HomeMy WebLinkAboutR-91-07250
J-91-765
9/25/91
RESOLUTION NO.
y J _- 7' 2 5
A RESOLUTION APPROVING THE PARTICIPATION BY
THE CITY OF MIAMI IN THE FLORIDA LEAGUE OF
CITIES FIRST MUNICIPAL LOAN COUNCIL'S CAPITAL
FINANCING ASSISTANCE PROGRAM.
WHEREAS, the City of Miami, Florida municipality, has
determined that there is a need to obtain low-cost funds to
refinance certain outstanding debt of the City; and
WHEREAS, the First Municipal Loan Council of the Florida
League of Cities has oreated the Capital Financing Assistance
Program to assist municipalities an counties in the State of
Florida in their tax-exempt financing needs through a program
which, due to its economies of scale, enables municipalities and
counties to obtain needed funds at lower costs; and
WHEREAS, the City wishes to utilize this program in order to
obtain such needed funds at lower costs and in order to provide
funds necessary to refinance certain debt on a timely basis; and
WHEREAS, the City Commission of the City of Miami, Florida
desires to participate in such a program;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City's finance director and his designee(s)
are hereby authorized to undertake the structuring of a
refinancing of a certificate of participation which matures on
September 1, 1992 in the amount of $5,240,000 through the Capital
Financing Assistance Program of the Florida League of Cities
securing such debt through a covenant by the City to budget and
appropriate for the repayment of such debt.
Section 2. Further authorization. terms_ rAdA ntinn
matters, and covenants shall be determined and fixed by further
resolution of the City with respect to this refinancing.
CITY COMMION
MEETING OF
OCT 3 1991
91- 725
P YSIYY�IIP�
e7-91-765
9/25/91
RESOLUTION NO.
A RESOLUTION APPROVING THE PARTICIPATION BY
THE CITY OF MIAMI IN THE FLORIDA LEAGUE OF
CITIES FIRST MUNICIPAL LOAN COUNCIL'S CAPITAL
FINANCING ASSISTANCE PROGRAM.
WHEREAS, the City of Miami, Florida municipality, has
determined that there is a need to obtain low-cost funds to
refinance certain outstanding debt of the City; and
WHEREAS, the First Municipal Loan Council of the Florida
League of Cities has created the Capital Financing Assistance
Program to assist municipalities an counties in the State of
Florida in their tax-exempt financing needs through a program
which, due to its economies of scale, enables municipalities and
counties to obtain needed funds at lower costs; and
WHEREAS, the City wishes to utilize this program in order to
obtain such needed funds at lower costs and in order to provide
funds necessary to refinance certain debt on a timely basis; and
WHEREAS, the City Commission of the City of Miami, Florida
desires to participate in such a program;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City's finance director and his designee(s)
are hereby authorized to undertake the structuring of a
refinancing of a certificate of participation which matures on
September 1, 1992 in the amount of $5,240,000 through the Capital
Financing Assistance Program of the Florida League of Cities
securing such debt through a covenant by the City to budget and
appropriate for the repayment of such debt.
Section 2. Further authorization, terms, redemption
matters, and covenants shall be determined and fixed by further
resolution of the City with respect to this refinancing.
0 CT 3 1991
91- 725
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A6"\
Section 3. The law firm of Foley & Lardner is hereby
authorized to act as Bond Counsel under the auspices of the
Capital Financing Assistance Program, and SunTrust Public Finance
shall act as the Placement Agent on behalf of the City under the
guidelines administered by the First Municipal Loan Council of
the Florida League of Cities.
Section 4. If any one or more of the covenants, agreements
or provisions of this Resolution shall be held oontrary to any
express provision of law, or shall for any reason whatsoever be
held invalid, then such covenants, agreements or provisions shall
be null and void and shall be deemed separable from the other
provisions of this Resolution.
Section 5. This Resolution shall take effect immediately
upon its adoption.
PASSED AND ADOPTED this 3rd day of 1991.
AT S XAVTE L. SUARE , MAYOR
M TY HIRAI
City Clerk
PREPARED AND APPROVED BY:
RAFAEL . DIAZ
Chief Assistant City ttorney
APPROVED AS TO FORM AND
CORRECTNESS:
A. QU JQKVS, III
Acting Cilp
ttorney
ROD/pb/M2828
-2- 91-- 725
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members DITE r -r
of the C'ty Commission 2 5 1991
SUBJECT
Agenda Item
ROM RE-EBEtdCES
Cesar R. Odio
City Manager ENC,,OSURES
It is respectfully recommended that the attached resolution
approving the participation by the City of Miami in the Florida
League of Cities First Municipal Loan Council's Capital Financing
Assistance Program, be approved.
The City of Miami Commission approved an Interlocal Agreement
with the Florida League of Cities enabling the City to take
advantage of the attractive terms offered by the League's First
Municipal Loan Council.
The attached resolution refinances the final principal repayment
in the amount of $5,240,000 for the 1986 Certificate of
Participation. This transaction will reduce the pressure on the
General fund budget to a more manageable annual debt service of
$1,287,000 for the next four years with the fifth year payment to
be paid out of the debt service reserve. Because of the current
attractive market rates the refunding bonds, including fees for
the letter of credit, to be provided by Sun Trust, will be less
than 7%.
The original Certificates of Participation were issued in the
amount of $16,175,000 with an interest rate of 6.4%, plus letter
of credit fees, with the purpose of financing the acquisition of
equipment.
EF