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R-91-0449
RESOLUTION NO. 4 4 9 A RESOLUTION, INCLUDING EXHIBITS A AND B, OF THE CITY OF MIAMII FLORIDA, FIXING CERTAIN DETAILS CONCERNING THE ISSUANCE OF THE CITY'S $71000,000 SANITARY SEWER SYSTEM! BONDS AND $30000,000 FIRE FIGHTING, FIRE PREVENTION AND RESCUE FACILITIES BONDS; CONFIRMING THAT SUCH BONDS SHALL CONSTITUTE GENERAL OBLIGATIONS OF THE CITY; DIRECTING AND AUTHORIZING SALE OF THE BONDS BY PUBLIC BID AND DIRECTING PUBLICATION OF THE NOTICE OF THE SALE OF SAID BONDS AND ESTABLISHING THE DATE AND TIME POP, SUCH SALE; APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT PERTAINING TO SAID BONDS AND AUTHORIZING THE DISTRIBUTION THEREOF TO PROSPECTIVE PURCHASERS, AUTHORIZING ACTIONS AND EXECUTION OF DOCUMENTS BY OFFICIALS OF THE CITY; APPROVING THE USE OF BOND INSURANCE IF REQUESTED BY THE PURCHASER OR DETERMINED BY THE ISSUER TO BE DESIRABLE; PROVIDING AN EFFECTIVE DATE; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; AND PROVIDING SEVERABILITY AND EFFECTIVE DATE. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1.Authority. This Resolution' is enacted pursuant to Chapter 166, Florida Statutes,:,the Constitution,.of-the State of Florida, including,' but not limited to Article 'VII' Section 2 thereof, the Charter of the City of Miami Florida and other applicable provisions of law. SECTION 2. Findings and Determinations.` It is hereby ascertained, determined and declared that: A. Pursuant to Ordinance No. 9128, enacted on : July 10, 1980, and Ordinance No.n_ 10094, enacted oApril_ 10, 1986, and as supplemented and amended by Ordinance.,No. `9130, enacted on July 10, 1980, Ordinance No. 9977, enacted on April 11, 1985,-Ordinance No. 10291, enacted on.'July.9, 1987.. and Ordinance No. 10487, enacted on October .6,; '1988 and as supplemented by Resolution No. 80-740, adopted on October 9, 1980, Resolution No. 80-773, adopted on :October: 30" 1980, Resolution No. 86-175, adopted on March- 18, 1986,` Resolution No. 84-628, adopted on June 14, 1984,r Resolution No. 85-353, adopted on March 28, 1985, '-- Resolution No. 86-437, adopted on June 12, 1986, Resolution No. 88-1003, adopted on November 3, 1988 and Resolution No: 7 88-1043, adopted on November 3, 1988 (collectively-- 'the "Sanitary Sewer Bond Ordinances and Resolutions" the Issuier authorized the issuance of its $45,000,000 Sanitary Sewer System Bonds (the " Sanitary Sewer Bonds"), which issuance wad approved by the citizens of the Issuer through a referendum held on March 13, 1984. TM'° B. Pursuant to Ordinance No. 9296, enacted on. '';Ju,y J' 23,1981 as supplemented by Ordinance No. 9295, enacted O s July 23, 1981, as amended by ordinance No. 9404, enacted 7 April it 19821 Ordinance No. 9977., enacted. on April �. Ordinance No. �in 10291� enacted on July 9, 1987 and ordna 10487, enacted on October 6, 1988 and as supp).el�tleilt�d �a Resolution No. 81-1020, adopted on December �.� �gQ�. ' �<�� Resolution No. 81-766, adopted on 8epte;nbsr 10,fp Resolution No, w 81 923, adopted on NQvemb�� Resolution No. 82-304, adopted on April 1, ATTACHMENTS CONTAIN 4 � f 1- 449 RESOLUTION N0.9 A RESOLUTION, INCLUDING EXHIBITS A AND to OF THE CITY OF MIAMI, FLORIDA, FIXING CERTAIN DETAILS CONCERNING THE ISSUANCE OF THE CITY'S $7,000,000 SANITARY SEWER SYSTEM BONDS AND $31000,000 FIRE FIGHTING, FIRE PREVENTION AND RESCUE FACILITIES BONDS; CONFIRMING THAT SUCH BONDS SHALL CONSTITUTE GENERAL OBLIGATIONS OF THE CITY; DIRECTING AND AUTHORIZING SALE OF THE BONDS BY PUBLIC 91D AND DIRECTING PUBLICATION OF THE NOTICE OF THE SALE OF SAID BONDS AND ESTABLISHING THE DATE AND TIME FOR SUCH SALE; APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT PERTAINING TO SAID BONDS AND AUTHORIZING THE DISTRIBUTION THEREOF TO PROSPECTIVE PURCHASERS; AUTHORIZING ACTIONS AND EXECUTION OF DOCUMENTS BY OFFICIALS OF THE CITY; APPROVING THE USE OF BOND INSURANCE IF REQUESTED BY THE PURCHASER OR DETERMINED BY THE ISSUER TO BE DESIRABLE; PROVIDING AN EFFECTIVE DATE; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; AND PROVIDING SEVERABILITY AND EFFECTIVE DATE. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1. Authority. This Resolution is enacted pursuant to Chapter 166, Florida Statutes, the Constitution of the State of Florida, including,' but not limited to Article`VII' Section 2 thereof, the Charter ` of the City of Miami, Florida and other applicable provisions of law. SECTION 2. Findings and Determinations. It is hereby ascertained, determined and declared that: A. Pursuant to Ordinance No. 9128, enacted on July 10, 1980, and Ordinance No. 10094, enacted on April 10 1986, and as"supplemented and amended by Ordinance No. 9130, enacted on July 10,. 1980, Ordinance No. 9977, enacted on April 11, 1985, Ordinance No. 10291, enacted on July.9, 1987" { and Ordinance No. 10487, enacted',on October 61-1988 and as supplemented by Resolution No. 80-740, adopted on October, x 91 1980, Resolution No. 80-773,'adopted on October 30 - 1980, Resolution No". 86-175, adopted on March 18, 19860`, Resolution No. 84-628, adopted on June 14, 1984, Resolution No. 85-353, adopted on March 28, 1985, Resolution No. 86-437, adopted on June 12, 1986, Resolution No. 88-1003 adopted on November 3 1988 and Resolution No. � 88-1043, adopted on November 3, 1988 (collectively,' t3ie h{ "Sanitary Sewer Bond Ordinances and Resolutions") , the. Issu 'r authorized the issuance of its $45000,000 Sanitary Sewer System Bonds (the " Sanitary Sewer Bonds"), which issuance was r, approved by the citizens of the Issuer through a referendu�a . { =' held on March 13, 1984. fi - B. Pursuant to Ordinance No. 9296, enacted on, k-;; . trfi 23,1981 as supplemented by Ordinance No. 92951enacted ox July 23, 19811 as amended by -Ordinance No. 9406, � +enact+�d .April. 1, 1982, Ordinance No. 9977, enacted on April 11, ' oto` Ordinance No. 10291, enacted on July 91 1987 and Ordnance Nor: x'�a 10487, enacted on October 6, 1988 and as supp�.emente-d , Resolution No. 81*-1020, adopted On December 18., i981 Resolution Not 01-766, adopted on September 10,r Resolution No. 81-923, adopted on November. Resolution No. 82-304, adopted on Aprii 1, iATTACHMENTS) w a C 4NTAIN 19 ` 20. 