HomeMy WebLinkAboutR-92-0562J-92-547
9/10/92
RESOLUTION NO. 9 2 562
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
TAKE THE NECESSARY AND APPROPRIATE ACTIONS TO
EFFECT THE TOTAL OR PARTIAL REFUNDING OF THE
OUTSTANDING PORTION OF THE CITY'S $22,0001000
GENERAL OBLIGATION BONDS, DATED JUNE 1, 1986,
$38,355,000 GENERAL OBLIGATION REFUNDING
BONDS, SERIES 1986, $6,375,000 GENERAL
OBLIGATION BONDS, SERIES 1986A, AND
$22,605,000 GENERAL OBLIGATION BONDS,
SERIES 1987, PROVIDING THAT SAID REFUNDING
SHALL RESULT IN A MONETARY SAVINGS TO THE
CITY IN AN AMOUNT NOT LESS THAN $1,000,000;
AUTHORIZING THE CITY MANAGER TO PREPARE THE
DOCUMENTATION NECESSARY FOR THE ISSUANCE OF
THE CITY'S GENERAL OBLIGATION REFUNDING
BONDS, SERIES 1992, IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $90,000,000; FURTHER
APPOINTING UNDERWRITERS AS DESIGNATED HEREIN.
WHEREAS, in 1986 and 1987, the City of Miami issued
$22,000,000 General Obligations Bonds, dated June 1, 1986,
$38,355,000 General Obligation Refunding Bonds, Series 1986,
$6,375,000 General Obligation Bonds Series, 1986A, and
$22,605,000 General Obligation Bonds, Series 1987; and
WHEREAS, current interest rate levels are much lower than
those in effect in 1986 and 1987; and
WHEREAS, refunding of the 1986 and 1987 issues specified
hereinabove are expected to produce significant debt service
savings; and
CITY COMMISSION
KEETING OF
SEP 1 0 1992
Resolution i�la.
9 2 - 5 6-2
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WHEREAS, certain underwriting firms were selected and
appointed to provide said underwriting services pursuant to
Resolution No. 91-885, adopted December 5, 1991;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorized to take
the necessary and appropriate actions to effect the total or
partial refunding of the outstanding portion of the City's
$22,000,000 General Obligation Bonds, dated June 1, 1986,
$38,355,000 General Obligation Refunding Bonds, Series 1986,
$6,375,000 General Obligation Bonds, Series 1986A, and
$22,605,000 General Obligation Bonds, Series 1987, providing that
said refunding shall result in a monetary savings to the City in
an amount not less than $1,000,000, and to prepare the
documentation necessary for the issuance of the City's General
Obligation Refunding Bonds, Series 1992, in an aggregate
principal amount not to exceed $90,000,000.
Section 3. The underwriters selected and appointed in
Group A, pursuant to Resolution No. 91-885, adopted December 5,
1991, which are composed of the firms of Goldman, Sachs & Co.,
M. R. Beal & Company, AIBC Investment Corporation, Barnett
Capital Markets Group, and Smith, Mitchell & Associates, are
hereby appointed as underwriters for the issuance of the General
Obligations Refunding Bonds, Series 1992.
,.
-2- 92562
effective
day of Se tember __► 1992-
JO XAVIER L. SUAREZ► MAYOR
PREPARED AND APPROVED BY:
RAFA L DIAZ________
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members
of the City Commission
FROM : Cesar H • Od
City Manage
DATE : SEP - 2 1992 FILE :
SUBJECT : Issuance of Bonds to
Refund Outstanding
General Obligation
REFERENCES : Bonds
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to take the
necessary and appropriate actions to effect the total or partial
refunding of the outstanding portion of the City's $22,000,000
General Obligation Bonds, dated June 1, 1986, the $38,355,000
General Obligation Refunding Bonds, Series 1986, the $6,375,000
General Obligation Bonds, Series 1986A and the $22,605,000
General Obligation Bonds, Series 1987, and authorizing the City
Manager to prepare the documentation necessary for the issuance
of the City's General Obligation Refunding Bonds, Series 1992, in
an aggregate principal amount not to exceed $90,000,000, further
appointing underwriters as designated herein.
The City issued in 1986 and 1987 the $22,000,000 General
Obligation Bonds, the $38,355,000 General Obligation Refunding
Bonds, Series 1986, the $6,375,000 General Obligation Bonds,
Series 1986A and the $22,605,000 General Obligation Bonds, Series
1987, with average interest rates of 7.636, 7.564, 7.10 and
7.24%, respectively. Refunding bonds under the current low
interest rate levels would pay in the range of 5.8% - 6.0%. It
is estimated that refunding the bonds designated above would save
in excess of $1.9 million in debt service costs. The new bonds
will not extend the life of the original bonds.
The final size of the issue, which will not exceed $90 million,
will depend on the structure at time of sale that will produce
the largest debt service savings to the City.
The City Commission by resolution 91-885 of December 1991,
appointed a rotating list of underwriting teams. The attached
resolution appoints the team composed by the firms of Goldman,
Sachs & Co.; M. R. Beal & Company; AIBC Investment Corporation;
Barnett Capital Markets Group; and Smith Mitchell & Associates,
designated as Group A by such resolution.
The Finance Department recommends the adoption of the enclosed
resolution to initiate the preparation of documents to effect the
refunding. A final resolution approving details related to this
bond sale will be presented to the City Commission prior to the
sale. 92 562
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