advisors .... ....... ..o............... t.............. 0...... Authenticity of Financial Information ... *..so ........................ Arithmetical Accuracy of Certain Computations..o..................... Disclosure Required by Florida Blue sky Regulations .................. Certain Closing Certificates.................stood................... Approval of Official Statemento.t... ................. odto... o........ (i) 93- 481 f/15180JG Apr ICt8 Appendix A - Description of the City of Miami ........................ Appendix B - General Purpose Financial Statement of the City for the Fiscal Year Ended September 30, 1992....... Appendix C - Form of Resolution............ 0......................... Appendix D - Proposed Form of Co -Bond Counsel Opinion ................ Appendix $ - Specimen of Municipal Bond Insurance policy ............. P/15160JG Page A-1 93- 481 OFFICIAL STATEliM • TBE CIT! OF MIAUX, FXORIDA GMMRAL 013LICATION RZFMMXM BONDS, SERIES 1993 This Official Statement, which includes the cover page and appendices attached hereto, sets forth information concerning The City of Kiami, Florida (the "City") and its General Obligation Refunding Bonds, Series 1993 to be issued in the aggregate principal amount of * to advance refund a portion of the City's $10,000,000 General Obligation Bonds, dated August 1, 1987 consisting of all or a portion of those bonds maturing on or after August 1, 1998, a portion of the City's $18,400,000 General Obligation Bonds, dated November 1, 1988 consisting of all or a portion of those bonds maturing on or after November 1, 1999 and a portion of the City's $10,000,000 General Obligation Bonds, Series 1991, dated July 1, 1991 consisting of all or a portion of those bonds maturing on or after July 1, 2002 (collectively, the "Refunded Bonds"), and to pay costs of issuance of the Series 1993 Bonds. The Refunded Bonds were previously approved by the Commission of the City (the "Commission") and by the qualified electors of the City. PLA1 OF RE1rU1®ING The Series 1993 Bonds are being issued to enable the City to effect the advance refunding of the Refunded Bonds, such Refunded Bonds being currentxy outstanding in the aggregate principal amount of $27,205,000. The advance refunding is being undertaken for the purpose of effectuating debt service cost savings to the City. The monies required to refund the Refunded Bonds will be derived from the proceeds of the sale of the Series 1993 Bonds [and other legally available funds of the city.] Such monies will be irrevocably deposited with , as escrow agent for the Refunded Bonds (the "Escrow Agent") pursuant to an Escrow Deposit Agreement dated as of , 1993 (the "Escrow Deposit Agreement"), by and between the City and the Escrow Agent. The Escrow Deposit Agreement requires the Escrow Agent to use certain of the amounts escrowed thereunder to purchase direct obligations of the United States of America (such direct obligations of the United States of America to be purchased by the Escrow Agent with such monies being referred to collectively as the "Government Obligations"). The Government obligations will mature at such times and in such amounts so that sufficient monies will be available from such maturing principal, together with interest income from the Government Obligations, and cash balances, if any, to make payments of interest on the Refunded Bonds, as they become due, * Preliminary, subject to change. F/15180,IG/1 1 93- 481 and to redeem the Refunded Bonds at their respective first optional payment dates. The Government Obligations will not be available to pay the principal of, redemption premium, if any, or interest on the Series 1993 Bonds. The Series 1993 Bonds shall be issued at a lower net average interest cost rate than the net average interest cost rate of the Refunded Bonds and, as a result of the advance refunding of the Refunded Bonds, the City will realise economic benefits. ZSTDLATRD SOURCMS Alm U8ZS 07 Ffl M The following table note forth the estimated sources and uses of funds, net of accrued interest, for the Series 1993 Bonds: Sources: Principal Amount ........................ $ (Other Legally Available Funds) Total Sources ....................... $ Uses: gecrow Account for Refunded Bonds (1).... $ Original Issue Discount .................. Underwriters' Discount ................... Cost of Issuance (2)...............4..... Total Uses $ See "PLAN OF REFUNDING" herein. (2) Includes a premium for the Municipal Bond Insurance Policy. DBSCRIPTIOK OF TBZ SERI=S 1993 BOMB General The Series 1993 Bonds are being issued in the aggregate principal amount of * and are dated , ,1993. The Series 1993 Bonds will be initially issued in fully registered book -entry form in denominations of $5,000 principal amount or any integral multiple thereof. Interest on the Series 1993 Bonds will be payable to The Depository Trust Company ("DTC") semiannually on 1, 1993 and each 1 and 1 thereafter (the "Interest Payment Dates"), by check of , the Registrar and Paying Agent. * Preliminary, subject to change. 2 W 5180JO/3 93- 481 Payment of such interest to the beneficial owners of the Series 1993 Bonds is the responsibility of the DTC Participants as more fully described below under "THZ SERIES 1993 BONDS--Book-Entry-Only system.0 Principal of and redemption premium, if any, on the Series 1993 Bonds will be payable upon presentation and surrender thereof by the registered owners thereof at the designated corporate trust office of the Bond Registrar and Paying Agent. The series 1993 Bonds bear interest at the rates per anus not forth on the cover page of this Official Statement, and mature on 1 in the years and principal amounts set forth on the cover page of this Official Statement. Redemption Provisions optional Redemption. The Series 1993 Bonds maturing on or prior to _ , , are not redeemable prior to their stated date of maturity. The Series 1993 Bonds maturing on or after are subject to redemption prior to their maturity, at the option of the City in whole or in part at any time, in such manner as shall be determined by the city and by lot within a maturity if less than a full maturity, on and after , , from any legally available monies at the redemption prices (expressed as percentages of the principal amount of Series 1993 Bonds to be redeemed) set forth belows Redemption Redemption Periods (inclusivel Price through , • through , s and thereafter Mandatory Sinking Fund Redemption. The Series 1993 Bonds maturing on , , are subject to mandatory sinking fund redemption prior to maturity in part by lot at a redemption price equal to the principal amount thereof and accrued interest thereon to the date fixed for redemption, without premium, on 1 in each of the following years in the following aggregate principal amounts Principal Year Amount S (1) (1) Final futurity xotice of Redemption. At least thirty (30) days and not more than sixty (60) days before the redemption date, a notice of any such redemption, either in whole or in part, shall be given by deposit in the U.B. mail of a copy of a redemption notice, postage prepaid, to all registered owners of Series 1993 Bonds or portions thereof to be redeemed at their addresses as they appear on the registration books provided for in the Resolution. Failure to so mail any 3 93- 481 F/151eaJG/3 ouch notice to the registered owner of any Boris* 1993 Bonds, or any defect therein, shall not affect the validity of any proceedings for the redemption of any Series 1993 Bond or portion thereof for which no such failure or defect has occurred. All such series 1993 Bonds or portions thereof called for redemption and for the retirement of which funds are fully provided will cease to bear interest on such redemption date. Notice of redemption of any Series 1993 Bond shall set forth the date fixed for redemption, the rate of interest borne by each Series 1993 Bond being redeemed, the date of publication, if any, of a notice of redemption, the name and address of the Registrar and Paying Agent, the redemption price to be paid and, if less than all of the Series 1993 Bonds then outstanding shall be called for redemption, the distinctive numbers and letters, including CusIP numbers, if any, of such Series 1993 Bonds to be redeemed and, in the came of Series 1993 Bonds to be redeemed in part only, the portion of the principal amount thereof to be redeemed. If any Series 1993 Bonds are to be redeemed in part only, the notice of redemption which relates to such Series 1993 Bond shall also state that on or after the redemption date, upon surrender of such Series 1993 Bond, a new Series 1993 Bond or Series 1993 Bonds in a principal amount equal to the unredeemed portion of such Series 1993 Bond will be issued. The Resolution also requires all notices of redemption to be sent to all registered securities depositories holding substantial amounts of obligations similar in type to the Series 1993 Bonds and publication of such notice in The Bond Buyer, New York, New York but failure of any notice of redemption to comply with such additional requirements shall not in any manner affect the effectiveness of a call for redemption otherwise in conformance with the Resolution. Book -Entry -Only System ' The Series 1993 Bonds will be issued in registered book -entry form only. Beneficial Owners (hereinafter defined) of the Series 1993 Bonds will not receive delivery of bond certificates. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Series 1993 Bonds. The Series 1993 Bonds will be issued as fully registered securities in the name of Cede s Co. (DTC's partnership nominee). THE DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORDKEEPING WITH RESPECT TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 1993 BONDS, PAYMENT OF INTEREST AND PRINCIPAL ON THE SERIES 1993 BONDS TO DTC PARTICIPANTS (AS HEREINAFTER DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 1993 -BONDS, CONFIRMATION AND'TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES' 1993 BONDS AND OTHER RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DTC PARTICIPANTS AND BENEFICIAL OWNERS OF THE SERIES 1993 BONDS IS BASED SOLELY ON INFORMATION FURNISHED BY DTC TO THE CITY FOR INCLUSION IN THIS OFFICIAL STATEMENT. ACCORDINGLY, THE CITY NEITHER MAKES NOR CAN MAKE ANY REPRESENTATIONS CONCERNING THESE MATTERS. 4 93- 481 1. The Dsnository Trust env. DTC will act as securities depository for the Series 1993 Bonds. DTC is a limited -purpose trust company organised under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants (the "DTC Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic book -entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates. "Direct participants" include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). 2. Pgrchas• of the Series 1993 Bonds. Purchases of Series 1993 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for such series 1993 Bonds on DTC'* records. The ownership interest of each actual purchaser of each Series 1993 Bond (the "Beneficial Owner") is, in turn, to be recorded on the records of the Direct and Indirect Participants. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well #s periodic statements of their holding, from the Direct or Indirect participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 1993 Bonds will be accomplished by entries on the books of Participants acting on behalf of the Beneficial Owners. SO LONG AS CEDE i CO. IS THE REGISTERED OWNER OF THE SERIES 1993 BONDS, AS NOMINEE OF DTC, REFERENCES HEREIN TO THE SERIES 1993 BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 1993 BONDS SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 1993 BONDS. 3. Subsequent Transfers by Beneficial Owners. To facilitate subsequent transfers, all Series 1993 Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede Q Co. The deposit of Series 1993 Bonds with DTC and their registration in the name of Cede is Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 1993 Bonds. DTC'■ records reflect only the identity of the Direct Participants to whose accounts such Series 1993 Bonds are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. 93- 481 i/15180JG/3 4. Noticest Consents. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners sill be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to Cede i Co. if less than all of the Series 1993 Bonds are being redeemed. OTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede i Co. will consent or vote with respect to the Series 1993 Bonds. Under its usual procedures, DTC nails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede i Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 1993 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). S. - payment of the Series 1993 Bonds. Principal and interest payments on the Series 1993 Bonds will be made to OTC. DTC's practice is to credit the accounts of the Direct Participants on the payable date in accordance with their respective holdings shown on the records of DTC unless DTC has reason to believe that it will not receive payment on the payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or with securities held for the accounts of customers in bearer form or registered in "street name,• and will be the responsibility of such Participant and not of OTC, the Bond Registrar and Paying Agent or the City, subject to any statutory and regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the City and/or the Registrar and Paying Agent for the Series 1993 Bonds, disbursement of such payments to Diregt Participants is the responsibility of OTC, and disbursement of such payments to the Beneficial Owners is the responsibility of the Direct and Indirect Participants. THE CITY RILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO SUCH DIRECT OR INDIRECT PARTICIPANTS, OR THE PERSONS FOR WHOM THEY ACT AS VOMINEES, WITH RESPECT TO THE PAYMENTS TO OR THE PROVIDING OF NOTICZ FOR TBZ DIRECT OR INDIRECT PARTICIPANTS, OR THE BENEFICIAL OWNERS OF THE SERIES 1993 bonds. 6. Procedure in the Event of Revision or Discontinuation of Book -Entry Transfer System. The City shall provide for issuance of Series 1993 Bonds (the "Replacement Bonds') directly to owners of the Series 1993 Bonds other than OTC, or it nominee, but only in .the event that (i) DTC determines not to continue to act as securities depository for the Series 1993 Bonds; or (Li) the City has determined in it sole discretion not to continue the book -entry system of transfer. Upon the occurrence of (i) or (ii) above, the City may attempt to locate another qualified securities depository. If the City does not or determines not to locate another qualified securities depository to replace OTC, the City shall have authenticated and delivered Replacement Bonds in certificate form. In the event the City makes the determination to issue Replacement Bonds, and has made provision to notify the Beneficial Owners of Series 1993 Bonds by mailing an appropriate notice to OTC, it shall issue Replacement Bonds to any DTC Participant making such a request. Interest on 6 93- 481 f/15180JQ/3 the Replacement Bonds shall be payable by the Bond Registrar and Paying Agent, by check or draft mailed to each owner of such Replacement Bond at the address of such owner as it appears in the registration books maintained by the Bond Registrar and Paying Agent, by check or draft mailed to each owner of such Replacement Bond at the address of such owner as it appears in the registration books maintained by the Bond Registrar and Paying Agent and principal on the Series 1993 Bonds will be payable when due upon presentation and surrender of such Series 1993 Bonds at the designated office of the bond Registrar and Paying Agent. Replacement Bonds will be transferable only by presentation and surrender at the designated office of the Bond Registrar and Paying Agent, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner of the Replacement Bond, or by his attorney duly authorized in writing, in form satisfactory to the Bond Registrar and Paying Agent and subject to the other conditions set forth in the Bond Resolution. DTC may determine to discontinue providing its service with respect to the Series 1993 Bonds at any time by giving reasonable notice to the City. Under such circumstances, Series 1993 Bonds are required to be delivered as described above unless a successor securities depository is used. The Beneficial Owner, upon registration of Series 1993 Bonds in the Beneficial Owner's name, will become the registered owner of the Series 1993 Bonds. 7. DTC Practices. The City can make no assurances that DTC, the Direct and Indirect Participants or other nominees of the Beneficial Owners of the Series 1993 Bonds will distribute payments of principal of, or interest on the Series 1993 Bonds, to the Beneficial Owners of such Series 1993 Bonds or that they will do so on a timely basis, or that DTC or any of its Participants will act in a manner described in this Official Statement. The City is nqt responsible or liable for the failure of DTC, DTC Participants or others to make any payment or give any notice to a Beneficial Owner with respect to the Series 1993 Bonds or any error or delay relating thereto. In the event of any insolvency of DTC, or if DTC has insufficient securities to satisfy the claims of the Direct and Indirect Participants, with respect to deposited securities, Direct and Indirect Participants may not be able to obtain all of their deposited securities. e. Transfer of Beneficial Interests under State Law. The rights of holders of beneficial interests in the Series 1993 Bonds and the manner of transferring or pledging those interests is also subject to applicable state law. Beneficial Owners of the Series 1993 Bonds may wish to discuss the manner of transferring or pledging their interest in the Series 1993 Bonds with their legal advisors. 7 93- 481 F/151e0JO/3 AUTEMI ZATION AND SXCX= i r Authorisation The Series 1993 Bonds shall be issued under and pursuant to the Charter of the City, but only to the extent not inconsistent with and not repealed by the provisions of Section 166.021, Florida Statutes; Chapter 166, Florida Statutes; Sections 132.33-132.47, Florida Statutes; the Constitution of the State of Florida, including, but not limited to, Article VII, Section 2 thereof; Resolution No. I of the City adopted on , 1993 (the "Resolution")) and other applicable provisions of law. The Refunded Bonds were approved by the qualified electors of the City. Pledge of ad Valorem Taxes The Series 1993 Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. The Series 1993 Bonds are payable from unlimited ad valorem taxes levied on all taxable property located in the City (excluding homestead exemptions as required by applicable law). The taxes assessed, levied and collected for the security and payment of the Series 1993 Bonds are required, pursuant to the terms of the Resolution, to be assessed, levied and collected in the same manner and at the same time as other taxes are assessed, levied and collected and the proceeds of said taxes, except as described above and in the Resolution, are to be applied solely to the payment of the principal of, premium, if any, and interest on the Series 1993 Bonds. Under Florida law, all taxable real property and personal property must be assessed at fair market value, with some exceptions. Real and personal property valuations are determined each year as of January 1 by the Dade County Property Appraiser's office. The assessment roll for real property is prepared between January and July 1, and each taxpayer is given notice by mail of its proposed assessed property value. The property owner has the right to file an appeal with the Value Adjustment Board, which considers petitions relating to assessments and exemptions. A property owner who objects to a determination by the Value Adjustment Board may file an appeal in Circuit Court. The Value Appraisal Adjustment Board certifies the assessment roll upon completion of the hearing of all appeals, other than those to the Circuit Court. !tillage rates are then computed by the various taxing authorities and certified to the Property Appraiser, who applies the millage rates to the assessment roll to create the tax• roll. The tax roll in then turned over to the Tax Collector for collection. The Florida Constitution entitles each real property owner who is a permanent resident of the State as of January 1 to a $25,000 homestead exemption on his or her primary residential property. In addition, the following uses of real property are generally exempt from ad valorem taxation: religious, educational, charitable, scientific, literary and governmental. There axe also special exemptions for widows, aged persons and ® 93- 481 f/1518040/3 disabled veterans. The, tax on personal property covers only tangible personal property and exempts, among other things, household goods and personal effects and inventory. All real and personal property taxes are due and payable on November 1 of each year, or as soon thereafter as the tax roll is certified and delivered to the Tax Collector. A notice is mailed to each property owner on the tax roll for taxes levied by the County, school board and other taxing authorities. Taxes may be paid upon receipt of such notice, with discounts at the rate of 4• if paid in the month of November; 3• if paid in the month of December; 2% if paid in the month of January; and 1• if paid in the month of February. Taxes paid during the month of March are without discount. All unpaid real and personal property taxes become delinquent on April 1 of the year following the year in which the taxes are levied. Delinquent real property taxes bear interest at the rate of 18% per year from April 1 until a certificate is sold at auction, from which time the interest rate shall be as bid by the buyer of the certificate but in no event may be higher than 18% per year. Delinquent personal property taxes also bear interest at a rate of 18% per year form April 1 until paid or barred under Chapter 95, Florida Statutes. Delinquent personal property taxes must be advertised within forty-five days after delinquency, and after May 1 of the following year the property is subject to levy, seizure and sale. State law provides that tax liens are superior to all other liens, except prior United States Internal Revenue Service liens. The Tax Collector advertises once each week for four (4) consecutive weeks and sells tax certificates on or before July 1 for unpaid tax bills. Tax certificates not sold at auction become the property of the City. (THIS SPACE INTENTIONALLY LEFT BLANK) 9 F/15180JO/3 93- 481 Tax Tables The following table details the assessed value (in thousands) of all taxable property located within the City's municipal boundaries as of September 30 for the past ten fiscal years. CITr OF MIAM, rLORIDA ASSESS?D VAL= OF ALL TAZA= PROP'ERT! L#BT Tzx rIscAL YYAR9 (in thousands) Net Fiscal Year Real Proverty Personal property Total Homestead Exe=tions Assessed value 1992 $10,660,223 $1,263,567 $11,923,790 $968,250 $10,955,540 1991 10,534,602 1,243,083 11,777,685 985,533 10,792,152 1990 10,243,901 1,271,210 11,515,111 981,728 10,533,383 1989 9,997,529 1,213,466 11,210,985 969,335 10,241,650 1988 9,519,461 1,242,316 10,761,797 954,978 9,806,819 1987 9,210,476 1,210,435 10,420,911 933,300 9,487,611 1986 8,979,226 1,205,707 10,184,933 953,516 9,231,417 1985 8,538,398 1,158,212 9,696,610 952,430 8,744,160 1984 8,230,309 1,115,724 9,346,033 954,979 8,391,054 1983 7,616,829 1,042,452 8,659,281 920,895 7,738,386 Sources Metropolitan Dade County Property Appraiser's office s (The City has been notified by the Dade County Property Appraiser that the 1993 net assessed value estimate for purposes of developing the fiscal year 1993-94 budget is $ , or a • (increase/reduction) from the prior year's assessment.) (THIS SPACE INTENTIONALLY LEFT BLANK) 10 93- 481 F/15180JQ/3 The following table lists the ten largest tax assessments in the City of Miami as of September 30, 1992. CITY OF KIAMI, FLORIDA Txx LUWNST TAX ASS=SSHXXT8 1992 A88tSSYD VALU=8 (in thousands) Name of Taxvaver 1. City National Bank 2. Southern Bell Telephone 3. Equitable Life Assurance 4. Florida Power i Light S. SEFC Buildings 6. Brickell Associates 7. Inter -Continental, Florida S. one Biscayne Tower 9. Knight Ridder/Miami Herald 10. Terremark, Inc. Assessed Bank/Trustee $254,038 utility 213,455 Real Estate Investment 185,336 utility 180,370 Office Buildings 162,971 Office Building 68,960 Hotel/Building 67,602 Office Building 61,600 Newspapers 55,598 Real Estate Investments 51,532 Source: Metropolitan Dade County Property Appraiser's Office 9 [THIS SPACE INTENTIONALLY LEFT BLANK) 11 93- 481 F/tstaoJc/s The City has levied certified millage■ of 11,9303 mills for fiscal year 1992-1993 beginning October 1, 1992, consisting of 9.5995 mills for general government and 2.3308 mills for debt service. The following tables show the tax levies and collections in thousands of the City for each of the last ton completed fiscal years. CITY or KE AKI, l7.ORIDA PROPERTY TAX LEVIER AND COLLECTIONB LIST TEN ?ISCAL YEARS (in thousands) Collection Percent Collection Total of Current of of Fiscal Tax Year's Levy Delinquent Taxes Year 1992 Levy 111 $130,702 Taxes Collected $118,369 90.56% $5,780 1991 128,832 119,036 92.40 7,419 1990 125,743 119,363 94.93 4,592 1989 122,260 114,535 93.68 3,710 1988 115,935 107,908 93.08 2,356 1987 116,612 111,740 95.82 1,606 1986 109,938 105,457 95.92 944 1985 104,135 100,976 96.97 722(3) 1984 93,340 88,982 95.33 3,036 1983 83,025 78,815 94.93 1,209 Outstanding Delinquent Collections Taxes Total As Percentage Outstanding as Percent Fiscal Tax of Current Delinquent of Current City Year Collections Levy Taxes (21 Lew Millaae 111 1992 $124,149 99.98• $5,077 3.88% 11.9303 1991 126,455 98.16 5,059 3.93 11.9376 1990 123,955 98.58 5,162 4.11 11.9376 1989 118,245 96.72 5,742 4.70 11.9376 1988 110,264 95.11 4,621 3.99 11.8219 1987 113,346 97.20 2,894 2.48 12.2910 1986 106,401 96.83 3,318 3.01 11.9091 1985 101,698 97.66 3,970 3.81 11.9091 1984 92,018 98.58 3,367 3.61 11.1238 1983 80,024 96.38 2,925 3.52 10.7290 Includes levies for general operations and debt service. (2) Net reserve of approximately 5% of total tax levy. (3) Starting in fiscal year 1985, current year's delinquent tax collections are included with collection of current year's taxes. Prior years' collection of delinquent taxes included both current year's and prior years' delinquent tax collections. Sources City of Miami, Florida Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1992. 