80-10olo adopted on November 3, 1998 and resolution 88- "Fire 1043, adopted on November 3, 1988 (collecti{vely, the Facilities Bond ordinances and Resolutions"), the issuer Fire Fire authorised the issuance of its $21,000,Ooo Fighting, Facilities Bonds (the "Fire Facilities ' prevention and Rescud Bonds'), which issuance was approved by the citizens of the issuer through a referendum held on November 3,1981. C. it is in the best interest of the issuer and its citizens and residents that there shall be issued and sold at its Sanitary this time $7,000,000 in principal amount of in amount of its Fire Sewer Bonds and $3,000,000 principal Facilities Bonds (collectively, the "Bonds"), such Bonds to: be dated, to be numbered, to be redeemable prior to their respective maturities, to be payable at the banks and to be sold pursuant to notice, all as hereinafter provided. D. The proceeds of the Bonds will be used to pay the Bonds cost of issuance of the portion of the Sanitary Sewer be issued. and the Fire Facilities Bonds authorized to of certain capital improvements hereunder and to pay the cost in accordance with the terms of the Sanitary sewer Bond ordinances and Resolutions and the Fire Facilities Bond Ordinances and Resolutions and as detailed in Ordinance No. other ordinances 10782, enacted on September 27, 1990, and making capital appropriations for the following fiscal year (the "Master Appropriations Ordinance"). SECTION 3. Authorization of Issuance and Sale of time Sanitary Sewer Bonds. There shall be issued and sold at this in the aggregate principal amount of Sanitary Sewer -Bonds $7,000000. Said Sanitary Sewer`Bonds shall be dated as of the first day of July, 1991, and shall mature, subject to redemption as the following hereinafter provided, on the first day of July of years and in the following amounts: Year of Principal Year ,of Principal Maturity' Amount Maturity Amount 1993 205,000 2003 3651000 1994 215,000 2004 390,000 415,00'0 1995 230,000 2005 240000 2006 44`0,000 J 1996 1997 255,000 2007 475,000 1998 275,000 2008` 505,000 285,000 2009. 540' 1999. ,000 586305,000 2000 2010 ,000 320`, 000 2011 `_ 615,000 2001 2002 345,000 ■ i - { 1 r. gS } r=v[ _ � j 4A,G - ' .,«G..1E -�-•.war,'. 4,4 f or r Lip on of �rssuance and Sale .t „ SFC N mhare! 4.M ati shall issued and sold at this time Fire gi 1; �►s ..Bond 'acili ties Bonds in the Aggregate principal amount offirst0day�Of Said Fire Facilities Bonds shauld be dated as of the a u1y, and shall mature, subjact to radamption �andiinfthe provide, on the first day of duly the following Years ' following amounts: Principal Year of principal Year o nt Amount - t t-� $ 90,000 2003 $155,000 1993 95,000 2004 165,000 1994 100,000 2005 1801000 1995 2006 190,000 1996 105,000 200,000 1997 1101000 2007 115,000 2008 215,000 1998 2009 230,000 1999 125,000 2010 2000 245,000 130,000 265,000 ' 140,000 2011 2001 2002 145,000 SECTION 5. Details of Bonds. A. Notwithstanding anything to the contrary in the Sanitary Sewer Bond Ordinances and Resolutions and the Fthe Sa Y collectively, ' Facilities Bond Ordinances and, Resolu ith respect to each of he "Previous Ordinances :and Resolutions"d separate bond i issues of Bonds to be issued required sold hereunder, a the is form for each such `issue shall not be re b nd forma solely for rthe hereby authorized to consolidate into one Sanitary -Sewer Bonds 'and the 1 purpose of printing such bon auth soriz the d to be ssued and sold, such Fire Facilities Bondhereby bond `form to be As hereinafter set forth. l be numbered consecutively from= B. The Bonds shal1 the letter "R" prefixed .to the number: The _ upward preceded by on the Bonds shall be,: principal of and redemption premium, if any =f le-u on presentation and surrenderE`at-the °ass a sf as,,Bond' ti paYab p ■ ; A. , or its successors or •� Banks Trust'Company, N• Agent" Registrar and Paying Agent (the "Bond Registrar and Paying g -` e'Cit of Jacksonville,. Florida. :Interestonthe .Bonds shall in th Y istrar-and Paying r be paid by check or draft drawn upon the Bond Reg f Agent owners of the,:Bonds., and mailed to the re Agentboo s �na$ntained by. addresses as they appear on the g the Bo Registrar and -Paying Agent at the close of business .-on,,,- he 15th day (whether or. not a..business day) of the -• month rnext ®; preceding the interest payment date (the "Record Dates" , ■_ 's s ective of any transfer or exchange of such onddate su ' as on _, � irre p =} to such Record Date and prior to such interest payment nt of interest due on.$uch' the is shall be in default in payment interest paYm ant date. in the event of any such, default, such:. rf defaulted interest shall be payable to the persons in whosea�aes`.{ such Bonds- are registered at the close of business on a s�e'�iQ�- ® record `date (which date shall also be the date for t-he paYm record interest) as established,by..notice deposii�ed � the .Issuer to .. tha>.xegis�t+�rs�� K . S. maul' oebage prepaid, by recedi � uc l ®; U p an .ftte�an (15) days= p r of ther4B4nds nod .less ,th b,�. t .isd t+ the P r of _ record :... d�tPR the onde.. mxe' 'r q .s er4d at tithe <+a]�ose _of hu , ► � ��{�¢ i 7 naaa�ee .. - _ -. fifth, il a whBther. or dm j Oro m ils $ upon _d�►'s:.,���a,p ° +y i tt- -_ �� ,,.lfr*.iwN 4tr[7ai�rYl2[.wl��,✓.� - _ - r `� r y i t�� a _ __7 r� +ant► duly signature satisfactory_ to d ow owner of ond therar Bondnor his atAgent oneY"ito na- executed by the registered fact o legal representative containing written in with the social the details of thetransfer d amploperhide tifi along numberhe Bunk security number o transferee. In all cases of a transfer of. a Bon r Reg istrar and Paying Agent shall at the earliest practical time in n accordance with the terms hereof deliver in the er the rname of Of e the new the registration books and shall d transferee or transferees a new, fully urination or denobinationst the same maturity and of authorized deno a able from the same for the same aggregate principal amount and p y so urce of funds. The Issuer and the Bond Registrar ondn for paying Agent may charge the registered o wn registration of every transfer or exchange of a Bond an amount g tax, fee or any sufficient to reimburse them than by the Issuer) to be paid governmental charge requireand may require with respect to the registration of such su h f new Bond shall be that such amounts be paid before any delivered. The Issuer and the Bond Registrar and Paying Agent may deem and treat the registered owner of any Bond as of the aPP licable Record Date as the absolutePe owner of such ncipal Bond thereof a d the for the purpose of receiving payment of th interest and premiumsthereon. Bonds may be exchanged at , if any, A ent for a like the office of the Bond Registrar and Payofg other authorized aggregate principal amount of Bonds, denominations of the same series and maturity. C. As set forth above, the Bonds shall be dated July, shall bear interest from the date thereof, payable 