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R-93-0584
J-93-644 9/20/93 RESOLUTION NO . F3 -- `y 4 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA, WITH ATTACHMENTS, AUTHORIZING THE ISSUANCE OF AN AMOUNT NOT TO EXCEED $30,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF MIAMI, FLORIDA, TAX ANTICIPATION NOTES, SERIES 1993 FOR THE PURPOSE OF MEETING CERTAIN OF THE CITY'S CASH FLOW REQUIREMENTS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1994, FIXING CERTAIN DETAILS OF SAID NOTES INCLUDING APPROVING THE FORM THEREOF; PROVIDING FOR THE RIGHTS AND SECURITY OF ALL NOTE HOLDERS PURSUANT TO THIS RESOLUTION; APPOINTING A PAYING AGENT FOR THE NOTES; AUTHORIZING THE CITY MANAGER OR ASSISTANT CITY MANAGER TO TAKE ANY ACTION NECESSARY TO QUALIFY THE NOTES FOR DEPOSIT WITH THE DEPOSITORY TRUST COMPANY; DIRECTING AND AUTHORIZING SALE OF THE NOTES BY PUBLIC BID AND DIRECTING PUBLICATION OF A SUMMARY NOTICE OF SALE OF SAID NOTES AND ESTABLISHING THE DATE AND TIME FOR SUCH SALE AND THE PROCEDURE FOR AWARDING SAID NOTES; APPROVING THE FORM AND DISTRIBUTION TO PROSPECTIVE PURCHASERS OF A PRELIMINARY OFFICIAL STATEMENT; APPROVING THE FORM AND EXECUTION OF AN OFFICIAL STATEMENT; AUTHORIZING THE CITY MANAGER OR ASSISTANT CITY MANAGER ON BEHALF OF THE CITY TO DETERMINE THE FINAL DETAILS OF THE NOTES WITHIN THE PARAMETERS ESTABLISHED BY THIS RESOLUTION; AUTHORIZING REQUISITE ACTIONS AND THE EXECUTION OF DOCUMENTS BY THE MAYOR OR VICE MAYOR, CITY MANAGER OR ASSISTANT CITY MANAGER, AND THE CITY ATTORNEY, AS TO THE FORM, CONSISTENT WITH SUCH FINAL DETAILS; AUTHORIZING OTHER OFFICERS OF THE CITY TO TAKE ALL OTHER ACTIONS NECESSARY IN CONNECTION WITH THE ISSUANCE OF THE NOTES; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF SAID NOTES; AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, The City of Miami, Florida (the "City"), anticipates certain temporary cash shortages during the fiscal year of the City ending September 30, 1994 (the "Fiscal Year) because cash disbursements have been scheduled to be made in the Fiscal Year before sufficient moneys therefor are expected to be available to the City; and SM',ct LES-aEIW\152591.0\09/]0/9] ATTACHMENT ( ) Vd m Air CITY CUIMIISSION Mr y"IHG OF RGoolution No. 4 eU � Fb V WHEREAS, pursuant to the Constitution and the laws of the State of Florida (the "State"), in particular Chapter 166, Florida Statutes, as amended, and pursuant to the Charter of the City, as amended (collectively, the "Act"), the City desires to issue its Tax Anticipation Notes, Series 1993 in an aggregate principal amount not to exceed $30,000,000 (the "Notes") for the purpose of meeting certain of the City's cash flow requirements for the Fiscal Year and for the purpose of paying certain of the costs of issuance of the Notes; NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA (THE "COMMISSION"): SECTION 1. RECITALS. The recitals set forth above are hereby incorporated by reference into the body of this Resolution, as if fully set forth herein. SECTION 2. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of the Act. SECTION 3. FINDINGS. It is hereby ascertained, determined and declared: (a) Under the Act, the City is entitled to levy and receive ad valorem taxes on real and tangible personal property within the City. (b) The principal of and interest on the Notes and all required sinking fund and other payments shall be payable solely from the City's ad valorem taxes collected during the Fiscal Year other than ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City (the "Pledged Funds"). Neither the full faith and credit nor the taxing power of the City, Dade County, Florida (the "County") or the State or any political subdivision thereof or governmental authority or body therein are pledged to the payment of the principal of or interest on the Notes, except for the Pledged Funds. (c) The Pledged Funds are expected to be sufficient to pay all principal of and interest on the Noes as the same become due and to make all sinking fund or other payments required by this Resolution. SECTION 4. RESOLUTION CONSTITUTES CONTRACT. In consideration of the acceptance of the Notes authorized to be issued hereunder by those who shall own the same GiN\GllEi•KlC t1B\ti259{.3\D9/15/93 2 93- 584 from time to time (the "Noteholders"), this Resolution shall be deemed to be and shall constitute a contract between the City and such Noteholders, and the covenants and agreements herein set forth to be performed by the City shall be for the equal benefit, protection and security of the owners of any and all of such Notes, all of which shall be of equal rank and without preference, priority or distinction of any of the Notes over any other thereof except as expressly provided therein and herein. SECTION 5. AUTHORIZATION, DESIGNATION AND DETAILS OF THE NOTES. Subject and pursuant to the provisions of this Resolution, Notes of the City to be known as "Tax Anticipation Notes, Series 1993" are hereby authorized to be issued in an aggregate principal amount not to exceed Thirty Million Dollars ($30,000,000) for the purpose of providing funds to pay the appropriations made for the Fiscal Year in anticipation of the receipt of the Pledged Funds and to pay the costs of issuance of the Notes. The Notes shall be issued in such aggregate principal amount not to exceed $30,000,000 as shall be approved by the City Manager or any Assistant City Manager. The Notes shall be issuable without coupons in denominations of $5,000 each or any integral multiple thereof, shall be numbered from R-1 upwards, shall be dated on or as of such date as shall be determined by the City Manager or Assistant City Manager and shall not be subject to redemption prior to maturity. The Notes shall mature no later than one year from the date of the Notes, as such date shall be approved by the City Manager or Assistant City Manager and shall bear interest from their date at a true interest cost rate not to exceed 617o, such rate to be determined by the City Manager or Assistant City Manager at the time of the award of the Notes and shall be in the judgment of such officer and subject to the maximum rate limitation set forth above the lowest rate available to the City under then current financial conditions taking into consideration the maturity established for the Notes. Interest shall be payable on the maturity date of the Notes and shall be calculated on the basis of a 360- day year of twelve (12) thirty (30) day months. SECTION 6. PAYMENT OF NOTES. The principal of and interest on each Note are payable at the principal corporate trust office of NationsBank of Florida, N.A., Ft. Lauderdale, Florida as paying agent (the "Paying Agent") upon the presentation and surrender of such Note at maturity in any coin or currency of the United States of America which at the date of payment thereof is legal tender for the payment of public and private debts. G/X\GILES-KLE116\153591.7\99(I5/9) 3 J3 S84 SECTION 7. EXECUTION OF NOTES. The Notes shall be executed in the name of the City by the Mayor or Vice Mayor and shall be approved as to form and correctness by the signature of the City Attorney and the seal of the City or a facsimile thereof shall be affixed thereto or imprinted or reproduced thereon and attested by the City Clerk either manually or with their facsimile signatures. In case any one or more of the officers who shall have signed or sealed any of the Notes shall cease to be such officer before the Notes so signed and sealed shall have been actually sold and delivered, such Notes may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed and sealed such Notes had not ceased to hold such office. Any Note may be signed and sealed on behalf of the City by such person as at the actual time of the execution of such Note shall hold the proper office although at the date of such Note such person may not have held such office or may not have been so authorized. The Notes shall bear thereon a certificate of authentication in the form set forth in Exhibit A hereto executed manually by the Paying Agent. Only such Notes as shall bear thereon such certificate of authentication shall be entitled to any right or benefit under this Resolution and no Note shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the Paying Agent. Such certificate of the Paying Agent upon any Note executed on behalf of the City shall be conclusive evidence that the Note so authenticated has been duly authenticated and delivered under this Resolution and that the owner thereof is entitled to the benefits of this Resolution. SECTION 8. NEGOTIABILITY, REGISTRATION AND CANCELLATION. At the option of a registered owner of a Note and upon surrender of a Note at the principal corporate trust office of the Paying Agent with a written instrument of transfer and with guaranty of signature satisfactory to the Paying Agent duly executed by the Noteholder or his duly authorized attorney and upon payment of such Noteholder of any charges which the Paying Agent or the City may make as provided in this Section, the Note may be exchanged for a Note of the same aggregate principal amount and maturity of any other authorized denominations. The Paying Agent shall keep books for the registration of Notes and for the registration of transfers of Notes. The Notes shall be transferrable by the owner thereof in person or by his attorney duly authorized in writing only upon the books of the City kept by the Paying Agent and only upon surrender thereof together with a written instrument of transfer satisfactory to the Paying Agent duly executed by the Noteholder or his duly CM\CITES-KLE IW\153591.)\M15/93 4 9 3 ! � V i authorized attorney. Upon the transfer of any such Note the City shall cause to be issued in the name of the transferee a new Note or Notes. The City and the Paying Agent may deem and treat the person in whose name any Note shall be registered upon the books kept by the Paying Agent as the absolute owner of such Note, whether such Note shall be overdue or not for the purpose of receiving payment of or on account of the principal of and interest on such Note as the same becomes due and for all other purposes. All such payments so made to any such Noteholder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid and neither the City nor the Paying Agent shall be affected by any notice to the contrary. In all cases in which the privilege of exchanging Notes or transferring Notes is exercised, the City shall execute and the Paying Agent shall authenticate and deliver Notes in accordance with the provisions of this Resolution. All Notes surrendered in any such exchanges or transfers shall forthwith be delivered to the Paying Agent and canceled by the Paving Agent in the manner provided in this Section. There shall be no charge for any such exchange or transfer of Notes but the City or the Paying Agent may require the payment of a sum sufficient to pay any tax fee or other governmental charge required to be paid with respect to such exchange or transfer. All Notes paid, at maturity or otherwise, shall be delivered to the Paying Agent when such payment is made, and such Notes, together with any Notes purchased by the City for cancellation, shall thereupon be promptly canceled. Notes so canceled may at any time be destroyed by the Paying Agent who shall execute a certification of destruction in duplicate by the signature of one of its authorized officers describing the Notes so destroyed and one executed certificate shall be filed with the City and the other executed certificate shall be retained by the Paying Agent. SECTION 9. NOTES MIJTILATED, DESTROYED, STOLEN OR LOST. In case any Note shall become mutilated, destroyed, stolen or 'lost, the City may execute and the Paying Agent shall authenticate and deliver a new Note of like date, maturity, denomination and interest rate as the Note so mutilated, destroyed, stolen or lost, provided that in the case of any mutilated Note, such mutilated Note shall first be surrendered to the City and, in the case of any lost, stolen or destroyed Note, there shall first be furnished to the City and the Paying Agent proof of ownership, evidence of such loss, theft, or destruction satisfactory to the City and the Paying Agent, together with indemnity satisfactory to them. In the event any such Note shall be about to mature or have matured, instead of issuing a GM\G ILES•[L E IW� 152591.3\M 15/99 5 93- 584 • f- duplicate Note, the City may direct the Paying Agent to pay the same without surrender thereof. The City and Paying Agent may charge the owner of such Notes their reasonable fees and expenses in connection with this transaction. Any Note surrendered for replacement shall be canceled in the same manner as provided in Section 8 hereof. Any such duplicate Note or Notes issued pursuant to this Section shall constitute additional contractual obligations on the part of the City whether or not the lost, stolen or destroyed Note or Notes shall be at any time found by anyone, and such duplicate Note or Notes shall be entitled to equal and proportionate benefits and rights as to a lien on and source and security for payment from the Pledged Funds with all other Notes issued hereunder. SECTION 10. FORM OF NOTES. The text of the Notes shall be substantially of the tenor set forth in Exhibit "A" to this Resolution, with such omissions, insertions and variations as may be necessary and desirable and authorized or permitted by this Resolution. SECTION 11. PAYING AGENT. (a) NationsBank of Florida, N.A., Ft. Lauderdale, Florida is hereby appointed to act as Paying Agent under this Resolution and undertakes to perform such duties as are set forth in this Resolution. (b) The Paying Agent may at any time resign and be discharged of the duties and obligations created by this Resolution by giving at least 60 days' written notice to the City. The Paying Agent may be removed at any time by an instrument filed with such Paying Agent and signed by the Mayor or the City Manager. Any successor Paying Agent shall be appointed by the City and shall be, if other than the City or its successor entity, a bank or trust company organized under the laws of any state of the United States or a national banking association willing and able to accept the office on reasonable and customary terms and authorized by law to perform all the duties imposed upon it by this Resolution. In the event of the resignation or removal of the Paying Agent, such Paying Agent shall pay over, assign and deliver any moneys held by it as Paying Agent to its successor. SECTION 12. NO PLEDGE OF FULL FAITH AND CREDIT. Neither the full faith and credit nor the taxing power of the City, the County or the State or any political subdivision thereof or governmental authority or body therein are pledged to the payment CTi\GILE5-KLEIIB\IS2591.3\09/15/93 93- 584 of the principal of or interest on the Notes except for the Pledged Funds. No Noteholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City, the County or the State or any political subdivision thereof or governmental authority or body therein or taxation in any form of any real or personal property therein to pay such Notes or the interest thereon except for those ad valorem taxes of the City collected during the Fiscal Year which constitute Pledged Funds. SECTION 13. COVENANTS AND REPRESENTATIONS AND PLEDGE OF PLEDGED FUNDS. The City represents to and covenants with and for the benefit of the owners of the Notes: (a) That it has adopted an operating budget for the Fiscal Year and that it will levy the City's ad valorem taxes during such Fiscal Year as required by law. (b) That to the extent necessary to pay when due the principal of and the interest on the Notes, the Pledged Funds for the Fiscal Year and all moneys held in the Note Fund hereinafter established are irrevocably pledged to the payment of the Notes superior to all other liens and encumbrances on such fiends except for bonds and other debt obligations as to which the City has or may in the future pledge its full faith, credit and taxing power. (c) That commencing on December 1 1993, the Director of Finance of the City (the "Director of Finance") shall withdraw from the General Fund of the City (the "General Fund") all Pledged Funds as received and deposit the amount so withdrawn to the credit of a special fund which is hereby created called The City of Miami Tax Anticipation Notes Series 1993 Note Fund (the "Note Fund") until the amount then on deposit to the credit of the Note Fund on the first day of each indicated month in the Fiscal Year equals the following percentages of the sum of the principal of and interest on the Notes issued hereunder to be paid at maturity thereof (such sum being herein called the 'Note Fund Requirement"); GTH\OILES-KLE116\I52591.31\09/15/97 7 93- 584 Month December January February March April May June July August September Percentage of Note Fund Requirement 25 % 15% 10% 10% 10% 10% 7% 5% 5% 3% TOTAL 100% Amounts in the Note Fund shall be invested in accordance with The City of Miami Florida Code Section 18-2(b) (1986), as amended, and all investment earning on funds in the Note Fund shall be retained therein and applied as herein provided. If the amount so deposited in any month to the credit of the Note Fund shall be less than the required amount for such month, the requirement therefor shall nevertheless be added to the amount otherwise required to be deposited in each month thereafter until such time as such deficiency shall have been made up. Pledged Funds deposited to the credit of the Note Fund in excess of the monthly deposit requirement set forth above shall be credited against future Note Fund deposit requirements. Payments into the Note Fund shall be adjusted to give credit for investment earnings then on deposit in the Note Fund and to make up any deficit in the required cumulative balance attributable to investment losses. Moneys in the Note Fund shall be trust funds and shall be at all times secured as are other deposits of public funds. (d) That the principal of and interest on the Notes when due shall be paid from the monies on deposit in the Note Fund. (e) That the City will not create or suffer to be created any lien or charge upon the Pledged Funds ranking equally with or prior to the Notes except for direct obligations GTH\GILES-GLEI/B\152591.7\99/15/97 C] 93- 584 of the City for which the full faith credit and taxing power of the City have been or shall be pledged. (f) That it is the intention of the City and all parties under its control that the interest on the Notes issued hereunder be and remain excluded from gross income for federal income tax purposes and to this end the City hereby represents to and covenants with each of the holders of the Notes issued hereunder that it will comply with the requirements applicable to it contained in Section 103 and Section 141 through 150 of the Internal Revenue Code of 1986 as amended (the "Code") to the extent necessary to preserve the exclusion of interest on the Notes issued hereunder 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 make or cause to be made all necessary determinations and calculation of the Rebate Amount (as hereinafter defined) and required payments of the Rebate Amount; (2) to set aside sufficient moneys from the Pledged Funds or from any other legally available funds at the times and to the extent required pursuant to Section 148(f) of the Code. (3) to pay the Rebate Amount of the United States of America from the Pledged Funds or from any other legally available funds at the times and to the extent required pursuant to Section 148(f) of the Code; (4) to maintain and retain all records pertaining to the Rebate Amount with respect to the Notes issued hereunder and required payments of the Rebate Amount with respect to the Notes for at least six years after the final maturity of the Notes or such other period as shall be necessary to comply with the Code; (5) to refrain from using proceeds from the Notes issued hereunder in a manner that might cause the Notes to be classified as private activity bonds under Section 141(a) of the Code; and (6) to refrain from taking any action that would cause the Notes issued hereunder to become arbitrage bonds under Section 148 of the Code. CTN\9I Lcs-XL E U6\ I W 59 L.9\M/ 1 s/93 01 93 - 584 The City understands that the foregoing covenants impose continuing obligations of the City that will exist as long as the requirements of Section 103 and Sections 141 through 150 of the Code are applicable to the Notes. Notwithstanding, any other provision of this Resolution including in particular Section 21 hereof the obligation of the City to pay the Rebate Amount to the United States of America and to comply with the other requirements of this provision shall survive the defeasance or payment in full of the Notes. As used herein the term "Rebate Amount" means the excess of the amount earned on all non -purpose investments (as defined in Section 14(f)(6) of the Code) over the amount which would have been earned if such non -purpose investments were invested at the rate equal to the yield on the Notes plus any income attributable to such excess. SECTION 14. APPLICATION OF PROCEEDS AND CERTAIN OTHER MONEYS. An amount of proceeds of the Notes equal to the cost of issuance shall be deposited with the Paying Agent in a separate fund designated the City of Miami Tax Anticipation Notes Series 1993 Cost of Issuance Fund (the "Cost of Issuance Fund") and disbursed according to the instructions of the City for the payment of expenses incurred in issuing the Notes (including payment of the expenses of the City). Any balance remaining in the Cost of Issuance Fund after payment or provision for payment of such costs and expenses has been made shall be used solely to pay the principal and interest on the Notes. The balance of the proceeds of the Notes shall be deposited to the credit of the General Fund of the City and applied in such manner as shall be permitted by law. The Director of Finance is hereby authorized to borrow on a temporary short-term basis moneys credited to capital projects funds of the City for the purpose of making moneys available to prepay the pension contribution required to be made by the City on January 1, April 1, and July 1, 1994. Said temporary borrowing shall be repaid from available moneys in the General Fund of the City derived from sources other than the proceeds of the Notes. SECTION 15. AMENDMENTS. Without the consent of any Noteholders, the City may from time to time and at any time adopt such resolutions supplemental hereto that do not materially adversely affect the interest of the Noteholders (which supplemental resolution shall thereafter form a part hereof): C/N\CI LES-EEE Ili\I5 591.2\09/20/92 10 9 3 r V V 4 (a) to cure any ambiguity or to correct or supplement anyprovision herein which may be inconsistent with any other provision herein or to make any other amendment with respect to matters or questions arising under. this Resolution which may not be inconsistent with the provision of this Resolution; or (b) to modify, amend or supplement this Resolution or any aupplement or amendment hereto in such manner as to permit the Notes to be rated by any of the nationally recognized securities rating services. Any other amendment hereof may be made with the prior written consent of the holders of majority in aggregate principal amount of the Notes then outstanding hereunder provided that no amendment shall permit a change: (a) in the maturity of the Notes (b) in the amount of the principal obligation of any Notes (c) that would adversely affect the pledge of the Pledge Funds hereunder or (d) that would reduce the percentage of Noteholders required above for the modification of this Resolution without the consent of all Noteholders. For the purposes of Noteholders' consents the Notes owned by or held for the account of the City directly or indirectly shall not be counted. SECTION 16. QUALIFICATION FOR THE DEPOSITORY TRUST COMPANY. If determined by the Director of Finance or the City Manager or any Assistant City Manager to be necessary or desirable, the Director of Finance, the City Manager and the assistant City Manager are hereby authorized to take such actions as may be necessary from time to time to qualify the Notes for deposit with The Depository Trust Company of New York ("DTC") including but not limited to wire transfers of interest and principal payments with respect to the Notes, utilization of electronic book -entry data received from DTC in place of actual delivery of Notes and provision of any notices with respect to Notes registered by DTC by overnight delivery, courier service, telegram, telecopy or other similar means of communication. No such arrangement with DTC may adversely affect the interest of any of the beneficial holders of the Notes. SECTION 17. SALE BY PUBLIC BID; PUBLICATION OF NOTICE OF SALE. The Notes shall be sold by public bid. The Director of Finance of the City is hereby authorized and directed to publish a Summary Notice of Sale calling for bids for the Notes in THE NIIAMI DAILY BUSINESS REVIEW, a daily newspaper of general circulation published in the City of Miami and in THE BOND BUYER, a financial journal published in New York, New York and devoted primarily to municipal bonds, each of such publications to be made at 11 93- 5154 least ten (10) days before the date for the receipt of bids, which Summary Notice of Sale shall be substantially in the form attached hereto as Exhibit B. The form on which all bids are requested to be made shall be substantially in the form attached to the Notice of Sale, the form of which is attached hereto as Exhibit "C". Said Summary Notice of Sale and Notice of Sale shall require that all bids be received by 11:00 a.m. Miami, Florida time on October 5, 1993. SECTION 18. AWARD. The City Clerk or any Deputy City Clerk is authorized and directed to receive and hold bids until 11:00 a.m. Miami Florida time on October 5, 1993 at which time the City Clerk or any Deputy City Clerk shall publicly open and read the bids. The City Manager or his designee is authorized and directed to tabulate the bids, consult with his staff and the City's financial advisors and accept the offer of the responsible bidder whose proposal offers to purchase all of the Notes at such rate of interest as will produce the lowest net interest cost rate to the City; provided, however, that the City Manager or his designee may reject all of the offers received if such rejection is deemed by him to be in the best interest of the City. The lowest net interest cost rate will be determined by taking the aggregate amount of interest at the fixed rate specified in the bids computed from the assumed date of delivery of the Notes to the maturity date of the Notes and subtracting therefrom any premium bid. SECTION 19. PRELIMINARY AND FINAL OFFICIAL STATEMENT APPROVED. The City hereby approves the form and content of the draft of the Preliminary Official Statement in connection with the Notes attached hereto as Exhibit "D" subject to such changes therein as the Director of Finance of the City shall approve prior to the publication of the Notice of Sale. Distribution of the Preliminary Official Statement by the Director of Finance of the City to prospective purchasers of the Notes is hereby authorized as is use of the Preliminary Official Statement in connection with the marketing of the Notes; provided that prior to such distribution the Mayor, the Vice Mayor, the City Manager or any Assistant City Manager is hereby authorized, empowered and directed to execute a certificate to "deem final" the Preliminary Official Statement for the purposes of Rule 15c2-12 of the Securities and Exchange Commission. The Commission hereby authorizes the preparation of the Official Statement to be used in the actual offer and sale of the Notes to the public (the "Official Statement") and the delivery of such Official Statement to the Underwriter awarded the sale of the Notes (the "Underwriter") no later than (7) business days (days on which the City is open for GM\GI LES-nE1-\152591.3\M/IS/93 12 93- 584 business) from the day on which the sale of the Note is awarded to such Underwriter and hereby approves the Official Statement which shall be substantially in the form of the Preliminary Official Statement with such changes, additions or deletions as shall be necessary and appropriate to reflect the terms of the sale of the Notes by the City to the Underwriter and the terms of the resale of the Notes by the Underwriter to the public. The Commission hereby approves future use by the Underwriter of the Official Statement in connection with the offering of the Notes to the public and hereby authorizes the preparation and use by the Underwriter of any supplement or amendment to the Official Statement which is necessary so that the Official Statement does not include any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements contained therein in light of the circumstances under which they were made not misleading. The Official Statement and any supplement or amendment thereto shall be approved by the Mayor, the Vice Mayor, the City Manager or any Assistant City Manager, such approval to be evidenced by the execution of a certificate by the Mayor, the Vice Mayor, the City Manager or any Assistant City Manager and by the execution of an acknowledgment on such certificate by the City Attorney that the City Attorney has approved the Official Statement as amended as to form. The Mayor, The Vice Mayor, the City Manager or any Assistant City Manager is hereby authorized, empowered and directed to execute the Official Statement and any supplement or amendment thereto, after the Official Statement or such supplement or amendment thereto has been approved as provided in this Section 19. SECTION 20. FURTHER OFFICIAL ACTION. The Mayor, Vice Mayor, City Manager, Assistant City Manager, Director of Finance, City Attorney, City Clerk and other official and officers of the City are hereby authorized, empowered and directed to execute and deliver such other documents and take such other actions (including, but not limited to, the procurement of credit enhancement to secure the Notes and obtaining ratings for the Notes) as shall be necessary and appropriate to accomplish the performance of the obligations of the city in respect. thereof. The Mayor, Vice Mayor or City Manager is hereby authorized to agree to such requirements as may be imposed by the issuer of any credit enhancement or by any rating agency with respect to the Notes as a condition of such credit enhancement or rating. SECTION 21. DEFEASANCE. If (1) the City shall pay or cause to be paid to the Noteholders the principal of and interest to become due thereon at the time and in the &M%&I LES-[LE IW\ 152591.3\09/20/93 13 93- a 84 manner stipulated therein and herein, (2) all fees and expenses of the Paying Agent shall have been paid, and (3) the City shall have kept, performed and observed all of its covenants and promises in the Notes and in this Resolution, then the Notes shall no longer be deemed to be outstanding under the provisions of this Resolution. For the purposes of the preceding sentence, Notes for the payment of which when due sufficient noncallable direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States shall have been deposited in trust for the owners thereof (whether upon or prior to the maturity of such Notes) shall be deemed to have been paid and no longer outstanding under the provisions of this Resolution. Stich direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States will be considered sufficient if said obligations, with interest, mature and bear interest in such amounts and at such times as will assure sufficient cash to pay interest and principal when due on the Notes. SECTION 22. REMEDIES. Any Noteholder or any trustee acting for such Noteholder in the manner hereinafter provided may by suit, action, mandamus or other proceeding in any court of competent jurisdiction protect and enforce any and all rights under the laws of the State or granted and contained in this Resolution and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed by the City or by an officer thereof. The Noteholders of a majority in aggregate principal amount of Notes then outstanding may, by a duly executed certificate, appoint a trustee for the Noteholders with authority to represent such Noteholders in any legal proceedings for the enforcement and protection for the rights of such Noteholders. SECTION 23. SEVERABILITY OF INVALID PROVISIONS. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any remaining provisions of this Resolution, but this Resolution shall be construed and enforced as if such illegal or invalid section, paragraph, clause or provision had not been contained herein. SECTION 24. NO THIRID 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 Notes 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 GTH\G ILES• KLE I16\ I S]591.)\09/20/90 14 9 3 - � 8 4 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 Notes issued hereunder. SECTION 25. 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 shall any official executing the Notes be liable personally on the Notes or this Resolution or be subject to any personal liability or accountability by reason of the issuance or the execution by the Commission or such members thereof. SECTION 26. MBE/WBE ALLOCATION. The terms of Ordinance No. 10062, amended by Ordinance No. 10538, which by this reference thereto is hereby herein incorporated in its entirety, shall be applicable in every aspect to the issuance of the Notes. SECTION 27. GOVERNING LAWS. The provisions of this Resolution shall be construed and enforced in accordance with the laws of the State of Florida. SECTION 28. REPEALING CLAUSE. All resolutions or parts thereof in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby superseded and repealed. CM\CITES-KLEIIB\152591.3109/20/93 93- �84 SECTION 29. TIME OF TAKING EFFECT. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 27th day of September, 1993. (SEAL) ATTES' MATTY HIRAI, City Clerk APPROVED AS TO FORM AND CORRECTNESS: GTH\CITES-[EE 1W\152591.3\09/20/93 16 93- 584 rk no Interest Rate Principal Amount: Registered Owner: EXHIBIT A [Form of Note] UNITED STATES OF AMERICA STATE OF FLORIDA THE CITY OF MIAMI, FLORIDA TAX ANTICIPATION NOTE, SERIES 1993 Maturity Date: , 1994 Issue Date: October , 1993 I" CUSIP: The City of Miami, Florida (the "City"), is justly indebted and for value received hereby promises to pay to the Registered Owner set forth above or registered assigns or legal representatives, on the Maturity Date specified above, but solely from the sources hereinafter identified upon the presentation and surrender hereof, at the principal corporate trust offices of NationsBank of Florida, N.A., Ft. Lauderdale, Florida (the "Paying Agent"), the Principal Amount specified above together with interest thereon from the Issue Date specified above, at the Interest Rate per annum specified above (calculated on the basis of a 360-day year consisting of twelve thirty -day months) until payment of such Principal Amount has been made or duly provided for. Both the principal of and interest on this note are payable in any coin or currency of the United States of America which, at the date of payment thereof, is legal tender for the payment of public and private debts. A-1 Qi \CILES-IME IW\IS2S91.3\"/15193 93- 584 1 l 1 1 This note is one of a duly authorized issue of notes of the City known as "Tax Anticipation Notes, Series 1993" (the "Notes"), issued under the authority of and in full compliance with the Constitution and the laws of the State of Florida, the Charter of the City and Resolution No._ adopted by the City Commission of the City on September 21, 1993 (the "Resolution"), for the purpose of paying the appropriations made for the fiscal year of the City ending September 30, `1994 (the "Fiscal Year") in anticipation of the receipt of ad valorem taxes of the City and estimated in the budget of the City to be realized in cash during such Fiscal Year and to pay the costs of the sale and issuance of the Notes. By the acceptance of this Note, the owner hereof assents to all the provisions of the Resolution. Neither the full faith and credit nor the taxing power of the City, County or the State of Florida or any political subdivision thereof or governmental authority or body therein are pledged to the payment of the Notes, but the Notes shall be payable in accordance with the provisions of the Resolution solely from the City's ad valorem taxes collected during the Fiscal Year, except ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City (the "Pledged Funds"). Commencing on December 1, 1993, the Director of Finance of the City shall withdraw from the General Fund of the City all Pledged Funds as received and deposit the amount so withdrawn to the credit of the special fund known as the "Note Fund" created by the Resolution. The Registered Owner of this Note shall not have the right to compel the exercise of the ad valorem taxing power of the City, County or the State of Florida or any political subdivision thereof or governmental authority or body therein or taxation in any form of any real or personal property therein to pay such Note except for the Pledged Funds. The pledge of the Pledged Funds to the payment of the Notes is superior to all other liens and encumbrances on such funds, except for the bonds and other debt obligations as to which the City has pledged or may in the future pledge its full faith, credit and taxing power. The Notes are issuable as registered notes without coupons in denominations of $5,000 each or any integral multiple thereof. At the principal corporate trust office of the Paying Agent, in the manner and subject to the limitations and conditions provided in the Resolution and without cost except for any tax or other governmental charge, Notes may be exchanged for an equal aggregate principal amount of registered Notes of other authorized denomination. A-2 GM\GIIES-RLE IW\152591.]\G9/IS192 The transfer of this Note is registrable by the Registered Owner hereof in person or by his attorney or legal representative at the principal corporate trust office of the Paying Agent, but only in the manner and subject to the limitations and conditions provided in the Resolution and upon surrender and cancellation of this Note. Upon any such registration of transfer the City shall execute and the Paying Agent shall authenticate and deliver in exchange for this Note a new Note or Notes registered in the name of the transferee or transferees, of any authorized denominations and in principal amount equal to the principal amount of this Note. The Notes are not subject to redemption prior to maturity. This Note shall not be valid or become obligatory for any purpose or be entitled to any benefit under the Resolution until this Note shall have been authenticated by the execution by the Paying Agent of the certificate of authentication endorsed hereon. This Note shall be governed and construed in accordance with the laws of the State of Florida. It is hereby certified and recited that all acts, conditions and things required to happen, exist and be performed precedent to and in the issuance of this Note have happened, exist and have been performed in due time, form and manner as required by the Constitution and laws of the State of Florida. This Note is and has all the qualities and incidents of an investment security under the Uniform Commercial Code - Investment Securities law of the State of Florida. A-3 CTN\CILES.KLEIIi\1S2591.3\99/15/93 19 93— �84 IN WITNESS WHEREOF, The City of Miami, Florida has caused this Note to be signed by its Mayor or Vice Mayor, either manually or with his facsimile signature, and the seal of The City of Miami, Florida or a facsimile thereof to be affixed hereto or imprinted or reproduced hereon, and attested by the City Clerk, either manually or with her facsimile signature. THE CITY OF MIAMI, FLORIDA By: [Vice] Mayor (SEAL) ATTEST: APPROVED AS TO FORM AND CORRECTNESS By: City Clerk City Attorney CERTIFICATE OF AUTHENTICATION This is one of the Notes of the issue designated therein and issued under the provisions of the Resolution mentioned therein. NATIONSBANK OF FLORIDA, N.A., as Paying Agent i i By: Authorized Officer Date of Authentication: A-4 GTH\CILCS-aE W1 5x591.3\M/ ISM r� [Form of Abbreviations for Note] The following abbreviations, when used in the inscription of the within Note shall be construed as though they were written out in full according to 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 ( survivorship and not as tenants in common UNIFORM GIFT MIN ACT- Custodian under Uniform (Gust) (Minor) Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list [Form of Assignment of Note] For value received, the undersigned hereby sells, assigns and transfers unto the within Note,and all rights thereunder, and hereby irrevocably constitutes and appoints, attorney to transfer the said Note on the registration books, with full power of substitution in the premises. Dated: Please insert Social Security or other identifying number of transferee: Signature guaranteed: NOTICE: The transferor's signature to this Assignment must correspond with the name as it appears on the face of the within Note in every particular without alteration or any change whatever. A-5 6 TW,G TLES. a E IW6 152591.7\M/ 15/93 21 93- 584 EXHIBIT B SUMMARY NOTICE OF SALE $30,000,000 THE CITY OF MIAMI, FLORIDA Tax Anticipation Notes, Series 1993 Sealed bids will be received by the Commission of the City of Miami, Florida in the City Hall, 3500 Pan American Drive, Miami, Florida, subject to the provisions of the official Notice of Sale dated September 1993. Sale Date: October , 1993 Time: 11:00 A.M. (E.S.T.) Notes Dated: October , 1993 Maturity: , 1994 Interest Paid: At Maturity Legal Opinion: Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. and McCrary & Mosley The principal of and the interest on the Notes are payable solely from and secured solely by a prior lien on and pledge of the City's ad valorem taxes collected during the Fiscal Year except such ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City which constitute the Pledged Funds. The Notes do not constitute a general obligation of the City and neither the full faith and credit nor the taxing power of the City, Dade County, Florida or the State of Florida or any political subdivision thereof or governmental authority or body herein are pledged to the payment of the principal of or interest on the Notes except for the Pledged Funds. B-1 GM\GIUi•I:LE IM\ 1 S2SY1 .3\09/ I S/9] 22 93- M When issued, the Notes will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, which will act as securities depository for the Notes. For copies of the Notice of Sale, Official Bid Form and the Preliminary Official Statement of the City of Miami, Florida, dated September _, 1993 please contact Carlos E. Garcia, CPA, Director of Finance at 300 Biscayne Boulevard Way, Suite 210, Miami Florida, 33131, telephone number (305) 579-6350, or the Financial Advisors, Kishor M. Parekh, First Vice President, Howard Gary & Company, 3050 Biscayne Boulevard, Suite 603, Miami, Florida 33137-4163, telephone number, (305) 571-1380 and Wendell G. Gaertner, Vice President, Public Finance, Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, telephone number, (813) 573-8189. B-2 GTH\GILES-SLEIIB\152S91.1\09/15/95 23 93- 584 EXHIBIT C NOTICE OF SALE $30,000,000 THE CITY OF MIAMI, FLORIDA Tax Anticipation Notes, Series 1993 Sealed Bids Sealed bids will be received by the City Clerk of The City of Miami, Florida (the "City") at City Hall, 3500 Pan American Drive, Miami, Florida, until 11:00 A.M. Miami time on October 5, 1993 at which time and place all bids will be publicly opened and read for its Tax Anticipation Notes, Series 1993 to be issued in the aggregate principal amount of $30,000,000, (hereinafter collectively referred to as the "Notes"). The City reserves the right to schedule and reschedule the opening of the sealed bids to a subsequent date with notice thereof given in such manner as the City deems appropriate. Details Of The Notes The Notes will be dated the date of delivery and are issuable as registered notes, in the denomination of $5,000 or any integral multiple thereof. The Notes will mature on September 2$ 1994. When issued, the Notes will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, which will act as securities depository for the Notes. Ownership interests in the Notes will be transferred pursuant to a book -entry system as described in the Preliminary Official Statement with respect to the Notes. The principal of and interest on the Notes shall be paid at maturity. The Notes are not subject to redemption prior to maturity. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months. Principal of, and interest on the Notes will be payable to the registered owners thereof, on the maturity date of the Notes in immediately available funds upon presentation and surrender thereof, at the office of NationsBank of Florida, N.A., Ft. Lauderdale, Florida, or any successor fiscal agent designated by the City. C-1 GTH\GILES.K E116\152591.7\99/I5/92 ,. 24 93- 584 Security for and Source Of Payment for the Notes The principal of and the interest on the Notes are payable solely from and secured solely by a prior lien on and pledge of the City's ad valorem taxes collected during the Fiscal Year, except such ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City which constitute the Pledged Funds. The Notes do not constitute a general obligation of the City and neither the full faith and credit nor the taxing power of the City, Dade County, Florida or the State of Florida or any political subdivision thereof or governmental authority or body therein are pledged to the payment of the principal of or interest on the Notes, except for the Pledged Funds. Interest Rates and Bidding Details Each proposal must be made on the Official Bid Form (as attached to this Notice of Sale) specifying the rate of interest or formula for determining the same and premium, if any, and enclosed in a sealed envelope marked "Bid for $30,000,000 The City of Miami, Florida Tax Anticipation Notes, Series 1993." Bidders are requested to name the interest rate in multiples of 1/8 or 1/20 of 1%. Each bid must specify the interest rate for the Notes. No Note shall bear more than one rate of interest, which rate shall be uniform for the life of the Note, and no zero or blank rate or split rate will be permitted. No bid for less than all of the Notes offered will be entertained. Premiums may be specified. Bidders are hereby notified that by law no discount is permitted on the sale of the Notes. Award of Notes As between acceptable proposals complying with this Notice of Sale, the Notes will be sold to the responsible bidder whose proposal offers to purchase all of the Notes at such rate or rates of interest as will produce the lowest net interest cost rate to the City. The lowest net interest cost rate will be determined by taking the aggregate amount of interest at the fixed rate specified in the bids computed from , 1993, the assumed date of delivery of the Notes, to , 1994 (_ days on a 360 day basis) and subtracting therefrom any premium bid. If this procedure results in a tie, the Notes will be awarded and sold to the bidders based on a ratable apportionment between or among such bidders. C-2 c m\c n Es � a c ueu sass 1.3\ov/ 1 s /a3 25 93- 584 Right of Rejection and Waiver of Irregularity THE CITY RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS, AND ANY BIDS NOT COMPLYING WITH THE PROVISIONS HEREOF OR FLORIDA LAW WILL BE REJECTED. THE CITY ALSO RESERVES THE RIGHT TO WAIVE ANY AND ALL INFORMALITY IN ANY BID, TO TAKE ANY ACTION ADJOURN- ING OR POSTPONING THE SALE OF THE NOTES OR TO TAKE ANY OTHER ACTION THE CITY MAY DEEM TO BE IN THE BEST INTEREST OF THE CITY. Official Statement The City has authorized the distribution of its Preliminary official Statement dated related to the Notes which it deems final for purposes of Rule 15c2- 12(b)(1) of the Securities and Exchange Act of 1934, as amended (the "Rule") (except for certain omissions as described by the Rule). Such Preliminary official Statement is subject to revision, amendment and completion in a final Official Statement. Upon the sale of the Notes, the City agrees to provide to the successful bidder, within the earlier of seven business days following the sale of the Notes or to accompany the successful bidder's confirmation that requests payment for the Notes, copies of a final Official Statement in quantities sufficient to comply with the Rule. The City will include in the Official Statement such additional information concerning the reoffering of the Notes as the successful bidder or bidders may reasonably request. The successful bidder or bidders will be responsible to the City and its officials in all respects with respect to the accuracy and completeness of information provided by such successful bidder or bidders with respect to such reoffering. The successful bidder or bidders will be required to acknowledge receipt of the Official Statement and will be prohibited from confirming the sale of any Notes unless the confirmation requesting payment from the customer is accompanied or preceded by a copy of the Official Statement. At the time of or prior to the delivery of the Notes, the successful bidder or bidders will be required to file the Official Statement with a nationally recognized municipal securities information repository acceptable to the City and to advise the City of the date and repository of such filing. In the event that the Notes are awarded to more than one bidder, such filing may be done by one of the successful bidders on behalf of all the successful bidders. CT"\CILES-RLE IIB\152591.7\09/15/97 C-3 G 26 93- 584 At the time of or prior to delivery of the Notes, the successful bidder or bidders will be required to terminate its or their underwriting period or periods (as defined in SEC rule 15c2-12 under the Securities Exchange Act of 1934). In the event that a successful bidder advises the City that its underwriting period has not been terminated at the time of delivery of the Notes, such successful bidder shall terminate its underwriting period not later than five days after the date of delivery of the Notes, unless the City shall agree to a longer period. The City will consider seriously any good faith request by such successful bidder for a longer period during which to underwrite the Notes. The successful bidder or bidders xvill not be required to pay the cost of printing the Preliminary Official Statement or a total of not more than 500 copies of the Official Statement (including any amendment or supplement thereto) to be allocated pro rata among such bidders but will be responsible for the costs of printing more than 500 copies of the Official Statement (including any amendment or supplement thereto). Good Faith Each bid must be accompanied by a certified or bank cashier's or treasurer's check drawn upon an incorporated bank or trust company, in the amount of $300,000, which check, on which no interest will be allowed, must be payable unconditionally to the order of The City of Miami, Florida. Award or rejection of bids will be made on the date above stated for receipt of bids and the checks of unsuccessful bidders will be returned immediately. The check of the successful bidder will be cashed and the proceeds, on which no interest will be allowed, will be held as security for the performance of the bid, and, in the event such successful bidder shall fail to comply with the terms of his bid, the proceeds will be retained by the City. The retention of such check will constitute full liquidated damages. If it shall be found impossible to issue and deliver the Notes, the City will deliver to the successful bidder a certified or bank cashier's or treasurer's check drawn upon a bank or trust company in The City of Miami, Florida, payable unconditionally to the order of such bidder, in the amount of the check deposited by such bidder with its bid. Upon delivery of the Notes, the proceeds of the check of the successful bidder will be applied to payment for the Notes. CM 0.1 LUALE 116\152591.3\99/15/93 C-4 27 93- 584 CUSIP Numbers It is anticipated that CUSIP identification numbers will be printed on the Notes,but neither the failure to print such numbers on any Note nor any error with respect thereto shall constitute cause for a failure or refusal by the purchasers thereof to accept delivery of or pay for the Notes in accordance with the terms of their bid. All expenses in relation to the printing of CUSIP numbers on the Notes will be paid by the City, provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the successful bidder or bidders. Delivery of Notes Delivery of the Notes in definitive form will be made on or about October 13, 1993, or such other date as shall be appropriate to ensure compliance with the Rule, in Miami, Florida, against payment therefor in immediately available Federal Reserve Funds to the order of The City of Miami, Florida. The unqualified approving legal opinions of Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. and McCrary & Mosley, each of Miami, Florida, will be furnished without cost to the purchasers of the Notes. The successful bidder shall be required, at or prior to delivery of the Notes, to furnish to the City such information concerning the initial prices at which a substantial amount of the Notes of each maturity were sold to the public as the City shall reasonably request. The usual closing documents shall also be furnished. However, the successful bidder will be responsible for the clearance or exemption with respect to the status of the Notes for sale under the securities or 'Blue Sky" laws of the several states and the preparation of any surveys or memoranda in connection therewith. Concurrently with the delivery of the Notes, the City Manager and the City's Director of Finance or other appropriate officers of the City will furnish their certificate to the effect that, to the best of their knowledge, the Official Statement as of its date and as of the date of delivery of the Notes, 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 herein, in the light of the circumstances under which they were made, not misleading. The successful bidder shall have the right, at its option, to cancel its obligation to purchase the Notes if the City shall fail to tender the Notes for delivery within 60 days from C-5 6TH\9ILES-ELE IND\1535%1.3\09/15/93 Y 3- 584 the date herein fixed for the receipt of bids, and, in such event, the successful bidder shall be entitled to the return of its deposit mentioned above, with interest. Disclosure Obligations of the Purchaser Section 218.38(1)(b)(1), Florida Statutes, requires that the City file, within 120 days after delivery of the Notes, an information statement with the Division of Bond Finance of the State of Florida (the"Division") containing the following information: (a) the name and address of the managing underwriter, if any, associated with the issuance of the Notes; (b) the name and address of any attorney or financial consultant who advised the City with respect to the Notes; (c) any fee, bonus or gratuity paid by the managing underwriter or financial consultant, in connection with the Note issue to any person not regularly employed or engaged by such underwriter or consultant; and (d) any other fee paid by the city with respect to the Notes,including any fee paid to attorneys or financial consultants. The purchaser of the Notes is required to provide the City in a timely fashion such that the City may comply with the above -referenced statute, a statement signed by an authorized officer containing the information mentioned in (a) and (c) above. Section 218.38(1)(b)2, Florida Statutes, requires that the managing underwriter within 90 days after delivery of the Notes, provide the City with a statement containing the information mentioned in (c) above. The information provided pursuant to the cited statute will be maintained by the Division of Bond Finance and by the City as a public record. Right of Cancellation The successful bidder shall have the right, at its option, to cancel the contract of purchase if the City shall fail to tender the Notes for delivery within sixty (60) days from the date of sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompanying their bid. Certificate Regarding Reoffering Prices As soon as practicable, but not later than seven (7) days prior to delivery of the Notes, the successful bidder will be required to furnish the City a certificate specifying the reoffering price at which at least ten percent (10%) of the Notes were sold (or were offered in a bona fide public offering to persons other than bond house, brokers, or similar persons or organizations acting in the capacity of underwriters of wholesalers) and as of the date of C-6 GTN\CILES-KLE IIB\152591.3\&9/15/93 fi 29 93- 584 award of the Notes to the successful bidder reasonably expected to be sold to the public. Such certificate shall be in form and substance satisfactory to the Co -Note Counsel and shall include such additional information as may be requested by Co -Note Counsel. Estimate of True Interest Cost Each bidder is requested, but not required, to state in its bid the amount of interest payable on the Notes during the life of the issue and the percentage true interest cost (determined as described above) which shall be considered as informative only and not binding on either the bidder or the City. Minority and Women's Business Enterprises Pursuant to Ordinance No. 10062, as amended by Ordinance No. 10538 (collectively, the "Ordinance"), which by this reference thereto is hereby herein incorporated in its entirety, it is the policy of the City to ensure that MBE/WBE Firms (as hereinafter defined) have the maximum opportunity to participate in the performance of City contracts. Bidders have the option of complying with such policy by either joint venturing with MBE/WBE Firms or including such firms in their joint management group. For such purposes, a "MBE/WBE Firm" is a firm at least 51% owned by blacks, hispanics or women whose management and daily business operations are controlled by one or more blacks, hispanics or women and who employ a maximum of twenty-five employees or have a net worth not in excess of two million dollars. The objective of the City is to achieve a goal of awarding a minimum of fifty-one percent (51%) of the total annual dollar volume of all procurement expenditures to black, hispanic and women -owned small business enterprises to be apportioned as follows: seventeen percent (17%) to Blacks, seventeen percent (17%) to Hispanics and seventeen percent (17%) to women. Bidders are advised of the right of the City to terminate and cancel any contract or contractual agreement entered into as a result of this Notice of Sale, including elimination of the individual(s) from consideration and participation in future City contracts, on the basis of having submitted deliberate and willful, false or misleading information as to his, cn��cacs•uc ue� t sxsv �. ��osi � siv� C-7 30 03_ �84 her or its status as a MBE/WBE Firm and/or the quantity and/or type of MBE/WBE Firm participation. Each bidder agrees to provide a sworn statement of compliance with the provisions of the Ordinance and its specific applicability to the purchase of the Notes, which statement shall certify that the bidder, during the course of time involved in the performance of the contract, shall not discriminate against any business, employee, or applicant for employment because of age, ethnicity, race, creed, color, religion, sex, national origin, handicap or marital status. Bidders are also required to provide a statement of the extent to which such business enterprise has as one or more of its partners or principals persons who are black, hispanic or women, or is a joint venture comprise of a MBE/WBE Firm. Bidders are required to submit an Affirmative Action Plan (AAP), which shall include the projected annual goals and the timetables which will be used to employ and/or procure women, blacks and hispanics, a non-discrimination policy statement and any other actions which will be used to ensure equity in employment and the utilization of MBE/WBE Firms. Any significant subcontractors, suppliers or other parties to the bid or proposal shall also be required to submit an AAP. Bidders who do not presently have an AAP shall submit in lieu thereof a detailed listing of employees in tabular form indicating: (1) Ethnicity, race and gender (2) level of responsibility delineating between management, professional, administration and clerical. If the bidder is a public company, the bidder should indicate what percentage of its board of directors are members of an ethnic, racial, or gender minority. Bidders shall demonstrate a good faith effort to ensure equal employment opportunities for blacks, hispanics and women on the contract resulting from the Notice of Sale. Successful bidders shall document these efforts fully and shall provide reports as may be required by the City. CT1\FILES-ELEI191N152591.3\99/15/93 31 93 584 Successful bidders shall permit access to their books, records and accounts by the Office of MBE/WBE Affairs or its designee for the purpose of investigation to ascertain compliance with the foregoing requirements. In the event of successful bidders' noncompliance with the affirmative action policy hereof, the City Manager may suspend in whole or part, cancel or terminate the bid or contract award and/or impose other sanctions as may be determined to be appropriate. Additional Information The official Bid Form and Notice of Sale and copies of the Preliminary Official Statement relating to the Notes may be obtained upon request to the undersigned at 300 Biscayne Boulevard Way, Suite 210, Miami, Florida, 33131, telephone number (305) 579- 6350, or to the Financial Advisors, Kishor M. Parekh, First Vice President, Howard Gary & Company, 3050 Biscayne Boulevard, Suite 603, Miami, Florida 33137-4163 telephone number, (305) 571-1380 and Wendell G. Gaertner, Vice President, Public Finance, Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716 telephone number, (813) 573-8189. Dated: September 1993. CM\GIIES-RlE 10\I S2591.7\99/1 S/93 C-9 Carlos E. Garcia, CPA Director of Finance The City of Miami, Florida 32 93- 58A OFFICIAL BID FORM Proposal For the Purchase of $30,000,000 THE CITY OF MIAMI, FLORIDA TAX ANTICIPATION NOTES, SERIES 1993 DUE SEPTEMBER 28, 1994 September , 1993 Commission of The City of Miami, Florida City Hall 3500 Pan American Drive Miami, Florida 33133 Dear Commissioners: On behalf of an underwriting syndicate which we have formed, headed by the undersigned and consisting of the firms listed on a separate sheet attached hereto as Exhibit A, and in accordance with the terms and conditions of the attached Notice of Sale dated September _, 1993, (the "Notice of Sale"), which is hereby made a part of this proposal, we offer to purchase all of the $30,000,000 The City of Miami, Florida Tax Anticipation Notes, Series 1993 (hereinafter collectively referred to as the "Notes") to be dated October 1, 1993. We will pay for the Notes at the time of delivery, in immediately available Federal Reserve Funds, in the principal amount and bearing interest, calculated on the basis of a 360-day year of twelve 30-day months at the rate per annum stated below and to pay you therefor par plus the premium, if any, stated below. Principal amount ................................ $ Interest rate .................................... % Premium offered for the above amount of Notes Total ......................... $ cnncucs-KLE IMF 1 szsv 1.3\ov/ I s/v C-10 33 93- 584 pry\ We enclose herewith a certified bank cashier's or treasurer's check, drawn on an incorporated bank or trust company, in the amount of $300,000 payable to the order of The City of Miami, Florida, which check is to be applied or returned in accordance with the Notice of Sale. The Closing documents referred to in the Notice of Sale are to include certificates, dated as of the date of the delivery of the Notes, with reference to the Official Statement, as provided therein, and stating that there is no litigation pending or, to the knowledge of the signer of such certificate, threatened which would materially adversely affect the validity of the Notes. We hereby agree to provide to the City, at or prior to closing, such information regarding the initial prices at which a substantial amount of each maturity of the Notes were sold to the public as the City shall reasonably request. We agree to comply with all requirements of the Minority and Women Business Affairs Procurement Program ("MWBAPP") established under Ordinance No. 10062, as amended by ordinance No. 10538, which Ordinance by this reference hereto is hereby herein incorporated in its entirety, which are applicable to this matter. We acknowledge the City's right to terminate, suspend or impose sanctions with respect hereto, as more fully outlined in the Notice of Sale. We certify that we, during the course of time involved in the performance of this contract, shall not discriminate against any business, employee or applicant for employment because of age, ethnicity, race, creed, color, religion, sex, national origin, handicap or marital status. We furtherstate that (a statement of the extent to which the business enterprise has as one or more of its partners or principals persons who are black, hispanic or women, or is a joint venture comprised of a non -minority and minority business and/or women -owned enterprise.) We agree to: (a) implement specific affirmative action plans as approved by the director of the Office of MBE/WBE Affairs including the submission of an AAP (as outlined in the Notice of Sale) and to demonstrate a good faith effort to ensure equal employment opportunities for blacks, hispanics and women on this contract; C-11 GTH\CILES•KLE116\152591.3\09/15/97 34 93- 584 (b) document these efforts fully and to provide reports as may be required by the City; (c) permit access to our books, records and accounts by the office of MBE/WBE Affairs or its designee for the purpose of investigation to ascertain compliance with the foregoing requirements; and we acknowledge that in the event of or noncompliance with the requirements of the MWBAPP (as more fully outlined in the Notice of Sale), the City Manager may suspend in whole or part, cancel or terminate the bid award and/or impose other sanctions as may be determined to be appropriate. Respectfully submitted, Bidder By: Title: (No addition or alteration except as provided above, is to be made to this bid form, and it mush not be detached from the Notice of Sale.) The following is provided for information only and is not a part of this bid: The total amount of interest payable on the Notes computed from October ^, 1993 (the assumed date of delivery) to September 28, 1994 at the fixed rate specified aboveis .................................... $ The premium offered is ........................ $( ) The adjusted net interest cost is (360/ ) ......... $ The adjusted net interest cost rate is .............. % C-12 cm�cucs-rA¢ ue� �szse � . a�wt iswz 35 93- 584 t s*,«sass*rlss If our bid is not accepted, the enclosed good faith check should be returned to the following: Firm: Attention: Street: City: State: Zip: IF THE UNSUCCESSFUL BIDDER DESIRES TO RECEIVE RETURN OF THE GOOD FAITH CHECK IN PERSON, THE CHECK WILL BE AVAILABLE AFTER. OPENING AND EVALUATION OF THE BIDS. The above mentioned check has been returned and receipt thereof is duly acknowledged. Bidder By: Title: Telephone Number:_ C-13 CM\SILES-ELE IW\I S3S91.3\09/15193 36 93 584 EXHIBIT A TO THE OFFICIAL BID FORM Following is a list of the members of our account on whose behalf this bid is made Joint Management Group Members * % of Liability i Syndicate Group Member(s)* % of Liability i * Please indicate which members of the account are MBE/WBE firms. i i l C-14 CM\9ILES.KLEI1B\153591.3\09/15/93 37 93- 584 EN311BIT D In the opinion of Co -Note Counsel, assuming continuing compliance with certain arbitrage rebate and other tax requirements referred to herein, under existing law, facts and circumstances, interest on the Notes is excluded from gross income for federal Income tax purposes and will not be treated as an item of tax preference in computing the alternative minimum tax for individuals and corporations. Interest on ' such Notes will, however, be taken into account In computing an adjustment made In determining a corporate Noteholder's alternative minimum tax, and holders of the Notes could be subject to the consequences of other proVisions of the Internal Revenue Code of 1986, as amended, as further described herein. In the opinion of Co -Note Counsel, under existing law, the Notes are exEmpt from present intangible personal property taxes Unposed by the State of Florida but are subject to Florida estate taxes and taxes imposed by Chapter 220, Florida Statutes. RATINGS: Moody's: BOOK -ENTRY ONLY Standard & Poor's: j7EW ISSUE See"RATINGS" herein $30,0000000 The City of Miami, Florida Tax Anticipation Notes, series 1993 Dated Date: Date of Delivery Due: September 26, 19911 Rate: % ._ Price: 96 The Tax Anticipation Notes, Series 1993 (the 'Notes'), are being Issued by The City of Miami, Florida (the "City") for the purpose of providing funds to pay the appropriations made by the,City for the fiscal year ended September 30, 199q(the "Fiscal Year') in anticipation of the receipt of ad valorem taxes collected by the City during the Fiscal Year other than revenues for ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations Issued by the City (the 'Pledged Funds') and to pay a portion of the costs of issuancs of the Notes. The Notes, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ('DTC"), acting as securities depository for the Notes. Individual purchases of the Notes will be made in book -entry forth only in denominations of $5,000 or any integral multiple thereof. Purchasers of the Notes will not receive physical delivery of Note certificates. Transfers of the Notes will be effected through a book -entry system as described herein. As long as DTC or Its nominee is the registered owner of the Notes, payments of interest on and the principal of the Notes are to be made to Cede & Co., as nominee; for DTC as registered owners of the Notes, by Florida, as paying agent (the "Paying Agent'). Cede & Co Is responsible for remitting such Interest and principal payments to DTC Participants (as defined herein) for subsequent disbursement to the Beneficial Owners (as defined herein) of the Notes. The principal of and interest on & Notes shall be paid at maturity. The Notes are not subject to redemption prior to maturity. 93- 584 The principal of and the Interest on the Notes are payable solely from and secured solely by a prior lien on and pledge of the City's ad valorem taxes collected during the Fiscal Year, except such ad valorem laces approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City which constitute the Pledged Funds (hereinafter defined). The Notes do not constitute a general obligation of the City and neither the full faith and credit nor the taxing power of the City, Dade County, Florida or the State of Florida or any political subdivision thereof or governmental authority or body therein are pledged to the payment of the principal of or interest on the Notes, except for the Pledged Funds. The cover page contains certain information for quick reference only. It is not a summary. Potential purchasers should not rely upon this page independent of the body of this Official Statement which must be read in its entirety before making an informed investment decision. , The Notes are offered when, as and if issued and received by -the Underwriters, subject to the unqualified opinion as to legality by Certain matters will be passed on for the City by A. Guinn Jones, III, Esqr, City Attorney, Florida. Howard Gary & Company, Miami, Florida, and Raymond James & Associates, Inc., St. Petersburg, Florida, are serving as co -financial advisors to the City. It is expected that the Notes In book -entry form will be available for delivery in New York, New York on or about October 8, 1993. D-2 39 93- 584 No dealer, broker, salesperson or other person has been authorized by the City to give any Information or to crake any representations other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy any Notes nor shall there be any sale of the Notes to any person In any jurisdiction in which It Is unlawful to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the Notes. Statements contained in this Official Statement which Involve estimates. forecasts or matters of opinion, whether or not expressly so described herein, are Intended solely as such and are not to be construed as is representation of fact. The Information set forth herein has been obtained from the City and other official sources which are believed to be reliable but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriter(s). The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any Implication that there has been no change In the affairs of the City since the date hereof. r This Official Statement Is submitted In connection with the offer and sale of the Notes and may not be reproduced or used, in whole or in part, for any other purpose. THE NOTES HAVE NOT BEEN REGISTERED WITH 711E SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE RESOLUTION BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE NOTES IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF THE STATES, IF ANY, IN WHICH THE NOTES HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE NOTES OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. D-3 i 40 93-- 584 THE CITY OF MIAMI, FLORIDA MEMBERS OF THE BOARD OF CITY COMMISSION THE HONORABLE XAVIER L. SUAREZ MAYOR THE HONORABLE DR. MIR.IAM ALONSO Commissioner THE HONORABLE MILLER J. DAWKINS COMMISSIONER THE HONORABLE VICTOR H. DE YURRE Vice Mayor - THE HONORABLE J. L. PLUMMER, JR. COMMISSIONER CITY OFFICIALS City Manager....................................CESAR H. ODIO City Attorney ...................... A. QUM JONES, III, ESQ. Director of Finance.............CAR.LOS E. GARCIA, C.P.A. CityClerk..........................................MATTY HIRAI Co -Note Counsel Co -Financial Advisors HOWARD GARY & COMPANY Miami, norlda and RAYMOND JA ES & ASSOCIATES, INC. St. Petersburg, Florida 93- 584 TABLE OF CONTENTS Paae Introduction . . . . . . . . . . . . . Authority for the Issue . . . Purpose of the Notes Description of the Notes . . . . . . Security for the Notes . . . . . . . . . . . . . Sources and Uses of Funds . . . . . . . . . . . . . . . . . . Registration, Exchange and Transfer . Legal Debt Limitations . . . . . . . . . . . . . Debt Summary . . . . . . . . . . Tax Matters . . . . . . . . . . . . . . . . . Litigation . . . . . . . Ratings . . . . . . . . . . . . . . . . . . . . . . Underwriting . . . . . . . . Financial Advisors . . . . . . . . . . . . . . . . . . . . . . . Financial Statements . . . . . . . . ... . . . . . i i Legality . . . . . . . . . . . . . . . . . . . . Disclosures Required By Florida Blue Sky Regulations Certain Closing Certificates Miscellaneous . . . . I' APPENDIX A - DESCRIPTION OF THE CITY OF MIAMI . . . . . . . . APPENDIX B - GENERAL PURPOSE FINANCIAL STATEMENTS ' APPENDIX C - THE RESOLUTION . . . . . . . . . . . . . . . . . APPENDIX D - FORM OF LEGAL OPINION D-5 42 93- �84 Official Statement $30,000,000 ' THE CITY OF MIAIM, FLORIDA Tax Anticipation Notes, Series 1993 INTRODUCTION The purpose of this Official Statement, including the cover page and all appendices hereto, is to set forth certain information in connection with the sale by The City of Miami Florida (the 'City"), of Its $30,000,000 aggregate principal amount of Tax Anticipation Notes, Series 1993 (the 'Notes'). AUTHORITY FOR THE ISSUE The Notes are being Issued pursuant to the Constitution and laws of the State of Florida, partiwlarly Chapter 166, Florida Statutes, as amended, and pursuant to the Charter of the City, as amended (collectively, the 'Act"r, and a resolution duly adopted by the City on September 1993 (the "Resolution"). A copy of the Resolution is Included as APPENDIX C hereto. Capitalized terms used herein and not defined shall have the meaning ascribed to them in the Resolution. For a complete description of the terms and conditions of the Notes, reference is made to the Resolution. The description of the Notes and the documents authorizing and securing the Notes and the information from reports contained herein do not purport to be comprehensive or definitive. All references herein to the Notes and such documents and reports are qualified In their entirety by reference thereto. PURPOSE OF THE NOTES The Notes are being issued for the purpose of providing funds to pay the appropriations made by the City Commission of the City for the fiscal year of the City ending September 30, I99b(the'Fiscal Year') in anticipation of the receipt of the City's ad valorem taxes for such Fiscal Year and to pay a portion of the costs of issuance of the Notes. i DESCRIPTION OF THE NOTES The Notes will be Issued in the aggregate principal amount, will bear interest at the rate, and will mature on the date, all as set forth on the cover page of this Official Statement. The Notes will be dated the date of their original issuance and delivery and shall be Issued in fully registered form in the denominations of $5,000 or any integral multiple thereof and, when issued, will be registered In the name of Cede & Co., as nominee of Ile Depository Trust Company, New York, New York ('DTC'). Purc�-,ases of beneficial interests in the Notes will be made in book -entry -only form (without certificates) In the'denomination of $5,000 or any Integral multiple thereof. Book -Entry -Only System The Depository Trust Company ('DTC'), Ne York, New York, will act as securities depository for the Notes. The Notes will be Issued as fully -registered securities registered in the name: of Cede & D-6 43 93- 584 Co. (DTC's partnership nominee). One fully -registered Note certificate will be issued for the Notes In the aggregate principal amount of the Notes and will be deposited with DTC. DTC Is a limited -purpose trust company organized 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. DTC holds securities that Its participants ('Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book -entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants Include securities brokers and dealers, bmiks, 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 avallabie 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 Indirectiy ('Indirect Participants'). The Rules applicable to DTC and its Participants are on ,file with the Securities and Exchange Commission. Purchases of Notes under the DTC system must be made by or through Direct Participants, which will receives credit for the Notes on DTC records. The ownership interest of each actual purchaser of each Note ("Beneficial Owner") is In turn to be recorded on the Direct and indirect Participants' records. 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 as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Notes are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership Interests In Notes, except in the event that use of the book -entry system for the Notes is discontinued. To facilitate subsequent transfers, all Notes deposited by Participants with 9TC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Notes with DTC and their registration In the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Notes; DTC's records reflect only the Identity of the Direct Participants to whose accounts such Notes 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. 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 will 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 do Co. If less than all of the Notes within an Issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. D-7 93- 584 44 Neither DTC nor Cede do Co. will consent or vote with respect to Notes. Under its usual procedures, DTC mails an Omnibus Proxy to the Agency as soon as possible after the record date. The Omnibus Proxy assigns Cede do Co.'s consenting or voting rights to those Direct Participants to whose accounts the Notes are credited on the record date identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Notes will be made to DTC. DTC'% practice is to credit Direct Participants' accounts on payable date In accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on 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 registered in 'street name,' and will be the responsibility of such Participant and not of DTC, the Trustee, or the Agency, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the Agency or the Trustee, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Notes at any time by giving reasonable notice to the Agency or the Trustee. Under such circumstances, in the event that a successor securities depository Is not obtained, Note certificates are required to be printed and delivered. The Agency may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Note certificates will be printed and delivered. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. SECURITY FOR THE NOTES The principal of and interest on the Notes and all required sinking fund and otter payments shall be payable solely from the City's ad valorem taxes collected during the Fiscal Year other than ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the City (the 'Pledged Funds"). Neither the full faith and credit nor the taxing power of the City, Dade County, Florida or the State of Florida or any political subdivision thereof or governmental authority or body therein are pledged to the payment of the principal of or interest on the Notes, except for the Pledged Funds. Commencing on December 1, 1993, the Director of Finance shall withdraw from the General Fund of the City all Pledged Funds as received and deposit the amount so withdrawn to the credit of a special fund called the Note Fund created under the terms of the Resolution (the 'Note Fund'), until the D-8 45 la 93- 584 amount then on deposit to the credit of the Note Fund on the first day of the Indicated month equals the following percentages of the sum of the principal of and Interest on the Notes to be paid at maturity (the 'Note Fund Requirement'): Percentage of Mtn h Note Fund Requirement December 25 % January 15 February 10 March 10 April 10 May to June 7 July S August S September 3 Total 100% If the amount so deposited In any month to the credit of the Note Fund shall be less than the required amount for such month, the requirement therefor shall nevertheless be added to the amount otherwise required to be deposited In each month thereafter until such time as such deficiency shall have been made up. Pledged Funds deposited to the credit of the Note Fund in excess of the monthly deposit requirement set forth above shall be credited against future Note Fund deposit requirements. Payments into the Note Fund shall be adjusted to give credit for investment earnings then on deposit in the Note Fund and to make up any deficit In the required cumulative balance attributable to investment losses. Moneys in the Note Fund shall be trust funds and shall be at all times secured as are other deposits of public funds. Amounts in the Note Fund shall be invested in accordance with the City�bf Miami, Florida, Code Section 18-2(b)(198), as amended, and all investment earnings on funds in the Note Fund shall be retained therein and applied as stated above. The City will not create or suffer to be created any lien or charge upon the Pledged Funds ranking equally with or prior to the Notes, except for direct obligations of the City for which the full faith, credit and taxing power of the City have been or shall be pledged. D-9 46 93- �84 SOURCES AND USES OF FUNDS The following table sets forth the overall anticipated sources and uses of funds associated with the issuance of the Notes: Sources of Funds: Principal Amount S30.000. Premium Total Sources 30 Uses of Funds: Deposit to the General Fund $� Cost of Issuance Underwriters' Discount Total Uses ' 0 00 0 REGISTRATION, EXCHANGE AND TRANSFER As long as a book -entry system is used for determining beneficial ownership of the Notes, registration, transfer and exchange of the Notes will occur as described under 'DESCRIPTION OF THE NOTES - Book -Entry -Only System'. LEGAL DEIST LIMITATIONS The Florida Constitution The Florida Constitution does not provide a limit on the amount of ad mlorem$axes the City may levy for voted bonds. However, pursuant to Article VII, Section 9 of the Florida Constitution, the City is limited to an annual maximum tax levy of 10 mills per $1.00 ($10 per $1,000) of the assessed value of real estate and tangible personal property for municipal purposes other than for the payment of voted bonds. Ad valorem taxes levied for periods not exceeding two years and authorized by a vote of the electorate are excluded from 10 mill limitations. Article VII, Section 12 of the Florida Constitution requires the approval of electors prior to the Issuance of bonds payable from ad valorem taxes and maturing more than twelve months after Issuance. The provision In Article VTI, Section 12, which limits such vote to electors who are owners of freeholds not wbolly exempt from taxation has been held by the courts to be void. Accordingly, all qualified electors in the City are eligible to vote In bond elections. The remainder of the relevant section of the Florida Constitution providing for ad valorem taxation hu been held valid and remains operative. D-10 47 93- 584 'ne City Charter '171e 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 as shown by the last preceding assessment roll of the City amd provides that bonds for street, sewer, sidewalk and other public Improvements which are paid from special assessments shall not be subject to such 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, 1991 was $1,618,882,80a based on the net assessed valuation of $10,792,152,000. Outstanding general obligation debt applicable to the City's debt limitation as of September 30, 1991 totaled $188,605,000 which is approximately 1.75 % of the net assessed valuation. DEBT SUMMARY 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. Short -Term Borrowing History 7iie following table sets forth the City's short-term borrowing history for the last five years. t YEAR AGGREGATE 91lORT-TERM BORROWING I9(012 43v,ocva,0dp 1991 I 1990 $15,000,O00(b) 1989 14,960,000(c) 1988 - 0 - , I • Rated on the City's r6cat year ended September 30. (s) 7be City of Miami, Florida Tax Aricipation Notes, Series 1991 (b) The City of Mismi, Florida Tax Anticipation Notes, Series 1"0 (c) Tbs City of Miami, Florida Tax Anticipation Notes, Seriu 1939 Selected Debt Data The following tables provide details of the City's principal and interest requirements on general obligations bonds and overlapping debt of the County. , It D-11 48 t 93- 584 I General Obligation Bonded Indebtedness ' Principal and Interest Requirements as of September 30, 1991 (1) Fiscal Year Ending- 9/30 I Principal Interest iotui 1992 $ 9,575,000 $ 11,737,066 $ 21,312,066(2) 1993 11,745,000 11,858,104 23,603,104 1994 11,770,000 10,983,440 22,753,440 1995 12,125,000 10,178,757 22,323,757 1996 12,015,000 9,434,562 21,449,562 1997 12,115,000 8,678,732 20,793,732 1998 11,3351000 7,935,510 19,270,510 ! 1999 10,550,000 7.211,253 17,761,253 2000 9,880,000 6,445,839 16,325,839 2001 .10,450,000 5,695,013 16,145,013 2002 10,540,000 5,112,195 15,652,185 2003 11,055,000 4,370,661 15,425,661 2004 9,310,000 3,592,991 12,902,991 2005 8,900,000 2,919,804 11,819,804 2006 7.200,000 2,262,636 9,462,636 2007 5,840,000 1,747,803 7,587,803 ' 2008 4,915,000 1,352,262 6,267,262 2009 5,000,000 1,041,435 6,041,435 2010 3,895,000 767,579 4,662,579 2011 3,275,000 518,134 3,793,134 2012 1,735,000 321,439 2,056,439 2013 1,795,000 211,316 2,006,316 2014 1,785, 000 97.006 L882-QQ¢ TOTAL S 186,805,000 114,423.27 S 301,298,527 (1) 7be City Issued $10,000.000 of its General Obligulon Bonds, Seriu 1"2 (Stara Sewer Improvement) is August 1992. (2) I Excludes October 1. 1991 Installment in the amount of S3.549,000 recorded is dw general obliptioo debt service fund. u r D-12 93- 584 49 1 Net Direct and Overlapping Debt as of September 30, 1991 (1) (Amounts rounded to nearest thousands) General Percentage Obligation Application City'o Share Debt to hR City of Debt City of Miami $186,441#000 1004 $286,441,000 Dade County $486,509,000 19%(2) $ 92,437,000 School Board $194,020,000 190(2) $ 36.064,000 i TOTAL $866,9�70,0 0 $315,7442,000 (1) no City laaed 310,000,000 of Its General obligation 13ondo, Serka 1992 (Storm Sever lmprovemeta) is Autuet 1992. (>7 The percentage of the Couoey u: roll valuation comprised of real and pera000l property o UAW in the City of Miami. (ne balance of this page was intentionally left blank) " 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. Debt Ratios of the City of Miamia) September 30, 1991 rat tore: Net Assessed Valuation(2) . . . . . . . . . . . . . . $11,777,685,000 Net Taxable Assessed Valuation . . . . . . . . . . . . . . . $10,792,252,000 City of Miami General Obligation Debt, Net of Reserve Fundet...................$186,.441,000 Overlapping General Obligation Debt, Net Special Obligation(3):..............$129,301,000 Total Net Direct and Net Overlapping Debt....................$3155,14�2,000 Population of Niami(4) 383,000 Assessed Valuation Per Capita . . . . . $30,751- Net Taxable Valuation Per Capita . . . . $28,178 Debt Ratios: Net Direct General obligation Debt as a Percent of Net Taxable Assessed Valuation . . . . . . . . . . . . . . . . . 1.73% Combined Net Direct and Overlapping General obligation Debt as Percent of Net Taxable Assessed Valuation . . . 2.93♦ Net Direct General Obligation Debt Per*Capita $485.79 Combined Net Direct and overlapping General Obligation Debt Per Capita . . . . . . . . . . . . . . . $824.39 (1) The City Issue o sea General tgauon s, Series I (Storm Sewer lnVmemed) in01u`uo 1992. R) Assessed valuation as of,the final tax roil, from Metropolluo Dade County, siring 100x of assessed value to aundsted by Florida law. (,i) Based upoo the percentage of the Coudy's tax roll valustiao comprised of sisal persossal property situated in the City of wemi, (4) Baud on the tatty of Mlead astimate. The 1"0 U.S. Bureau of Census prefinibury popsiluke eased of 359,459 is being the Ilengcd bathe City and is expected to be adjusted. SOURCE: City of Miami e D-14 51 93- 584 1 • r i r Ratio of Net General Obligation Bonded Debt to Net Assessed Value and Net General Obligation Bonded Debt Per capita ($ in thousands) i Net t".,esttrat Assessed Howtstad Net Amened ObBsolion �Poo0)�Extmptian __Y h1s_ Ar&DebBals Pee Ctnitn 1S383.0i1S11.685 S985,533 $10,796,152 S186.144 1,73% $486.99 1P90 383,000(1) 11,515,111 981,728 10,533,393 184,W2 1.75 421.20 i 1989 371,444(2) 11,210,985 969,335 10,241.650 195AW 1.91 527.29 j 1988 369,007(2) 10.761.797 954,978 9,806,819 186,041 1.90 504.17 1987 368,210(2) 10,420,911 933,300 9,487,611 195,578 2.06 514.70 1486 371,975(2) 10,184.933 953,516 9,731,417 190,697 2.07 512.66 1985 380,446(2) 9.696,610 952,430 8,744,180 170,087 1.95 447.07 1984 363,027(2) 9,346,033 954,979 8,391.054 146,102 1.74 381.74 1993 382,027(3) 11,659.281 920,295 7,738,386 124,955 1.61 326.49 1992 382,726(3) 7,962,129 750,665 7,211.464 109,398 1.52 295.34 y (1) Fstinuled by the City on the basis of added electric and water connections and new dwelling **1 eontlwAed. The 1990 U.S. Bureau of Census prelim(nary population count of 31S,459b being challcnged by the City and isexpected so bs adjusted. (2) Eased on annual population estimates provided by the Sure of Florida. Division of Poputatioat studies, Bureso of Business and Economic { Re "arch, University of Florida. . ti (3) Eased on the July 1, 1912 population astinuta used by the office of Revenue sharing of the Federal Governmant. General Obligation Bonds Authorized But Not Issued � r 7 1e following table outlines the date, type and amounts of general obligation bonds authorized but aaissued as of September 30, 1992. Date of Previously Vot= Approval Type of Debt Authodzed ssued Balance Unissued 10/1180 Sanitary Sewer 545,000,000 S22,500,000 S22.500,000 .t s D-15 52 93-- 584 Procedure for Tax Levy and Tax Collection Real and personal property valuations are determined each year as of January 1 by the Dade County Assessor of Property at 100% of market value. A notice is mailed to each property owner indicating the property valuation. The property owner has the right to file an appeal with the Dade County Clerk of the Board of Tax Adjustment if such property valuation as determined by the property appraiser Is inconsistent with that as determined by the property owner. All appeals of such valuation determinations are heard by the Dade County Board of Equalization. The Board certifies the assessment roll upon completion of the hearing of all appeals so filed. All taxes are due and payable on November I of each year or as soon thereafter as the assessment roil is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rate of four percent If paid in the month of November, three percent V paid in the month of December, two percent If paid in the month of January and one percent if paid In the month of February. Taxes paid during the month of March are without discount. Taxpayers also have the option of paying their taxes in equal quarterly payments based on the prior years' tax assessment ' • with a six percent discount with the June 30th payment, four percent discount with the September 30th payment, two percent discount plus one-half of any adjustments required to bring tax payments to current ' year's tax assessments, discounted at three percent with the December 31 payment and no discount plus one-half of any such adjustments with the March 31st payment. All unpaid taxes on real and personal property become delinquent on April I of the calendar year following the year In which the taxes were levied. All tax collections for the City are delivered to the City by Dade County. The delinquent real property taxes bear interest at the rate of eighteen percent per year from April I until a tax sale certificate is sold at auction from which time the Interest rate shall be as bid by the buyer of the certificate. ' Tax Schedules and Tables ' The following tables present detailed information pertaining to the City's assessed property valuations, tax levies and collections and the City's ten largest tax assessments. The assessed value of taxable property in the City together with real property value assessed, personal property assessed value, and homestead exemptions in the current and each of the last ten completed fiscal years is detailed below. D-16 93- 584 53 1 _ Assessed Value of All Taxable Property , Fiscal Year laded September 30, On thousands) � trrz=r I FISCAL REAL PERSONAL HOMESTEAD ASSESSED MAR MOPERTY y$OPERTY 19JAL EURMU4NS VALUE j 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 9,997,519 1,213,466 11,210,985 %9,33S 10.241,650 1988 9,519,481 1,242,316 10.761,797 954,978 9,806,819 1997 9,210,476 1,210.435 10.420911 933,300 9,487,611 1996 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 8,744,180 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 1992 6,976,847 985,282 7,962,129 750,66S 6,058,127 e SOU7tCE: Metropolitan Dade County Property Appraiser's Otriee , The net assessed value for fiscal year 1991-92 Is $11, 173,078,751 or a 3.5% Increase over the previous year's assessment. The City has been notified by the Dade County Property Appraiser that the 1992 net assessment estimate for purposes of developing the fiscal year 1992-93 budget is $10,753,531,000, or a 3.8% reduction compared to the prior assessment. The following table lists the ten largest tax assessments in the City of Miami. Ten Largest Property Tax Assessments in the City of Miami 1991 Assessed Values Name of Taxpayer Name of Activily Assessed Value (000) 1. City National Bank Bank/Trustee $222,254 2. Southern Bell Telephone Utility - 218,537 3. Southgst Bank Bank/Office Building 193,986 4. Equitable Life Assurance Real Estate Investments 179,242 S. Florida Power & Light Co. Utility 166,555 6. Brickell Associates Office Building 89,000 7. Mayfair Hotel/Shopping Center 83,075 8. One Biscayne Tower Office Building 63,800 9. Inter -Continental Florida, Ltd. ' Real Estate Development 59,400 10. h iarri Center Joint Venture Developer 59,130 Sounz: Metropolitan Dade County Property Appralser's Wee D-1. 11.. 54 ,r 93- 584 ?be City has levied certified rnillages of 11.9376 mills -for fiscal year 1991-1992 beginning October 1. 1991. consisting of 9.5995 mills for general government and 2.338 nills for debt service. The following table shows the tax levies and collections of the City for each of the last tea completed fiscal years. Tax Levies and Collections Fiscal yeses Ended September 30 (in thousands) 1 Codec6om Perca t Conectloo %iladios Taxes CM Total of crtrrent of of TOW as Pewees t 01s4ftmoding As Penasat bed Tate Yastes Le+y Ddisgaeat Tax of Carm"t Ddrogvm4 erCa>Raat Year l.mlll but _ C00000 Ta&M _ Cook d Z LEM_am mamma :"I.... $128,832 3119,036' 92.40% S7,419 $126.455 98.16% ` SS,059 3ms 11.9376 i990 .... 125,743 119.363 94.93 4.592 123,95S 98.58 5.162 4.11 11.9376 !989 .... f22.260 114.535 93.61 3.710 118,245 %.72 5,742 4.70 11.9376 :988 .... 115.933 107,90E 93.0E 2.356 110,264 95.11 4,621 3.99 11.1219 1987 .... 116.612 111,740 95.82 t,606 113,346 97.20 2,894 2.48 12.2910 :983.... 109,93E 105.457 95.92 9" 106,401 %.83 3.318 3.01 11.9091 .987 .... 104.135 100,976 96.97 722(3) 101,698 97.66 3.970 3.31 11.9091 , 986.... 93,340 88.982 95.33 3,036 92,01E 91.58 3.367 3.61 10.1238 983.... 83,025 71,315 94.93 1,209 80,024 %.38 2.925 3.52 10.7290, .994.... 76,903 74,040 %.29 1,067 75.107 97.66 2,499 3.24 10.6640 9113.... 72.619 70,283 %.74 437 70,725 97.39 2.027 2.79 11.9170 1) Includes levies fur leiwnl operation and debt service. 2) Net of reserve for early payment discounts and oncolleetable tax of approximately 5 S of total tax levy. 3) Startint in fiscal year 1985, current year's delinquent tax collection are included with collection of curtest year's taxes. For years prior to 1985. collection of dd'inquteR tattas Included both current year and pr year's delinqueM tax collections. D-18 TAX MATTERS In the opinion of Co -Note Counsel, under existing law. the Notes arc exempt from present Florida intangible personal property taxes. The Notes and the Interest thereon. however, are subject to the Florida State taxes and the taxes imposed by Chapter 220, Florida Statutes, an Interest, Income or profits and debt obligations owned by corporations, banks and savings institutions, as defined therein. Also, in the opinion of Co -Note Counsel under existing law. facts and circumsta=s, interest on the Notes is excluded from gross Income for federal Income tax purposes. The opWon of Co -Note Counsel is conditioned upon compliance by the City with covenants contained In the LResolution to comply with certain arbitrage rebate and other tax requirements contained In the Intend Revenue Code of 1986, as amended (the 'Code"), to the extent necessary to presuve the exclusion of Interest on the Notes from gross income for federal Income tax purposes. If the City falls tq comply vrlth such covenants, interest _ on the Notes could become Includable -In the gross Income of the owners dmwf for federal Income tax purposes retroactive to the date of Issuance. An alternative minimal tax is Imposed by the Code on corporations and taxpayers other than corporations. Interest on the Notes will not be treated as an Item of tax preference for purposes of the alternative minimum tax. Interest on the Notes will therefore not be la eluded In a non -corporate ' Noteholder's alternative minimum taxable Income. The alternative ml6wm tax on corporations Is Imposed at a 20% rate. Interest on the Notes received by a corporate Noteboider will be Included In such Noteholddr's adjusted current earnings. A corporation's alternative minlamm taxable income will be Increased by 75% of the corporation's adjusted current earnings not otherwise included in its alternative minimum taxable Income. ' Reference is made to a proposed form of the Co -Note Counsel opinion attached hereto as Appendix D for the complete text thereof. Co -Note Counsel have expressed no opinion regarding other federal income tax consequences which may arise with respect to the Notes. For a description of some of the other potential income tax consequences with respect to the Notes, see the following paragraphs. 1. Environmental Superfund Tax. Section 59A of the Code Imposes for taxable years beginning I before January 1, 1996, an additional tax on corporations at a rate of .12 percent bn the excess over $2,000,000 of a corporation's 'modified alternative minimum taxable lncome'. Interest on the Notes received by a corporate Noteholder will be included in the determination of sech Noteholder's 'modified alternative minimum taxable Income". 