12 f/1S18DJG/3 93- 481 DEBT SSRVIC= ON THR SSRIZS 1993 BONDS The following tables sets forth the scheduled annual debt service on the Series 1993 Bonds. Fiscal Year Ending Principal Total Debt September, 30._ Amount Interest Service S S S TOTAL LEGAL DEBT LIMITATIONS The Florida Constitution Article viI, Section 12 of the Florida Constitution requires the approval of a majority of all qualified electors residing within the municipal boundaries of a municipality prior to the issuance by that municipality of bonds payable from ad valorem taxes assessed by the municipality and maturing more than 12 months after the bonds are issued. Once the bonds, referred to as general obligation bonds, are approved by referendum, the Floria Constitution does not provide a limit on the amount of ad valorem taxes t s City may levy to pay principal and interest on such bonds. The City Charter The City Charter limits general obligation debt of the City to 15% of the assessed valuation of all real and personal property within the City limits an shown by the last preceding assessment roll of the City and provides that bonds for street, sewer, sidewalk and other public improvements which are paid from special asmess&Ants shall not be subject to much limitation of amount nor be considered when computing the amount of general obligation bonds that may be issued. (The debt limitation for general obligation bonds as of September 30, 1992 was $1,643,331,000 based on the net assessed valuation of $10,955,540,000. Outstanding general obligation debt applicable to the City's debt limitation as of September 30, 1992 totaled $185,430,000 which is approximately 1.69• of the net assessed valuation.) 13 93- 481 F/15180JG/3 DEBT SUMMAM The information under this heading is subject in all respects to the more detailed financial information in the audited financial statements of the City. See, "General Purpose Financial Statements of the City for the Fiscal Year Ended September 30, 1992" attached hereto as Appendix B. Selected Debt Data The following tables provide a description of the City's outstanding general obligation bonds, including their principal and interest requirements as of (September 30, 1992,1 and information regarding its overlapping debt with Dade County, Florida (the "County"). (THIS SPACE INTENTIONALLY LEFT HLANR) 14 93- 431 F/15180JQ/3 (GBNERAL OBLIGATION OWDS OUTSTANDING OM SIPTiIB23E 30, 19924, Final Dated Maturity Amount Amount Genersl obligation Issue QUL year It>ES1s61 Qutetandin2 M Fire Fighting ................................. 6/1/72 1992 S 1,100,000 Sanitary Sewer ................................ 6/1/72 1992 5,000,000 Police Headquarters ........................... 6/1/72 1992 1'500,000 Stores Sewer Improvement ....................... 6/1/72 1992 3,000,000 Street and Highway Improvement ................ 6/1/72 1992 2,000,000 Public Park 9 Recreational Facilities......... 10/1/72 1997 28.350,000 Storm Sewer Improvement ....................... 9/1/73 1993 2,000,000 Police Headquarters ........................... 9/1/73 1993 4,000,000 Storm Sewer Improvement ....................... 3/1/75 1995 3,000,000 Police Headquarters ........................... 3/1/75 1995 8,000,000 Sanitary Sewer ................................ 10/1/75 1995 5,000,000 Police Headquarters ........................... 10/1/75 1995 2,000,000 Sanitary Sewer ................................ 5/1/77 1977 13,000,000 Fire Fighting ................................. 5/1/77 1977 5,000,000 Police Headquarters ........................... 5/1/77 1977 3,000,000 Storm Sewer Improvement ....................... 5/1/77 1977 2,000,000 Fire Fighting ................................. 12/1/77 1998 1,000,000 Public Park 6 Recreational Facilities......... 12/1/77 2003 11,540,000 Housing ....................................... 12/1/77 2008 1,500,000 Street 9 Highway Improvement .................. 12/1/78 1998 5,000,000 Sanitary Sewer ................................ 12/1/78 1998 6,000,000 Fire Fighting, Prevention 9 Rescue Facilities. 12/1/78 1998 2,250,000 Storm Sewer Improvement ....................... 12/1/78 1998 5,000,000 Fire Fighting, Prevention i Rescue Facilities. 8/1/81 2001 1,750,000 Storm Sewer Improvement ....................... VIM 2001 3,000,000 Housing ....................................... VIM 2011 4,400,000 Fire Fighting, Prevention i Rescue Facilities(2)......................... 5/1/83 2003 8,000,000 Storm Sewer Improvement(2).................... 5/1/83 2003 4,000,000 Sanitary Sewer(2)............................. 5/1/83 2003 6,000,000 Street Highway Improvement(2)................. 5/1/83 2003 6,000,000 Housing(2).................................... 5/1/83 2013 1,000,000 Fire Fighting ..............•••••••••••••••.••• 6/1/85 1998 2,075,000 Sanitary Sewer ................................ WAS 1996 4,205,000 Storm Sewer ................................... 4/1/85 19" 2,265,000 HighwayImprovement ........................... 4/1/85 1998 2,785,000 Police Headquarters ........................... 4/1/85 1998 2.145,000 Police Headquarters (3)........................ 6/1/86 2005 12,000,000 Storm Sewer(3)................................ 6/1/86 2011 5,000,000 Sanitary Sewer(3)............................. 6/1/86 2006 3,000,000 Street 9 Highway(3)........................... 6/1/86 2006 2,000,000 (CHART CONTINUED ON FOLLOWING PAGE) 15 F/15180JG/3 93- 481 conaral Obligation Refunding .................. 8/1/86 20% 38,355,000 Pollution Control Facilities .................. 10/1/66 2006 4,000.000 Street i Highway IsprWASIent.................. 10/l/86 2006 2,375,000 Police Headguartars(3)........................ 8/l/87 2007 1,500,000 Storm Sewer(3)................................ 8/i/81 2007 1,000,000 Sanitary Sawr isproveeent(3)................. 9/l/87 2007 2,500,000 street i Highway isprovesnnt(3)............... 8/l/87 2007 5,000,000 Police Headquarters(3)........................ 11/1/88 2008 1,S00,000 Stour Sewer leprovement(3).................... 11/i/88 2013 5.000.000 Sanitary Sewr(3)............................. 11/l/88 2008 5,000,000 Street i Highway Isprovement(3)............... ll/l/88 2008 3,900,000 Fire Fighting Prevention & Rescue Facilities(b ............................... ll/l/lib 2008 3,000,000 General Obligation Refunding .................. 4/l/89 Zola 22,605,000 General Obligation Refunding .................. 5/1/91 2013 16,135.000 Fire Fighting(3).............................. 7/1/91 2011 3,000,000 Sanitary Sewr(3)............................. 7/1/91 2011 7,000,000 General Obligation Refunding .................. 11/15/92 TOTAL HiLwam 3,��� * Does not include the City's $10,000,000 General Obligation Bonds (Sanitary Sewer Improvements) due 2017 dated August 1, 1992. (1) Includes an October 1, 1991 principal payment in the amount of $1,600,000 that was recorded as an accrual in the City's Financial Statements as of September 30, 1991. (2) These bonds were partially refunded by $16,135,000 General Obligation Refunding Bonds, Series 1991 issued on April 30, 1991. (3) To be refunded in part, with proceeds of the Series 1993 Bonds.) Sources (To follow] (THIS SPACE INTENTIONALLY LEFT BLANK) 16 f/15180JG/3 93- 481 (CITY OF MIAMI, FLORIDA GENERAL OBLIGATION HORDED INDEBTEDM M PRINCIPAL AND INTBREST R1WIRZMZMTfi AS Or Riapma ER 30, 1992 Endina Se2tember_30 principal Interest Total 1993 9,945,000 10,819,184 20,764,184(1) 1994 11,980,000 11,S84,558 23,564,558 1995 12,345,000 10,787,537 13,132,537 1996 12,245,000 10,010,142 22,255,142 1997 12,355,000 9,240,512 21,59S,512 1998 11,585,000 8,482,890 20,067,890 1999 10,810,000 7,743,633 18,553,633 2000 10,160,000 6,962,619 17,122,619 2001 10,740,000 6,194,993 16,934,993 2002 10,850,000 5,594,765 16,444,165 2003 11,385,000 4,834,641 16,219,641 2004 9,660,000 4,037,171 13,697,171 2005 9,270,000 3,342,984 12,612,984 2006 7,590,000 2,663,616 10,253,616 2007 6,260,000 2,125,383 8,385,383 2008 5,355,000 1,704,642 7,059,642 2009 5,470,000 1,367,415 6,837,415 2010 4,395,000 1,065,359 5,460,359 2011 3,805,000 785,914 4,590,914 2012 2,295,000 557,419 2,852,419 2013 2,385,000 413,696 2,798,696 2014 2,415,000 263,986 2,678,986 2015 670,000 128,865 798,865 2016 710,000 88,330 798,330 2017 750,000 45.375 795,375 TOTAL S185,430.000 $110,845.629 S296,275.629 (1) Excludes October 1, 1992 installment in the amount of $13,319,460 recorded in the general obligation debt service fund.) Sources City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. 17 93- 481 F/151&DJG/3 r CITY OF MIAMI, FLORIDA RATIO OF AWWAL DEBT SKRYiCZ X PMWrTMM FOR GENERAL BONDZD DZ9T TO TOTAL GENERAL FU K PZNDI%V"S AND OTMM FIXANCING OSKS LAST TEX FISCAL Y=ARS (in thousands) General Handed Total General Fund Fiscal Bond bond Debt Service Expe ciltures i Other Year Prineical interest Ex iturst Finwmins Uses Sotto 1992 $11,375 $12,620 523,995 5204,863 11.71% 1991 10,995 12,363 23.358 200,316 11." 1990 11.711 13,M 25,489 198,354 12.85 1989 11,280 13,659 24.939 193.018 12.92 1988 12,000 14,176 26.176 186.337 14.05 1987 11,400 13,609 25,009 187,700 13.32 1986 10,800 13,281 24,081 189,424 12.71 1985 10.010 12,540 22,550 181,805 12.40 1984 9,570 7,924 17,494 166,880 10.48 19a 9,990 6,570 16,560 151,740 10.91 Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. CITY OF MIAMI, FLORIDA SCiiBDM OF DIRECT AND OVZRLAPP13IG GENERAL OBLIGATION DEBT September 30, 1992 (in thousands) Aaount Percentage Available Appliablt City$@ Share Gross Debt And Reserves Not Debt To City of Debt City of Kiwi S 185,430 S 690 S 164,740 100% $164,740 Metro -Dade County 4",In 37,993 451,178 19it17 $5,723 School Ooardi2l 394,020, 20.326 373,694 1920) 71.001 $5�009 S1 009 53411,W Based upon the percentage of the County tax roll valuation comprised of real and personal property situated in the City of Miami. (2) The amounts provided by the School Board are as of June 30, 1992. Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. s F/15180JG/3 18 93- 481 Debt Statistics and Various Debt Ratios The following tables detail the City's debt statistics and significant comparative ratios of debt to population and to the City's tax base. CITY OF KIAMI, FLORIDA CURRENT DEBT RATIOS SEPTMU= 30, 1992 FACTORS: Assessed Valua(i) Net taxable valuation City of Niswi debt, not of reserve furls: General obligation Special obligation(2) Combined direct debt overlapping debt, net of reserve funds:(3) General obligation Special obligation Combined net overtopping debt Total net direct and net overlapping debt Population of Mimi(4) Net assessed valuation per capita Net taxable valuation per capita DEBT RATIOS: Net direct general obligation debt as a percent of taxable assessed valuation Combined net direct and overlapping general obligation debt as a percent of taxable assessed valuation Net direct general obligation debt per capita $184,740,000 230,570,000 $156,724,000 78,846,000 Combined net direct general and special obligation debt per capita Combined net direct and overlapping general obligation debt per capita Combined net direct and overlapping general and special obligation debt per capita S11 S 10.9 LL442M S 415,310,000 235,570,000 S 65. O 880 0�00 390,700 S 31,321 S 28,777 1.69X 3.121 S 485.26 S 1,090.91 $ 896.94 S 1,709.69 Assessed valuation as of the final tax roll from Metropolitan Dade County, using 100• of ,assessed value as mandated by Florida law. (2) Special obligation debt includes special obligation bonds as well as revenue bonds payable from revenue sources other than ad valorem taxes. (3) Based upon the percentage of the County's tax roll valuation comprised of real and personal property situated in the City of Miami. (4) Based on City of Miami estimate. The 1990 U.S. Bureau of the Census preliminary population count of 358,458 is being challenged by the City and is expected to be adjusted. Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. 19 93- 481 F/15180 4/3 RATIO OF NST G81i8RAL OBLIGATION 8OKD19D DNB? TO 119T ASSESSED VALUs AND MST GXXXRAL OBLIGATION BONDED DEBT P19R CAPITA (in thousands) Mot Not General Fiscal Assessed Marstood Assessed obligation Year Poculationt1l value Exaction Value 220M Debt Wig Car Cmite 1992 383,700(2) $11,923,790 $968,250 $10,955,540 $154,740 1.69% $485.26 1991 383,000(2) 11,M.685 985,533 10,796.152 156,144 1.73 486.79 1990 393,OOO(2) 11,515,111 981,728 10,533,383 154,302 1.75 461.20 1989 371,444(2) 11,210,985 969,335 10,241,"0 195,560 1.91 527.29 1988 369,007(2) 10.761.797 954,978 9,806.819 186,041 1." 504 A 7 198T 3681210(2) 10,420,911 933,300 9,487.611 195,578 2.06 514.70 1986 371,975(2) 10,184,933 953,516 9,231,417 190,697 2.07 512.66 1995 380,446(2) 9,696,610 952,430 8,744,180 1?0,087 1.95 447.07 1934 383,027(2) 9,346,033 954,979 8,391,054 1",102 1.74 381.74 1953 382,726(3) 8,659,281 920.695 7,738,386 124,955 1.61 326.49 Estimate provided by the State of Florida, Division of Population Studies, Bureau of Business and Economic Research, University of Florida, except where noted. (2) Based on City estimate. The 1990 U.S. Bureau of the Census preliminary population count of 358,548 is being challenged by the City and expected to be adjusted. (3) Based on the July 1, 1982 population estimate used by the Office of Revenue Sharing of the Federal Government. Source: City of Miami, Florida Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1992. General Obligation Bonds Authorized But Not Issued The following table outlines the date, type and amounts of general obligation bonds, other than the Series 1993 Bonds, authorized but unissued as of ► 19—. Date of Previously voter Approval Type of Debt Authorized Issued 110/1/80 Sanitary Sewer $45,000,000 $32,500,000 20 F/15168JQ/3 Balance Unissued $12,500,0001 93- 481 ADDITIONAL FINANCIAL INFORMATIOU RELATING TO T13E CITT OF XIAKI General Description of Financial Practices The City Charter requires the City Manager to submit a budget estimate not later than one month before September 30 of each fiscal year. Each department prepares its own budget request for review by the City Manager. The City Commission holds public hearings on the budget plan and must adopt the budget not later than October 1. The City Commission adopted a budget for the 1993-1994 fiscal year on September 24, 1992. The financial statements of the City are audited annually by a firm of Independent certified public accountants. For the fiscal year ending September 30, 1992, the City employed Deloitte Touche and their opinion is included with the City's audited financial statements for the fiscal year ending September 30, 1992 in Appendix B, "General Purpose Financial Statements." The following table presents certain financial information of the City derived from its General Purpose Financial Statements (and a summary of information from the budgets of the City for its 1991-1992 and 1992-1993 fiscal years). [THIS SPACE INTENTIONALLY LEFT BLANK) 21 F/15180JG/3 93- 481 (Susasary of Revenues, Ixpenditures and Year -Ind Lund Balances General Fund and General Obligation Debt Service fund Fiscal Years Inded September 30 ($ in thousands) Budget Budget(1) 1993 19921 �41 1?3.4 19�.9 General Fund: Revenues and Other Financing Sources $195,558 $200,391 $200,549 $198,392 $191,343 Expenditures and Other Uses 195,558 201,365 200,572 198.522 193.018 (2) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Uses ��e (974) (23) 0 30) (1,675) Equity Transfer -Net Year -End Fund Balance (29) S.I.a.ill Genersl Obligation Debt Service Fund: Revenues S 25,250 S 25,763 S 24,852 S 26,913 S 25.761 Expenditures and Other Uses 25,250 25,763 25,313 27,065 25,360 Excess (Deficiency) of Revenues Over Expenditures and Other Uses � .0- (461) (152) 381 Equity Transfer; Net (713) Year -End Fund Balance ..Ja 51M 1.690 Budget appropriated fund balances to cover projected deficit. (2) Accounting transaction for a capital lease/purchase of computer equipment, net present value of $5,769,000, has been excluded from this schedule to provide a comparison consistent with other years.] Sources (TO FOLLOW) Description of Revenues The following is a description of the revenues which comprise the City's General Fund. Property Taxes. Article VII, Section 9 of the Florida Constitution provides that except for taxes levied for payment of bonds and certain voter approved levies, municipalities in the State many not levy ad valorem taxes in excess of ten mills ($10 per $1,000) of assessed valuation upon real estate and tangible personal property having a situs within the taxing city, when the tax is being imposed to generate monies for municipal purposes. 22 93- 481 F/1518DJG/3 Both Dade County and the City tax real and tangible personal properties within the City. Dade County and its twenty-eight incorporated municipalities, including the City, do not levy personal income tax, gross receipts tax, inheritance tax, gift tax or commuter tax. LPublic Service Taxes. These taxes are deposited in the Public Service Tax Special Revenue Fund, and subsequently transferred to other funds, including the General Fund.) (Franchise Taxes. The City has entered into franchise agreements with utilities to generate revenues for the City based on the dollar volume of services rendered to City residents. The most significant of these agreements is with Florida Power G Light Company for a 30-year period, with an estimated revenue of $12.8 million in fiscal year 1992-1993.) (Local Option Gas Tax. This is a tax levied on the sale of gasoline. The funds generated are to be used for transportation systems and for street and highway maintenance.) jgccupational Licenses. The City levies a license tax for business privilege licenses. License taxes vary according to the type of business. The exception to this are the contractors licenses, which are collected only by the Dade County Tax Collector. There is a not contractor's fee for all contractors within the County. After collection, Dade County returns to the cities its pro rata share of revenue collected. The pro rata share due each city depends on the number of contractors dong business within each cityll's limits.) (State Revenue Sharino. The revenues distributed to the municipalities by the State of Florida under the State's revenue sharing program are derived from a percentage of its collection of the State cigarette tax, the State motor fuel tax and the State road tax. Its guaranteed entitlement component, $5.7 million annually, is pledged for the payment of debt and recorded in other funds. Unused funds are transferred to the General Fund as other financing sources.) Sales Taxes. The State of Florida levies a 6 percent sales tax. A portion of this tax, one half of one percent of the 6 percent levied, is shared by municipalities based on their population. The City's General Fund receives revenues from a variety of sources. The following table lista the revenues received by the City from these sources for the past five fiscal years. Certain financing ■ounces presented as "Operating Transfers In" in Appendix B, "General Purpose Financial Statements" are reclassified in this table according to their sources of origin. 23 9 3 - 4.8 1 F/15180 4/3 (General Fund Revenue and other Financing Sources ($ in thousands) (Budget)(') (Budget)(') 1993 19g2 1991 1990 1989 Taxes: Property Taxes Public Service Taxes Franchise Taxes License and Permits Intergovernmental: State Revenue Sharing Sales Taxes other Grants Intrrgovernmental Charges for Services Interest Other Revenues and Financing Sources Total $100,012 $104,548 $99,966 $98,366 $94,001 22,876 22,302 22,771 21,410 22,067 14,085 19.0661 18,00j 17,557 S136,M 6145,916 S141,448 $137,780 S133,635 4,595 4,609 4,773 6,003 6,330 2,825 3,235 4,361 4,947(2) 10,873 15,748 15,352 15,406 15,501 15,407 10,808 5,637 5.594 4.589 3i458 3,178 4104 6.471 2,657 2,720 6,031 6.822 4.830 3,856 3,227 1,270 2,763 3,438 2,234 1,822 $195,558 $201,365 $200,549 $198,392 $191,343 Budgets adopted by City Commission. (2) Effective in 1990, guaranteed entitlement revenues of $5.7 million have been recorded annually in debt service and enterprise funds as pledged for debt repayment. Unused funds approximating $5.5 million are transferred annually to the General Fund as other financing sources. In prior years Guaranteed Entitlement Revenues were recorded in the General Fund as part of State Revenue Sharing.) Source: (To Follow) NUNICIPAL BOLD IASURANCZ (TO FOLLOW) 24 93- 481 Fits1eoJc/a :N i RXCZNT DYVZWPXR TS E*ployee Benefits Liability The City is a party to a number of cases involving the City's pension fund and workers' compensation. Prior to 1973, Florida statutory law as well as the City's Code permitted the City to deduct from employees' pension payments the amount that employees received from worker's compensation. In 1973, Florida statutory law was repealed, but the City continued to offset its pension payments against workers' compensation payments of its employees pursuant to the City Code. In 1989, the Supreme Court of Florida ruled that the City's pension offset was improper. As a result, the City is or may be subject to an additional 56 pension offset cases. (To date, the Judge of Compensation Claims Court has issued 18 orders against the City which total in the aggregate $2,543,312. The City took an appeal from each of those orders and has lost at the appellate court on most of them. The City has employed legal counsel to seek review of those decisions by the Supreme Court. In addition to the 18 orders, 23 other cases are currently in litigation, and the remaining 16 cases have not been pursued to date. If all 57 cases are decided against the City, the total cost is estimated to be $6.4 million for which the City does not have reserves. In the event that the City is successful in its efforts at the Florida Supreme Court level, the financial impact on the City may be significantly reduced. Otherwise, it will need to consider other alternatives such as a structured payment over a number of years in order to try to mitigate the financial impact that these decisions would have if the City were required to pay all the claims within a short period of time. I State Asseeeaent Cap On November 3, 1992, the voters of the State of Florida passed an amendment to Article VII, Section 4 of the Florida Constitution establishing a limitation of the lesser of 3s or the increase in the Consumer Price Index during the relevant year, on the annual increase in assessed valuation of homestead (primary residence) property, except in the event of a sale thereof during such year, and except as to improvements thereto during such year. Because the amendment did not become effective until January 5, 1993, assessments as of January 1, 1993 will not be subject to the foregoing limitation. The amendment did not alter any caps on millage rates otherwise set forth in the Florida Constitution. Since the City has authority to increase the millage levy for voter approved general obligation debt to the amount necessary to satisfy the related debt service requirements, the