1991" and the first day of January semiannually on the first day of July 1 1991,. and shall mature as of each year, commencing on January ► set forth in Sections 3 and 4 hereof. name Of the Issuer D. The Bonds shall be executed in the seal of the Issuer by the Mayor or. Vice Mayor of the Issuer and the on the Bonds and shall be imprinted, reproduced othlithographed iclerk or -any Deputy Clerk of attested to and countersigned by Attorney shall sign the Bonds, the.Issue. In addition, the City and the Mayor. showing approval of the form and correctness th validation certificate f with respect to or Vice Mayor shall sign the validateVice Mayor► Clerk, Deputy the Bonds. The signatures of the Mayor, be by facsimile. If Clerk and the City Attorney on the Bonds may officer whose signature appears on the Bonds ceases to hold any offi of the Bonds, his signature shaIn office before the delivery roses. nevertheless be valid and sufficient sign tuts of,, or may be sg►ed by' addition, any Bond may bear the me such persons ll as at the actual time of end although xecution of such the dateof s P be the proper officers to sign such ereof such persons may not"have such Bond or the date of delivery I been such officers. Onlysuch of the Bonds as shall have endorsedhereinafter.• in certificate of authentication substantdu1lY executed by the Bond set forth in Section A 0,K hereof be entitled to any right Or id Registrar and Paying g der this Resolution. No Bond shaor ll c rti.catf ben under ur ose unless and until such �, istrn obligatory for any P P executed by the Bond +,qgF authentication shall have been duly t� and paying A9 ent and such certificate of the Bond `Rsgistra~ark7 i ant upon any such Bond sbailaisd delvar►s paying g au1-,lientJeAted r such Bond has been duly entsa.6ertific ► ,� The fond Igstrar attc PBy�n+�1. =•: solution. to beve '" athaRnti�etivn on any Bond s.l d .$ f II by _ authorized Ott, executed if +�► and Ming [f.> it shall u�t ;. icer asign tbo osr i� .+a t�► ► a 1ch!sn f.�a . one t • x may Issued hersander a�'_ *ny x} w{ A J i Y t ^t N� �� B. If any Bond is mutilated, destroyed, stolen or lost, the Issuer or its agent may, in its discretion (i) deliver a duplicate replacement Bond, or (ii) pay a Bond that has matured or is about to mature. A mutilated Bond shall be surrendered to and canceled by the Clerk of the Issuer or his duly authorized agent. The registered owner of a Bond must furnish the Issuer or its agent proof of ownership of any destroyed, stolen or lost Bond; post satisfactory indemnity; comply with any reasonable conditions the Issuer or its agent may prescribe; and pay the Issuer or its agent's reasonable expenses. Any such duplicate Bond shall constitute an original contractual obligation on the part of the Issuer whether or not the destroyed, stolen or lost Bond be at any time found by anyone, and such duplicate Bond shall be entitled to equal and proportionate benefits and rights as to lien on, and source of payment of and security for payment from, the funds pledged to the payment of the Bond so mutilated, destroyed, or stolen or lost. F. The Bonds maturing on July 1, 2002, or thereafter, shall be subject to redemption at the option of the Issuer prior to their maturity on or after July 1, 2001, in whole at any or on part on any interest payment date, in inverse order of maturities and by lot within a maturity in such manner as the Bond Registrar and Paying Agent may determine at the redemption prices (expressed as percentages of the principal amount) set forth below, plus accrued interest to the redemption date: Optional Redemption Periods Redemption (both dates inclusive) Price July 1, 2001 to June 30, 2001 101% July 1, 2002 to June 30, 2002 100.5'b July 1, 2003 and thereafter 100% Notice of redemption shall be given by deposit in the U.S. mail of a copy of a redemption notice, postage prepaid, at least 'thirty (30) and not more than sixty (60) days before the redemption date to all registered owners of the Bonds or portions of the Bonds to be redeemed at their addresses as they appear on the registration books to be maintained in accordance with the provisions hereof. Failure to mail any such notice to a registered owner of a Bond, or' any defect therein, shall not affect the validity of the proceedings for redemption of any Bond or portion thereof with respect to which no failure or defect occurred. Such notice shall set forth the date fixed for redemption, the rate of interest borne by each 'Bond being redeemed, the date of publication, if any, of a notice of redemption, the name and address of the Bond Registrar and Paying Agent,,, -the redemption price to be paid and, if less than all of the Bonds then outstanding shall be called for redemption, the distinctive numbers and letters, including CUSIP numbers, if any, of such Bonds to'be redeemed and, in the case of Bonds to be redeemed in part only, the portion of the principal amount thereof to be redeemed. If any, Bond is to be redeemed in part only, the notice of redemption which' . relates to such Bond shall also state that on or after, the redemption date, upon surrender of such Bond, a new Bond or Bonds in a principal amount equal to the unredeemed portion of such Bond will be issued, Any notice mailed as provided in this section shall be`' conclusively presumed to have been duly given, whether or not.the, owner of such Bond receives such notice. In addition to the mailing of the notice described above, ; each notice of redemption and payment of the redemption "price.;shah. J meet the requirements set forth in (,i), (i�i) and `"(iii) belt% .�.��-2 ,A- i L.w..sw:.env i.IW -4. w.w+i.r..3 J.l..e.i.-.