2. Financial institutions and Property and Casualty Insurance Companies. Section 265 of the Code provides that a financial Institution holding Notes will be denied any deduction for Its Interest expense allocable to such Notes. Under Section 832(b)(5)(B) of the Code, property and casualty insurance companies will be required to reduce the amount of their deductible underrPriting losses by 15% of the amount of tax-exempt Interest 'received from installments made after August 7, 1986, Including investments In the Notes. ' 3. Social Security and Railroad Retirement Benefits. Under Section 66 of the Code, recipients of certain social security benefits and railroad retirement benefits may be regaired to include a portion of such benefits within gross Income by reason of receipt of Interest on the Notes. 93- 584 0 0 4. S Corporations. Section 1375 of the Code Imposes a tax on the Income of an S corporation having Subchapter C earnings and profits at the close of a taxable year, If greater than 25% of the gross receipts of Such S corporation is passive Investment Income. Interest on the Notes will be included in an S corporation's passive Investment Income. 5. Fore l¢n Cogporation Branch Offices Taz. Section 884 of the Code Imposes a branch profits tax on foreign corporations equal to 30% of the "dividend equivalent amount" for the taxable year. Interest on the Notes would be taken Into account in determining a foreign corporate Noteholder's 'dividend equivalent amount" to the extent such interest Is effectively connected (or treated as effectively connected) with the foreign corporate Noteholder's conduct of a trade or business within the United States. These and other provisions of the Code may give rise to adverse federal income tax consequences to particular Noteholders. Owners of the Noes should consult their own tax advisors with respect to the tax consequences to them of owning Notes. PENDING MATTERS Fifiployee Benefits Uubility the City is a party to a number of cases Involving the City's pension fund and workmen's 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 the employee receives from workmen's compensation. In 1973 Florida statutory law was repealed but the City continued to offset Its pension payments against workmen's 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 cam To date, the Workmen's Compensation Court has Issued 18 orders against the City which total in the aggregate $2,543,312. 'lire 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 Florida 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,as ces were decided against the City, the total cost is estimated to be $6.4 , million for which the City has no 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. Othbrwise, h 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. D-20 57 93- 584 i 1 i I LITIGATION There is not now pending any litigation restraining or enjoining the issuance or delivery of the Notes or the levy or collection of ad valorem taxes *to pay the principal of or the Interest on the Notes, or questioning the proceedings or authorization under which the Notes are to be Issuol, or affecting the validity of the Notes. ' `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 Iiability for the City will not have a materlal effect on Its ability to pay the principal of or Interest on the Notes. RATINGS The Notes have received ratings of (.___j from Moody's Investors Sery lee, Inc., and (.__1 frcxm Standard do Poor's Corporation. Generally, rating agencies base their ratings on the Information and materials so furnished and.on Investigations, studies and assumptions by the rating agencies. Such ratings reflect only the views of such rating agencies, and an explanation of the significance of such ratings may be obtained from the rating agencies. There Is no assurance clot the ratings will continue fat any given period of time or that they will not be revised or withdrawn entirely by the rating agencies, If in their judgment circumstances :to warrant. A revision or withdrawal of any such rating may have a adverse effect on the market price of the Notes. D-21 58 93- 584 UNDERWRITING (the 'Underwriter') has agreed, subject to the proceedings authorizing the issuance of the Notes, to purchase the Notes from the City for the purpose of resale. The underwriter or their representatives have furnished the information in this Official Statement pertaining to the public offering price of the Notes, and have participated In the preparation of portions of this Official Statement. The public offering price of the Notes may be changed from time to time by the Underwriter, and the Underwriter may allow a concession from the public offering price to certain dealers. None of the Notes will be delivered by the City to the Underwriter unless all of the Notes are delivered. FINANCIAL. 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 Notes. 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 contained In the Official Statement. Howard Gary & Company and Raymond James & Associates, Inc., are full service Investment banking f= which provide financial advisory and underwriting; services to governmental entities throughout the nation. FINANCIAL STATEMENTS The general purpose financial statements of the City appearing as Appendix B to this Official Statement have been examined by Deloltte & Touche, Independent certified public accountants, for the focal year ended September 30, 1991, as stated in their report to the City Commissioner; dated March 25, 1992, and are an Integral part of this Official Statement. See Appendix B, "General Purpose Financial Statements'. LEGALITY Certain legal matters Incident to the validity' of the Notes, Including their authorization, issuance and sale by the City are subject to the approval of _ Miami, Florida, Co -Note Counsel. Certain legal matters will be passed upon for the City by A. Quinn Jones, M, Esq., the City Attorney. I Co - Note Counsel, have not undertaken independently to verify and therefore express no opinion as to the accuracy, completeness, fairness or ,sufficiency of the Information or statements contained herein or in the appendices attached hereto except as to the accuracy of the portions hereof captioned 'Description of the Notes' (other than the porsion thereof captioned 'Book -Entry Only System') and 'Security for the Notes' to the extent such portions purport to summarize certain provisions of the Resolution and except as to the accuracy of the information under the caption 'Tax Matters'. lD4CCL.OSURF.S REQUIRED BY FLORIDA BLUE SKY 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 D-2 2 59 93- 584 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, sugh 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. Accordingly, any prior default with respect to such obligations Issued by the City would not in the City's Judgment be considered material by reasonable investors in the Notes. 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 best 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 obligations issued by the City have never been in default with respect to the payment of principal and/or interest. • CERTAIN CLOSING CERTIFICATES Concurrently with the delivery of the Notes, the City Manager and the Director of Finance will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement, as of its date and as of the date of the delivery of the Notes, 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 herein, in the light of the circumstances under which they were made, not misleading. In addition, at the time of delivery of the Notes, to the 'Underwriters, the City will provide to the Underwriters a certificate (which may be included in a consolidated closing certificate of the City desaeribed in the section immediately above), signed by the City official who signed the Official Statement, relating to the accuracy and completeness of this Official Statement and to it being deemed a 'final official statement" in the Judgment of the City for the purposes of Rule 150-12(b)(3) of the Securities and Exchange Commission. hfISCELLANEOUS 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 Notes, the security for the payment of the Notes and the rights and obligations of the holders thereof. The City has prepared a projected cash flow statement, including a statement of assumptions used therein, for a period equal to the term of the Nc :es. Copies of such documents referenced above maybe obtained from the City's Director of Finance at 3006 Biscayne Boulevard Way, Suite 210, Miami, Florida 33133, telephone number (305) 579-6350, or from its Financial Advisors, Howard Gary do 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 (913) 573-8189. The information contained In this Official Statement has been compiled from official and other sourcin deemed to be reliable, and is believed to be correct as of this date, but is not guaranteed as to • D-2 3 60 93- S84 accuracy or completeness by, and is not to be construed as a representation by, the Underwriters or the Financial Advisors. ' Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and DO representation is made that any of the estimates will be realized. The Information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement for any sale made hereunder shall, under any circumstances, create any Implication that there has been no change In the affairs of the City since the date hereof. The execution and delivery of this Official Statement has been duly authorized by the Commission of the City of Miami. i i THE CITY OF MIAMI, FLORIDA f I THE HONORABLE XAVIER L. SUAREZ, MAYOR i i i f� I 93- 584 ' DESCRIPTION OF THE CITY OF MIAMI 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 Florida's southeastern region. Ile City comprises 34.3 square miles of land and 19.5 square 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 Bahamian 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 is strongly Influenced by the Gulf Stream, trade winds and other local climatic factors. Its average yearly 'temperature is 75.5 degrees 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 estimated the population of the City at 359,458 as of April 1, 1990. 7be estimate is being challenged by the City. 7be City estimates that its population as of April 1, 1990 was 383,000. 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 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 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 qn the Commission. D-2 5 The City Manager serves as the administrative head of the municipal government, charged with the responsibility of managing the Chy'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 investigative procedures. In addition, die City Manager takes appropriate Action on ail administrative matters. Mayor and City Commissioners Xavier L. Suarez was elected Mayor In November, 1995 and 1987 for respective two-year terms and rye -elected in 1989 to a four-year term. Mayor Suarez is a summa cum laude graduate of Villanova University, and holds a Masters Degree In Public Policy from the John F. Kennedy School of Government of Harvard University and a Jurls Doctorate from Harvard Law School. Mayor Suarez Is currently a partner in the Miami law firm of Jorden & Schulte. Mayor Suarez has actively served the Miami community for a number of years through participation on numerous advisory boards and committees. Dr. Miriam Alonso wax elected Commissioner In November, 1989 for a four-year term. Commissioner Alonso is 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 I ,real estate investment company and has served on several civic and community boards. ` ! Milled. 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 has been employed for over 19 years. Victor H. De Yurre was elected Commissioner In November, 1987 and again in November 1, 1991, respectively, for four-year terms. Commissioner De Yurre is a graduate of the University of • Miami and holds a Jurls 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. Commissidner De Yurre has his own legal practice and has served on numerous advisory boards and committees in the Miami area. J.L. Plummer, Jr. was appointed Commissioner in October, 1970 and was elected Commissioner in November, 1971, and re-elected in 1975, 1979, 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 Ahem -Plummer Funeral Homes, Miami, Florida. Administration of the City Cesar H. Odio was appointed City Manager, effective December 16, 1985. Prior to his appointment to the top administrative position in the City, Mr. Odio served as Assistant City Manager for the City since January, 1980. Mr. Odio's responsibilities extended over the functions of parks and recreation, building and vehicle maintenance, and public facilities. During the Marlel boadift 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 Unlrversity of Santo Tomas de Villanova, Havana, Cuba. D-26 63 3 - 584 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 has been previously employed in private Industry In positions of Treasurer. Controller and Auditor. Mr. Garcia Is a cum laude 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 member of the American and Florida Institutes of Certified Public Accountants. and the Government Finance Officers' Association of the United States and Canada. A. Quinn Jones, III Is the City Attorney for the City of Miami, Mr. Jones attended Howard University where he graduated magna cum laude with a bachelor of arts degree In political science in 1973 and received his Jurls doctor degree In 1976. Mr. Jones was associated editor of the Howard LAw Journal. Mr. Jones served as attorney of counsel to Daniels & Roth where he handled public utility rate uses before the District of Columbia Public Service Commission. Mr. Jones is a member of Phi Beta 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 C1aimsllnsurance Division before being appointed City Attorney. 'Ile areas of law In which he ! practices Include labor and employment, cable television and general litigation. i Many Hirai was appointed City Clerk on September 1, 1985. Ms. Hirai was the City's Assistant i City Clerk from September, 1976 to August, 1985. Ms. Hirai Is a graduate of Edison High School and bas 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. Scope of Services and Agency Functions , The City provides certain services as authorized 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. ° 'dice Police Department provides a full range of police services and presently has a uniformed force of 1,114 and 445 full-time, permanent civilian employees. The Fire Department is rated as Class 1 and provides a full range of fire protection and emergency services as well as providing a full range of medical and rescue services. 'Ibe 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 other 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. i D-27 64 93-84 Regional Government 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 28 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 minimum standards set 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 ILs 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 National Crime Information Center In Washington, D.C. and the Florida Crime 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 become effective on January 1, 1973; the development and operation of County -wide water and sewer system; the coordination of the various surface transportation programs, Including a consolidated public transportation system and a unified rapid transit system; operation of a central traffic control computer system; implementation of a combined public library systean of the County and eighteen municipalities, which together operate the main library, seventeen branches and six mobile units servicing forty-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 re=rces management, building and zoning, consumer protection, health, housing and welfare. ECONOMIC AND DEMOGRAPHIC 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 transhipment have fortified the economic base. In recent years, the local economy has been adversely impacted by the bankruptcy of several institution based in greater Miami, incl-iding Centtust 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 four million cruise ship passengers a year by the year 2000. D-28 93- �84 Gr �.i Miami International Airport Is undergoing $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, his developed the Bayside Specialty Center on twenty acres of City -owned property aloag the waterfront In Downtown Miami. The project currently features 235,000 square feet of retail apace. 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. Bayfront 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 OvertownfPurkwest 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 residemial units and over one million square feet of commercial space. The city has been delegated limited redevelopment powers for the implementation of the redevelopment plan. Public sector Involvement gill 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 rooms, 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/Park West redevelopment area, home to the Miami Heat and the University of Miami Hurricanes. This 300,000 square feet multi -purpose facility, completed in 1988 at j a total cost of $48 million, accommodates up to 15,600 spectators. D-29 66 93- 584 Corporate'FA►pansion The favorable geographic location of Greater Miami, the trained commercial and industrial labor force and the favorable transportation facilities have causal 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 Miami, over 100 International corporations have set up hemispheric operations. Among them are such corporations as Dow Chemical, Gulf Oil Corporation, Owens-Corning Fiberglass Corporation, American Hospital Supply, Coca-Cola Interamerlcan Corporation, Ocean Chemicals, Inc.. a subsidiary of Rohm & Hass Company, Rowye Trading, A.G., Mayr Brothers inter-nation.0 and Abtron Corp. Other national firms that have established international operations or 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 35% of the City's Industrial space. Transportation and service cwnpanies occupy the bulk of the remaining 15% of the City's Industrial space. The Industrial Development Authority ODA) 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 Acts Banks. The Federal Reserve System has established a branch office In the County to assist the Atlanta office with financial transactions in the South Florida arga. D-30 67 93- 584 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. Nork-insured state- chanered banks are excluded. Number u e 0 52f BanksTotal—peaosit" 1. 1991 68 $22,087,323,000(1) it 1990 69 22,783,647,Ob0 2989 73 21,695,337,000 2988 75 20,070795,000(2) 2987 69 25,958:000,000 1986 73 23,042 , 378,000 1985 75 21,615,733,000 1984 76 21,770,028,000 2983 74 19,256,581,000 1982- 70 16,158,326,000 2981 65 13,488,248,000 Source: FDIC Adants, GA (1) FDIC not available. The data was provided by Florida Bankers Auociadon. (2) Reduction In deposits Is attributable to snors elrin;ent FDIC regulations, which have caused a ehia to other Inverments not Insured by the FDIC. Tourism '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 Fair, Orange Bowl Marathon, Calle Ocho Open House, Carnival 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. 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. D-31 68 93— �84 Reaeational 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 and the Miami Convention Center. Joe Robbie Stadium, which is used by the Miami Dolphins, 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 condnental U.S. Each park has a combination of facilities that are enjoyed year round. The 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. CuUural Facilities and Affairs The Greater Miami area has an extensive library system, several museums of art and history and an 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; fine arts center, and a historical museum. Symphonic and pop concerts are performed regularly. Five theaters 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. D-32 93- �84 69 Educational Institutions 1a public schools of the County provide educational facilities on primary and secondary levels. Public school enrollment, Including both primary and secondary levels, since 1981 is as follows: School Enrollment J!ublic School System Dade county year HLOMI dal 1991................54,615 304,287 1990............6....... 52,214 292,411 1989...........0........ 50,7S7 275,233 ' 2988...................0 41,S21 262,213 1987.................... 36,994 244,734 1986.................... 38,34S 236,127 1985.................... 37,093 227,906 1984.................... 36,992 223,684 , 3983.................... 3S,394 223,948 1982.................... 3S,662 226,324 Sousa: Dodo County school Board Over 120,000 students are enrolled in the following colleges and universities located within the County or Greater Miami Area: 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 Ftm Industry The Dade County film and television Industry ranks high nationally behind New York and Loos 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, avocadoes, mangoes, tomatoes, and pole beans are grown for the fresh produce market. During the sunny and warm winter months, the mild 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 else 0-33 70 93-- �84 0 1 in the United States. ' Foreign Trade More than 71'To of Florida's export trade and 52% of Florida's import trade flowed through the ports 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 America 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 seversl countries, 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. , hfiami International Airport The county is the owner of five separate airports within its boundaries. The responsibilities for their operation are assigned to the Dade County Aviation Department. Miami International Airport (the 'Airport") ranks 8th In the nation and 10th in the world in the number of passengers using its facilities. It ranks 3rd In the nation and Sth 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. • In 1991, the Airport served 26.5 million passengers and handled 1.8 biliioq pounds of cargo. Statistics from 1982 are presented below: Passengers Cargo ear _ (0001et j00019 lba.) 2991.................. 26,591 2,815,534 2990.................. 25,837 1,815,374 1989.................. 25,408 1,730,B50 1988.................. 24,224 1,429,944 2987.................. 23,802 1,374,380 1986.................. 21,357 1,200,270 2985.................. 29,853 1,032,700 1984.................. 19,328 1,130,284 1983.`................. 19,322 1,184,526 2982.................. 19,388 1,246,700 Sawce: Dade County Aviadon Deportment i • D-34 71 93- �84 a ` Port of Miami ;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 we 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%. r i D-35 72 93- 584 'Tile summary of the growth in revenues, passengers and cargo for previous years is presented below: e r 11gvenuee PAggengere cargo ti'onneee) 1991 $32,133,262 2,928,532 3,882,286 1990...... 25,-36,465(1) 2,734,816 3,590,937 ' 1989...... 30,J35,859 3,100,055 3,206,417 1988...... 26,489,275 2,502,411 2,602,556 1987...... 19,933,917 2,633,041 2,425,937 2986...... 17,973,522 2,520,511 2,406,084 1985...... 17,135,048 2,326,685 2,333,026 1984...... 15,943,548 2,217,065 2,287,281 1983...... 14,201,008 2,002,654 2,305,645 1982...... 12,949,687 1,760,255 2,665,921 Sauxses Dade County Seaport Department (I) Previous yean data Included Internal Revenue Serviea tranallm. Actual revenue Immaaed 79 over &e prior Year. Demmographic Data . The following table indicates the distribution by age groups among the population of residents of the City and of the County. Total Population by Age Group 1990 Years pity of Miami Metro -Dade County 0-04..... 25,627 1.39,724 5-27..... 56,868 328,296 18-20.... 13,804 82,000 r 21-24.... 29,611 211,876 25-44.... 105,524 609,719 45-54.... 38,898 212,098 55-59.... 19,004 91,769 60-64.... 19,665 90,816 65-74.... 32,460 146,131 75-134.... 20,603 94,556 ' 85t...... ., 6,,284 30.119 Sotal 8 48 1.93�0® SOUM: U.S. Bureau of Census. IM dau from Cie University or Florida l.ibr Ties, DainesvUie, Florida. Retail Sales Although the City contains 22 percent of the population of the County, almost balf of the dollar volume of sales transactions for the County are reported in the City. The following table presents five yearS of taxable sales information for the City and the County. D-36 73 93- 584 Taxable Sales ($ in thousands) Fiscal Year lYEl 1fE4 1112 1981(1 1917a ideed....... $1,147.171 S 1.614,429 S 3,126.129 1 1,7011,334 E 6,616,603 Dade County. 11,312,18S 1,207,737 18,089,180 11.401,045 sis.160,503 ICamUDade.. 11 % 47 5 45% 47 5 42 % 1owsu: Depamneos or Revenue; state of 1-i"s (1) includes amounts received fiom des State of Florida tux on the sets of peoreasioeal seivkes wik9 baeame affective to July, 1987 and was repealed to December, 1997. Unemployment Rates Annual Average �991 �� 1989 1988 1997 Miami........ 10.7% 8.3% 7.9% 6.7% 7.2% Dade County.. 8.7 6.7 6.4 5.4 5.6 1t3.S...... ..... 6.7 5.5 5.3 5.5 6.2 Soume: United States Departtnent of Labor, Bureau of Labor Statistics. Building Permits The dollar value of building permits issued in the City and in the unincorporated areas of the County since 1982 Is as follows: Building Permits Issued (S in thousands) City of Unincorporated Mar Miami Dade County 1991........................ $208,914 $1,493,522 1990........................ 237,039 308,941 2,046,389 2,731,505 1989........................ 1988288,771 2,702,387 ........................ 1987238,513 1,190,493 ........................ 1986........................ 192,418 2,023,858 1985........................ 322,785 864,862 1984........................ 345,262 953,055 1983......................... 299,941 903,706 1982........................ 358,676 659,160 So urce: less City of Mum! Dcpartment of Building and ZorJog and Dade County Department df Building and Zoning. D-37 93- 584 74 New Residential Constructlon New residential construction in the City since 1982 has been estimated as follows: Number of 1991 ............................... 380 1990 ............................... 973 1989 ............................... 1,624 1988 212 ............................... 1987 ............................... 1,425 _ 1986 , .................. 1985 ............................... 603 1984 ............................... 1,018 1983 ............................... 661 1982 1,753 ............................... i Source: The City of Miami Department of BvUding and Zoning. Deloitte & buche tN Certified Public Accountants Suite 2500 100 Southeast Second Street Miami, Florida 33131.2135 Telephone: (305) 358.4141 Facsimile: (305) 358-1451 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and City Commissioners City of Miami, Florida: We have audited the accompanying general purpose financial statements of City of Miami, Florida as of September 30, 1992, and for the year then ended. These general purpose financial statements are the responsibility of the administration of the City of Miami, Florida. Our responsibility Is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial stalemonts of the following component units: Percentage of Total Fund Tyne Component Units Aamets fl4Yenues Downtown Development Authority --Special Revenue Fund................................. 2% 2% Department of Off -Street Parking --Enterprise Fund ............. 17% 23% Gusman Cultural Center and Olympia Building --Enterprise Fund................................. 1% 2% Fire Fighters' and Police Officers' Retirement Trust -- Pension Trust Fund ............................ 63% 43% Thuse financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinion on the general purpose financial statements, insofar as it relates to the amounts included for those entities, is based solely on the reports of the other auditors. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as eva!uating the overall financial statement presentation. We believe that our audit and the reports of other auditors prov!de a reasonable basis for our opinion. In our opinion, based upon our audit and the reports of other auditors, such general purposa financial statements present fairly, In all material respects, the financial position of City of Miami, Florida at September .0, 1992, and the results of its operations and the cash flow of its proprietary funds for the year then ended in conformity with generally accepted accounting principles. March 30, 1993 WW1U4 ao NUUU510 Tohmatsu D. N o 9 584 International 77 93- 584 D-N ti 78 EXHIBIT 1 CITY OF MIAMI, FLORIDA COMBINED BALANCE SHEET --ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Proprietwy Fund Fiduciary Totals Governmental Fund Types Types Fund Types Account Groups _ (Memorandum Only) Goneral Ganeral SpecW Debt Cssppltal internal Trust and Fixed ��np Tenn Genera) Revenue Servke Prolecta Enterprise Service Agency Assets LSabt 1992 1991 ASSETS AND OTHER DEBITS Assets: Equity in pooled cash and investments (Notes 2(E) and 4) ..... ... ........ $ 970 S 666 $3,600 $27.567 S 33 $ 3.088 $ 2,010 $ - $ - $ 37,934 $ 55,701 Other cash and Investments (Note 41 ........ - 2.453 - - 8,327 - 38.118 - - 48,896 41.384 Pension cash and investments, including accrued interest (Notes 2(G) and 41 ....... - - - - - - 704,971 - - 704,971 654,694 ReceivaWas, net of alowence for doubtful accounts of $10.470: Taxes ............................... 2.088 - 1,250 - - - - - - 3,338 3,091 Accents ............................ 8.917 4,839 - - 5,870 - - - - 17.626 15,220 Assessment ions (Note 2(C)) ............ - - - 4.582 - - - - - 4,582 5.717 Proceeds from securities cold ........... - - - - - - 7,851 - - 7.851 13.152 Pansion members' contributions .......... - - - - - - 58 - - 58 10 Due from other funds (Note 61 ............. - 3,720 - 17,237 862 - - - - 21,819 17,377 Due from other govemmentn .............. 8.686 1.492 - 325 9,935 603 11 - - 20,852 6,678 Inventories[Note 21H)) .................... - - - - - 852 - - - 852 891 Other assets ........................... 132 12 - - 1,768 - 556 - - 2,478 1,796 Restricted cash and investments, including accrued interest (Notes 2(I) and 4)........ - 6.193 3,628 10.620 9,049 - - - - 28,490 53,985 Property, plant and equiprrwnt, not (Notes 2(M) and 71 .. ................. - - - - 162,440 11.768 - 523,237 - 697,445 659,587 Band issuance costa,nat [Note 2(L)) ......... - - - - 1,400 114 - - - 1,514 1,257 Other debits: Amount available for debt service: General obligation bonds ................ - - - - - - - - 690 690 364 Special and subordinated obligation debt bonds ............................. - - - - - - - - 2.212 2.212 1,856 Amount available in Self Insurance Fund for claims payable ........................ - - - - - - - - 500 500 500 Amount to be provided for retirement of 88aneral long-term debt: General obligation bonds ................ - - - - - - - - 184,740 184,740 186,441 �- Special and subordinate obligation debt bonds ............................. - - - - - - - - 112,545 112.545 107,130 ( Accrued compensated absences.......... - - - - - - - - 17,929 17,929 17,428 aaims and other payables ............... - - - - - - - - 71.839 71,839 59,451 Toted assets and other debits ........... $18.693 $18,375 58,478 $60,331 $199,684 $16.325 $753,585 $523,237 $390,455 $1,989,163 $1,903,610 (continued) See accompanying notes to financial statements. - EXHIBIT 1 (continued) Proprietary Fund Fiduciary Totals Governmental Fund Tvpss Types Fund Typee Account Groups Wier orandum Onyl General General Special Debt Cap Ital Internal Trust and Fixed �o�q Term 8o-bt 1991 Genera) Revenue Service Pmlacta Enterprise Service Agency Asasts 1992 IaABIUTIES vouchers and accounts payable ............ S 3,525 S 2,198 S - S 3,732 $ 13.064 S 994 S 1.013 $ - S - S 24.526 S 18.874 Pay" for securities purchased ............ Accrued expenses (Note 2(C)] • • • • • • • • • • .. • - 5,248 - 221 - - - 6 - 3,702 - 1.549 11,019 55 - - - 17,929 11.019 28,710 16.389 27,943 Due to other funds [Note 5] ............... - 4.467 720 - - 879 15,794 233 838 - - - - - - - 21,8 :3 1.112 17,377 370 Due to other governments ................ Deferred revenue - 5,245 - 30 - 3,154 681 - - - - 9,110 8,120 ........................ Deposits ............................... Claims payable (Notes 8 and 101 ........... 726 - 476 - - - - - 785 - 1,452 3,556 - - - 66,643 3.439 70.199 4,470 56,133 Matured bonds and interest payable......... - - - - 4,838 - - - - - - 2,061 - - - - - - 4,838 2.061 5,721 5,957 Current portion of bonds and loan payable .... Pa,fablahorn restricted assets: Accruao interest - - - - 1.684 20 - - - 1,704 2.099 ....................... Current portion of bonds and loans payable - - - - 4.721 - - - - - 4,721 3,564 Revenue bonds payable - net of current portion (Note 81....................... - - - - 81,400 3,688 - - - 84,988 81,907 General obligation bonds payable (Note 81 .... Special and subordinate obligation debt bonds - - - - - - - - - 36,676 - - - - - 185.430 - 114,757 185,430 151.433 186,805 151.514 Deferred compensation plan liabilities ........ - - - - - - 38,002 - - 38.002 32,636 Otherpeyables .......................... - - 18 41 - 1,330 - -- 5,696 7,085 8.721 Total liabilities ....................... i 4,744 7,392 5,676 7,812 158,740 10,380 55,097 - 390,455 650,196 628,600 EQUITY AND OTHER CREDITS Contributed capital [Notes 2(P)] and 9 ....... - - - - 81,790 11,801 - - - 93,591 85,854 Investment in general foxed assets .......... - - - - - - - 523.237 - 523,237 490,208 Retained earnings (deficit►: Reserved (Notes 2(P) and 9) ............. - - - - 3,921 - - - - 3,921 1,784 Urvesermd ........................... - - - - (44,767) (5,856) - - - (50,623) (42,239: Fund balances: [Note 2(P)j Reserved for. Employee retirement plan benefits ....... - - - - -- - 701.439 - - 701,439 651,280 Encumbrances 370 - - 16,883 - - - - - 17,253 38,532 ...................... Debt service - - 2,902 - - - - - - 2,902 2,220 ........................ Construction - - - 7,687 - - - - - 7.687 7,118 ........................ Mismi Arena ........................ - 1,244 - - - -- - - - 1,244 1,465 Unreserved: Mote 2(P)] Designated for hwicane labs .......... - - - - - - 500 -- - 500 500 Designated for claims payments .......... - - - - - - (3,4111) - - (3,451) - Designated for subsequer:t year's expenditures and approved pfujocts ..... - 2,900 - 27,949 - - - - - 30,849 25,773 Undesignated ......................... 3,579 6,839 - - - - - - - 10,418 12.515 i Total retained earnings (defa)/fund balances ........................... 3,949 10,983 2,902 52,519 (40.846) (5.856) 698,488 - - 722.139 698,948 Total equity, and other credits ............ 3,949 10,983 2.902 52,519 40.944 5,945 698,488 523.237 - 1,338.967 1,275.010 Total liabilities. equity and other credits ........................... $18.693 $18.375 $8,478 $60,331 $199.684 $16,325 $753,585 $523.237 $390.455 S1,989,163 $1.903.610 C See accompanying notes to financial statements. EXHIBIT it CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1992 with comparative totals for the year tmdod September 30, 1991 (in thousands) Fiduciary Types Govommental Fund Types (Manwnndurn Only) Spochil evs, Gonna) Rnra' - oat t Sarwica Capktal Paacta EgrendaCSe Tnmt 1992 1991 Revenues: Taxes (Note 3) .......................... $117,031 $38,248 $30,361 $ - $ - $185,640 $186,496 Licenses and permits ..................... 4,697 - - -- - 4,697 4,773 Intergovernmental ............. . .......... 31,910 21,747 3,721 2,370 5,344 65,092 59,463 Intragovemmental ... . .................... 3,467 - - - 37,174 40,641 38.888 Charges for services ...................... 4,116 - - - - 4,116 4,830 Contributions from employees and retirees ... - - - - 4,196 4,196 3,825 Assessment lien collections ..... . .......... - - 29 2,760 - 2,789 3,548 Interest .............. . ................. 1,945 1,011 837 2,881 337 7,011 10,545 Impact fees ............................. - - - 516 - 516 853 Other .................................. 4,652 5,391 2,286 1,626 1,358 15,313 10.141 Total revenues ..... . ................. 167,818 66,397 - 37,234 10;153 48,409 330,011 323,362 Expenditures: Current: General government . . ............... . .. 17,614 - 3,893 - - - 17614 139:023 18,536 133,946 Public safety .......................... 135,130 - - - Public improvements ................... 13,822 - - - - 13,822 13,761 Personal services ... ......... . ........ - - - - 1,633 1,633 •1,902 Culture and recreation ............. 10,046 - - --- - 10,046 10,664 Grants and related expenditures .......... - 20,005 - - - 20,005 23,842 Contributions to pension funds [Note 12) - - - - 24,892 24,892 24,375 Insurance. .. ...................... - - -- - 2,514 2,514 1,016 Contractual services .. ................ . - - -- - 772 772 729 Economic development ................. - 1,578 - - - 1,578 1,453 Claim payments ....................... - - - -- 22,880 22,880 17,184 Other ................................ 10,635 3,675 608 - 1,158 16,076 24,186 Debt service: Principal retirement [Note 8] ............. - - 12,166 - - 12,166 11,695 Interest and fiscal charges ...... . ........ 1,817 - 19,418 509 - 21,744 19,410 Capital outlay ........................... -_ - 42.255 - 42,255 33,519 Total expenditures ................ . ... 189,064 29,151 32,192 42,764 53,849 347,020 336,218 Excess (deficiency) of revenues over expenditures .................. :.... (21.246 37,246 5,042 J22,61 1) (5,440) (17,009) (12,856) Other financing sources (uses): Operating transfers in ..................... 35,871 1,757 53,695 9,896 1,989 103,208 76,710 Operating transfers out ................... (15,799) (40,180) (57,157) (6,832) - (119,968) (94,837) Proceeds from debt issuance ....... . ...... - - 7,807 13,953 - 21,760 11,270 Redemption of debt ................ . .. . .. - - (8,030) - - (8,030) 40,950 (38,000) Proceeds of refunding bond ............... - - 0,950 - - 38,000 Payment to refunded bond escrow agent .... Bond issue cost .. . ....... . .... . . . .. . .... - - - - (40,502) 1 123i (1,123 �- _ (40,502� 1 123 - 8,637 Total other financing sources (uses) ..... 20,072 3S 8.423) (4,360) 17,017 1,989 (3,705) 1,780 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ................ _f1,174) (1,177) 682 11L.594 (3.451) 2( 0,714) 1( 1,076) Fund balances at b inningg of year ........... 5,123 12,160 2,220 68,113 500 88,116 99,253 Equity transfer from1 1 otFler funds .......... - - - - (53) Fund balances at and of year .......... . ..... S 3,949 510,983 S 2,902 $52,519 $ (2.251) $ 67,402 $ 88,124 See accompanying notes to financial statements. p yy � 81 93- 584 CITY OF MIAMI, FLORIDA COMBINED STATEMENTOF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL GENERAL FUND, SPECIAL RI•:VENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 1992 (in thousands) _ General Fund Encumbrancae Actual Beginning Actual Variants GAAP of End of Budgetary Favorable Beata Year Yea► Basis Budget (Unfavorable) Revenues: Taxes (Note 3].......................................... $117,031 S - $ - $117,031 S123.615 S (6,584) Licenses and permits ..................................... 4,697 - - 4,697 4,609 88 Intergovernmental ....................................... 31,910 - - 31.910 27,022 4,888 Intragovernmental....................................... 3,467 - - 3,467 4,884 11,417) Charges for services ...................................... 4,116 - - 4,116 6.052 (1,9361 Assessment lien collections ................ . , .......... - - - - - - Interest ................................................ 1,945 - - 1,945 2,883 (938) Other ................................................. 4,652 - •- 4,652 2,283 2.369 �(3,530) Total revenues ..................................... 167,818 - - 167,818 171,348 Expenditures: General government ...................................... 17,614 105 36 17,545 18,077 532 Public safety ............................................ 135.130 89 275 135,316 135,118 (198) Putr'icimprovernw;c..................................... 13.822 - 2 13.824 14,294 470 Culture and recreation .................................... 10,046 15 18 10,049 10.540 491 Economic development ................................... -- - - - - - Other ................................................. 10,635 186 39 10.488 9,574 (914) Debt service: Principal retirement (Note 8) ............ ................ --- - - - - - Interest and fiscal charges ... . ........................... 1,817 - - 1.817 2,164 367 Total expenditures ...... . ........................... 189,064 395 370 189,039 189,787 748 Excess (deficiency) of revenues over expenditures ......... (21,246) (395) (370) (21,221) (18,439) (2.782) Other financing sources (uses): Operating transfers in ..................................... 35,871 - - 35,871 31,839 4.032 Operating transfers out ................................... (15,799) - - (15,799) (18,3741 r (2,575) . Total other fnancing sources (uses) .................... 20,072 - - 20,072 13.465 1.457 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses ...................... (1,174) $ (395) S(370) S (1,149) S (4,974) S (1.325) Fund balances at beginning of year ............................ 5,123 Fund balances at end of year .......................... . ..... $ 3,949 (1) Does not include funds for Wich budgets have not been adopted. See Note 2(D)(1). See accompanying notes to financial statements. 93- 584 m 1 EXHIBIT III i Special Hevenua(1) Debt Service(l) Varianea Variance Budget i Actual Favorable (Unfavorable) Budget Actual Favorable (Unfavorable) S 37,564 i $ 37,468 $ (96) $25,411 S 25,171 $ (240) j 26,810 16,938 (9,872) 3,079 3,721 642 j - - - 572 29 (543) 1,224 630 (594) 751 676 (75) 526 2,578 2,052 - 2,266 2,286 66,124 57,614 (8,510) 29,813 31,883 2,070 1 11,034 3,893 7,141 - - - 17,798 14,439 3,359 - - - 1,639 1,578 61 - - - 1,472 1,854 (382) 654 278 378 - - - 11,875 12,166 (291) - - - 14,955 16,575 0,620) 31,943 21,764 10,179 27,484 29,019 (1,535) 34,181 35,850 _ 1,669 2,329 2,864 535 1,501 1,407 (94) 1,760 2,279 (519) (35,678) (36.195) (517) (4,089) (4,651) (562) i I (34,177) (34,788) (611) (2,329) (2,372) (43) $ 4 1,062 S 1,058 S - 492 $ 492 7,812 279 i i $ 8,874 $ 771 83 93- 584 EXHIBIT I CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND EQUITY ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30.1992 with comparative totals for the year ended September 30, 1991 (in thousands) Fiduciary Totals Proprietary Fund Types Fund Types (Memorandum only) Enterprise Internal Service Pension Trust 1992 1991 Operating revenues: Charges for services ... . ......... ...... , ... $ 41.143 $15,581 $ - $ 56,724 $ 60,225 Contributions from employers (Note 12) .......... - - 19,347 19,347 18,783 Contributions from employees and retirees ........ - - 13,337 13,337 14,269 Net realized gain (loss) on sale of investments . , ... - - 33,250 33,250 26,753 Interest and dividends .................. . ...... - - 31,691 31.691 35.749 Total operating revenues ..................... 41,143 15,581 97,625 154,349 155,779 Operating expenses: Personal services ............................. 29,405 9,573 2,140 41,118 44,247 Contractual services .................. . ........ 6,823 1,158 - 7,981 6,978 Materials and supplies ................. . ..... . . 443 3,050 - 3,493 3,911 Benefit payments ............... . ............. -- -- 42,800 42,800 33,259 Refunds ...... . .............................. Utilities ...................................... - 1,297 - 1,282 2,651 - 2,651 2,579 2,152 2,982 Intragovernmental charges ..................... 3,727 --- -- 3,727 3,731 Other ....................................... 12,881 146 4 15,031 11,190 Total operating expenses ................ . ... . 54,576 17,209 _ 47,595 119,380 108,450 Operating income (loss) before depreciation expense ................................. Depreciation expense ........................... (13,433) 4,762 (1,628) 3,010 50,030 - 34,969 7,772 47,329 7.920 Operating income (loss) ..... . . ...... . . ....... 1( 8,195) (4,638) 50,030 27,197 39,409 Non -operating revenues (expenses): Interest income . ............... .. 841 261 -- 1,102 1,228 Interest and fiscal charges . . ..... . .............. Other (7,866) (78) - (7,944) (a 791) ....................................... 5,168 1 00 129 6,797 1,967 Net non -operating revenue (expenses) .......... 1,857) 1,983 129 (45) (5,596) Income (loss) before operating transfers ........ (20,052) (2,955) 50,159 27,152 ' 33,813 Operating transfers in.... ....................... Operating transfers out ............. . ..... . ... . . 18,651 (2.556) 665 - - - 19,316 (2,556) 21,481 (3,354) Net operating transfers ............ . ......... . 16,095 665 - 16,760 18,127 Nat income (loss) ............... .......... Retained earnings (deficit) at beginning of year ...... 3,957 (48Q 2,290 �3,566� 50,159 651,280 43,912 610,825 51,940 558,486 Equity transer to other funds ............ . . . .. . -- - - - 399 Retained earnings (deficit) at end of year ........... 40,846) (5,856) 701,439 654,737 610,825 Contributed capital' at beginning of year . , ... , ...... 74.150 - - 74,150 85,876 Contributions from other governments .......... Contributions from 7.395 11,704 - 19,099 407 other funds ................ 245 97 - 342 1,858 Equity transfer to other funds ................. -� - - - (2,267) Contributed capital at end of year ........... . ..... 81.790 11,801 - _ 93,591 85,854 Total fund equity ............................ $ 40,944 $_ 5,945 $701,439 $748,328 $696,679 See accompanying notes to financial statements, 0-Y-7. ' 8493- 5 4 CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF CASH FLOWS AU PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEiPTEMBER 30, 1992 with eomparatitre totals for the year ended September 30, 1991 (in thousands) Reconciliation of operating income to - net cash provided by operating activities: Operating income (loss) .. ..... .. . . ... .. ................ Adjustments to reconcile operating income to net cash provided by operating activities: Loss (gain) on dispositions and sale of property, plant and equipment ................................... I........... Depreciation and amortization .. ............................. (Increase) decrease in assets: Accounts receivable (net) .................................... Inventones................................................ Prepaid expenses and other current assets ........ I ............ Deposits and other assets . ............ I.................... Due from other funds ........ .... Due from other govemments ............ ..................... . Increase (decrease) in liahllitieS: Vouchers and accounts payable .............................. Accrued expenses ......................................... Due to other funds ......................................... Due to other governments ................................... Deferred revenue .................................... Deposits refundable ........................................ Othor accruals ............................................. . Total adjustments ........................................... Net cash provided by operating activities ....................... Cash Wows from non -capital financing activities: Increase(decrease)in advances .................. .... ........ Operating transfers in ............................... .. . .... Operating transfers out . ........ ... ....... Other . ..................... .... Net cash provided by non -capital financing activities ............. EXHIBIT V F'►Wdetwyr Fund Totals Types (Memorandum Only) Intamal Enta►prlse servfcs 1992 1991 S(18,195) S(4,638) $(22.833) $ 08,866) 115 26 141 67 4,797 3,093 7,890 8,170 233 (24) 209 (1,673) — 39 39 (86) 123 — 123 — 90 — 90 — 580 2,650 3.230 (788) (9,935) (479) (10,414) — 6,668 323 6.991 (1,501) 22 4 26 2,614 5,306 341 5,647 5,221 233 — 233 — (118) — (118) (720) 41 — 41 227 ___2) (8) (10) (127) 8,153 5,965 14,118 11,404 'tl 0,042) 1,327 (8,715) (7,462) (108) — (108) 361 19,136 665 19,801 21,481 (3,041) — (3,041) (3,354) — 1,545 1,545 — S 15,987 $ 2,210 S 18.197 $ 18,488 (Continued) See accompanying notes to financial statements. EXHIBIT V (continued) CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEP7EMBER 30, 1992 with comparative totals for the year ended September 30, 1991 (in thousands) Cash flows from capital and related financing activities: Capital expenditures .... .................................. . Contributed capital ........................................... Contributions ................................................ Interest paid on long term debt ................................ Proceeds from sale of Equipment ............................... Proceeds from loan payable .... . .................... ......... Principal payment on debt .. . .. ... ............. .... ....... Bond proceeds .. .. ... .. ... ........................ .... Borrowngs under participation agreement.... .... Other payments ............................................. Net cash used for capital and related financing activities ................................. Cash flows from investing activities: (Increase) decrease in amounts duo from other funds ... ... .. ..... ........................ Interest income. ...... ..................... . ... Payments received on notes receivable ......... .. ... ......... Proceeds from maturity of investments ............ Purchase of investments ...................................... Other...................................................... Net cash provided fmm inva..ving ec!rA*ties , , , , , , , , , , , , , , , , , ,,, , , , Net increase (decrease) in cash and cash equivalents .......... .................. ..... .. . Cash and cash equivalents at beginning of year ................... Cash and cash equivalents at end of year ......... ...... Supplemenvil disclosure of non cash activities: Proprietary Fund Totals Types (Mermrandum Only) Internal Ent risr 9"Ce 1992 1991 S(12,344) S(1,928) S(14,272) S (8,134) 632 97 729 — 7,431 — 7,431 407 (7,797) (78) (7,8755) (8,700) — 536 536 2,040 (8,870) (5,240) (14,1 10) (3,437) 4,691 4,403 9,094 — (1,065) — (1,065) — (312) (312) (87) 1_� 7,634) (2,184) 1( 9,818) 1l 7,911) 108 — 108 (161) 6,014 261 6,275 1,228 — -- — 60 29,956 — 29,956 1,494 (29.893) — (29,893) (1,493) — — — 2.095 6,185 261 6,446 3,223 (5,504) 1,614 (3,890) (3,662) 22,913 1,474 24,387 28.049 $17,409 $3,088 $20,497 $ 24,387 Equity transfer to other funds ............... . ............ ..... S — — S — S (24) Ccniribu!ions from other funds ........................ .. ..... S — — $ — S 600 See accompanying notes to financial statements. Q 93-- 584 06 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS 1. GENERAL DESCRIPTION The City of -Miami, (the "City"), in the Count/ of Dade, was incorporated in 18g6. and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under the Commission/City Manager form of gov- ernment and provides thr', lollowing services: public safety, public works, solid waste, parks and recreation, public facili- ties, planning, zoning, housing, and communrty develop- ment. Metropolitan Dade County (the "County") is a sepa- rate governmental entity and its financial statements are not included in this report. The Florida Legislature, in 1955, approved and submitted to a general election, a constitutional amendment designed to give a new form of government to the County. The Coun- ty is, in effect, a municipality with governmental powers ef- fective upon twenty-seven cities and unincorporated areas, including the City of Miami. It has not displaced or replaced the cities, but supplements them. The County can take over particular activities of the City's operations (1) it the services fall below minimum standards set by the County Commis- sion, or (2) with the consent of the governing body of the City. Since its inception, the Metropolitan Dade County Govem- ment has assumed responsibility on a county -wide service basis for a number of functions, including county -wide po- lice services, complementing the municipal police service; uniform system of fire protection, complementing the mu- nicipal fire protection; consolidated two-tier court system; consolidation of water and sewer services; coordination of the varous surface transportation programs; installation of a central traffic control computer system; merging all public transportation systems into a county system; effecting a combined public library system; and centralization of the property appraiser and tax collector functions. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND REPORTING PRACTICES The financial statements of the City have been prepared in accordance with generally accepted accounting principles ("GAAP") as applied to governmental units. The Govern- mental Accounting Standards Board ("GASB") is the stan- dard -setting body for governmental accounting and financial reporting. The more significant of the City's accounting poli- cies are described below. A. Financial Reporting Entity For financial reporting purposes, the City includes those funds, account groups, agencies, boards, commissions and authonties that are generally controlled by or dependent on the City. Control by or dependence on the City is deter- mined on the basis of such factors as budget adoption, tax- ing authority, outstanding debt secured by revenues or gen- eral obligations of the City, obligation of the City to finance any deficits that may occur or receipt of significant subsidies from the City. The following is a brief review of each of the component units addressed in defining the reporting entity for the City: (1) Included within the entity DOWNTOWN DEVELOPMENT AUTHORITY ("DDA") — The DDA is governed by a board appointed by the City Commission. The Commission must approve the miliage levied on the special taxing district established to fund DDA. DDA has been included within the report- ing entity as a special revenue fund. MIAMI SPORTS AND EXHIBITION AUTHORITY ("MSEA") — The MSEA was created to promote the development of sports, convention and exhibition facili- ties within the City using the City's portion of the 3% Convention Development Tax. Tho City Comm!ssion must approve the MSEA's board membership and op- erating budget. The various funds and account groups of the MSEA have been included within the reporting entity. DEPARTMENT OF OFF-STREET PARKING ("DOSP") — The DOSP is an -,genr:y and instrumentality of the City, which owns and operates parking facilities within the City. The City Commission has reserved the right to confirm now members of 'he Off -Street Parting Board, to establish and fix rates and charges for parking ser- v!ces, to approve the DOSP operating budget and to authorize the issuance of revenue bonds. The DOSP is included within the reporting entity as an enterprise fund. The City has also authorized the Off -Street Parking Board to administer the operations of the Maurice Gus - man Cultural Center and the Olympia Building, which are properties owned by the City. Such operations are separately accounted for within the DOSP reporting en- tity under the title of the "G&O Enterprise Fund". In the event that operating revenues of the G&O Enter- prise Fund are not sufficient to cover its operating ex- penses, the DOSP or the City will provide any necessa- ry cash requirement subject to authorization by the City Commission. CITY OF MIAMI FIRE FIGHTERS' AND POLICE OF- FICERS' RETIREMENT TRUST ("FIPO") and CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST ("GESE")—Both FIPO and GESE are essentially single -employer public employer retirement systems under the administration and management of separate Boards of Trustees and are included within the reporting entity as pension trust funds. HEALTH FACILITIES AUTHORITY ("HFA")—The HFA is an agency established under authority of State Stat- ute to issue revenue bonds. Administrative costs for is- suing the bonds are included in the Other Special Funds. The City Commission must approve HFA's D.SO , 87 93- 584 City of Miami, Florida Notes to Financial Statements board membership. Debt obligations issued under the purview of the HFA do not constitute an indebtedness, liability or pledge of the faith or credit of the HFA or the City. Accordingly, such debt obligations are not includ- ed in the accompanying financial statements. (2) Excluded from the entity MIAMI CAPITAL DEVELOPMENT, INC. ("MCDI")— MCDI is a non-profit corporation which facilitates busi- ness development within the City under a delegate agency agreement with the City by providing financial assistance to entrepreneurs and thus fosters city wide and neighborhood economic development. MCDi's scope of services is not limited solely to the City limits and the City Commission has limited ability to influence operations or the appointment of MCDI's Board of Di- rectors, representing principally the private business and financial community. MIAMI POLICE AND FIREFIGHTERS RELIEF AND PENSION FUNDS —These money purchase benefit plans, established under Florida State Statutes Sec- tions 175 and 185 are funded solely by certain excise taxes collected by the State of Florida. The City has no financial oversight responsibility for these plans, nor are plan benefits financially integrated with those provided under the City's FIPO Trust. The respective Boards of Trustees are independent of the City Commission (See Note 12(f)). B. Basis of Presentation The financial transactions of the City are recorded in individ- ual funds and account groups. Each is accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, reserves, fund equity, reve- nues and expenditures or expenses and other financing sources or uses. The various funds and account groups are reported by generic classification within the financial state- ments. The following fund types and account groups are used by the City: Governmental Funds Governmental funds are those through which most govern- mental functions of the City are financed. The acquisition, use and balances of the City's expendable financial re- sources and the related current liabilities (except those ac- counted fcr in proprietary funds) are accounted for through govemroentai funds. The following are the City's govern- mental fund types: General Fund —The General fund is the general operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds —Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) tha- are legally restricted to expenditures for specified purposes Debt Service Funds —Debt service funds are used to ac- count for the accumulation of resources for, and the pay- ment of, general long-term debt principal, interest and relat- ed costs. Capital Projects Funds ---Capital projects funds are used to acwunt for financial resources to be used for the acquisi- tion or construction of major capital facilities (other than those financed by proprietary funds). Profxiatary Funds Proprietary funds are used to account for the City's organi- zations and activities which are similar to those often found in the private sector: 'This means that all assets, liabilities, equities, revenues, and expenses related to the City's busi- ness activities —where net income and capital maintenance are measured —are accounted for through proprietary funds. Enterprise Funds—Enterpdse funds are used to account for operations: that are financed and operated in a manner similar to private business enterprises —where the interest of theaty Is that the costs of providing goods or ser- vices to the general public on a continuing basis be financed or recovered primarily through user charges; or • where the City has decided that periodic determina- tion of revenues earned, expenses incurred, and/or net income is appropriate fcr capital maintenance, public policy, managem,3nt control, accountability, or other purposes. Certain enterprise funds have historically operated at a loss and have required operating subsidies from the General fund. If future operations are not sufficient to offset these deficits, the City will continue to support these activities from thi General fund or other discretionary funds (See Note 9). Imemal Service Funds—Intemal service funds are used to account fggr the financing of goods or services provided by one depaFftent or agency to other departments or agen- cies of the City, on a cost -reimbursement basis. Fiduciary Funds Trust and Agency Funds —Trust and agency funds are used to account for assets held by the City in a trustee ca- pecity or as an agent for individuals, private organizations, other governments, and/or other funds. These include ex- pendable trust, pension trusts, and agency funds. The City's expendable trust funds (Self -Insurance and Pension AdmiNstration) are accounted for in essentially the same manner as governmental funds. Pension trust funds (FIPO a- �84 r s^) 88 1 ar� t S City of Miami, Florida (Votes to Financial Statements and GESE) are accounted for in essentially the same man- ner as propnetary funds since capital maintenance is cnti- cal. The City's agency funds are custodia! in nature (assets equal liabilities) and used to account for deposits held under issuance of a cable T.V. license and assets held under three deferred compensation plans for certain employees. Account Groups Account groups are used to establish accounting control and accountability for the City's general fixed assets and the unmatured principal of its general long-term obligations. The two account groups are not funds. They do not reflect available financial resources and related liabilities —but are accounting records of the general fixed assets and general long-term obligations. General Fixed Assets —This account group is used to ac- count for all fixed assets of the City, other than those ac- counted for in the enterprise and internal service funds. General Long -Term Debt —This account group is used to account for the long-term portion of claims payable, ac- crued compensated absences, lease purchase obligations and outstanding principal balances of long-term debt, other than revenue and special obligation bonds payable and oth- er long-term liabilities recorded in the enterprise funds and internal service funds. Totals (Memorandum Onty) Amounts in the "Totals (Memorandum Only)" columns in the combined financial statements represent a summation of the combined financial statement line items of the fund types and account groups and are presented for analytical purposes only. The summation includes the City's various fund types and account groups that use different bases of accounting, includes interfund transactions that have not been eliminated and the caption "Amounts to be provid- ed," which is not an asset in the usual sense. Consequent- ly, amounts shown in the "Totals (Memorandum Only)" columns are not comparable to a consolidation and do not represent the total resources available or total revenues and expenditures/expenses of the City. O. Basis of Accounting The accounting and financial reporting treatment ap- plied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are ac- counted for using a current financial resources measure- ment focus. With this measurement focus, only current as- sets and current liabilities generally are included on the balance sheet. Operating statements of these funds pre- sent increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement fo- cus, all assets and all liabilities associated with the opera- tion of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contnbuted capital and retained earnings components. Proprietary fund - type operating statements present increases (e g., reve- nues) and decreases (e.g., expenses) in net total assets. 11) Modified Accrual Al governmental funds and expendab!e trust funds are accounted for using the modified accrual basis of ac- counting. Their revenues are recognized in the period in which they become susceptible to accrual i.e.. when they become measurable and available to pay liabilities of the current penod. Ad valorem taxes, utility service taxes, charges for service, investment eamings, fines and forfeitures, franchise taxes, are susceptible to ac- crual when collected in the current year or wrthin 60 days subsequent to September 30th. A one year avaik ability period is used for revenue recognition for all oth- er govemmental fund revenues. Occupational license revenues collected in advance of penods to which they relate are recorded as defer ed revenues. Where grants revenue is dependent upon expenditures by the City, revenue is accrued as such expenditures are incurred. Special assessments are recorded in the Capital Projects fund as receivables and deferred revenue when levied and recc-,nl?ad as revenue when due, pro- vided they are collected in the current year or within 60 days subsequent to September 301h. The City does not issue special assessment bonds. Special assess- ment projects are financed primarily with general obli- gation bonds. Expenditures under the modified accrual basis of ac- counting are generally recognized when the related fund liability is incurred and expected to be liquidated with available resources. Exceptions to this general rule include principal and interest on general long-term debt which are recognized when due or when debt service funds resources have been provided during the currant year for payment of principal and interest due early in the following year. The agency funds are custodial in nature and do not in- volve measurement of results of operations. They are accounted for under the modified accrual basis of ac- counting. (2) Accrual All proprietary and pension trust funds use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded when incurred. p.S z t, 93— 5084 89 City of Miami, Florida Notes to Financial Statements D. Budgeter/ Policy (1) Budget Policy The City Commission annually adopts a budget ordi- nance for all govemmental funds of the City, except for the following funds: • Other Special Revenue Funds • MSEA Subordinate Obligation Note Debt Service Fund • MSEA Special Obligation Bonds Debt Service Fund • MSEA Special Obligation Refunding Bonds Debt Ser- vice Fund • All Capital Projects Funds Annual operating budgets are adopted on a basis sub- stantially consistent with generally accepted account- ing principles (GAAP) except that budgetary compari- sons for the General fund include encumbrances as expenditures. Adjustments necessary to compare the results of oper- ations in the special revenue and debt service funds as presented in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit II) to that presented in the Combined Statement of Reve- nues, Expenditures and Changes in Fund Balance— Budget and Actual (Exhibit Ill) are as follows (in thousands): Exaoss (Deficiency) of Rrnnues and Ot m rc�is O� nci Svw cl amend emaiditures rbarwe eirnber Special Revenue Funds uaen9 3fJt, 992 Actual —Exhibit II....... S(1,177) S 10,983 Plus (less) funds not budgeted: Other Funds......... 2,239 (2,681) Plus net effect of MSEA activity not budgeted 572 Actual —Exhibit 19 ...... $1,062 S 8,874 Drbt Service Funds Actual —Exhibit II....... S 682 S 2,902 Plus (loss) Funds not Budgeted: MSEA Subordinate Obligation Debt..... 48 (4) .MSEA Special Obligatiat Bands ............ (221) (2,1.10) MSEA Special Obligation Refunding Bonds ... (17) (17) Actual—Exhiibit id ...... S 492 S 771 In addition, capital project funds are budgeted on a to- tal project basis for which annual budgets are not avail- able. The City also adopts non -appropriated operating budg- ets for the proprietary (u,ids substantially on a GAAP basis, with certain exceptions. Such exceptions in - elude: • Debt principal payments are budgeted as debt ser- vice. The portion of debt service representing pdnci- pat payments reduces the related liability on a GAAP basis. • Certain non -operating expenditures for capital outlays are not budgeted. (2) Budget— Legal Compliance The City follows these procedures in establishing the budgetary data reflected in the financial statements: • Prior to August 31 st. the City Manager submits to the - City Commission a proposed operating budget for the fiscal year commencing the upcoming October 1 st. The operating budget includes proposed expendi- tures and the means of financing them. • Public hearings are conducted to obtain taxpayer comments. • Prior to October 1 st, the budget is legally enacted through passage of an ordinance. • Overall changes to the adopted budget must be ap- proved by a majority vote of the Commission. • The Commission may transfer among departments any part of an unencumbered balance of an appropri- ation to a purpose for which an appropriation for the current year has proved insufficient. At the discretion of the City Managers unencumbered balances up to $50,000 may be transferred among line items within departmental budgets adopted by the City Commis- sion. At the close of each fiscal year, the unencum- bered balance of each appropriation reverts to the fund from which h was appropriated and is subject to future appropriations. • Budgets are monitored at varying levels of dassifica- tion detail, however, budgetary control is legally maintained at the fund level except for the General fund, which is maintained at the departmental level. Budgeted amounts in the accompanying financial statements are as originally adopted, or as amended by the City Commission throughout the year. During the year, supplementary appropriations were approved to- taling approximately $31 million funded by $21 million related to the sale and repayment of Tax Anticipation Notes, Series 1991. p -s3. 90 93- �84 City of Miami, Florida Notes to Financial Statements (3) Encumbrances Encumbrance accounting, under which purchase or- ders, contracts, and other commit merits for the expen- diture of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the General and Capital Projects funds. On the non- GAAP budgetary basis, encumbrances are recorded as expenditures of the current year. On a GAAP basis, en- cumbrances outstanding at year-end are reported as reservations of fund balance since they do not consti- tute expenditures or liabilities since the cornmrtments will be honored during the subsequent year. (4) Excess of Expenditures Over Appropriations in Individual Funds Special Revenue Funds: Miami Sports and Exhibition Authority $ 351 Rescue Services . ... ....... I .. 16 Metro Dade Tourist Tax .. ......... 31 Debt Service Funds: Other Special Obligation Bonds ... .. 2,615 (6) Deficit Fund Balance Special Revenue Funds: Rescue Services ...... ........ .. $ 68 Trust and Agency Funds: Self -Insurance Fund .... .. ..... 2,951 See Note (9) for disclosure of Proprietary Funds' Deficit Fund Balances. E. Pooled Cash and Investments The City maintains an accounting system in which substan- tially all cash, investments and accrued interest are record- ed and maintained in a separate group of accounts. All such cash and investments, including accrued interest, are re- flected as pooled cash and investments. Investments are stated at cost or amortized cost, which approximates mar- ket. All investments consist of U.S. governmental obliga- tions and prime commercial paper. Interest income is allo- cated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments. No interest is charged to funds having deficit balances. Individual fund overdrafts (deficit pooled cash accounts) have been reported as an interfund payable in the respec- tive fund with an offsetting interfund receivable reported, nt another fund (See Note 5). The funds listed below main- tained separate cash and investment balances and are re- ported as "Other cash and investments" in the accompany- ing financial statements. In addition, certain other City funds maintain separate restricted cash and investment accounts in compliance with debt requirements (See Notes 4 and 8). • Miami Sports and Exhibition Authority Special Reve- nue Fund • Downtown Development Authonty Special Revenue Fund • Special Obligation Bonds Debt Service Fund (MSEA) • Subordinate Obligation Note Debt Service Fund (MSEA) • Miami Arena Capital Projects Fund (f,ASEA) • Exhibition Expansion Capital Projects Fund (MSEA) • Off -Street Parking Enterprise Fund • G & 0 Enterprise Fund • FiPO Pension Trust Fund • GESE Pension Trust Fund • Deferred Compensation Agency Fund F. Cash Equivalents and Investments Cash equivalents consist of demand deposits with banks, investments with original maturities at time of purchase of three months or less and equity in the City's cash manage- ment pool. Investments are carried at cost plus accrued interest except for investments in the deferred compensation agency fund which are reported at market. G. Pension Investments Pension investments for the FIPO and GESE Trust Funds are carried at cost. Debt securities are adjusted for amorti- zation of premiums and discounts. Premiums and discounts are amortized using the straight-line basis over the life of the investment. Approximate market value of investments are determined as foJJem: • Securities traded on a national securities exchange are valued at the last reported sales prices on the last business day of the fiscal year; • Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last reported bid price; • Commercial paper and money market funds are val- ued at cost which approximates market. Investment policy is determined by the respective Boards of Trustees and is implemented by outside investment advi- sors. Investment advisors use the following guidelines: FIPO: • Rnnris, notes or other obligations of the United States Government and its agencies and in bank cer- tificatas of deposit, • Corporate common stock, preferred stock, converti- ble debentures (subject to 5% limitation for any one 91 City of Miami, Florida Notes to Financial Statements entity of the equity portfolio and provided the aggre- gata investment does not exceed 1 percent of total outstanding capital stock of any one corporation), • Notes collateralized by first mortgages on real proper- ty or guaranteed by the Federal Housing Administra- tion or the Veterans Administration, • Corporate interest bearing obligations, • Venture capital, private placements and letter stocks, • Real estate, financial institutional futures, listed op- tions and stock index futures. All of the above investments are subject to the following ag- gregate portfolio limitations based upon cost at time of purchase: equities (65%), fixed income (65%), real estate 0 5%), venture capital (5%) and all other types of invest- ments (10%). GESE: • Unlimited investments in bonds, notes or other obli- gations of the United States Govemment and its agencies and in bank certificates of deposit. • Individual investments in the following cannot exceed 10% of the funds available for investments: ' •• Corporate common stock, preferred stock, con- vertible debentures (provided the aggregate in- vestment does not exceed 3 percent of the total outstanding capital stock of any one corporation) •• Notes collateralized by first mortgages on real property or guaranteed by the Federal Housing Administration or the Veterans Administration •• Corporate interest bearing obligations Purchases and sales of securities are reflected on a trade date basis. Gain or loss on sales of securities is based on average cost. H. Inventories Inventories are only significant to and reported in proprietary funds. Inventories are valued at the lower of cost (first -in, first -out basis) or net realizable value. Inventory in the inter- nal service funds consists of expendable supplies held for consumption. 1. Restricted A2sets Certain proceeds of bonds, notes and loans, as well as cer- tain resources set aside for their repayment are classified as restricted cash and investments as their use is limited by ap- plicable bond covenants. J. Accumulated Unpaid Vacation, Sick Pay, and Otter Employee Benefit Amounts Under terms of CMI Service regulations, labor contracts and administrative policy, City employees are granted vacation and sick leave in varying amounts. Additionally, certain over- time hours can bo accrued and carried forward as eamed time off. Unused vacation and sick time is payable upon separation from service, subject to various limitations depending upon the employee's seniority and civil service classification. The City has significantly decreased accumulated vacation time earned in prior years by buying out such time from employ- ees, and by limiting the accumulation of current year's earned vacation time. Accumulated unpaid compensated absences are accrued when earned in the governmental and propnetary funds, with the long-term portion of govem- mental funds' liability being recorded in the general long- term account group. K. Intragovernmental Allocation of Administrative Expenses The General fund charges other funds for certain adminis- trative expenses including accounting, legal, data process- ing, personnel administration, engineering and other ser- vices. A brief description of the major components of such charges are as follows: • Project Management. The Public Works Depart- ment charges major capital improvement projects of the City for design, survey and inspection services. These charges are based on direct labor charges plus an overhead factor for administrative expenses of the engineering division, and totaled approximately $2.022,000 for fiscal 1992. • Indirect Cost Allocation. The General fund charges other funds for general and administrative expenses. Such charges approximated $740,000 for fiscal 1992. L. IBond Discount and Issuance Costs Discounts on revenue and special obligation bonds payable within the proprietary funds are amortized using the interest method over the Irfe of the bonds. Bond issuance costs are capitalized and amortized on a straight-line basis over the life of the bonds. M. Prop", Plant and Equipment Property, plant and equipment used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets account group. Public domain (" ln- fra:s-tructure") general fixed assets consisting of certain im- provements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized together with other general fixed assets. No depreciation has been provided on general fixed assets. All property, plant and equipment are valued at historical cost or estimated historical cost. Donated property, plant and equipment are valued at their estimated fair market value on the date received. 1 p.55 92 93- 584 City of Miami, Florida Notes to Financial Statements Depreciation of all exhaustible faced assets used by the pro- prietary funds is charge" as expense against their opera- tions. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: • Buildings and Improvements .......... 30-50 years • Machinery and Equipment ... , ........ 4-20 years • Improvements other than Buildings ..... 10-20 years Interest costs associated with enterprise fund borrowings )revenue bonds) used for construction projects are capital- ized during the construction period as part of the cost of the assets, net of related interest earned on unexpended por- tions of such borrowings. During 1992, no such interest was capitalized. N. Interfund Transactions Quasi -external transactions are accounted for as fund reve- nues, expenditures or expenses (as appropriate). All in- terfund transactions except advances, quasi-extemal trans- actions and reimbursements are accounted for as transfers. Nonrecurring or nonroutine transfers of equity between funds are considered equity transfers. All other interfitnd transactions are treated as operating transfers. O. Deferred Compensation The City offers rts empioyees three deterred compensation plans, created in accordance with Internal Revenue Code Section 457, that permit the deferral of a portion of an em- ployee's salary until future years. The deferred compensa- tion is not available to employees until termination, retire- ment, death, or unforeseeable emergency. Membership in one plan is limited to key management per- sonnel, while the other plans are open to all City employees. The plans are funded through employee payroll deductions. All contributions are oaid to outside fiduciary agents. Flow - ever, all amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without be!ng restricted to the provisions of ben- efits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City records its deferred compensation plans in an agency fund. Deferred compensation plan assets are car- ried at market value. P. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from develop- ers, customers or other funds. Reserves represent those portions of fund balance which are either not available for appropriations or are legally segregated for a specific use. Designated fund balances represent tentative plans for fu- ture use of financial resources. Q. i omparabve Data Comparative total data for the prior year has been presented in the accompanying financial statements in or- der to provide an understanding of changes in the City's 5- nancial position and operations. However, comparative data has not been presented in all statements as their inclusion would make certain statements unduly complex and difficult to understand. Certain comparative total data for the prior year has been reclassified to conform to the 1992 presen- tation. 3. PROPERTY TAXES Property taxes are levied on .January 1 st and are payable on November 1 st, with discounts allowed of one to four per- cent if paid prior to March is! of the following czlendar year. Taxoayers also have the option of paying their taxes in advance in equal quarterly payments based on the prior year's tax assessment with quarterly discounts varying be- tween 2% and 6%. All unpaid taxes on real and personal property become delinquent on April 1 st and bear interest at 18% until a tax sale certificate is sold at auction. The County bills and collects all property taxes for the City, and sells tax certificates for delinquent taxes. The assessed value of property, as established by the pade County A:seasor of Property, at January 1, 1991, upon which the 1991-1992 levy was based, was approximately $10,955,540,UOO. The City is permitted by Article 7, Sec- tion 8 of the Florida Constitution to levy taxes up to $10 per $1,000 of assessed valuation for general governmental ser- vices other than the payment of principal and interest on general obligation long-term debt. In addition, unlimited amounts may be levied for the payment of principal and in- terest on general obligation long-term debt, subject to a lim- itation on the amount of debt outstanding. The tax rate to finance general govemmenta! services (other than the pay- ment of principal and interest on general obligation long- term debt) for the year ended September 30, 1992, was $9.5995 per $1,000. The debt service tax rate for the same period was $2.3308 per $1,000. Property taxes receivable as of the end of the fiscal year, representing collections within 60 days subsequent to Sep- tember 30, 1992 for billings through the fiscal year then en- ded amounted to approximately $2,088,000 and $816,000 for the general and debt service funds, respec- tively. y-!6 93 93— 584 City of Miami, Florida (Votes to Financial Statements 4. EQUITY IN POOLED CASH AND INVESTMENTS, RESTRICTED AND OTHER CASH AND INVESTMENTS At September 30, 1992, the City's cash and non -pension investments consisted of the following (in thousands): Equity in pooled cash .................................. $ 37,934 Other cash and investments .......................... I . 48,898 Restricted cash and investments .. . ...................... 28,490 Total cash and non -pension investments ............ . . $1 15,322 Investments .......................................... $111,724 Deposits ............................................. 3,102 Accrued interest ...................................... 496 Total cash and non -pension investments .............. $115,322 Deposits The City's bank deposits at September 30, 1992 were as follows (in thousands): Carrying Balance Amount Per Banks Demand deposits ........................ .. ........ S 338 S3,483 Time deposits ......................................... 2.764 2,764 Total ............................................. $3. 002 $6,247 Al time and demand deposits are held in banking institutions approved by the State Treasurer of the State of Florida, to hold public funds. Under the Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", the State Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral equal to from 50% to 125% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agent/ securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's finanrial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Accordingly, all cash and time deposits held by banks can be classified as cFtegory one credit risk as defined in GASB Statement No. 3 (see below) which means they are fuly insured or collateralized. investments The City Code authorizes the Director of Finance to purchase and invest idle funds prudently in bonds and obligations of agen- cies of the United States, provided such are guaranteed by the United States or by the issuing agency; general obligations of states, municipalities, school districts, or other political subdivisions; revenue and excise tax bonds of the various municipali- ties of the State of Florida, provided none of such securities has been in default within five years prior to date of purchase; negotiable certificates of deposit; bankers acceptance drafts; and prime commercial paper. Investments are categorized to give an indication of the level of risk assumed by the entity at year-end. The three categories of risk are as follows: (1) insured or registered, or securities held by the entity or its agent in the entity's name; (2) Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the entity's name; and (3) Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the entity's name. r City of Miami, Florida Notes to Financial Statements The City's non -pension investments consisted of the following at September 30, 1992 and are classified as follows (in thousands): Credit Rlsk Category Total Carrying Market 1 2 3 Amount Value U.S. Treasury Notes and Bills ........... $30,529 $ 4,227 $ - $ 34,756 $ 35,288 U.S. Agency Securities ................ 2,006 2,018 2,201 6,225 6,225 Short -Tenn Commercial Paper .......... 4,996 3,601 6,794 15,391 15,463 I� Investments held under repurchase IIII agreements ........................ - - 1,247 I 1,247 1,247 Totals ....................... $37,531 $ 9.846 $10,242 57,619 58,223 Short Term Investment Pool ............ 16,103 16,103 ( Deferred Compensation Plan Assets...... 38,002 38,002 Totals ....................... $111,724 $112,328 Investments held by the City's pension plans consisted of the following at September 30, 1992 and are classified as follows (in thousands): ' Credit Risk Category Caen Market 1 2 3 Amount Value U.S. Government and Agency Obligations ................. $160,939 $11,712 - $172,651 $181,243 Corporate Stocks .................... 334.423 - - 334,423 400,492 Corporate Bonds ..................... 106,109 - - 106,109 112,042. Other Investments ................... 23.400 - - 23,400 231,407 Totals ...................... $624,871 $11,712 $ - 636,583 717,184 Short Terre Investment Pool ........... 63,488 68,156 Accrued Interest and Other ............ 4,900 4,900 Total Pension Investments ..... i $704,971 $790,240 i i The investments in the short-term investment pools pre not categorized because they are not evidenced by securities that "II exist in physical or book entry form. I 95 93- 584 1 City of Miami, Florida (Votes to Financial Statements 5. DUE FROM/TO OTHER FUNDS Due from/to ogler funds are loans from one fund to another for specific purposes. At September 30, 1992, the balance in due from/to other funds consisted of the following (in thousands): Due from Due to Fund Other Funds Other Funds Special Revenue: Miami Sports and Exhibition Center ....................... $ 720(1) $ -- Rescue Services ....................................... — 6 LawEnforcement ...................................... 3,000(1) — Communiy Development ....... I ........................ — 1,131 Public Service Tax ...................................... — 2.807 OtherFunds .......................................... — 523 Debt Service: MSEA Special Obligations Bonds ......................... — 720 Capital Projects: Street Improvements ................................... 1,000(1) — Culture and Recreation .................................. 838(1) — Municipal Use......................................... 8,159(1) — Public Use ............................................ 4,841(1) _ Sewers. ......................................... 2.399(1) — Enterprise Funds: Department of Off -Street Parldng ......................... 862(1) — G & 0 Enterprise Fund .................................. — 862 Marine Stadium ........................................ — 193 Miami Stadium ........................................ —• 825 Orange Bowl ........................................... — 5,553 Convention Center .................... .. .......... — 2,528 Marinas . ............................ ............. — 292 Exhibition Center ....................................... — 116 Golf Courses .......................................... — 326 Parking Garage ................................ I....... — 51 Building Zoning ........................................ — 610 Solid Waste ........................................... — 4,438 Internal Service: Property Maintenance .................................. — 297 Print Shop ............................................ — 480 Procurement Management .............................. — 61 Total ........................................... $21,819 $21,819 (1) These amounts represent loans to cover fund deficits in the various pooled cash and investment accounts. "� � 96 93- 584 Gity of IVliami, Florida Notes to Financial Statements 6. OTHER RECEIVABLES As part of its Community Development Block Grant program, the City issues single and multi -family housing rehabilitation loans to qualified residents. All repayments of the loans, which carry low intarest rates, are to remain in the loan program. As collection of the loans is not assured, the loans are not recorded as receivables, but are maintained in the City's accounting system on a memorandum basis. As of September 30, 1992, rehabilitation loans outstanding totaled approximately $42,095,000. 7. PROPERTY, PLANT AND EQUIPMENT The following is a summary of changes in general fixed assets for the year ending September 30, 1992 (in thousands): Balance, Addidons Deletions 9alance, OcWbw 1, and and September 30, 1991 Transfers Transfers 1992 Land..... ..................................... S 84,077 $ 1,291 $ - $ 85,368 Building and Improvements .......................... 75,659 38 - 75,697 Machinery and Equipment ........................... 29,484 1,537 1,818 29,203 improvements Other than Buildings ................... 210,462 8,618 - 219,080 Construction in Progress ............................ _ 90,526 _31,980 8,617 113,889 Total ........................................... $490,208 $43,464 $10,435 $523,237 See Note 14 for a discussion of the construction projects currently In progress. A summary of proprietary fund type property, plant and equipment at September 30, 1992 is as follows (in thousands): Internal der Service Land ...... S 16,266 S - Buildings and Improvements ....... 143,235 9,318 Machinery and Equipment ......... 9,367 30,386 Construction ?n Progress .......... 43,877 - Total...... ... ...... 212,745 39,704 Less Accumulated Depreciation .... 50,305 27,936 Net ............................ S 162,440 i 11.768 93-- 584 City of Miami, Florida Notes to Financial Statements 8. LONG-TERM DEBT A. Changes,in Long -Term Debt The following is a summary or changes in iong-term debt for the year ended September 30, 1992 (in thousands): Gettaal Long -Tenn Debt Pn"wW rV Fund Debt ppeacck� OALpneon Ob a . Gomel Obipatlon eonda claw wW CSekns Ottw Cotrtpwwead tl-a km Dad* cortSRcatee and at oew Bade loam Po"b:a Parabwa Abeonoea T Tool sonde Lean Parthlt+tim Pariblea Balance at October 1, � 1991 ............ $186,805 S108,987 $52,592 $7,358 $17,428 $373,170 $86,063 $43,378 $5,240 $2,040 New bonds issued .. . 10,000 52,591 - - 62,591 9,140 - - - Accretion on Capital Appreciation Bonds - - - - - - 1,463 104 - - Debt defeased ....... - (46,030) - - - (46,030) (3,000) - - - Increase Idecrease)in other payables ..... - - - (1,662) - (1,662) - - - 1,464 Increase in long-term claim liabilities ..... - - 14.051 - - 14,051 - - - - Increase in long -tern accumulated unpaid compensated absences ......... - - - -- 501 501 - - - Princip3l payments.... (11,375) (791) -- - (12.165) (2,845) (5,700) (5,240) (2,174) Balance at September 30, 1992......... $185.430 S114,757 $66,643 $5,696 $17,929 $390.455 $90,821 $37.782 $- S1,330 B. Summary of Annual Debt Service Requirements The annual requirements for all bonds, notes, loans, certificates and, other payables outstanding as of September 30, 1992, including interest of $345,761,196 are as follows (in thousands): General Long -Term Debt Proprletary Fund Debt Revenue and General spa izi Outer specdal Other Obligation Oblletlon(111M payables Obllgatlon(2) _Payables 1993 S 20,764 $ 9,554 $1,451 $ 11,592 $1,383 1994 23.565 9,641 1,127 11,740 1,107 1995 23,133 9,859 1,019 11,958 277 1996 22,255 13,113 1,019 22,771 - 1997 21,596 9,438 1,017 11,326 - 1998-2002 89,124 49,212 - 51,662 - 2003-2007 61,169 47,689 1,708 53,372 - 2008-2012 26,800 42,938 - 39,705 - 2013-2017 7,870 34,812 - 16,137 - 2018-2022 - 15,667 - - - $296,276 5241,723 $7,341 $230,263 $2,767 (1) Includes debt service on the MSEA's Special Obligation and Special Obligation Refunding Bonds. (2) Excludes accretion on the Capital Appreciation Bonds. u- 61 98 93- 584 1 t City of Miami, Florida Notes to Financial Statements C. Summary of Long -Term Debt Long-term debt at September 30, 1992 was comprised of the following: (000) Ganaral and Spodal Ob9gadon Sands, Notes and Loans —long -Term Debt $39,890,000 Public Parks and Recreation Fa,�lities Bonds; two issues, maturing through 2003; interest at rates ranging from 3.5% to 7.5%................................. S 11,135 $4,290.000 Special Obligation Bonds, Series 1986A; one issue, maturing through 2006; interest at rates from 4.1% to 7.4% ........ 3,530 $6,500,000 Guaranteed Entitlement Revenue Bonds, Series 1989, maturing through 2009; interest rates ranging from 6,25% to 7% .... 5,975 $22.605,000 Genera Obligation Refundingg Bonds, Senes 1987, matumgg througghh 2010; interest rates ranging from 6.8% to 7.4% . , .. 22,435 $3,915,800 Florida League of Cities' First Municipal Loan; maturing through 1996: interest at variable rate (3.15% average for year ended September 30, 1992) .......... 3,916 $38,355,000 General Cbligation Refuridinqq Bonds, Series 1986, maturing through 2014; interest rates ranging from 4.5% to 7 7% .. , . 30,655 ' $16,135,000 General Obligation Refundingp Bonds, Series 1991, maturingg through 2013; interest rates ranging from 5.3% to 8 6% .... 18,1.35 $54.705,000 Sarthary Serer Improvemem Bonds; ten issues, maturing through 2014; interest at rates ranging from 3% to 1 1 % .... 25,670 $31,060,000 Street and HigfTrvay Improvement Bonds; nine issues, matunng through 2014; interest at rates ranging from 3% to 11% ............................ 15,745 S46,765,000 btorm Sewer Improvement Bonds; twelve issues, maturegg throc.9h 2014: merest at rates ranging from 2.5% to 1 r% ............ 27,535 $36,645,000 Police Headquarters Improvement Bonds; eight issues, maturing through 2014: interest at rates ranging from 3% to 11% ............................ 16,915 S13,210,900 Sunshine State Governmental Financing Commission Loan, maturing through 2015; interest at variable rate (3.204A average for year ended September 30, 1992) ....... 11,481 S48,675,000 Miami Sports and Uiibiticn Authority Special Obligation Refunding Bonds, Series 1992, maturing in various amounts through 2020; interest rates ranging from 2.95% to 6.63% ....................... 48,1175 $30,000,000 Rental Revenue Bonds, Series 1988, maturing through 2019; with merest at 8.65%................................ 30,000 (cool $39,075,000 Other Issues, maturing through 2014; interest at rates ranging from 3% to 11% .... ............................ 19,205 $11.500,000 Commurdty Redevelopment Revenue Bonds, Series 1990, maturing through 2015: interest sates ranging from 7.15%to 8.5%......................... 11,180 S300,187 Revenue and Special ObBpoadon Sonde and Other Debt—Prwdatary Funds; $2.000.000 Subordinated Parking System Revenue Bonds, due in 2006, interest at 6% through 1992, thereafter at 801A of the prime rate.................................. S 2,000 S12,084,200 Florida League of Cities' First Municipal Loan; maturing through 1996; interest at variable rate (3.15% average for year ended September 30, 1992) .......... 12,084 S12,386,658 Special Obligation Refundingg Bonds, Series 1990, maturing through 2007; interest at rates ranging from 6.2% to 7.375% (The portion of the bonds issued in capital appreciation bond form had accreted value of appro)dmately $231,000 as of September 30, 1992)................................ 12,237 S16,275,000 Partdrtg System Revenue Bonds. Series 1986, maturing through 2009 at varmv rates of interest ranging ham 4.25% to 7.7594 ................................ 14,440 $65,271,325 Sppecial Revenue Refunding Bonds, Series 1987, due in installments from approbmately $630,000 to $5,490,000 throe 20155• interest at rates ranging from 5.25 7.30% to (The portion of the bonds issued in capital appreciation bond form had accreted value of aappprobmately $4.59 million September as of 30, 1992) ............... , 65,241 S14,420,000 Sunshine State Governmental Financing Commission Loan, maturi�ngg through 2015; interest at variable rate (3.20% average for year ended September 30, 1992) ....... 13,461 S4,415,000 Refunding Revenue Bonds, Series 1992, maturing through 1996; interest rates ranging from I", to 5.25%............. 4,415 $4,725,000 Paridng System Revenue Bonds, Series 1992A due through 2006 at varying. rates of interest from 4,5% to 7.75% 4,725 ....... 128,603 Less Current Portion ..................... (5,536) Less Unamortized Bond Discount ..... , .... (1,407) D - 6,'Z j ( 8 . $121,660 93- 584 D. Surnmmy of Now Debt Issuances $4,415,000 Refunding Revenue Bonds, Series 1992— On February 4; 1992, the City issued $4,415,000 Re- funding Revenue Bonds, Series 1992, for the purpose of advance refunding the outstanding Certificates of Participa- tion, Series 1986 dated August 28, 1986. The bonds were issued at rates ranging from 3.50% to 5.25% with serial bonds maturing through 1996, $10,000,000 General Obligation Bonds, Series 1992— On July 22, 1992, the City sold $10,000,000 General Ob- ligation Bonds, Series 1992, with serial bonds payable in in- stallments of $210,000 to $750,000 from 1994 through 2017, with interest rates ranging between 3.80% to 6,05%. The Series 1992 Bonds are general obligations of the City for which its full faith, credit and taxing power have been irrevocably pledged. The Series 1992 Bonds are pay- able from unlimited ad valorem taxes levied on all taxable property within the City. $40,950,000 MSEA Special Obligation Refunding Bonds, Series 1992A—On August 5, 1992, MSEA issued $40,950,000 Special Obligation Refunding Bonds, Series 1992A to advance refund the outstanding Series 1991 Bonds, carrying interest rates of 5.75% to 7.2%. The Series 1992A Bonds carry an original issue premium of approxi- mately $56,100 and mature in annual increments of $650,000 beginning in 1993 to $2,910,000 through 2020, carrying interest rates from 2.95% to 6.625%. Costs of issuance, including bond insurance premiums and re- serve iund insurance premiums totalled approximately $1 million and were funded from available Series 1991 Bond reserve fund cash. The proceeds from the 1992A Bonds to- gether with $342,300 of the Series 1991 Bond Reserve fund monies were used to purchase U.S. Government se- curities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt ser- vice payments on the Series 1991 Bonds, As a result of the advance refunding, the Series 1991 Bonds are considered to be defeased and the liability for those bonds has been re- moved from the long-term debt account group. MSEA ad- vance refunded the Series 1991 Bonds to reduce its total debt service payment over the next 29 years by approxi- mately $2.2 million and to obtain an economic gain (differ- ence between the present values of old and new debt ser- vice payments) of approximately $554,200. $7,725,000 MSEA Special Obligation Refunding Bonds, Series 1992B--On August 5, 1992, MSEA issued $7,725,000 Special Obligation Refunding Bonds, Series 1992B to redeem in full the original $8,750,000 in Flom- ing/Fixed Rate Subordinate Special Obligation Bonds, Se - has 1989A of which $8,030,000 was currently outstand- ing. The Series 1992B Bondi were issued at a premium of approximately $102,300 and mature in annual increments of $500,000 beginning in 1993 to 5850,000 through 2004, carrying interest rates from 2.95% to 6.625%. Cost of issuance of approximately $192,000 were funded from a.63. available monies in the refunded debt service accounts. The proceeds from the Series 1992E Bonds together with $202,700 of the Subordinate Bond debt service accounts were used to redeem the Subordinate Bonds. $4,725,000 Parking System Revenue Bonds, Series 1992A—During fiscal 1992, the City issued $4,725,000 Parking System Revenue Bonds, Series 1992A. The Series 1992 bonds were issued to refinance the City's outstand- ing Subordinated Parking System Revenue Bonds, Series 1990 and the City's obligation under a par icipation agree- ment with the First Municipal Loan Council Pooled Loan Program sponsored by the Florida League of Cities. The Se- ries 1992 bonds and interest thereon will be payable solely from and secured by a pledge of and lien on the net income, derived by the City from the operations of the parking sys- tem. The Series 1992 Bonds mature through 2006 carry- ing interest rates from 4.5% to 7.75%. E. Other Payables Capital Leases The City has entered into a lease agreement as lessee for financing the acquisition of computer equipment and police patrol cars. These lease agreements qualify as capital leases for accounting purposes (titles transfer at the and of the lease terms) and, therefore have been recorded at the present value of the future minimum lease payments as of the date of their inception. The following is an analysis of equipment leased under capital leases as of September 30, 1992 (in thousands): Goneral Irrtemal Fixed Service Assets Fund Machinery and equipment..:...... $4,208 $3,726 Less: accumulated depreciation .... — (825) Carrying value .... .............. $4,208 $2,901 The following is a schedule of the future minimum lease payments under these capital leases, and the net minimum lease payments at September 30, 1992: GwWal Intmnal Fiscal Ysm EncIng Long -Tom SorAce Sa!E!! fM r 30 Dobt Fund 1993 . . .................. $1,019 $1,383 1994 .................... 