amendment is not expected to adversely effect the ability of the City to pay the principal of or interest on the Series 1993 Bonds. However, in periods of high inflation, those municipalities whose operating millage levies are approaching the constitutional cap and whose tax base consists largely of residential real estate, may, as a result of the above -described amendment, need to place 25 93- 481 f/15160JG/3 greater reliance on non -ad valorem revenue sources to most their operating needs. At the present time, approximately two-thirds of the City's ad valorem tax revenues are levied on commercial real estate. U IN In the opinion of Co -Bond Counsel, under existing statutes and court decisions, interest on the Series 1993 Bonds is not included in gross income for federal income tax purposes, assuming compliance by the City with certain covenants and procedures and is not treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986, as amended (the *Codes). The Series 1993 Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except for estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits and debt obligations owned by corporations, banks and savings associations, an defined therein. The opinion on tax matters is based on certain representations set forth in the Tax Certificate delivered by the City upon the issuance of the Series 1993 Bonds and the City's covenant contained in the Resolution that it will do and perform all acts and things necessary to assure that interest on the Series 1993 Bonds is not included in the gross income of each registered owner pursuant to the Code. Co -Bond Counsel did not independently verify the accuracy of the representations made by the City. The Code prescribes a number of qualifications and conditions for the interest on local government obligations to be excluded from gross income for federal income tax purposes, some of which, including provisions for potential payments by the City to the federal government, require future or continued compliance after issuance in order for the interest to be and continue to be so excluded from the date of issuance. lion -compliance with these requirements could cause the interest on the Series 1993 Bonds to be included in the gross income for federal income tax purposes of its registered owners and to be subject to federal income tax retroactively to the date of their issuance. There are Code provisions applicable to corporations, as defined for federal income tax purposes, that impose an alternative minimum tax of seventy-five percent (75%) of the excess of adjusted current earnings over other alternative minimum tax income which may subject a portion of the Interest on the Series 1993 Bonds earned by affected corporations to that corporate alternative minimum tax. Under the Code, interest on the Series 1993 Bonds may be subject to an environmental tax imposed on corporations for certain taxable years, a branch profits tax imposed on certain foreign corporations doing business in the United States, and a tax imposed on excess net passive income on certain subchapter S corporations. In addition, under the Code, the exclusion of interest from gross income for federal income tax purposes can have certain adverse federal income tax consequences on items of income or deductions for particular taxpayers, including among them, financial institutions, some insurance companies, recipients of social security and railroad retirement benefits, and those that are deemed to incur or continue 26 93- 48 1 f/151aD,IG/3 indebtedness to acquire or carry tax exempt obligations. The applicability and extent of these and other tax consequences will depend upon the particular tax status of each bondholder. For that reason, they should consult their tax advisors before purchasing the series 1993 Bonds to determine to what extent, if any, the foregoing tax provisions will have on them. Bond counsel does not express and has not expressed an opinion on these matters. (ORIGIXAL ISSO= DISCOUNT) (To Follow] RATINGS Standard and Poor's Corporation and Moody's Investors Service Inc. have assigned their municipal bond ratings of and , respectively, to the series 1993 Bonds with the understanding that upon delivery of the series 1993 Bonds, a policy insuring the payment when due of the principal of and interest on the Series 1993 Bonds will be issued by In connections with such ratings, certain information was supplied by the City to such rating agencies to be considered in evaluating the Series 1993 Bonds. Such ratings reflect only the respective views of such rating agencies, and any explanation of the significance of such ratings should be obtained from the rating agency furnishing the same. There is no assurance that any of such ratings will be retained for any given period of time or that the same will not be revised downward, suspended or withdrawn entirely by the rating agency furnishing the same if, in its judgment, circumstances so warrant. The City undertakes no responsibility with to bring to the attention of owners of this Series 1993 Bonds any downward revision, suspension or withdrawal of any such rating or to impose any such revision. suspension or withdrawal of such ratings, or any of them, may have an adverse effect on the market price of the Series 1993 Bonds. LITIGATION (There is not now pending any litigation restraining or enjoying the issuance or delivery of the Series 1992 Bonds or the levy or collection of ad valorem taxes to pay the principal of premium, if any, and the interest on the Series 1993 Bonds, or questioning the proceedings or authorization under which the Series 1993 Bonds are to be issued, or affecting the validity of the Series 1993 Bonds. The City is a defendant, from time to time in various lawsuits. In the opinion of the City Attorney, any such pending litigation which represents potential liability for the City will not have a material effect on its ability to pay the principal of, premium, if any, or interest on the Series 1993 Bonds.) 27 93- 481 F/1518OJQ/3 FINANCIAL STATZMZXTS The financial atatements of the City set forth in this Official statement have been examined by Deloite & Touch*, independent certified public accountants, for the fiscal year ended September 30, 1992, as stated in their report to the City Commission dated March 30, 1993 and are an integral part of this Official statement. Both the accountants report and the City's audited financial statements are included as Appendix B to this Official Statement. LEGAL MATTERS Legal matters incident to the authorisation, delivery and sale of the Series 1993 Bonds, and with regard to the tax status thereof under existing laws, regulations, rulings and judicial decisions, are subject to the unqualified approving opinion of Fine Jacobson Schwartz Nash & Block, Miami, Florida and the Law Office of Manuel AlonBo-Poch, P.A., Miami, Plorida, Co -Bond Counsel which opinion shall be substantially in the form attached to this official Statement as Appendix D. Certain legal matters will be passed on for the City by A. Quinn Jones III, Esq., City Attorney. Certain other legal matters will be passed on for the Underwriters by their Co -Counsel, Ruden, Barnett, McClosky, Smith, Schuster & Russell, P.A., Fort Lauderdale, Florida and Kubicki, Draper, Gallagher & McGrane, P.A., Miami, Florida. UNDERWRITING The First Boston Corporation, First Equity Corporation of Florida, PrySor McClendon Counts & Co., Inc., Artemis Capital Group, Inc. and Samuel %. Ramirez & Co., Inc. (collectively, the "Underwriters") have agreed, subject to certain conditions, to purchase the Series 1993 Bonds from the City at an aggregate purchase price of $ (which represents the par amount of the Series 1993 Bonds less an original issue discount and an Underwriters' discount), plus accrued interest. The Underwriters' obligations are subject to certain conditions precedent, and they will be obligated to purchase all the Series 1993 Bonds if any Series 1993 Bonds are purchased. The Series 1993 Bonds may be offered and sold to certain dealers (including dealers depositing such Series 1993 Bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by'the Underwriters. 71MANCIAL ADVISORS The City has retained Howard Gary & Company, Miami, Florida, and Raymond James & Associates, Inc., St. Petersburg, Florida, as Financial Advisors (the "Financial Advisors") in connection with the preparation of the City's plan of financing and with respect to the authorization and issuance of the Series 1993 Bonds. The Financial Advisors are not obligated to undertake and have not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information 28 93- 481 f/151s0JG/3 contained in this Official Statement. & Associates, Inc., are full service financial advisory and underwriting throughout the nation. Howard Gary i Company and Raymond Janes investment banking firms which provide services to governmental entities AUTSEHTICITY Or >riNAItCIAL INFORMATION The financial data and other information set forth in this Official Statement have been obtained for the City and other sources which are believed to be reliable, but no guarantee is made as to the accuracy or completeness thereof, and the inclusion of such information herein is not to be construed as a representation to that effect. There is no guarantee or representation that any of the assumptions or estimates contained in this Official statement will ever be realized. All of the summaries or excerpts of statutes, resolutions or other documents contained herein do not purport to be complete statements and are made subject to all provisions of such statutes, resolutions and documents. Reference should be made to such original sources In all respects. ARITSMETICAL ACCURACY OF CERTAIN COMPUTATIONS The arithmetical accuracy of certain computations included in the schedules provided by The first Boston Corporation, Howard Gary 6 Company and Raymond James S Associates, Inc., relating to (a) computation of forecasted receipts of principal and interest on certain acquired obligations and the forecasted payments of principal and interest to redeem the Refunded Bonds, and (b) computation of the yields on the Series 1993 Bonds and cert*in restricted acquired obligations was examined by , certified public accountants. Such computations were based solely on assumptions and information supplied by the City and its representatives. has restricted its procedures to examining the arithmetical accuracy of certain computations and has not made any study or evaluation of the assumptions and information on which the computations were based and, accordingly, has not expressed an opinion on the data used, the reasonableness of the assumptions or the achievability of the forecasted outcome. DISCLOSURE REQUIRED BY FI.ORIDA BLUE SXT REGULATIONS Rule 3E-400.003, Florida Administrative Code, requires the City to disclose each and every default as to payment of principal and interest after December 31, 1975 with respect to obligations issued or guaranteed by the City. Rule 3E-400.003 further provides, however, that if the City in good faith believes that such disclosure would not be considered material by reasonable investors, such disclosure may be omitted. Certain obligations issued by the City in which the City has acted merely as a conduit for payment do not constitute an actual debt, liability or obligation of the City, but are instead secured by payments to be made from certain users of bond -financed property. Because such other obligations are not dependent upon the City for repayment, they do not affect or reflect the financial strength of the City. 29 93- 481 F/1518VJG/3 Accordingly, any prior default with respect to such obligations issued by the City would in the City's judgment be considered material by reasonable Investors in the Series 1993 Bonds. Accordingly, the City has not taken affirmative steps to contact the various trustees of conduit bond issues of the City to determine the existence of prior defaults. Notwithstanding the foregoing, to the beat knowledge of the Director of Finance of the City, the City has not received actual notice of any default in the payment of principal or interest after December 31, 1975 on any obligation Issued or guaranteed by the City. Nevertheless, given the number of bond Issues of the City and the turnover in administrative personnel since December 