�w.i 3 w... ---i.lae�ss raria.s3 a+ i ,... -P in{�. .. ...t .'s,3 a Resolution to the contrary, failure of such notice or payment to comply with the terms of this paragraph shall not in any manner defeat the effectiveness of a call for redemption if notice thereof is given as otherwise prescribed above in this Section S.F, (i) Each notice of redemption shall be sent at least thirty-five (35) days before the redemption date by registered or certified mail or overnight delivery service or telecopy to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the, Bonds (such depositories now being The Depository Trust Company, New York, New York, Midwest Securities Trust Company, Chicago, Illinois, Pacific Securities Depository Trust Company, San Francisco, California and Philadelphia Depository Trust Company, Philadelphia, Pennsylvania) and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. (ii) Each notice of redemption shall be published one time in THE BOND BUYER, New York, New York or, if such publication is impractical or unlikely to reach a substantial number of the holders of the Bonds, in some other financial newspaper or journal which regularly car- ries notices of redemption of other obligations similar to the Bonds, such publication to be made at least thirty (30) days prior to the date fixed for redemption. (iii) Upon the payment of the redemption price: of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds be-ing redeemed with the proceeds of such check or other transfer. The Bond Registrar and Paying Agent shall not be required t the ublication and mailing to transfer or exchange. any Bond of er p of a notice of redemption nor during the period of fifteen (15 ) days next preceding publication and mailing of a:notice of redemption. G. Notice having been given in the manner and under the conditions hereinabove provided, the Bonds or portions of Bonds so called for redemption shall, on the redemption date designated in such notice, become and be due and paya ble at the redemption.price onions of Bands on such provided for redemption for such Bonds p date. On the date so designated for redemption,. moneys for payment of the redemption price being held in separate accounts by the Bond Registrar and Paying Agent in trust for the registered owners of the Bonds or portions thereof to be redeemed, all as provided in. this Resolution, interest on the Bonds or portions of Bonds so` called for redemption shall cease to accrue, such Bonds and portions of Bonds shall cease to be entitled to any lien, benefit or security under this Resolution, and the registered owners of such Bonds or portions of Bonds shall have no right in respect. thereof except to receive payment of the redemption price thereof and, to the extent provided in the next subparagraph, to receive. Bonds for any unredeemed portions of the Bonds. . - - .. _a __ R1.71v 1. Bonds or portions of Bonds that have been duly called for redemption under the provisions hereof, and with respect to which amounts sufficient to pay the principal of, premium, if any, and interest to the date fixed for redemption shall be delivered to and held in separate accounts by an escrow agent, any bank, trust company, national banking association, savings and loan association, savings bank or other banking association which is authorized under Florida law to be a depositary of municipal funds and which has qualified with all applicable state and federal requirements concerning the receipt of the Issuers funds tan "Authorized Depositary") or the Bond Registrar and Paying Agent in trust for the registered owners thereof, as provided in this Resolution, shall not be deemed to be outstanding under the provisions of this Resolution and shall cease to be entitled to any lien, benefit or security under this Resolution, except to receive the payment of the redemption price on or after the designated date of redemption from moneys deposited with or held by the escrow agent, Authorized Depositary or Bond Registrar and Paying Agent, as the case may be, for such redemption of the Bonds and, to the extent provided in the preceding subsection, to receive Bonds for any unredeemed portion of the Bonds. J. If the date for payment of the principal of, premium, if any, or interest on the Bonds shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Bond Registrar and Paying Agent is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such day shall have the same force and effect as if' made on the nominal date of payment. K. The text of the Bonds and the form of assignment for such Bonds, the authentication certificate and the validation certificate to be endorsed thereon, shall be substantially in the following form, with such omissions, insertions and variations as may be necessary or desirable and authorized by this Resolution or by any subsequent resolution or ordinance adopted prior to the issuance thereof , or as may be approved and made by the of f icers of the Issuer executing the same, such execution to be conclusive evidence of such approval, including, without limitation,, such changes as may be required for the issuance of-uncertificated public obligations: j. . rt z Yx tt *a} L S 2 1�LTAryvjt4 1:L OM i Y.Lryry j' t rya ' r r .raa .ca.cva. rACE M\IL ZUY was-"; VLXgxna1 Lax;eu NV: Mate : Date: July 1, July 1, 1991 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS I. The City of Miami, Florida (hereinafter called the "Issuer"), for value received, hereby promises to pay to the Registered Owner identified above, or to registered assigns or legal r_rearesentativsr es hereinafteeon the Maturity Date identified above (or � al provided), the Principal Amount identified above upon , : at the off ice of p presentation and surrender hereof Barnett Banks Trust Company, N.A., or its successors or assigns, as Bond Registrar and Paying Agent (the ."Bond Registrar"),'at.;the office of the Bond Registrar in Jacksonville, Florida, and to pay interest' on the principal sum from - the date hereof, . or, from the most recent interest' payment date; to which interest has been paid,, at the'Intere'st-Rate per annum. identified above; until.payment„of -theprincipal sum, or until provision : for .the ,payment ;thereof has -been duly provided for, 'such interest; being, payable ;semiannually: on the first day of July and the first day of January of each year; f commencing on the first day of January, 1991. Interest.will be paid by check or draft mailed, to the: Registered Owner . hereof at, his addressas it.. ap pears on the registration ,books of 'the'' Issuer' maintained by the Bond Registrar at, the, close; of business on the fifteenth (15th) day -(whether or not a business da of _the month' y) next preceding -.the interest payment date (the "Record,Dit'e"), ar= respective : of any transfer or exchange of : such Boxd .b subsequent':_ to such Record interest<Date_and prior to such p payment date, unless the Issuer shall be in default in payment of interest due on such interest payment date. In. the ,event ,of:;.ach ny; such default, . su `s= defaulted interest shall be ,payable,; to the'. Person.in` v ose^ zaaae - such Bond; is registered:. at: the _close of; business on aspec�.a�l record date (which date -shall a.so be ;the date for the payment of such defaulted interest) as established by notice; by deposit in the..