1,019 1.107 1995 .................... 1,019 277 1996 .................... 1,019 — 1997 .................... 1,017 — Total Minimum Lease Payment... 6,093 2.767 Less Amount Representing interest .................... 885 191 Present Value of Future Minimum Lease Payments ............. 4,208 2,576 Less Current Portion ........... (760) (1.246) Long Term Portion ............. 53,448 51,330 100 9 584 City of Miami, Florida Notes to (Financial Statements Other Payables At September 30, 1992, other payables accounted for in the general long-term debt account group, consists of the following: The City entered into a loan agreement wth the Gran Cen- tral Corporation (GCC) to finance fifty percent (50%) of the cost to relocate and widen Northwest First Avenue be- tween Northwest First Street and Northwest Eighth Street. GCC is a large property owner in the adjacent area with fu- ture development plans. The loan, in the amount of $1,708,000, does not bear interest and is payable from funds deposited in the Overtown/ParkWest Tax Increment District Trust Fund on a junior and subordinate basis to the lien granted to holders of the Community Redevelopment Revenue Bonds, Series 1990. GCC is to be fully repaid by the year 2008 with annual payments to be made to the ex- tent funds in the Trust Fund are available after required pay- ments for the Series 1990 are made or provided for. As of September 30, 1992, no payments were made. The City entered into a settlement agreement with AT&T Communications of the Southern States, Inc. (AT&T), in the amount of $1,296,000 payable in 36 equal monthly payments of $36,000, beginning in January of 1992, in full and complete settlement of any and all claims and demands against the City of Miami by AT&T related to an alleged overpayment of Public Service Taxes due under Chapter 55 of the City of Miami Code. The balance in other payables at September 30, 1992 are summarized as follows: Capita leases ................................. $3,448 Gran Central Corporation loan .................... 1,708 ATT settlement ............................... 540 Total .................................... $5,696 F. Synopsis of Bond Covenants The various bond indentures contain significant limitations and restrictions on annual debt service requirements, main- tenance of and flow of modes through various restricted ac- counts, minimum amounts to be maintained in various sink- ing funds, and minimum revenue bond coverages. A summary of major provisions and significant debt service re- quirements follows: Genera Obligation Bonds --Debt service is provided for by a tax levy on non-exempt property value. The total general obligation debt outstanding is limited by the City Charter to fifteen percent of the assessed non-exempt property value. At September 30, 1992, the statutory limitation for the City amounted to approAmatetly $1,643,331,000 providing a debt margin of approximately $1,458,591,000 after con- sideration of the $185,430,000 of general obligation bonds outstanding at September 30, 1992, less approxi- mately $690,000 available in the related debt service fund. General obligation bonds authorized but unissued at Sep- tember 30, 1992, totaled $22,500,000. $66,2 % 1,325 Special Revenue Refunding Bonds —Debt service is provided by a pledge of net revenues of the Con- vention Center/Garage, the pledged portion of the public service telecommunications tax revenues, and by a cove- nant and agreement of the City to provide, to the extent necessary, revenues of the City, other than ad valorem property tax revenues, sufficient to make up any deficiency in certain of the required restricted funds and accounts. Various funds and accounts held by the Trustee are re- quired to be maintained under the terms of the Trust Inden- ture pursuant to which the bonds were issued. Those funds or accounts pertaining to these provisions include the Reve- nuer Fund, Bond Service Account, the Redemption Ac- count, the Reserve Account, the Construction Account, the Supplemental Reserve Fund, the Renewal and Replace- ment Fund, and the Surplus Fund. The Trust Indenture pro- vides that the gross revenues of the Convention Center/Garage will be deposited, as received, with the Trus- tee to the credit of the Revenue Fund. At September 30, 1992, the City had on deposit with the Trustee for these bonds approximately $4,975,000 includ- ing accrued interest receivable, in the required restricted funds and accounts. In August 1990, the City obtained a reserve account surety bond in the amount of approximately $6,125,000 to substitute the cash on deposit in the re- serve accounts. $16,275,000 Parking System Revenue Bonds (DOSP)-- Debt service is payable solely from the revenues of the Off - Street Parking facilities. This issue ("Series 1986") con- sists of serial bonds payable in installments of $315,000 to $1,390,000 from 198E through 2009. At September 30, 1992 the City had on deposit with the Trustee for these bonds approximately $3,809,000 i-tcluding accrued inter- est receivable in various reserva lcf.ounts. These accounts consist of the Parking System Fund (Revenue, Revenue and Replacement, and General Reserve accounts), and the Bond Fund (Interest and Principal, Sinking fund, Reserve, Redemption, and Insurance and Condemnation Award Ac- counts). The nature, purpose and funding requirements of these funds and accounts are similar to those described above relative to the Convention Center. $2,000.000 Subordlmted Parking System Revenue Bonds —In 1986, the City's Department of Off Street Park- ing sold $2,000,000 in Subordinated Bonds to provide ft- nand ng for parldng projects. Interest on bonds is computed at 6% through 1991 and a variable rate based on 80% of prime beginning in 1992. Bonds mature on October 1, 2006. $4,290,000 Special Obligation Bonds, Series 1986 A — In 1986 the City issued $4,290,000 in Special Obligation Bonds, Series 1986 A, to provide financing for construction of owner occupied residences under the Scattered Site Pro- gram in the City's Community Development Target areas. The bonds have serial retirements from 1987 through 1996 in amounts from $80,000 to $190,000 and a term p . 61 93- 584 101 City of Miami, Florida Notes to Financial Statements payment of $2,830,000 in 2006. Debt service on the bonds, are payable solely from certain telephone and tele- graph franchise fees. $27,630,900 Sunshine State Govemmental Financing Commission Loans —During 1987 and 1988, the City ob- tained $27,630,900 in loans from the Sunshine State Gov- ernmental Financing Commission (the Commission). The proceeds from the loans were used to fund certain parks and marinas improvements and other capital projects. The Commission was created in November, 1985, by the Cities of Orlando and Tallahassee, Florida, through an interlocal agreement, as a pooled financing vehicle to allow for a limit- ed number of high quality local governmental units (Cities and Counties) to join together in a variable rate financing program and thereby benefit from the inherent economies of scale. The City has pledged certain non -ad valorem reve- nues to pay the debt service on these loans. $16,000,000 Florida League of Cities' First Municipal Loart—During 1989, the City obtained a loan from the Flor- ida League of Cities' First Municipal Loan Council to finance the Orange Bowl renovation project and other capital projects. Interest rates are variable. The loan will be repaid with revenues from Orange Bowl operations and an annual pledge of up to $2,000,000 in guaranteed entitlement rev- enues. $30,000,000 Rental Revenue Bonds, Series 1988—Dur- ing 1989, the City issued $30,000,000 Rental Revenue Bonds, Series 1988 to finance the costs of the acquisition of real estate and the construction thereon of a 2�0,000 square foot office building to be leased from the City by ;he United States Govemment. The resolution establish(Vias trust funds with the Trustee the Construction Fund, the Revenue Fund, the Reserve Fund and the Sinking Fund. $6,500,000 Guaranteed Entitlement Revenue Bonds, Se- ries 1989—During 1989, the City issued $6.500,000 Guaranteed Entitlement Revenue Bonds, Series 1989 to fi- nance the cost of certain capital improvements and equip- ment within the City. In November 1991, the City obtained a reserve account surety bond in the amount of appmxi- matety $612,000 to substitute the cash on deposit in the reserve accounts. $12,386,658 Special Obligation Refunding Bonds, Series 1990—In May 1990, the City sold $12,386,658 Special Obligation Refunding Bonds, Series 1990, with interest rates between 6.2% and 7.375% to advance refund the $13.720,000 Special Obligation Bonds hated April 1, 1985, which carry interest rates between 5.625% and 8.875%. The Series 1990 bonds are made up of $11,095.000 in current interest form and $1,291,658 in capital appreciation form. The Series 1990 bonds are col- lateralized by a pledge of net revenues of the Government Center Parking Garage and utilities services taxes collected by the City from the sale of water. $11,500,000 Community Redevelopment Revenue Bonds, Series 1990—On November 8, 1990, the City is- sued $1 1,500,000 Community Redevelopment Revenue Bonds, Series 19CO3 for the Southeast Overtown/Park West Redevelopmemt Area (the "Redevelopment Area") The proceeds or the bonds are to be used mainly to refi- nance the $5,958,400 Section 108 HUD Promissory Note. to reimburse the City for monies advanced to the Redevel- opment Area in an amount not to exceed $750,000, to fr nance the acquisition and clearing of certain real property, and the construction of infrastructure improvements in the Redevelopment Area. The bonds were issued at rates rang- ing from 7.1 5% to 8.50%, with serial and term bonds ma- turing through 2015. Debt service is payable from the Tax Increment Revenues of the Redevelopment Area and a pledge of guaranteed entitlement revenues up to $300,000 annually. $40,950,000 MSEA Special Obligation Refunding Bonds, Series 1992A—On August 5, 1992, MSEA issued $40,950,000 Special Obligation Refunding Bonds, Series 1992A to advance refund the outstanding Series 199T Bonds, carrying interest rates of 5.75% to 7.2%. The Series 1992A Bonds mature in annual increments of $650,000 beginning in 1993 to $2,910,000 through 2020, carrying interest rates from 2.95% to 6.625%. The proceeds from the 1992A Bonds together with $342,300 of the Series 1991 Bond Reserve fund monies were used to purchase U.S. Government securities. Those securities were deposit- ed in an irrewicable trust v i.h an esc-ow agent to provide for all future debt service payments on the Series 1991 Bonds. The Series 1992A Bond indenture contains provi- sions requiring the transfer or establishment of various funds and axounts including the Tax Trust Fund, Bond In- terest and Principal Funds, Subordinate Obligations 'Fund, Reserve Account, General Fund, Expense Fund, Rebate Fund and the Capital Reserve and Operating Deficit Ac- count. Under the terms of the indenture, Convention Devel- opment Tax proceeds are required to be deposited in the Tax Trust Fund and distributed to the other bond funds or accounts and to MSEA's operation up to a ma)amum of $669,500 annually (increasing 3% per annum). $7,725,000 MSEA Special Obligation Refunding Bonds, Series 19928—On August 5, 1992, MSEA issued $7,725,000 Special Obligation Refunding Bonds, Series 1992B to redeem in full the original $8,750,000 in Float- ing/Fixed Rate Subordinate Special Obligation Bonds, Se- ries 1989A of which $8,030,000 was currently outstand- ing. The Series 1992B Bonds were issued at a premium of approximately $102,300 and mature in annual increments of $500,000 beginning in 1993 to $850,000 through 2004, carrying interest rates from 2.95% to 6.625%. Cost of issuance of approximately $192,000 were funded from available monies in the refunded debt service accounts. The proceeds from the Series 1992E Bonds together with $202,700 of the Subordinate Bond debt service accounts were used to redeem the Subordinate Bonds. The Series 102 93- 584 City of Miami, Florida (Votes to Financial Statements 1992E Bond indenture contains provisions requiring the from pledged funds as provided in Resolution No. 91-886 transfer or establishment of various funds ind accounts in- and 92-049. The pledged funds con sist of Non -Ad Valorem cludmg the Tax Trust Fund, Bond Interest and Principal Revenues budgeted and apuropratud by the City and de - Funds, Subordinate Obligations Fund, Reserve Account, posited into the Debt Service Fund, and until applied in ac- General Fund, Expense Fund, Rebate Fund and the Capital cordance with the provisions of the Resolution. Reserve and Operating Deficit Account. Under the terms of $4,725,000 Parking System Revenue Bonds, Series the indenture, Convention Development Tax proceeds are 1992A--During fiscal 1992, the City issued $4,725,000 required to be deposited in the Tax Trust Fund and distribut- Parking System Revenue Bonds, Series 1992A. The Series ed to the other bond funds or accounts and to MSEA's op- 1992 bonds were issued to refinance the City's outstand- eration up to a maximum of $669,500 annually (increasing ing Subordinated Par4dng System Revenue Bonds, Series 3% per annum). 1990 and the City's obligation under a participation agree- $4,415,000 Refunding Revenue Bonds, Series 1992— ment with the First Municipal Loan Council Pooled Loan On February 4, 1992, the City issued $4,415,000 Re- Program sponsored by the Florida League of Cities. The Se - funding Revenue Bonds, Series 1992, for the purpose of vies 1992 bonds and interest thereon will be payable solely advance refunding the outstanding Certificates of Participa- from and secured by.a pledge of DOSP parldng revenues. tion, Series 1986 dated August 28, 1986. The bonds are limited obligations of the City, payable and secured only City of Miami, Florida Notes to Financial Statements G. Defeasances of long -Term Debt In prior years, the C14y defeased certain outstanding general obligation, special obligation and revenue bonds by placing the proceeds of the refunding bonds in an irrevccab-le trust to provide for all future debt service payments on the old bonds. Ac- cordingly, the trust accounts and the defeased bonds are not included in the City's financial statements. At September 30, 1992, the following outstanding bonds are considered defeased (in thousands): Parking Facilities Revenue Bonds: SeriesB............................................................ $ 740 SeriesC............................................................ 2,925 Series1980......................................................... 520 Parking System Revenue Bonds: Series1983......................................................... 12,285 General Obligation Bonds: Sanitary Sewer System, Series 1983 ............. . ...................... 2,790 Firefighting, Fire Prevention and Rescue FacilRies, Series 1983 .............. 4,230 Housing Bonds, Series 1983........................................... 825 Storm Sewer Improvement, Series 1983................................. 2.440 Street and Highway Improvement, Series 1983 ........................... 3,890 Firefighting, Series 1964.............................................. 1,100 Housing, Series 1984................................................ 16,260 Storm Sewer Improvement, Series 1984................................. 2,375 Street and Highway, Series 1934....................................... 5,895 Police Headquarters Improvements, Series 1985 .......................... 2,655 Storm Sewer Improvements, Series 1985................................ 6,735 , Sanitary Sewer Improvements, Series 1985 .............................. 3,795 Street and Highway Improvement, Series 1985 ........................... 3,215 Firefighting, Fire Prevention and Rescue Facilities, Series 1985 .............. 2,925 Special Obligation Bonds: Series1981...................................... .................. 185 Series1985......................................................... 12,505 Special Obligation Refunding Bonds: Series 1991......................................................... 37,535 93— �84 104 i City of Miami, Florida (Votes to Financial Statements 9. FUND EQUITY The following schedule lists the equity components of all City proprietary funds as of September 30, 1992 (in thousands): Retained Earnings (Deficit) Reserved Total Find for Debt Contributed Equity Enterprise Funds: Service Unreserved Total Capital (Deficit) Off -Street Parking . • • ................... $2,506 $ 7,604 $ 10,110 $ •— $10,1 10 G&O Enterprise Fund .................... — (2,060) (2,060) 3,028 968 Marine Stadium .............. ......... — (3E'3) (383) 699 316 Miami Stadium ........................ — (1.243) (1,243) 1,654 411 Orange Bowl Stadium ................... — (1,354) (1,354) 11,552 10,198 Convention Center ..................... 1,415 (33,289) (31,874) 46,256 14,382 Marinas .............................. — 3,543 3,543 2,787 6,330 Exhibition Center ....................... — (2,843) (2,843) 10,929 8,086 Golf Courses .......................... — (79) 479) 405 326 Warehouse Property .................... — 185 185 22 207 Parking Garage ...................... - (5,741) (5,741) 634 (5,107) Building and Zoning .................... — (1,484) (1,464) 270 (1,194) Solid Waste ... ........... .......... — (7,634) (7,634) 3,554 (4,080) Manuel Artime Center (9) (9) — (9) $3,921 $(44,767) $(40.846) $81,790 $40,94-4 Internal Service Funds: i Fleet Management ..................... $ — $ (5,505) $ (5,506) $ 7,777 $ 2.271 Property Maintenance .................. — (495) (495) 273 (222) i Print Shop . .. ....................... — (626) (626) 178 (4.48) Procurement Management .............. — (59) (59) 23 (36) i Communications Services ............... I — 830 830 3,550 4,380 $- $ (5,855) $ (5,856) $11,801 $ 5,945 See Note 11 for segment information regarding the enterprise funds. ! i i I I ! I 'D_&0- 93— 534 105 ti i City of Miami, Florida (Votes to Financial Statements 10. SELF-INSURANCE The City maintains a self-insurance expendable trust fund to administer insurance activities relating to certain property and liability risk, group accident and health and workers' compensation. Charges to participating operating departments are based upon amounts determined by management to be necessary to meet the required annual payouts during the fiscal year. The estimated liability for insurance claims includes estimated future liability on a case -by -case basis for all pending claims and an actuarially determined amount for claims incurred but not report- ed. The long-term portion of the total estimated liability, which is expected to be funded from future operations, is reflected in the General Long -Term Debt account group and amounted to approximately $66,643,000 as of September 30, 1992 as follows (in thousands): Estimated cialms Payable A. Workers Compensation All workers compensation costs are paid from the self-insurance fund, with all departments of the City assessed a charge based upon annual cash requirements. As claims are reported, they are investigated by claims personnel, and an estimate of liability on a case -by -case basis is established. The estimated liabilities are periodically reviewed and revised as claims develop. Most liabilities in this area will be payable over a period of several years. $27,910 B. General Coverage Departments of the City are assessed for property and casualty coverage, including police professional liability and public official's liability, based upon the cash requirements of the Self - Insurance fund and their relative share of the total risk. The City has continued to purchase certain casualty insurance for which the premium is small in relation to the coverage provided. The City is fully insured, subject to a $100,000 deductible, for all property loss exposure. As the casualty claims are reported, they are investigated by the claims personnel and an estimate of liability is established on a cas&-by-case basis. 40,670 C. Gaup Accident and Health Certain employees and retirees of the City contribute, through payroll deductions or deductions from pension payments, to the cost of group benefits. The remainder of the funds necessary are contributed by the City based upon the number of participants in the plan. As of September 30, 1992, the plan covered approximately 955 active employees, 1,076 retirees and 1,11 1 employee -retiree dependent units. Costs of the plan for the year then ended were approximately $10,7 million. 1,619 Total 70,199 Less: current portion, which represents payments made by the City in October and November 1992 on claims incurred on or before September 30, 1992. 3,556 Long-term claims payable $66,643 6 9 J- 584 106 City of Miami, Florida Notes to Financial Statements 11. SEGMENT INFORMATION— ENTERPRISE FUNDS ONO Manual Off-Strast Enbnprim Stadkmu Gxwerttlon EaNkitlon Goff Pa rklrq Buftnp 3 Sopd An me PorWV Fund (1) Cantor Mwtnao Center courses l2arapa Zorjne warts Center Total :.urrent assets ................. S 8.782 S 339 S 7.038 S 105 S 118 S 119 S 83 S 75 S 1 10 S 7.919 S 40 S 24,728 Current liabilities ............... 3,155 275 9.220 2,948 907 303 459 202 1,377 14,633 57 33.534 Net woridng capital ............. S 5,627 S 64 S (2,182) S (2,841) S (7891 S (184) S (3781 S (127) $0.267) S (6,714) S (17) S (8.806) Restricted assets ............... S 3.603 $ — S — S 5.056 S — S — S — S 184 S — S — S — S 9,049 Current liabilities payable from restricted assets .............. 1,303 — 115 3,766 342 51 — 62B — — — 6.405 Net restricted assets ............ S 2.506 S— S 115 S 1,290 $ (342) S (51) S — S (6") S -- S — S — S 2,644 Property, plant and equipment ..... $19,370 $1,629 $25,410 $ 76.726 $18,745 $10.137 S 702 S 7.006 S 73 S 2.634 $ 8 $162.440 Total assets .................. $34,513 $1,968 $32,478 $ 82,549 $18,863 $10,256 S 785 S 7.490 S 183 S 10,553 $ 4B S199,684 Bonds payable, long-term debt ;net) $19.945 S — $12.009 S 61,455 $11.284 $ 1,816 S — $1 1,567 S — S — S — $118,076 Contributad capital ......... . ... S — $3.028 $13.927 $ 46.256 S 2.787 $10,929 S 405 S 634 S 270 S 3,554 S — S 81.790 Total retained ea -rings (deficit) .... 10.110 (2,060) (2,7951 (31,874) 3,543 12.843) (79) (5,741) (1,4134) (7,834) (9) (40,846) Total fund equity (deficit) ......... $10,110 S 968 $11,132 S 14.382 S 6,330 S 8.086 S 328 $ (5,107) 3(1,194) S (4.080) $ (9) S 40.944 Operating rwanues ............. S 9,601 S 629 S 1,528 S 3,728 $ 2.533 S 544 $1,158 S 325 S 4,625 S 16,329 S 145 S 41.143 Depredation expense ........... S (1,323) S (285) S (628) S (1,768) S (1501 S (164) S (39) S (159) S (13) $ (2411 S (2) S (4,7621 Operating income (lass) before non - operating revenues (expenses) ... $ 1.964 S (734) $ (1.491) S (1,989) $ 914 S 1164) S (94) S 1230) S (291) S(15,675) S (405) S (18.195) Nonoperaung revenues (wponses): Interest income ....... . ...... $ 579 $ — S 1 S 224 S -- S 1 S — S 4 S -- S 32 S -- S 841 Interest and fiscal dvryos ...... (1,488) — (301) (4,603) (483) (94) -- (837) — — — t (7,866) Other ...................... (472) 423 2,018 35 (691 189 57 (30) 111 2.905 1 5,168 Total narroperating revenues (el4lenses) . • • ..... • • . • • .. • • . $ (1,381) S 423 $ 1.658 S (4,344) S (5521 S 96 S 57 S (863) S 111 S 2,937 $ 1 S (1,857) Net transfers tram (to) other funds $ -- S — S (1,538) S 4,781 $ 17 $ — $ (20) S 948 S (538) $ 12.012 $ 431 S 16.095 Net income (loss) .............. S 573 S 1311) 3(1,369) S (1,562) S 379 S (68) S (471 S (147) S (716) S (726) S 27 S (3,957) Additions (deductions) to property, plant and equipment, net ....... $ (1,370) S 525 $11,105 S 32 S (2,2871 S 47 S 4 S — S 24 S 253 S 4 S 8.338 Additions of oonT b Aed capital .... S -- S 395 S 7,000 $ — S — S — S -- S — S 3 $ 242 S — S 7,640 Increase (decrease) in wm)dng capital ..................... S (8901 3 200 S 748 S 1,192 $ (349) S 8 S 12 S is S 724 $ 496 S l25) S 2.132 (1) Includes operations of the Orange Bowl Warehouse Property, the Miami Stadium, the Marine Stadium and the Orange Bowl Stadium. L) 107 "�-� 584 City of Miami, Florida Notes to Financial Statements 12. PENSION PLANS A. Plan Description The City sponsors two separate defined benefit contributory pension plans under the administration and managernent of separate Boards of Trustees: The City of Miami Fire Fight- ers' and Police Officers' Retirement Trust ("FIPO") and the City of Miami General Employees and Sanitation Employ- ees' Retirement Trust ("GESE"). The plans cover substan- tially all City employees who contribute a percentage of their base salary or wage on a bi-weekly basis. The payroll for employees covered by FIPO and GESE for the year ended September 30, 1992 was $67.0 million and $56.4 million, respectively; the City's total payroll was $161 million. At October 1, 1992, the date of the most recent actuarial valuation, membership in the APO and GESE consisted of the following: FfPO GESE Retirees and beneficiaries currenty, receiving benefits and terminated employees entitled to benefits but not yet receiving them ............ 1,148 1,740 Current employees: Vested .................... 963 807 Nonvested .................... 661 901 Totals ........................ 2,772 3,448 Retirement benefits are based upon a percentage (2.75% for FIPO, 2.25% for GESE effective October 4, 1991) for each service year of the average compensation earned over the highAst two years of membership service. Provision for additional benefits for longevity are available. Early retire- ment after twenty years of service is available. Benefits for disability and death are also provided under the plans. City employees are required to contribute 8.5% of their sal- ary to FIPO and 8% to GESE. Contributions from employees are recorded in the period the City makes payroll deductions from participants. The City is required to contribute such amounts as necessary on an actuarial basis to provide APO and GESE with assets sufficient to meet the benefits to be paid. Contributions to FIPO and GESE are authorized pursu- ant to City of Miami Code Sections 40.205 and 40.230, re- spectively. The City was involved in long-standing litigation, principally related to funding of the two plans, which was settled under an agreement approved by the City Commission on June 13, 1985 ("the Gates Settlement"). The major terms of the Gates Settlement are as follows: • Each of the two Boards of Trustees (Boards), in rts discretion, may have its own employees, administra- tor, attorneys, accountants, money managers, and other professionals. • The City's total annual contributions to FIPO arc GESE beginning with fiscal year 1984/85 are re quired to consist of • • Non -investment expenses • • Actuarial contributions for normal cost using the entry age method; a mechanism has been agreec upon to resolve possible disagreement on annua contributions by a third party •• Annual unfunded liability contributions based on schedule that requires $5,000,000 (or FIPO anc $6,400.000 to GESE, respectiveh', for 1984/85 increasing thereafter by approximately 5% per year. The total unfunded liability, including the ef- fect of certain plan improvements, was calculatec to be approximately $104,500,000 for FIPO as of January 1, 19833 and $109.000,000 for GESE as of October 1, 1982, estaolishing the basis for the contribution schedule. The respective unfunded li- ability balances are expected to increase annually for approximately the next 9 years, until the annual unfunded liability contribution by the City exceeds the accumulated interest on the unpaid balance The currently existing unfunded liability balances are scheduled to be eliminated by the year 2011 for APO and by the year 2007 for GESE. • Any increase in the unfunded liability of either F1PO or GESE ans:ng from lawful increases in benefits provid- ed by the City unilaterally shall be amortized in level annual installments over the shorter of (1) 30 years from the beginning of the fiscal year in which the change occurred, or (2) the period over which such benefit increase is expected to be paid. Any,increase or decrease in the unfunded liability resulting in changes in actuarial assumptions or changes in bene- fits resulting from collective bargaining shall be amor- tized in level installments over a period of 30 years from the beginning of the fiscal year in which the change occurred. • A Cost -of -Living Adjustment Fund (COLA Fund) was created with a designated amount of savings gener- ated by the tax qualification of FiPO and GESE, repre- senting employee contributions of 2% of salary. B. Fund.ng Status and Progress The amounts shown below as the "pension benefit obliga- tion" represent the standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of F1P0 and GESE on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among em- ployers. p_11 108 93-84 City of Miami, Florida Notes to Financial Statements The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to FIPO and GESE. The pension benefit obligation and the estimated actuarially determined employer contribution provided by the City were cal- culated by consuhing acivanes based on actuarial valuations for FIFO and GESE The more significant assumptions underlying the actuarial valuations are as follows. FIFO Assumed rate of return on investments ........... 7.75% per annum, compounded annually Salary Scale ....................................... Projected salary increases of 4.75% compounded annually, attributable to inflation, and additional projected salary increase up to 4 8% per year attributable to seniority/ ment. Retirement ......................... . . . ............ Probabilities of retiring ranging from 1 % at age 40. 3.5% at age 45, 50% at age 50, to 100% at age 55. GESE Assumed rate of return on investments ...... . .......... 8.0% per annum, compounded annually Salary Scale ....................................... 6.5% per annum, compounded annually Retirement Annual Rateof Age Retfrom•nt 55 .200 60 .100 65 .200 70 1.000 Following is the calculation of the unfunded (overfunded) pension benefit obligations (in thousands): FIPO GESE Total Voluation Date ........................... ....... . Oct. 1, 1992 Oct. 1, 1992 Pension benefit obligation: Retirees receiving benefits and terminated members ........... $232,100 $175,500 $407,600 Current employees: ' Accumulated member contributions ...................... 62,500 48,300 110,800 Employer —financed vested ................ . ..... . .. . . . 76,600 97,700 174.300 Employer —financed non -vested ........................ 86,900 17,300 104,200 Total ......................... ... ... ......... 458,100 338,800 796,900 Net assets available for benefits, at cost (market value is $492,900 for FIPO, $271,700 for GESE) .. . ........... . ... 455,900 224.500 680,400 Unfunded pension benefit obligation ... ................ $ 2,200 $1 14,300 $116,500 Z 93- 584 109 City of Miami, Florida (Votes to Financial Statements C. Actuarially Determined Contribution Requirements and Contributions Made Tre funding policy for 11I1rO and GESE provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are sutticient to maintain the actuarial soundness of the plans and to accumulate suff6ent assets to pay benefits when due. Significant actuarial assumptions used to compute the con- tribution requirements are the same as those used to com- pute the pension benefit obligations as descnbed in B above 1 12C, Contributions are determined using the entry age normal cost method with frozen unfunded actuarial accrued liability. Contributions toward the unfunded actuarial accrued liability are based on a level percentage amortization approach, with increasing scheduled payments through the year 2011 For the year ended September 30, 1992 the recommend- ed contribution rate was 22.6010 of participating payroll, or $16,070,006 (14.1% or $10.029,747 employer and 8.5%, exclusive of 2% contribution to the COLA Account, or $6,040,259 estimated for employees), based upon an actuarial valuation performed as of October 1, 1990. The coninbution requitement consists of $10,072,693 for the normal cost and ;5,997,313 for the amortization of the un- funded actuarial accrued liability. Contributions (excluding contributions to the COLA Account) made to FIPO pertain- ing to the year ended September 30, 1992 were approxi- mately $16,145,000. GESE GESE contributions are determined using the entry age nor- mal cost method with frozen actuarial accrued liability Con- tributions toward the unfunded actuarial accrued liability are based on a series of increasing scheduled amortization pay- ments through the year 2007. For the year ended September 30, 1992, contributions to- taling $13,992.191 ($9,317.072-employer and $4,675,119-employee) were accrued in accordance with actuarially determined contribution requirements, based on an actuarial valuation performed as of October 1. 