31, 1975, there is no assurance that no obligations issued by the City were ever in default with respect to the payment of principal and/or interest. CERTAIN CLOSING CERTIFICATES Concurrently with the delivery of the Series 1993 Bonds, the City Manager and the Director of Finance will furnish their certificate to the effect that, to the best if their knowledge, this Official Statement, as of its date and as of the date of the delivery of the Series 1993 Bonds, did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein, in the light if the circumstances under which they were made, not misleading. In addition, at the time of delivery of the Series 1993 Bonds to the Underwriters, the City will provide to the Underwriters a certificate (which may be included in a consolidated closing certificate of the City describedtin this section immediately above), signed by those City officials who signed this Official Statement, relating to the accuracy and completeness of this Official Statement and to its being a wfinal official statement" in the judgment of the City for the purposes of Rule 15c2-12(b)(3) of the Securities and Exchange Commission. APPROVAL OF OFFICIAL STATZK1Xi The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents and reference is directed to all such documents for full and complete statements of all matters of fact relating;. to the Series 1993 Bonds, the security for the payment of the Series 1993 Bonds and the rights and obligations of the holders thereof. Copies of such documents may be obtained from the City's Director of Finance at 300 Biscayne Boulevard Way, Suite 210, Miami, Florida, 33131, telephone number (305) 579-6350, or from its Financial Advisors, Howard Gary 4 Company, 3050 Biscayne Boulevard, Suite 603, Miami, Florida 33137-4163, telephone number (305) 571-1380, and Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida, 33716, telephone number (813) 573-8169. 30 93-- 481 f/15180JG/3 The execution of this Official Statement has been duly authorized by the Commission of the City of Miami. THE CITY OF MIAMI, FLORIDA $y= f/15160JG/3 Kayor 31 93- 481 Appendix a Description of the city of Miami 93- 481 F/151ED.la DESCRIPTION OF THX CITY OF KIAMI* Geography The City of Miami (the "City") , situated at the mouth of the Miami River on the western shore of Biscayne Bay, is a main port of entry in Florida and the county seat of Metropolitan Dade County (the "County") which encompasses over 2,000 square miles of Southeastern Florida. The City comprises 34.3 square miles of land and 19.5 miles of water. Miami is the southern -most major city and seaport in the continental United States and the center of Pan-American trade and air transportation. The nearest foreign territory is the Bahamiam island of Bimini, situated approximately fifty miles off the coast of Florida. The County is often referred to herein as Greater Miami. climate Due to its location near the upper boundary of the tropical zone, Miami's climate us strongly influenced by the Gulf Stream, trade winds and other local climactic factors. Its average yearly temperature is 75.5 degrses Fahrenheit. Summer temperatures average 81.4 degrees Fahrenheit, and winter temperatures average 69.1 degrees Fahrenheit. Rainfall comes most frequently between the months of May and September, with the heaviest in June, averaging nine inches. Population The U.S. Bureau of Census estimates the population of the City at 358,456 as of April 1, 1990. The estimate is being challenged by the City. The City estimates that its population in 1992 was 380,700. According to estimates of the City, the population is expected to increase to 400,000 by the year 2000. Government of the City The City has operated under the Commission -City Manager form of Government since 1921. The Commission consists of five elected citizens, who are qualified voters in the City# one of whom serves as Mayor. The Commission acts as the governing body of the City with powers to enact ordinances, adopt resolutions and appoint a chief administrative officer known as the City manager. The City Clerk and City Attorney, as well as members of the Planning Advisory Board, the Zoning Board, The City of Miami Health Facilities Authority and the Miami Sports and Exhibition Authority are also appointed by *Sources City of Miami, Florida. A-1 F/151WJG 93- 481 the City Commission. Members of the Off -Street Parking Board and the Downtown Development Authority are appointed by the respective bodies and ratified by the City Commission. City elections are held in November every two years on a non -partisan basis. Candidates for Mayor must run as such and not for the Commission in general. At each election, two or three members of the Commission are elected for four-year terms. Thus, the terms are staggered so that there are always at least two experienced members of the Commission. The City Manager serves as the administrative head of the municipal government, charged with the responsibility of managing the City's financial operations and organizing and directing the administrative infrastructure. The City Manager also retains full authority in the appointment and supervision of department directors, preparation of the City's annual budget and initiation of the investigative procedures. In addition, the City Manager taken appropriate action on all administrative matters. Mayor and City Commissioners. Xavier L. Suarez was elected Mayor in November 1985 and 1987 for respective two-year terms and re-elected in 1989 to a four-year term. Mayor Suarez is a summa cum laud* graduate of Villanova University, and holds a Masters Degree in Public Policy from John F. Kennedy School of Government of - Harvard University and a Juris Doctorate from Harvard Law School. Mayor Suarez is currently a partner in the Miami law firm of Jordon S Schulte. Mayor Suarez has actively served the Miami community for a number of years through participation on numerous advisory boards and committees. Vice -Mayor Victor H. De Yurre was elected Commissioner in November 1987 and 1991,•for respective four-year terms. Vice -Mayor De Yurre was elected as Vice Mayor for a one year term commencing December 1, 1992. Vice -Mayor De Yurre is a graduate of the University of Miami and holds a Juris Doctorate from St. Mary's University School of Law and a Master of Laws degree in Taxation from the School of Law of the University of Miami. Vice -Mayor De Yurre has his own legal practice and has served on numerous advisory boards and committees in the Miami area. Miller J. Dawkins was elected Commissioner in November 1981, 1985, and 1989 for respective four-year terms. Commissioner Dawkins is a graduate of Florida memorial College and holds a Master of Science degree from the University of Northern Colorado. Commissioner Dawkins has retired from Miami Dade Community College where he had been employed for over 19 years. Dr. Miriam Alonso was elected Commissioner in November 1989 for a four-year term. Commissioner Alonso in a graduate of the Catholic University of America and holds degrees in International and Comparative education and a Doctorate in Philosophy. Commissioner Alonso has a real estate investment company and has served on several civic and community boards. „-z 93- 481 P/15180J9 J.L. Plummer, Jr. was appointed Commissioner in October 1970 and was elected Commissioner in November 1971, and re-elected in 1975, 1079, 1983, 1987, and 1991 for consecutive four-year terms. Commissioner Plummer is a graduate of Miami Senior High School and the Cincinnati College of Mortuary Science. Commissioner Plummer is Chairman of the Board of Ahern -Plummer Funeral Homes, Miami, Florida. Administration of the City Cesar H. Odic was appointed City Manager, effective December 16, 1985. Prior to his appointment to the top administrative position in the City, Mr. Odic served as Assistant City Manager for the City since January 1980. Mr. Odic's responsibilities extended over the functions of parks and recreation, building and vector maintenance, and public facilities. During the Mariel boatlift in 1980, Mr. Odio was appointed to the President's Task Force.on Refugee Affairs. Mr. Odio has a Bachelor of Science degree in Public Administration from Florida Memorial College, Miami, Florida, and majored in Business Administration at the University of Santo Tomas de Villanova, Havana, Cuba. Carlos E. Garcia, CPA, was appointed Director of Finance in July 1980. Mr. Garcia joined the City in November 1976 as Assistant Finance Director. Mr. Garcia had been previously employed in private industry in'positions of Treasurer, Controller and Auditor. Mr. Garcia is a cum lauds graduate of the University of Miami with a B.B.A. and also holds a Master of Science degree in Management from Florida International University. Mr. Garcia is licensed as a CPA in the State of Florida and is a a member of the American and Florida Institutes of Certified Public Accountants and the Government Finance Officer's Association of the United States and Canada. A. Qyinn Jones, III, Seq. is the City Attorney for the City of Miami. Mr. Jones attended Howard University where he graduated magna cum lauds with a bachelor of the arts degree in political science in 1973 and received his Juris Doctor degree in 1976. Mr. Jones was associate editor of the Howard Law Journal. Mr. Jones served as attorney of counsel to Daniels i Roth where he handled public utility rate cases before the District of Columbia Public Service Commission. Mr. Jones is a member of Phi Bette Kappa. Mr. Jones has been a member of the Florida Bar since 1980 and is a member of the American and National Bar Associations and the National Institute of Municipal Law Officers. Mr. Jones joined the City Attorney's office in 1983. Mr. Jones served as the administrator of the Law Department and the Claims/Insurance Division before being appointed City Attorney. The areas of law in which he practices include labor and employment, cable television and general litigation. Matty Hirai was appointed City Clerk on September 1, 1985. Ms. Hirai was the City's Assistant City Clerk from September 1976 to August 1985. Ms. Hirai is a graduate of Edison High School and has completed course work at Pasadena City College, University of California at Los Angeles, and Hunter College, New York. Ms. Hirai attended specialized courses at Syracuse University and was awarded the three-year Municipal Clerk Certificate. Ms. Hirai is a member of the International Institute of Municipal Clerks. A-3 93- 481 F/15180JG Scope of Services and Agency Functions The City provides certain services as authorised by its Charter. Such services include public safety (police and fire), parks and recreational facilities, trash and garbage collection, street maintenance, construction and maintenance of storm drain systems, planning and development functions, construction of capital improvements, and building code, inspection and enforcement services. The Police Department provides a full range of police services and presently has a uniformed force of 1,114 and 420 full-time, permanent civilian employees. The Fire Department Is rated as Class I and provides a full range of fire protection and emergency services as well as providing a full range of medical and rescue services. The City provides garbage and trash pick-up and enforces sanitation requirements. Disposal of trash and garbage is performed by the County under contract with the City. The Department of Public Works maintains certain streets and sidewalks and manages construction of sewers and the capital facilities required by the City. The State of Florida and the County are responsible for maintaining most arterial streets and all major highways within the City. The Department of Parks, recreation and Public Facilities maintains and operates all City -owned parks and administers various recreational and cultural programs associated with these facilities. Regional Goverment Services The following information and data concerning the County describes the regional government services the County provides for its residents, including residents of the City. The County is, in effect, a municipality with governmental powers effective upon the 29 cities in, and the unincorporated areas of, the County. The County does not displace or replace the cities but supplements them by providing certain governmental services. The