= U. S. mail; postage prepaid,:by ,the Issuer to the; Regiat"ed ;f } owners of . Bonds not less : than fifteen,, (15)days prodad�%ng s�ch special 'record date Such notice shall be -mailed to the pear�s�ns �n whose names the Bonds and registered at -the close ofbusi ese on 'the fifth(5th) day, (whether ,or not..a bus ,mass day) p bced n date<of mailing,� r Y. i This . So d.: is one of anp-autho; - - initial, °eg9rsgets p fncipal= ,ax , t te►ox effect, : �►cGept :;a+� tp n� ,atturitY` "tie :pn, the exne.1�►�AnwdL,n :ne'eeh,► ,�+d �_ ©rr- li r . .' 4plitil l ixpr wI ven AIl. 1 09 A'..,� i ZOO Siwip. s r}'x �f-'*and�� �,B# u:' ice.. i,r��11�r1 �. `�4.3y'�i' f the to =gOf F er , a,Anoludin S� n :..CQma WO 11104171 r"KAi P ''��kJJyy44'FF U adopted by the Issuer on July 11, 1901, and certain other ordinances and resolutions of the issuer (*collectively, the ,'Ordinance#') 0 and other applicable provisions of law. This Bond I is subject to all the terms and conditions of the Ordinance. Por the prompt payment of the principal of, redemption premium, if -any, and interest on this Bond as the same shall become due, the full iaith, credit and taxing power of the Issuer are hereby irrevocably pledged. The Bonds of this aeries scheduled to mature on July 1, 20020 or thereafter, shall be subject to redemption prior to their maturity at the option of the Issuer on or after July 1, 2001 as a whole at any time or in part on any interest payment date, in inverse order of maturities and by lot within a maturity, at the redemption prices (expressed as percentages of principal amount) set forth in the following table, plus accrued interest from the most recent interest payment date to the redemption datet. 'Optional Redemption Periods Redemption (both dates inclusive)_Price July 1, 2001 to June 30, 2002 101% July 1, 2002 to June 30, 2003 100.5% July It 2003 and thereafter 100% Notice of call for redemption is to be given by mailing a copy of the redemption notice by registered or certified mail at least thirty (30), but not more than sixty (60) days prior tothe date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the Bond Registrar's registration books. Failure to give such notice by mailing to any Bondholder, or any defect therein, shall not affect the validity of the proceedings for the redemption of any Bond or portion thereof with respect to which no such failure or defect has occurred. All such Bonds called for redemption and for the retirement of which funds are duly provided will cease to bear interest on such redemption date. Reference is made to the Ordinance for the provisions, among others, relating to the terms, lien and security f or the Bonds, the custody and application of the proceeds of the Bonds, the''rights and remedies of the holders of the Bonds, and the extent of and limitations on the Issuer's rights, duties and obligations, to all of which provisions the registered owner hereof assents by acceptance hereof. 'This Bond shall not. be valid or become obligatory for any purpose or be entitled to any security or benefit under the Ordinance until the Certificate of Authentication endorsed hereon shall have been signed by the Bond Registrar. The registration of this Bond may be transferred upon the registration books upon delivery thereof to the principal office of.. the Bond Registrar accompanied by a written instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Bond Registrar, duly executed by the owner of this Bond or by his attorney -in -fact or legal representative, containing written instructions as to the details of transfer of this Bond, along with the social security number or federal employer identification number of such transferee. in all cases of a transfer of a Bond, the Bond Registrar shall at the earliest practical time in accordance with the provisions of the Ordinance enter the transfer of ownership in the registration books and shall deliver in the name of the ne w transferee or transferees, a now fully registered Bond or Bonds of the same maturity on of authorized denomination or den9minations, for the 04?48 4gqrMqa t e. principal amount and payable ftom the same source of funds' , - - Thti Issuer and the Bond Registrar may charge the owner of such a' 4 Fon 9 AM, 4 40 the registration of every transfer or exchange o= a DViIVI aaa other sufficient to reimburse them for any tax? fee or any to be Paid governmental charge required ,other such �than rattteferhe �sand)nay require with respect to the registration o such new Bond shall be that such amounts be paid before any delivered. payment of the principal o if the date for paym f, premium, if any, or interest on this Bond shall be a Saturday, Sunday, lega1. holiday or a day on which bankOf the institutions B Bond pegi trar is elocated city hare the corporate trust oere ffice authorized by law or executive order to close, thwhi hthe date e tfor a payment shall be the next succeedingond which such banking such paY► legal holiday or a day Saturday, Sunday, ► nt on such day shall. institutions are authorized to close, and payment have the same force and effect as if made on the nominal date of payment. It is hereby certified and recited that this ment of nd is authorized by and is issued in conformity with the requirethat all the Constitution a d thintut 3 of the s required tostate exist of to happen, and to be acts, conditions an g have performed precedent to uin regularance of h and due form and time happened and have been performed as required by the laws and Constitution of the State of Floridaissue applicable hereto, and that the issuanceo f the statutoryBonds of lim this tation or does not violate any constitutional or provision. IN WITNESS WHEREOF, The City of Miami, Florida, has e to be sined by its issued this Bond and has causemsignature,gand at estedayor and either manually or with his facsimile of countersigned by .the manual or facsimile signature d hereon its all ias Clerk, and a facsimile of itslseal to b p of the first day of July, (SEAL) ATTESTED AND COUNTERSIGNED: By City Clerk ppgp� CMITIpICATg Op AMHgNTICATTON OOf This Bond is ng the Bonds designated in and exomted under the Provisions of the within SOntiOned Ordinance - sARMT ANXS TRUST COMPAN)to N&AVJ# 8- &a.96nd Registrar Authorized officer k. .. �� �., a ,1. SECTION 6. Application_of._Bond Proceeds. The proceeds of the Bonds shall be used to pay the costs of issuance of the Bonds, and all remaining proceeds shall thereafter be deposited by the City into its Capital Projects Fund, which is a capital fund of the City included in the city's annual financial statements prepared by its auditors, or accounts or subaccount within the Capital Projects Fund, and used to pay the costs of the capital projects authorized by the Previous