1990. These contributions consisted of $5,438,773 for the normal cost and $8,553,418 for the amonization of the unfunded actuarial accrued liability. Contributions repre- sented 24.5% of the covered payroll (employer-16.5%; employees 6%, exclusive of 2% for COLA). D. Trend Information Following is a schedule of analysis of funding progress (dollars in millions): (1) Net Assets Available for (2) Fiscal Year Benefits, at Pension Ended Cost (Excludes Benefit September 30 COLA Account) Obligation FIPO 1992 $455.9 $458.1 1991 419.4 402.6 1990 375.6 409.3 1989 339.4 385.9 1988 304.4 357.9 1987 283.6 335.7 GESE 1992 $224.5 $338.8 1991 213.1 327.0 1990 201.2 311.3 1989 188.0 302.2 1988 172.5 302.6 1987 165.8 286.0 (4) (Overfunded) Unfunded (3) Pension Percentage Benefit Funded Obligation (1)/(2) 12)-(1) (Overfunded) Unfunded Pension Bonoft Obligation Employer as a Contributions (5) Percentage age Annual of Covered Percentage Cavered Payroll of Covered Payroll (4)/(6) Payroll 99% $ 2.2 $67.0 3% 15% 104% (16.8) 71.4 (24)% 13% 92% 33.7 71.1 47% 13% 88% 46.5 71.6 65% 16% 85% 53.5 65.4 82% 17% 84% 52.1 63.3 82% 22% 66% $114.3 $56.4 203`Yo 17% 65% 113.9 61.5 185% 16% 65% 110.1 62.5 176% 21% 62% 114.2 59.9 191 % 19% 57% 130.1 59.3 219% 21% 58% 120.2 60.2 200% 23% P-13 - i I 110 93- 584 City of Miami, Florida Notes to Financial Statements Due to the long-standing litigation discussed in Section A of this Note, there had been, in prior years, significant differ- ences in the actuarially determined liabilities and funding re- quirements as calculated by the City and the two Trusts. Therefore, historical trend information regarding the pen- sion benefit obligation is not currently available. The City shall compile such information on a prospecirve basis. Se- lected 10 year historical financial information is provided in the separately issued financial statements for FIPO and GESE. The City maintains a Pension Administration trust fund (ex- pendable trust fund), which charges each department of the City and other governmental contributors their respec- tive share of estimated pension plan contributions. Substan- tially all amounts charged were to the General fund, and the remainder to various other funds, principally enterprise and internal service. The Pension Administration trust fund then disburses the actuarially determined required contributions to the pension trust funds. E. Department of Off-SU"t Parking The Department of Off -Street Parking (the "Department") Enterprise fund is the sponsor of a single employer defined benefit pension plan which covers all of the Department's eligible full-time employees including employees within the facilities managed by the Department. As of September 30, 1991, the Department's pension benefit obligation totaled approximately $1,850.331. The net assets available for plan benefits totaled approximately $1,937,938 as of Sep- tember 30, 1991. For the year ended September 30, 1992. actuarially determined employer contributions and overall contribution requirements were met under the plan, Refer to the Department's pension plan financial state- ments for additional information. F. Spezial Benefit Plans In addition to the deferred compensation plan described in Note 2(0), certain executive employees of the City are al- lowed to join the ICMA Retirement Trust's 401(a) plan, This defined contribution deferred compensation plan, which covers governmental employees throughout the country, is governed by a Board of Directors responsible for canying out the overall management of the organization, including investment administration and regulatory compliance. Membership for City of Miami employees is limited by the City Code to specific members of the City Clerk, City Man- ager, and City Attorney's offices; Department Directors, As- sistant Directors; and other executives. To participate in the plan a written trust agreement must ba executed, which re- quires the City to contribute 8% of the individual's eamable compensation, and the employee to contribute 10% of their salary. Participants may withdraw funds at retirement or up- on separation based on a variety of payout options. The fok lowing information relates to the City of Miami participation in this plan (in thousand): Total current year payroll for all employees .... . $ 161,071 Current year payroll for employees covered in u,e plan ..... 2,798 Current year employer contributions at an 8% rate 224 In addition to coverage under the FiPO Pension Plan, City of Miami fire fighters and police officers are members of sepa- rate non-contributory money purchase benefit plans estab- lished under the provisions of Florida Statutes. Chapters 175 and 185, respectively. These two plans are funded solely from the proceeds of certain excise taxes levied by the City imposed upon property and casualty insurance cov- erage within the City limits. This tax, which is collected from insurers by the State of Florida, is remitted directly by the City to the plans' Boards of Trusts. As long as the mini- mum benefit provisions of Statute Chapters 175/185 are met by FIPO, the City is entitled to levy such excise taxes solely for the use of the money purchase benefit plans. The City is currently under no obligation to make further contri- butions to the plans. The total of such excise taxes received from the State of Florida and remitted to the plans was ap- proximately $5,053,000 for the year ended September 30, 1992. benefits are allocated to the participants based upon their service during the year and the level of funding re- ceived during said year. Participants are fully vested after nine years of service. On termination of service, a partici- pant may elect one of three options: to receive a lump sum payment, or five substantially equal payments or not less than 10% the first year and the remainder any way over the next four years. The total must be paid out within five years. G. Post -Employment Health Care Benefits In add'rion to providing pension benefits, the City offers to its retirees comprehensive medical coverage and life bene- fits through the City's sell insured plan. This plan was estab- lished in accordance with Florida State Statute Section 112.0801 "Group insurance; Participation by Retired Em- ployees". Substantially all of the City's general employees and firefighters may become eligible for those benefits when they reach normal retirement age while working for the City. As indicated in Note 10(C), 1,076 of the 3,142 covered participants are retirees. Cost of the post -employ- ment health benefits, funded on a pay as you go basis, ap- proximated S4.3 million. A-ly 111 93- 584 1 City of Miami, Florida Notes to Financial Statements 13. INTERFUND TRANSFERS A summary of interfund transfers by fund type for the fiscal year ending September 30, 1992, is as follows (in thousands): Transfers In spa�lal Debt Capital Internal Expendable General Revenue Service _Projects Enterprise Service Trust Total Transfers Out General ......... $ - $ 702 $ - $ - $12,443 $ 665 $1,989 $ 15,799 Special revenue ... 29,006 - 1,374 4,071 5,729 - - 40,180 Debt service ..... 4,329 1,055 51,415 358 - - - 57,157 Capital projects ... - - 906 5,447 479 - - 6,832 Enterprise ....... 2,536 - - _ 20 - - - 2,556 $35,871 $1,757 $53,695 $ 9,896 $18,651 $ 665 $1,989 $122,524 14. COMMITMENTS AND CONTINGENCIES Capital Improvement Program The City's capital improvement ordinance identified ongoing proposed Sources of Funding Amount and future projects totaling $283 million. Major emphasis is City placed on maintaining and expanding the City's.infrastruc- Bonds $197,870 ture. The greater effort is directed to public facilities, street .............................. Capital Improvement Funds ............. 52,049 improvement, park facilities, storm sewers, and sanitary --- 249,919 sewers. The community redevelopment projects are de- signed to assist in neighborhood revitalization and the ex- Non -City pansion of the City's economic base. A functional distribu- Federal Grants .... . .................. 22,647 tion of the capital improvement ordinance and funding State Grants ......................... 7,717 sources, excluding projects financed by DOSP and MSEA Other Revenue Sources ................ 2,560 follows (in thousands): 32,924 Totai Funding ............ . ........... $282,843 Functional Category Amount Parks ................................. $ 40,169 , General Government .................... 58,859 Sanitary Sewers ........................ 9,049 Street Improvements .................... 12,755 Parking Facilities ............ ........ . .. 50 Community Development ................ 22,223 Marinas ............................... 18,440 Housing.............................. 20,697 Storm Sewers .......................... 30,481 Stadiums .............................. 19,105 Fire .................................. 12,899 Police... ........................... 15,579 Exhibition Centers ....................... 8,506 Economic Development .................. 5,616 Solid Waste ........................... 4,257 Mass Transit ........................... 4,158 Total Capital Improvement Program ...... $282,843 0 C) � 5 93- 584 City of Miami, Florida Notes to Financial Statements During fiscal year 1992, the City's Department of Public Works was monitoring 109 construction projects in pro- gress, or awaiting final approval, with budgets totaling ap- proximately $98 million in costs. The most significant of these public works projects were: • Neighborhood Parks Program —Over 40 parks are being improved and renovated throughout the City at a total cost in excess of $22 million. Funding for the program is provided by a $6.7 million loan proceeds from the Sunshine State Governmental Financing Commission, $3.0 million in City of Miami Guaran- teed Entitlement Bonds, $3 million loan proceeds from the Florida League of Cities and other discre- tionary City funds. • Bayfront Park Redevelopment —A $20 million down- town waterfront park redevelopment project. Major funding sources include $6.6 million in federal grants, $4.4 million in Sunshine State Governmental Financing Commission loan proce�ids, S3.2 million from the New Port Bridge land sale, $2.0 million in private sector contributions, and $1.3 million direct appropriations from the State of Florida. Southeast Overtown/Parfc West The Southeast Overtown/Park West redevelopment pro- gram entails the redevelopment of 240 acres of prime real estate, adjacent to the central business district, for new res- idential and commercial activity. The general redevelop- ment 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 office and commercial space. The City has been delegated limited redevelopment powers for the im- plementation of the redevelopment plan. Puiblic sector in- volvement will focus on land acquisition, resident relocation, demolition, project marketing, infrastructure improvements and construction and, in some instances, the provision of "gap" financing. It is estimated that private investment will exceed S1.0 billion during the next 20 years. Phase I devel- opment started in the fall of 1988 with an initial 860 units. Public infrastructure, including utilities, is being constructed simultaneously with private development. Total public in- vestment in Phase I exceeds S58 million of which approxi- mately $21.1 million is included in the City's capital im- provement ordinance. New private construction in the amount of 5200 million is planned over the next five years for a total of 1.100 residential units and 250,000 square feet of office and commercial space. Miami Sports and Exhibition Authority Construction was completed in 1988 on the Miami Arena ("Arena"), a sports/eNliibidon facility seating approximatety 15,600. Under the term:; of the Miami Arena Construction Funding agreement between MSFA and the private devel- oper ("Decoma"), funding for the construction costs of ap- proximately $48,060,000 was provided by proceeds from the $38 million special obligation bonds issued by MSEA, an initial contribution of $4.7 million from MSEA, and a con- tribution of approximately $7.1 million from Decoma. The Arena was constructed on land leased from the City pursuant to a Land Lease Agreement between the City, MSEA and Decoma for an initial term of 52 years with the sole option of the City to renew, upon request of MSEA, for any increment of years up to 47 years. at an annual rental of $300,000 for the first 30 years, subject to market adjust- ment thereafter. Under the terms of the Miami Arena Con- tract (the "Contract"), the operations of the Arena shall be managed by Decoma, or designee ("Operator"), for a term of 32 years plus tvm ten-year renewal options. The contract calls for a seat charge of $.75 to $1.00 (based on ticket price) with the exception of Miami Heat events where a $.75 charge is collected regardless of ticket price. The seat charge for Miami Heat events is deducted from rental pay- ments under the Miami Heat contract. The allocation of the first $.75 of seat charge collected and of the net operating income is as follows: Not Operating Income Operator MSEA Up to $1,750,000................ 57.5% 42.5% $1,750,000 to $3.500,000 ....... 45.0 55.0 Over $3,500,000 ................ 40.0 60.0 Seat filar charge Up to $1,350,000................ 75.0% 25.0°% Over S1.350,000 ................ 50.0% 50.0% All additional seat charges (amounts in excess of $.75 per ticket) are hold on deposit until the end of the fiscal year and then distrbuted as seat charges only to the extent such amounts are not otherwise applied to reduce operating losses, repay Decoma and MSEA any amounts paid in re- spect of adjusted operating expenses as required by the contract, pay amounts due the Maintenance Account, pay amounts due to the Replacement Account, or pay variable operating payments. Operating deficits are to be funded by amounts held in MSEA's maintenance fund, which held approximately S 1.2 million at September 30, 1992, and by amounts provided by future Arena operations to be deposited in a replacement fund maintained by the Operator, which is intended to pro- vide for capital improvements. Decoma will provide 14% of operating losses, after first exhausting reserves, in years when the operating revenues are less than operating ex- penses. Arena operating expenses shall include $50,000 each year, inereaswd rn g11150,000 each third year, as a contribution out of operating income to the replacement fund. Decoma wi0 incur liability for operating losses result- ing from operating expenses more than 115% of approved ,D -76 112 93- 584 City of Miami, Florida (Votes to Financial Statements budget for such year. MSEA will review annual Arena oper- ating budgegs and will review pro forma operating state- ments. As more specifically described in Exhibit D to the contract, in the event of an operator default, MSEA is required to pay a termination fee to the Operator equal to the greater of (a) the Operator's private capital contnbuted to the project or (b) an amount equal to 7.5 times the Operator's best in- come year. Subject to the limitations in Exhibit D of the con- tract, such termination fee may be reduced based upon ei- ther the timing of the termination by MSEA or the seventy of the Operator default. MSEA's allocated portion of seat use revenues was approx- imately $217,166, The seat use revenues have been re- corded in the Miami Sports and Exhibition Autnouty special revenue fund. Under an agreement dated May 20, 1988 between MSEA and the Miami Heat Limited Partnership (the "Heat"), a major tenant of the Arena, MSEA has agreed to reimburse the Heat for certain excess insurance and utilities expenses paid to the Operator. Such reimbursements shall be limited, in any fiscal year, to the amount of net revenues from Arena ooerations allocable to MSEA plus MSEA's allocated share of seat use revenues. No such reimbursements were re- quired for as of September 30, 1992. During the current year the Heat and the Operator settled litigation reiated to the license agreement. The terms of the settlement provide for a contribution from the MSEA to the Operator to cover portions of Excess Selected Expenses. Such Excess Selected Expenses during 1992 amounted to $181,500. MSEA has made a continued commhment of $62.920 increasing by 4% each year, to assurne partial payment of future Excess Selected Expenses, the remain- der of which would drop to the bottom line, it any. © r& O Enterprise Fund The Maurice Gusman Cultural Center and the Olympia Building, whose operations are accounted for under the G & 0 Enterprise Fund, incurred operating losses before depre- ciation for fiscal years 1992 and 1991 of $448,485 and $169,755, respectively. The City has in pnor years funded the operating losses net of interest eamings. During recent years decreasing Olyrn- pia Building rental income has resulted in increasing operat- ing losses. The viability of this enterprise fund is dependent upon increased public support for the Gusman Cultural Center, a reduction in operating losses • for the Olympia Building and continued limited financial support by the City. The DOSP, the managing entity of the G&O Ente9xise Fund, has advanced working capital to the G&O fund in an amount equal to the operating losses incurred by such fund during fiscal year 1992. The City has agreed to reimburse DOSP for G&0's accumulated operating deficits by ex- tending DOSP's lease on certain parking lots owned by the '17 City. If at the termination of such lease agreement a balance remains unpaid in the accumulated deficit account the City would fund the balance at that time. Utigation There are a number of claims and lawsuits outstanding against the City, rinsing pnncipalty from personal injunes in- curred on City property, for which liability of $68,580,000, including an actuarially detarmired portion for claims in- curred but not reported, was recorded in General Long - Term Debt as of September 30, 1992, as described in Note 10. Miami Marine Exposition, Inc. filed suit in the United States Distnct Court claiming unlawful rejection of its request for proposal relating to development of Watson Island and is requesting damages. The City's motion to dismiss or for summary judgement was denied and the case is set for trial. The ultimate outcome of this claim cannot presently be de- termined. However, in the City anomey's opinion, it is likely the City may prevail on the merits. 15, HURRICANE ANDREW On August 24, 1992, Hurricane Andrew struck Dade Coun- ty causing substantial damage. As a result of the disaster Dade County was declared a Federal Disaster Area with the Federal Government providing 100% reimbursement for qualifying expenditures. Damage to City property is estimat- ed at S17.5 million. The values of the City's fixed assets have not been reduced by the amount of the estimated damage since the City believes that the various sources of recovery will at a minimum restore all property back to pre - disaster condition. In addition, as of the date of this report, cost of debris removal, public safety, emergency and loss of revenues in the City approximated 534.2 million. At Sep- tember 30, 1992, 513.4 million in operational and capital expenses had been declared eligible for reimbursement from the Federal Emergency Management Agency (FEMA), of which $5 million was received as of September 30, 1992. The estimates for the total cost resulting from the disaster will approximate $54 million and will substantially be reimbursed by FEMA, insurance and the State of Flon- da's Hurricane Andrew Recovery and Rebuilding Trust Fund. The City does not expect a reduction in the property tax base since damage to the taxable property within the City has not been significant. IS. SUBSEQUENT EVENTS On October 8, 1992. the City issued $30,000,000 in Tax Anticipation Notes, Series 1992, to pay for appropriations made by the City for the fiscal year ending September 30, 1993, in anticipation of the receipts of ad valorem taxes to be collected during the fiscal year The notes were issued at the rate of 3.25%. General Fund ad valorem taxes are being 113 93- 584 City of Miami, Florida Notes to Financial Statements transferred in the new fiscal year to a "Note FLnd" until bal- General Obligation Refunding Bonds, Series 1987 maturing ance of the "Note Fund" equals the principal and interest after April 1, 1999. The bonds were issued at rates ranging due on the notes at maturty on September 28, 1993. from 4.0% to 6% maturing through 2010. On December 10, 1992, the City issued $70,100,000 In March 1993, the City's Department of Off Street Parking General Obligation Refunding Bonds, Senes 1992, for the issued $ 1 5,515,000 Parting System Revenue Refunding purpose of partially refunding the City's $22,000,000 Gen- Bonds, Series 1993A, for the purpose of refunding the out- eral Obligation Bonds, dated June 1, 1986 maturing after standing Parking System Revenue Bonds, Series 1986, to June 1, 1996, the $38,355,000 General Obligation Re- fund a Reserve Account, and to pay the cost of issuance of funding Bonds, Series 1986 maturing after June 1, 1996, tho new bonds. The bonds were issued at rates ranging the $6,375,000 General Obligation Bonds, Series 1986A from 2.70% to 5.70% maturing through 2009. maturing after October 1, 1996 and the $22,605,000 r 114 APPENDIX D [Proposed Form of Opinion of Co -Note counsel] , 1992 The City of Miami, Florida City Ball 3500 Pan American Drive Miami, Florida 33131 Re: $30,000,900 The City of Miami, Florida Tax Anticipation Notes, Series 1992 Ladies and Gentlemen: We have acted as Co -Note Counsel in connection with the issuance and sale by The City of Miami, Florida (the "Issuer"), of its $30,000,000 Tax Anticipation Notes, Series 199 (the "Notes"). All terms used herein in capitalized form and not otherwise defined herein shall have the same ;Meaning as ascribed to them under Resolution No. adopted by the Issuer on September 195 (the "Resolution"). The Notes are dated October _, 199' , have been issued in fully registered form and bear interest from the date thereof at the rates determined in accordance with the terms of the Resolution. The Notes finally mature on September _, 199 The Notes are not subject to redemption prior to maturity. The Notes have been issued for the purpose of providing funds to pay certain appropriations made by the City Commission of the Issuer for the fiscal year of the Issuer ending September 30, 19F (the 'Fiscal Year"). Pursuant to the Resolution, the principal of and all interest on the Notes shall be payable solely from and secured by a lien upon and pledge of the Issuer's ad valorem taxes collected during the Fiscal Year other than ad valorem taxes approved by referendum and levied specifically to pay debt service on bonds or other obligations issued by the Issuer (the "Pledged Funds"). The Notes and the obligations evidenced thereby do not constitute a general liability or obligation of the Issuer, Dade County, Florida or the State of Florida or any political subdivision or agency thereof, or a pledge of the faith and credit or taxing power of the Issuer, Dade County, Florida, the State of Florida or any political subdivision thereof'. In no event shall the Notes or the interest thereon be payable out of any funds or property other than those of the Issuer and then only to the extent of the Pledged Funds in the manner expressly provided in the Resolution. The description'of the Notes in this opinion and other statement concerning the terms and conditions of the issuance of the Notes do not purport to set forth all of the terms and conditions of the D— 80 116 93- 584 Notes or of any other document relating to the issuance of the Notes, but are intended only to identify the Notes and to describe briefly certain features thereof. This opinion shall not be deemed or treated as an offering circular, prospectus or official statement, and is not intended in any way to be a disclosure document used In connection with the sale or delivery of the Notes. In rendering the opinions set forth below, we have examined a certified copy of the Resolution and are relying on the covenants and agreements of the Issuer contained therein, including, without limitation, the covenant of the Issuer to comply with the applicable requirements contained in Section 103 and Sections 141 through 150 of the Internal Revenue Code of 1986, as amended, and the applicable regulations thereunder (the "Code"), to the extent necessary to preserve the exclusion of interest on the Notes from gross income for federal Income tax purposes. We have also examined certified copies of the proceedings of the Issuer, and other information submitted to us relative to the issuance and sale by the Issuer of the Notes. In addition, we have examined and relied upon the opinion of A. Quinn Jones, 111, City Attorney to the Issuer, and such other agreements, certificates, documents and opinions, including certificates and representations of public officials and other officers and representatives of the various parties participating in this transaction, as we have deemed relevant and necessary in connection with the opinions expressed below. We have not undertaken an independent audit, examination, investigation or inspection of the matters described or' contained in such agreements, documents, certificates, representations and opinions, and have relied solely on the facts, estimates and circumstances described and set forth therein. In our examination of the foregoing, we have assumed the genuineness of signatures in all documents and instruments, the authenticity of documents submitted as originals and the conformity to originals of documents submitted rs copies. The opinions set forth below are expressly limited to, and we opine only with respect to, the laws of the State of Florida and the federal income tax laws of the United States of America. Based upon and subject to the foregoing, we are of the opinion that: (I) The Notes are valid and legally binding special obligations of the Issuer, payable solely from and secured by a lien on and pledge of the Pledged Funds, in the manner and to the extent provided in the Resolution. ., (i1) Under existing law, the interest on the Notes (including ;my original issue discount) is excluded from gross income for federal income tax purposes and will not be treated as an item of tax preference for purposes of the federal alternative minimum tax imposed on Individuals and corporations; however, it should be noted that with respect to corporations (as defined for federal income tax purposes), such interest will be taken Into account in determining adjusted current earnings for purposes of computing the alternative minimum tax imposed on such corporations. I The opinions expressed in the preceding sentence are, conditioned upon compliance by the Issuer with its covenants relating to certain arbitrage rebate and other tax requirements contained in Section 103 and Sections 141 through 150 of the Code (including, without limitation, its covenants not to use any proceeds of the Notes in a manner that would cause the Notes to be classified as private activity bonds under Section 141(b) of the Code and to comply with the ' D--Si 117 93- 584 requirements conta,,,ed in Section 148 of the Code), to the extent necessary to preserve the exclusion of interest on the Notes from gross income for federal income tax purposes. Failure of the Issuer to comply with such requirements could cause the interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. Other provisions of the Code may give rise to adverse federal income tax consequences to particular holders of the Notes. The scope of this opinion Is limited to matters addressed above and no opinion Is expressed hereby regarding other federal income tax consequences that may arise due to ownership of the Notes. (iiii) Under existing law, the Notes .are exempt from all present intangible personal property taxes imposed by the State of Florida. The Notes and the income thereon, however, are subject to Florida 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 as defined therein. Our opinions expressed herein are predicated upon present laws and interpretations thereof. We assume no affirmative obligation with respect to any change of circumstances or law that may adversely affect the exclusion from gross income of Interest on the Notes for federal income tar purposes after the date hereof. All opinions as to legal obligations of the Issuer set forth above are subject to and limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws, in each case relating to or affecting the enforcement of creditors' rights, and (b) applicable laws or equitable principles that may affect remedies or injunctive or other equitable relief. The scope of our engagement in relation to the Issuance of the Notes has been limited solely to the examination of facts and law incident to rendering the opinions expressed herein. We have not been engaged to confirm or verify and therefore express no opinion as to the accuracy, completeness, fairness or sufficiency of the Official Statement or any exhibits or appendices thereto or any other offering material relating to the Notes, (except as otherwise set forth in our opinion to the underwriters dated as of the date hereof.] In addition, we have not been engaged to and therefore express np opinion as to the compliance by the Issuer or the underwriters with any federal or state statute, regulation or ruling with respect to the sale or distribution of the Notes. Our opinions expressed herein are predicated upon present laws, facts and circumstances, and we assume no affirmative obligation to update the opinions expressed herein if such laws, facts or circumstances change after the date hereof. Sincerely yours, D— �. 118 93- 584 CITY OF Pr11AP,11. FLORIDA I INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members DATE SEP 1 71993 FILE of City Commission SUBJECT Agenda Item - FROM REFERENCES' Cesa io City ger ENCLOSURES RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution with attachments, authorizing the issuance of an amount not to exceed $30,000,000 in aggregate principal amount of the City of Miami, Florida, Tax Anticipation Notes, Series 1993, for the purpose of meeting certain of the City's cash flow requirements for the fiscal year ending September 30, 1994; fixing certain details of said notes including approving the form thereof; providing for the rights and security of all note holders pursuant to this resolution; appointing a paying agent for the notes; authorizing the City Manager or assistant City Manager to take any action necessary to qualify the notes for deposit with the depository trust company; directing and authorizing sale of the notes by public bid and directing publication of a summary notice of sale of said notes and establishing the date and time for such sale and the procedure for awarding said notes; approving the form and distribution to prospective purchasers of a preliminary official statement; approving the form and execution of an official statement; authorizing the City Manager or Assistant City Manager on behalf of the City to determine the final details of the notes within the parameters established by this resolution; authorizing requisite actions and the execution of documents by the Mayor or Vice Mayor, City Manager or Assistant City Manager, and the City Attorney, as t:o form, consistent with such final details; authorizing other officers of the City to take all other actions necessary in connection with the issuance of the notes; delegating to the City Manager or Assistant City Manager the authority to exercise the option of effectuating the sale of the notes by negotiated sale; making certain other covenants and agreements in connection with the issuance of said notes; and providing severability and an effective date. BACKGROUND j The City will begin collecting property taxes for fiscal year 1993-94 at the end of November 1993. A cash flow gap I approximating $15 million is expected to occur in October and November attributable to normal operating expenditures, which will be covered by the issuance of these notes. The additional s $15 million in note recommended to be issued will prepay the pension contributions the City is committed to make on January 1st, April 1st and July 1st of 1994. These installments carry an interest rate of 7.75 and 8 6 . The prepayment of these contributions in October 1993 will avoid the payment of such interest to the Pension Funds. Instead, the City will pay approximately 3% interest on the tax anticipation notes, saving over $250,000 in interest to the City. These Tax Anticipation Notes will be paid with fiscal year 1994 general fund property taxes. The proposed 1994 budget estimates these taxes at $94,891,700, net of a 5% reserve for early payment discounts and uncollectables. Although these budgeted revenues are based on a preliminary taxroll, the majority of these taxes are expected to be collected. Some of the tables in the attached preliminary official statement will be updated with 1992 and 1993 information prior to their final printing. The Department of Finance hereby recommends the issuance of Tax Anticipation Notes in October, 1993 in an amount not to exceed $30 million to bridge the cash flow gap at the beginning of fiscal year 1993-94, and to prepay the pension contributions. 93- 534