County can take over particular activities of a city's operations (1) if the services fall below the minimum standards met by the Board of County Commissioners of the County (the "County Commission"), or (2) with the consent of the governing body of the City. Since its inception, the County government has assumed responsibility for a number of functions, including delivery of County -wide police. services, which complement municipal police services within the municipalities, with direct access to the rational Crime Information Center in Washington, D.C. and the Florida Crim Information Center] provision of a uniform system of fire protection services, which complement municipal fire protection services within four municipalities and provide full service fire protection for twenty-three municipalities which have consolidated their fire departments with the county's fire department) management of a consolidated two-tier court system pursuant to the revision of Article V of the Florida Constitution which became effective on January 1, 19731 the development and operation of County -wide water and sewer systeml the coordination of the various surface f/15180�G A-4 93- 481 transportation programs, including a consolidated public transportation system and a unified rapid transit system; operation of a central traffic control system of the County and eighteen municipalities, which together operate the main library, seventeen branches and six mobile units servicing forth -four County -wide locations; centralization of the property appraiser and tax collector functions; furnishing of data to municipalities, the Board of Public Instruction and several state agencies for the purpose of budget preparation and for their respective governmental operations; collection by the County Tax Collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies; and development of minimum acceptable standards by the County Commission, enforceable throughout the County in such areas as environmental resources management, building and zoning, consumer protection, health, housing and welfare. ECONOMIC AND DXY=RAPHIC DATA Introduction and Recent Developments The City's diversified economic base is comprised of light manufacturing, trade, commerce, wholesale and retail trade, and tourism. while the City's share of Florida's tourist trade remains an important economic force, the great gains the City has made in the areas of banking, international business, real estate and transshipment have fortified the economic bass. In recent years, the local economy has been adversely impacted by the bankruptcy of several institutions based in greater Miami, including Centrust Bank, Southeast Bank, Eastern Airlines and Pan American Airlines. Major capital improvements have allowed the City or the County to accommodate and foster rapid expansion. The Port of Miami has almost doubled in size, from 325 acres to 600 acres through a $300 million expansion program completed in 1981. The Port expansion program is designed to move 16 million tons of cargo and 4 million cruise ship passengers a year by the year 2000. (Miami International Airport is undergoing a $1.0 billion expansion program.) A seven -story 7,500 space parking structure, directly across from the main terminal, has been completed. An elevated pedestrian sky bridge, opened in early 1985, connects the parking structure to the main terminal. Other projects include the construction of a direct connector road to the airport expressway, and a cargo tunnel. 'Expansion and modernization of passenger gate areas continues in order to accommodate the increase in domestic and international passenger traffic. Bayside The Rouse Company, a leading builder of specialty marketplaces in downtown waterfront settings, has developed the Bayside Specialty Center on twenty acres of City -owned property along the waterfront in Downtown Miami. The FJ15180JC A-5 93- 481 project currently features 235,000 square feet of retail space. Total project cost was $128 million, with City participation limited to a $4 million investment in infrastructure improvements. The Bayside Parking Garage, located adjacent to the Specialty Center, contains 1,200 parking spaces. Sayfront Park (Bayfront Park, adjacent to the Bayside project area, currently is being redeveloped at a total project cost in excess of $20 million.) More than fifty percent (50%) of the project financing has been secured by the City through a variety of Federal, State and private funding sources. Southeast Overtown/Parkwest The Southeast Overtown/Parkwest Redevelopment Program entails the redevelopment of 200 acres of prime real estate, adjacent to the central business district, for new residential commercial activity. The general redevelopment concept for the project area is the provision of a wide range of housing opportunities, with supporting commercial uses, to serve the area's future population. By the end of the century the project area is envisioned to have the capacity to support over 9,000 residential units and over one million square feet of commercial space. The City has been delegated limited redevelopment powers involvement will focus on land acquisition, resident, relocation, demolition, project marketing, infrastructure improvements and. construction and, in some instances, the provision of *gap" financing. '(The City has estimated that over $1.0 billion in private investment will occur during the next 20 years. Phase I development started in the fall of 1988 with 860 units. Public infrastructure work, including utilities, street improvements and pedestrian amenities, is now being designed for implementation in conjunction with the private development. Total public investment in Phase I Redevelopment is over $58 million. New private construction in the amount of $200 million is planned to occur over the next five years for a total of 1,100 residential units and 250,000 square feet of commercial space.] Miami Arena (The County levies a 3% Convention Development Tax on hotel roams, of which the City receives one-third.) This tax is received by the Miami Sports and Exhibition Authority to finance its operations and debt service cost. the most significant project financed by the Authority is the Miami Arena located within the Southeast Overtown/Parkwest redevelopment area, home to the Miami Heat and the University of Miami Hurricanes. This 300,000 square feet multi -purpose facility, competed in 1988 at a total cost of $48 million, accommodates up to 15,600 spectators. Corporate Bzpansion The favorable geographic location of Greater Miami, the trained commercial and industrial labor force and the favorable transportation facilities have caused the economic base of the area to expand by attracting to the area many national and international firms doing business in Latin America. In Greater F/1518DJ0 A-6 93- 431 Miami, over 100 international corporations have not up hemispheric operations. Among them are such corporations as Dow Chemical, Gulf oil Corporation, Owens-Corning Fiberglass corporation, American Hospital Supply, Coca-Cola Interamerican Corporation, Ocean Chemicals, Inc., a subsidiary of Rohm S Bass Company, Rowye Trading, A.G., Mayr Brothers International and Abtron Corp. other national firms that have established international operations of office locations in greater Miami are Alcoa international, Ltd., Atlas Chemical Industries, International Harvester, Johns Manville International, Minnesota (3-M) Export, Inc., Pfizer Latin America Royal Export, United Fruit, Baccus Electronics and Kraft. Industrial Development Greater Miami contains over one hundred million square feet of industrial space. Manufacturing concerns account for nearly half of the occupied industrial space and storage companies occupy an additional (35s) of the City's industrial space. Transportation and service companies occupy the bulk of the remaining 115%) of the City's industrial space. The Industrial Development Authority (IDA) of the County reports that approximately two-thirds of Greater Miami's industrial firms own their facilities. There are currently 37 industrial parks in Greater Miami. Financial Institutions The County ranks among the top metropolitan areas of the United States in the concentration of international and Edge Act Banks. The Federal Resgrve System has established a branch office in the County to assist the Atlanta office with financial transactions in the South Florida area. (THIS SPACE INTENTIONALLY LEFT BLANK) A-7 93- 481 F/15180JG The ten year summary presented below is for the County which includes the City of Miami. These figures include national and state chartered banks which are FDIC insured. Non-insured state -chartered banks are excluded. Number June 30 5f Banks Total Detsosits 1992 62 $22,581,503,000)l) 1991 68 22,087,323,000(1) 1990 69 22,783,647,000 1989 73 21,695,337,000 1988 75 20,070,795,000(2) 1987 69 25,958,000,000 1986 73 23,042,378,000 1985 75 21,6150733,000 1984 76 21,770,028,000 1983 74 19,256,581,000 1982 70 16,158,326,000 11) FDIC not available. The data was provided by Florida Hankers Association. (2) Reduction in deposits is attributable to more stringent FDIC regulations, which have caused a shift to other investments not insured by the FDIC. Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. Tourim Greater Miami always has been a very attractive city for domestic and international tourists. Its climate and beaches draw many thousand of visitors throughout the year. Local government and private interests have cooperated in developing outstanding attractions and events including power boat races at Miami Marine Stadium, the Orange Bowl Classic, the Seaquarium, Parrot Jungle, Monkey Jungle, the Orchid Jungle, dog and horse race tracks, Jai Alai, the Vizcaya Palace and Metrozoo. Other points of interest and activities include tours of the Everglades and the Florida Keys, major league professional sports events, and annual attractions such as the Youth Fair, Graphics Miami, Coconut Grove Art Festival, Kwanzaa and Goombay Festivals, Hispanic Heritage Week, and the Orange Bowl Festival events. Major auto racing events are held in the City annually. The Miami Grand Prix auto race has been run annually in downtown Miami since 1983. Cars and drivers from around the world competed for more than $300,000 in prize money in 1992. (During 1991, approximately 8.5 million out-of-state visitors stayed in over 53,980 hotel and motel rooms in Greater Miami. Many of these visitors participated in international trade activities such as conventions and conferences. Tourists and visitors expended approximately $6.0 billion in Greater Miami in 1991, according to the estimates of the County.) A-8 93- 481 F/15180JG Medical Facilities The 40 hospitals located in Greater Miami offer virtually all general and highly specialized medical services. This progressive and growing health care delivery system provides educational opportunity for the health care professional and places Miami in the forefront of communities with comprehensive medical capabilities. Recreational Facilities The Greater Miami area is famous for its sailing, deep sea fishing and boat races. There are 35 yacht clubs and marinas, with 685 berthing facilities provided by City -owned marinas. Athletics for spectator sports fans are held at the City -owned Orange Bowl Stadium, the Miami Convention Center and the Miami Arena. Joe Robbie Stadium, which is used by the Miami Dolphins and the Florida Marlins, is located in North Central Dade County. Sports competition includes professional and college football, basketball, baseball and championship boat races. Other athletic events include amateur football, basketball, soccer, baseball, motorcycle speedway racing and rowing events. Golf is played year round at the Greater Miami area's 23 public and 14 private courses. Several open golf tournaments are held each year. The Greater Miami Area's 403 public parks and playgrounds cover 408,710 acres, providing residents and visitors with a wide range of subtropical nature settings unique only to South Florida in the continental U.S. Bach park has a combination of facilities that are enjoyed year round. T�e facilities include: public swimming and boating, equestrian trails and baseball and softball fields. The Greater Miami area's 22 public beaches comprise 1,400 acres, which are freely accessible and are enjoyed year round by residents and tourists. Cultural Facilities and Affairs The Greater Miami area has an extensive library system, several museums of art and history and art galleries. A new cultural center built by the County at a cost of $26.6 million opened in downtown Miami in 1984. The complex, designed by Philip Johnson, is composed of a library, a fine arts center, and a historical museum. Symphonic and pop concerts are performed regularly. Five theatres draw plays and concerts from around the United States which appeal to all ages. Operas are performed by both amateurs and professionals. Resident dance companies offer a full calendar of events. Educational institutions The public schools of the County provide educational facilities on primary and secondary levels. F/15180J0 A-9 93- 481 Public school enrollment, including both primary and secondary lever, since 1983 is as follows: School Enrollment Public School System School Year Ending June. 