ordinances and Resolutions and detailed in the Master Appropriations Ordinance. SECTION 7. Levy of Ad 'Valorem Tax: Payment and pledge. Pursuant to the Previous ordinances and Resolutions, in each fiscal year while any of the Bonds are outstanding, there shall be assessed, levied and collected a tax, without limitation as to rate or amount, on all taxable property within the corporate limits of the Issuer (excluding homestead exemptions as required by applicable law), sufficient in amount to pay the principal of, premium, if any, and interest on the Bonds as the same shall become due. The tax assessed, levied and collected for the security and payment of the Bonds shall be assessed, levied and collected in the same manner and at the same time as other taxes are assessed, levied and collected and the proceeds of said tax shall be applied solely to the payment of principal of, premium, if any, and interest on the Bonds. Pursuant to the Previous Ordinances and Resolutions, the full faith, credit and taxing power of the Issuer are irrevocably pledged to the payment of the principal of, pre- mium, if any, and interest on the Bonds. The Issuer will diligently enforce its right to receive tax revenues and will diligently enforce and collect such taxes. The Issuer will not take any action that will impair or adversely affect its rights to levy, collect and receive said taxes, or impair or adversely affect in any manner the pledge made herein or the rights of the holders of the Bonds. SECTION 8. Compliance With Tax Requirements. The Issuer hereby covenants and agrees, for the benefit of the owners from time to time of the Bonds, to comply with the requirements applicable to it contained in Section 103 and Part IV of Subchapter B of Chapter 1 of the Internal Revenue Code of 1986, as amended (the "Code") to the extent necessary to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes. Specifically, without intending to limit in -any way the generality of the foregoing, the Issuer covenants and agrees: (1) to pay to the United States of America from the funds and sources of revenues pledged to.the payment of he Bonds, and from any other legally available funds, at the times required pursuant to Section 148 (f ) of. the Code, the excess of the amount earned on all non -purpose investments (as defined' in Section 148(f)(6) of the Code) over the amount which would have been earned if such non -purpose investments were invested at a rate equal to the yield on the Bonds, plus any income attributable to such excess (the "Rebate Amount"); (2) to maintain and retain all records pertaining to .and to be responsible for making or causing to be made all determinations and calculations of the. Rebate Amount' and required payments of the Rebate Amount as shall be necessary to comply with the Code; (3) to refrain from. using proceeds from the. Bands .in . manner that would cause the Bonds or Any of ; *ham,- to, , �y kfiev} 4. eta classified as private activity bonds ,under BBction 141{a►): =���Ya�f������� � �� the Code; and �� x (4) to refrain from taking any . actk n .bat W u Via, the Bondi►, or any of theml. o become ,, b1traga`: bones L „ v section 103 W and Section 148 of that * i r, 4 F �� The lssuer understands that the foregoing covenants ;e impose continuing obligations on the issuer to comply with the requirements of Section 103 and Part IV of Subchapter B of Chapter 1 of the Code so long as such requirements are applicable. SECTION 9. Bond. Registrar and Payina...Agent. The Issuer hereby appoints Barnett Banks Trust Company, N.A., Jaeksonville, Plorida, as the Bond registrar and paying Agent in connection with the Bonds. SECTION 10. Publication of Notice of Sale. The Director of Finance of the Issuer is hereby authorized and directed to publish a notice calling for bids for the Bonds in THE MIAMI REVIEW or THE MIAMI HERALD, daily newspapers 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 least ten (10) days before the date for the receipt of bids, which Notice of Sale shall be substantially in the form attached hereto as Exhibit "A". The form on which all bids are requested to be made shall be substantially in the form attached to said Notice of Sale. Said Notice of Sale shall require that all bids shall be received by 10:00 a.m. Miami, Florida time on July 111 1991. SECTION 11. Bond Insurance. The successful bidder for the Bonds may, in its discretion and at its cost, obtain a policy of municipal bond insurance from a reputable and nationally recognized bond insurer to secure the Bonds, and the Issuer agrees to cooperate with the successful bidder, upon request, to qualify the Bonds for the issuance of such bond insurance. SECTION 12. Conformance of Previous Ordinances and Resolutions. All provisions of the Previous ordinances and Resolutions, to the extent they are inconsistent or conflict with the terms hereof, including, but not limited to, Section of Resolution No. 84-628, Section 3 of Resolution No. 85-289 and Section 3 of Resolution No. 81-1020, and the forms of the Bonds in any such Previous Ordinances and Resolutions, are hereby amended to conform herewith, and such Previous Ordinances and Resolutions are supplemented'hereby. SECTION 13. Investment of Proceeds of Bonds. All proceeds of the Bonds held by the Issuer may be invested by the Issuer in such investments as are permitted by applicable' -law. SECTION 14. Preliminary Official Statement; Official Statement. The Issuer hereby approves the form and content of the draft of the Preliminary, Official Statement in connection with ,the Bonds attached hereto as Exhibit-1B,11 subject to such charges therein as the Director of Finance of the -Issuer shall 'approve prior to the publication of the Notice of Sale. Distribution —of the Preliminary Official Statement by the Director of Finance of the Issuer to prospective purchasers of the Bonds is hereby authorized, as is use of the Preliminary Official Statement in connection with the marketing of the Bonds. The Mayor or Vice Mayor of the Issuer is hereby authorized to approve and execute, on behalf of the Issuer, an official Statement relating to`the .Bonds. with such changes from the Preliminary Official Statement as.the, Mayor or Vice Mayor in his sole discretion, may approve, such execution to be conclusive evidence of such approval. SECTION 15. Auth2rizAtl2ng. The Mayor, the > City... ,�rf Manager, the CityClerk and ° the Director of Finance of #.k IsDer s r :, and their designees are each designated as agents ,Of the I001e inti`ha46`{ ° connection with the sale, issuance and delivery of the Bonds and <`ia are authorized and empowered, oQllectvly.4' ,ndividul�,y� 'to'.aa : 3rii' all actions and atepa and to OXOCUte All iAGtrUM@nta. 4060 uen�aY� contracts on beh"_ of the Issuer that cite necessary i -with'the +glelnoaeotion don, �►er��� � ,� ��3 py ,?ia i of 4-r. i•�y,,t. -14 .