HomeMy WebLinkAboutR-92-0310J-92-342
4/24/92
92
RESOLUTION NO, _ 310
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
DISBURSE TO THE FEDERAL GOVERNMENT $181,300,
REPRESENTING NET REBATE REQUIREMENT, AS
REQUIRED BY THE INTERNAL REVENUE CODE OF
1986, FOR CITY OF MIAMI BONDS ISSUED IN 1986
SUBSEQUENT TO THE ADOPTION OF THE 1986 TAX
REFORM ACT.
WHEREAS, the Internal Revenue Code of 1986, as amended,
requires local governments to rebate to the Federal Government
earnings on bond proceeds exceeding the interest paid by the
local government on such bond proceeds; and
WHEREAS, proceeds of the City's $6,375,000 General
Obligation Bonds, Series 1986A, have accumulated earnings subject
to rebate requirements in the amount of $143,796; and
WHEREAS, proceeds of the City's $4,290,000 Special
Obligation Bonds, Series 1986A, have accumulated earnings subject
to rebate requirements in the amount of $64,435; and
WHEREAS, ninety percent (90%) of the above rebate
requirement amounts, less a $3,000 computation date credit/pefsissue,
payable to the Internal Revenue Service;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
disburse to the Internal Revenue Service a net rebate requirement
in the amount of $126,400, related to the City's $6,375,000
CITY COMMISSION
MEETING OF
MAY 1 4 192
Resolution No.
92- 310
General Obligation Bonds, Series
Internal Revenue Code of 1986,
1986A, as required by the
from the following available
funds; $46,700 from project 369002, and $79,700 from project
Section 2. The City Manager is hereby authorized to disburse
to the Internal Revenue Service a net rebate requirement in the
amount of $54,900, related to the City's $4,290,000 Special
Obligation Bonds, Series 1986A, as required by the Internal
Revenue Code of 1986, from funds available in project 377002.
Section 3. This resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 14th day of
T
MA.'XY HIRAI
CITY CLERK
BUDGET REVIEW:
MANOHAR PURANA
ASSISTANT CITY MANAGER
FINANCE REVIEW:
CAR E. GARCIA
FIN CE DIRECTOR
APPROVED AS TO FORM AND CORRECTNESS:
A
C1T1
, 1992.
XAVIE . SU'
M Y 0 R
92- 310
CITY OF MIAMI, FLORIDA
21
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members DATE APR 2 J 4992 FILE
of the City Commission 7
SUBJECT
Agenda Item for
City Commission Meeting
FROM REFERENCESCesar H. Odio
City Manager ENCLOSURES
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to disburse to
the Federal Government $181,300 representing net rebate
requirements as required by the Internal Revenue Code of 1986,
related to City of Miami bonds issued in 1986 subsequent to the
adoption of the 1986 Tax Reform Act.
The Tax Reform Act of 1986 requires municipal governments to
rebate to the Federal Government earnings on bond proceeds
exceeding the interest paid on such bonds. The City had two 1986
bond issues subsequent to the adoption of the Internal Revenue
Code of 1986, the $6,375,000 General Obligation Bonds, Series
1986A and the $4,290,000 Special Obligation Bonds Series 1986A.
Interest earnings on these bond proceeds has exceeded interest
paid by the City in the amount of $208,231, of which
approximately 9o% or $181,300 is the net rebate amount payable to
the Federal Government.
The Finance Department recommends the adoption of the enclosed
resolution authorizing the City Manager to disburse $181,300 to
the Internal Revenue Service in order to comply with its rules.
92- 310