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 Source: Dade County School Board Dade County Tgtal 293,578 295,016 285,631 275,807 265,384 250,977 241,588 231,761 224,280 219,857 218,879 over 120,000 students are enrolled in the following universities located within the County or Greater Miami Areas Barry University Florida International University Florida Memorial College International Fine Arts College Miami Christian College Miami -Dade Community College St. Thomas University University of Miami Film Industry colleges and s . The Dade County film and televisions industry ranks high nationally behind New:- York and Los Angeles in its annual dollar volume of production expenditures. As estimated by the State of Florida, the total production expenditures for the State were ($283 million in 1991 and the Greater Miami portion was estimated at approximately $175 million.) Agriculture The land area of Greater Miami includes large agricultural expanses on which limes, avocados, mangoes, tomatoes and pole beans are grown for the fresh produce market. During the sunny and warm winter months, the mild A-10 F/15180JG 9 3 - 481 climate enables these crops to be grown and harvested. Many of the vegetables are shipped to the Northern United States during the winter. Exotic tropical fruits such as plantains, lychee fruit, papaya, sugar apples and persian limes grow in the area and cannot be grown anywhere also in the United States. Foreign Trade More than 71% of Florida's export trade and 52% of Florida's import trade flowed through the port of the City during the fiscal year 1989/1990, according to the Center for Banking and Financial Institutions at Florida International University. Further stimulation in the investment climate has resulted from the implementation of the 12-year Caribbean Basin Initiative program, designed to boost the economics of 27 countries of Central American and the Caribbean islands. The Caribbean Basin Initiative program, which grants duty-free entry into the U.S. of material goods produced in the region, is also expected to bring greater economic stability to those countries. Trade offices have been established in South Florida by several counties, in addition to economic affairs conducted by the 37 foreign consulates located in the Greater Miami area. These trade offices include those established by Belgium, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, Jamaica, Korea, Panama, Spain, the Philippines and Japan. Kiami International Airport The county is the owner of five separate airports within its boundaries. The responsibilities for their operation are assigned to the Dade Co4ty Aviation Department. Miami International Airport (the "Airport") ranks 8th in the nation and loth in the world in the number of passengers using its facilities. It ranks 3rd in the nation and 5th in the world in the movement of domestic and international air cargo. The Airport's facilities include three runways, a 7,500 car parking complex, approximately two million square feet of warehouse and office space and maintenance shops. Approximately 40,000 individuals are employed at the Airport. (THIS SPACE INENTIONALLY LEFT BLANK] A-11 93- 481 f/15180JG In 1992, the Airport served over 26 million passengers and handled 2.0 billion pounds of cargo. Statistics from 1983 are presented below. Passengers Cargo yR" (000'01 (Q001J lbol 1992 26,484 2,075,198 1991 26,591 1,81S,S34 1990 25,837 1,815,374 1989 25,408 1,730,850 1988 24,224 1,429,944 1987 23,801 1,374,360 1986 21,357 1,200,270 1985 19,853 1,031,700 1984 19,328 1,130,184 1983 19,322 1,184,526 Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. Port of Kiasii The Port of Miami (the "Port*) is owned by the County and is operated by' the Dade County Seaport Department. From 1982 to 1991, the number of passengers sailing from the Port increased from 1,790,255 to 2,928,532, an increase of 66%. This increased growth highlights the Port's emergence as the world's leading cruise ship port. The Port specializes in unitized trailer and contained cargo handling concepts.- The most effective use of equipment and the Port's convenient location combine to make the Port the nation's leading export port to the Western Hemisphere. From 1982 to 1991 the total cargo handled increased from approximately 2.7 million tons to over 3.8 million tons, an increase of 40%. (THIS SPACE INTENTIONALLY LEFT BLANK] A-12 93- 481 F/151"Ja The summary of the growth in revenues, passengers and cargo for previous years is presented below: Yeas Revenues Passengers Cargo (Tonnacel 1992 $35,754,515 3,095,457 4,959,648 1991 32,733,262 2,928,532 3,882,286 1990 25,736,465(1) 2,734,816 3,590,937 1989 30,035,859 3,100,055 3,206,417 1988 26,489,275 2,502,411 2,602,556 1987 19,933,917 2,633,041 2,425,937 1966 17,973,522 2,520,511 2,406,084 1985 17,135,048 2,326,685 2,333,026 1984 15,943,548 2,217,065 2,287,281 1983 14,201,008 2,002,654 2,305,645 Previous years data included internal Revenue Service transfers. Actual revenue increased 7% over the prior year. Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. Destographic Data The following table indicates the distribution by age groups among the population of residents of the City and of the County. 0-4 25,627 139,714 5-17 56,868 328,296 18-20 13,804 82,000 21-24 29,822 111,876 25-44 105,524 609,719 45-54 38,896 212,098 55-59 19,004 91,769 60-64 19,665 90,816 65-74 32,460 146,131 75-84 20,603 94,356 85+ 6.284 30,119 Total 53 8� 1.93�7® Source: City of Miami, Florida Comprehensive Annual Financial Report, Year Ended September 30, 1992. A-13 93- 481 F/t518oJa Retail Bales Although the City contains 22 percent of the population of the County, almost half of the dollar volume of sale transactions for the County are reported in the City. The following table presents five years of taxable sales information for the City and the County. Taxable Years (S in thousands) 12n Fiscal Year 1m IM i im Im 8,814,453 58,847,178 S 8,614,429 S 8,226,828 S 8,708,334 Dade County 19.435,493 18,312,885 8,207,737 18,089,189 18,401,045 MiW /Dade 45X 48X 47% 45% 47% Includes amounts received from the State of Florida on the sale of professional services which became effective in July, 1967 and was repealed in December, 1987. Source: Department of Revenue; State of Florida Unemployment Rates Annual Average 1991 1990 1989$ .Miami 14.2 1s 10.7% 8.3% 7.9% 6.7• Dade County 10.0 8.7 6.7 6.4 5.4 U.S. 7.4 6.7 5.5 5.3 5.5 Source: United States Department of Labor, Bureau of Statistics (THIS SPACE INTENTIONALLY LEFT BLBNXI A-14 93-- 481 F/15/8DJ0 Building Peraits The dollar value of building permits issued in the City and in the unincorporated areas of the County since 1983 is as follows: City of unincorporated YA" MLaMi Dade County 1992 $216,266 $1,166,644 1991 208,914 1,493,522 1990 237,039 1,046,389 1989 308,941 2,731,505 1988 288,771 2,702,387 1987 238,513 1,190,493 1986 192,418 1,023,858 1985 322,785 864,862 1984 345,262 953,055 1983 299,941 903,706 Source: City of Miami, Florida Comprehensive Annual financial Report, Year Ended September 30, 1992. New Residential Construction New residential construction in the City since 1983 has been estimated as follows: Number of Yea units 1992 119* 1991 380 1990 973 1989 1,624 1988 212 1987 1,425 1986 801 1985 603 1984 1,018 1983 661 *Includes single, duplex, triple and multi -family housing. Source: The City of Miami Department of Building and Zoning. F/15180JG A-15 93- 481 Appendix e General purpose Financial Statement of the city for the fiscal Year Ended September 30, 1992 S-1 F/1SiSOJO 93— 481 Appendix C Form of Revolution C-1 93- 481 F11S16DJG Appnndiz D Proposed Form of Co -Bond Counsel Opinion D-1 F/ISISDJG 9- 3 - 481 Appends: ! Specimen of Municipal Bond Insurance Policy s-1 F/1518DJQ 93- 481 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Honorable Mayor and Members TO of the City Commission GATE : U! 1 n 1993 FILE J SUBJECT : IssuuancLe of Bonds to Refund Outstanding General Obligation FROM : Ces dio REFERENCES: Bonds Ci er _.P. e ENCLOSURES: 23 It is respectfully recommended that the City Commission adcrc the attached resolution, including Exhibits A, B and 'C, of the City of Miami, Florida, authorizing the issuance of the City's General Obligation Refunding Bonds, Series 1993 in the aggregate principal amount not to e.a.Ceed $3.2,000,000 for the purpose of advance refunding all or a portion of the City's $10,000,000 General Obligation Bonds, dated August 1, 1987, $18,400,000 General Obligation Bonds, dated November 1, 1988, and $10,000,000 General Obligation Bonds, dated July 1, 1991; fixing certain details of said bonds, including -their form; providing that such bonds shall constitute General Obligations of the City and that f_the full, faith credit and taxing power of the City shall be irrevocably pledged for the payment of the principal of and interest on such bonds; agreeing to comply with certain tax requirements; directing and authorizing sale of the bonds by a .-negotiated sale; making certain covenants and agreements; approving the use of bond insurance as requested by the purchaser or determined by the City to be desirable; approving the,form of and authorizing the execution of a bond purchase agreement and escrow deposit agreement; authorizing the City Manager or the Mayor or their respective designees to award the sale of the bonds; designating an escrow agent, a paying agent and a bond registrar; approving the conditions and criteria of such sale; approving the form of a Preliminary Official Statement and Official Statement; authorizing certain officials and employees of the City to take all actions required in connection with the issuance of said bonds; and providing an effective date. The City Commission adopted resolution 93-288 on May 13, 1993 authorizing the City Manager to take necessary and appropriate actions to effect the issuance of the City's General Obligation Refunding Bonds, Series 1993, to refund certain City bonds issued in prior years.- _I- 93- 481 no - Honorable Mayor and Members of the City Commission Page -2- The attached resolution authorizes the issuance of the General Obligation Refunding Bonds, Series 1993, in an amount not to exceed $32,000,000 to partially refund general obligation bonds originally issued as follows: $10,00�',000 ';n bcnds; dated August 1, 1987 $1r,400',00r, in bcnds, dated November 1, 1988 $10,000.,000 in bonds, crated July 1, 1991 Resolution No. 91-885, adopted on December .5, 1991, appointed a rotating list of underwriting. teams for negotiated issues for a two-year period. The Team designated by such resolution as Team B has been appointed as underwriters for this sale and confirmed by resolution 93-288. The team is composed by the following firms: The First Boston Corporation (Local presence) First Equity Corp. of Florida (Local Artemis Capital Group, Inc. (Female owned) Pryor, McClendon, Counts & Co. Inc. (Black owned) Samuel A. Ramirez & Co. Inc. (Hispanic owned) The comiAned principal and interest payments for the new bonds will be approximately $1,000,000 lower than those for the old refunded bonds. These savings will reduce debt service property taxes by more than $1 million during the life of the bonds. The Finance Department recommends the adoption of the attached resolution authorizing the issuance of the bonds and the specific actions and documents .required to effectuate the sale. 93- 481