£ #-p ..' Y s 3X F ( yA 17d ? Y . the bonds and which are not inconsistent with the terms and provisions of this Resolution. SECTION 16. Modification or -Amendment. This Resolution may be modified and amended and all appropriate blanks appearing herein may be completed by the Issuer from time to time prior to the issuance of the bonds. Thereafter, no modification or amendment of this Resolution or of any resolution or ordinance amendatory hereof or supplemental hereto materially adverse to the holders of the Hands may be made without the consent in writing of the owners of not less than a majority in aggregate principal amount of the outstanding Bonds, but no modification or amendment shall permit a change (a) in the maturity of the Bonds or a reduction in the rate of interest thereon, (b) in the amount of the principal obligation of any Bond, (c) that would affect the unconditional promise of the Issuer to levy and collect taxes as herein provided, or (d) that would reduce such percentage of holders of the Bonds required above for such modifications or amendments, without the consent of all of the holders of the Bonds. For the purpose of Bondholders' voting rights or consents, the Bonds owned by or held for the account of the Issuer, directly or indirectly, shall not be counted SECTION 17. Defeas nce and Release. If, at any time after the date of issuance of the Bonds (a) all Bonds secured hereby or any maturity thereof shall have become due and payable in accordance with their terms or otherwise as provided in this Resolution, or shall have been duly called for redemption, or the Issuer gives the Bond Registrar and Paying Agent irrevocable instructions directing the payment of the principal of , premium,. if any, and interest on such Bonds at maturity or at any earlier redemption date scheduled by the Issuer, or any combination thereof, (b) the full amount of the principal, premium, if any, and the interest so due and payable upon all of such Bonds then outstanding, at maturity or upon redemption, shall be paid, or sufficient moneys shall be held by the Bond Registrar and Paying Agent, an escrow agent or an Authorized Depositary in irrevocable trust for the benefit of such holders of the Bonds (whether or not in any accounts created hereby) which, when invested in direct obligations of the United States of America maturing not later than the maturity or redemption dates of such principal, premium, if any, and interest, will, together with the income realized on such investments, be sufficient to pay all such principal, premium, if any, and interest on said Bonds at the maturity thereof or the date upon which such Bonds are to be called for redemption prior to maturity, and (c) provision shall also be made for paying all other sums payable hereunder by the Issuer, then and in that case the right, title and interest of Bondholders hereunder shall thereupon cease, determine and become void; otherwise, this Resolution shall be, continue and remain in full force and effect. Notvithstanding anything in this Section 17 to the contrary, however, the obli- gations of the Issuer under Section 11 hereof shall remain in full force and effect until such time as such obligations are fully, satisfied. SECTION 18. Severability. If any one or more of the covenants, agreements or provisions of this Resolution shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null ,,and void and shall be deemed aeparate from the remaining agreements or provisions of this Resolution or of the issued hereunder. k�y� SECTION 17 • -me wrTh-''rA- RAM aFontllSeWi4xilka * _ 9.;. t' a �� q K t . i this resolution, any right, remedy or claim, legal or equitable, under or by reason of this Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and exclusive benefit of the parties hereto and the owners and holders from time to time of the Bonds issued hereunder. SECTION 20. Controlling Lay. -Member of -Co missionAid Issuer__Not—Liable All covenants, stipulations, :> officials_, -of . obligations and agreements of the Issuer contained in this Resolution shall be deemed to be covenants, stipulations, obligations and agreements of the Issuer to the full extent authorized and provided by the Constitution and laws of the State stipulation, obligation or agreement of Florida. No covenantydeemed contained herein shall bedeem d to be a covenant, stipulation, } obligation or agreement.of any present or future member, agent or employee of the Commission or the Issuer in his individual capacity, and neither the members of the Commission nor any official executing the Bonds shall be liable personally on the Bonds or this Resolution or shall be subject to any personal liability or accountability by reason of the issuance or the execution by the commission or su^.h members t"ereof. SECTION 22. Effective Date. This Resolution shall be effective immediately upon its adoption. 77 v Y f Al { �4K .. . x: zmi ' lkt 4 ! PASSED AND ADOPTED th3ll 20th gay of Junes 1901. � 1 Ey. F Xavier L. 3 Mayor ATTEST. :i i By: (' Ma ty Hirai City Clerk i APPROVED 'AS TO FORM AND CORRECTNESS: I 1 j i, J rge L. ernandez C ty Atto nay PREPARED AND APPROVEe10D BY: 4 E Byed. �iAFAEL 0. DIAZ° ttorney i AS City' y* 4 1 1 rfn � SV�+i R 2 fit': _ r F ,� ,�.yMC" x gF. �y ky "� wt 17 5 1 x \ F y1uai; 4 ?S a BARNESt DARBY & MOGREE tATTORNEYS 11 PARK PLACE= 4 ° , NEW YORKNEW YO .., . _ R� 10007 g (219) 267.18$$ "F u i i T,� r •*— - LK t i�9kr.W a MANX r a September 24, 1991 PAX 0011 io,. DERA x {aYsF. n, s d rip L EXPRESS �rrr�t,eu► r } ' e.c '�,�'+.��?4t" N�1►.awYsi_O7IOf e L a' (Sill) tl11•701 FwR$phael, Diaz, Esq. M.00i�ita.ulo, I°Ass'is tant City Attorney. _K r City of Miami - 1300 UAR4000Zi I•:S.L.':Third Avenue 1100 Amerifirst Building IAx (1 9 } ami�7Florida 33131 Re: $10, 000, 000 21 ` The City of Miami, Florida ' General Obligation Bonds Series 1991 ! bear Raphael: 3 �F �a In connection with. the above -captioned matter, please note the enclosures herein highlighting typographical errors resolutionmn the',•$ , naely on pages 9 and 5 where the dates are incorrect It ' presently reads "Julyll when it should Bread "July instances. The changed g pages need to be inserted into .the i" resolution, but the City Clerk cannot make a change absent:'a letter:° from "you stating that the change is of a non -substantive nature that does not require any act of the City Commission Clean%r this does not require any action on ` the part of the ; :Cit y' y commission). Please attend to this matter as soon as you can; I cannot" send the transcript out for binding until these new approved by the City Clerk. pages,are, .,,,.Thanks for your help in this matter and please call if need aar jsgs the i ' 'Q µ , . ch Sic Ui �;,.•�' • � fix. <,Cp z M ; — Patrick L. Sy, ie - - '` a BXf =T "A" NOTICE or SALE $100000#000 CITY or MIAMI, PtORIDA aeneral Obligation Donds, series 1991 Sealed Bids Sealed bids will be received by the commission (the "City commission") of the City of Miami, Florida (the "City") at its regular place of meeting in the City Hall, 3500 Pan American Drive, Miami, Florida, until 10:00 A.M. Miami time on duly 11, 1991, at which time and place all bids will be publicly opened and read, for The City of Miami, Florida General Obligation Bonds, to be issued in the aggregate principal amount of $10,000,000 consisting of '$7,000,000 Sanitary Sewer System Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds, dated auly 1,'1991 (hereinafter collectively referred to the "Bonds"). 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. Bond Details i= The Bonds are issuable as registered bonds, without coupons, in the denomination of $5,000 or any integral multiple thereof`. Interest on"the`Bonds will be payable to the registered owners ' shown on the registration books of the City on the fifteenth day of the monthpreceding an interest payment date, by check or draft ' mailed to such registered owners by the Bond'Registrar and Paying Agent (as hereinafter provided), The Bonds will.be dated and bear interest from Ji11y 1, 1991, payable. semiannually on `July 1 an January .I in each year, 'at the 'rate or rates specified in such proposal: as may be accepted, the -first interest payment ben''due, <i on January 1, 1991. The Bonds will mature as follower- , s MATURITY SCHEDULE t Fire FiShtus ! Maturity Sanitary Sewer Fins Ptevandoo Total 't Data System ' rod Ream Pt;aiP.i_ :. July 1 BOIWS, Facilities BOedaAno 1993 S?AS,000 $ 90,000 $29$,000 1994 ' 215,000 95,000 310,OW z 1995 230,000 1001000 330,090 +, , l"6 240,000 lOS,000 345,000 1997 255,004 110,000 3ti5,000 1993 27S,000 115,000 1999 285,000 125,000 410 O00 305,000 130,000 435,0Q0 . 2001 320,000140,000 460,000 2002 345,000 145,000" 490,000 •�' .,2003 365,000 155,000 s�0,000 � ,,� -39M,v A/.: IgS.WiI �S7lVYV ' ' ',_ ,, •�,w 415,000 1i0,Q00 S93,000 .. 440,000 1901000 . ' 630,000 I b �007 4`7!�5,0�y00/` E.QOO 4T100i0 ?QOia 54!0,01y0y4� x.�.l4`,000 770,QQQ ��� 010 StRl4 f!7l1 4r94S}. �_ ., �4►# 1 . .: 41�.t00 :' aai�0o #i0,000 ,� v � ?? �x> principal of,, and premium, ' it- any, on the Binds wi�,� upon preasmt Lion and surrender eraQt, at e ottU01 of banks s ComPany� Nw , pia � nd iatrar,a Fm i T 3s a+0l�►sAviil+loxida. irk x 1 5 7 Optional Redemption The Bonds maturing on or after July 1, 20021 are subject to redemption, at the option of the City, on and after.July 1, 2001, in whale on any date, or in part in the inverse order of their maturities (by lot within any maturity) on any interest payment date, at the following redemption prices, plus accrued interest to the date of redemptions Redemption Period Redemption Price - (date Ahclusivel -- (percentage of princioal_amountt July 1, 2001 to June 30, 2002 101t July 1., 2002 to June 30, 2003 ......... 100.5 July 1, 2003 and thereafter ............... 100. i Purpose; validation The Sanitary Sewer System Bonds were authorized by Ordinance No. 9128, as supplemented and amended, for the purpose of paying the cost of the construction for permanent drainage facilities within the City. t The Fire Fighting, Fire Prevention and Rescue Facilities Bonds were authorized by Ordinance No. 9296, as supplemented and amended, for the purpose of. paying the cost of fire fighting, fire presentation and rescue facilities, including, but not limited to, fire stations,.;equipment, vehicles and communication systems. i All of the Bonds have.been validated by judgments of the.Circuit i Court of.Dade,County and no appeals were taken therefrom..: security for and Source of Payment for the Bonds i The Bonds will be general obligations of the City for which its full faith, credit and taxing power have=been-irrevocably pledged,, and are payable, from.unlimited ad valorem taxes on all ,taxable, -( property" in. the City, (excluding, homestead . exemptions for,,,owner ' ,f occupied housing and certain persons -who- are °:aged, disabled or, otherwise,qualified therefor, as required by applicable laws.: Interest -Rates and Bidding Details.. = -:` Each. proposal must be in the .form of the Official Bid Form -.::end; enclosed in a. sealed envelope: marked "Bide for< $10, 000 000 -City of I - a. Miami, Florida General Obligation Bonds." Each bid constitutes a separate bid for each of said series of the Bonds and any premium bid shall be for all of the Bonds and allocated to each series in; the :proportion to which the amount of such series bears to the. total amount of all Bonds. Bidders are requested to name the interest-rate.or rates in multiples ;of...1/8<or„1/20,.of;a$. __Each ,bid, must, specify the , interest; rate for_ .the Bonds of each iaturity, .;and 7 ,' . all Bonds maturing on the same date must bear interest'at,;the s,�me: rate, Each coupon rate . ofinterest. ipedif ied ; fcr- bonds of", any: t� maturity shall not be less than he : coupon rate:- of interest :: of bonds of any earlier, maturity. Any .number of interests r.ates> may; named, but., the highest_ interest :rasa hamsd = ;may . ,not <' a�cceed. a lowest interest :rate na 4 by more than -two percent . 2; ).:.x Ad., .Wd3 shall -bear- more :than one rats: of interest, which..rate; shall be = uniform ::for the- life of the Bond, �and no zero or- bla .,,r ts6,i<or: k split rate will , be permitted* Ito bid for ;I asa .,!ghat Bonds -offered will be entertained. Premiuma may be:,,epecified.� �. t 3 ti� t NA Bond Insurance The successful bidder for the Bonds may, in its discretion and at its sole expense, obtain a policy of municipal bona insurance from a reputable and nationally recognized bona insurer to secure all or a portion of the Bonds, and the City will cooperate with the successful bidder, upon request, to qualify the Bonds for the issuance of such bond insurance. The Financial Advisors have applied to various insurance companies to qualify the Bonds for municipal bond insurance, however, there is no guarantee that such insurance will be obtained nor is there any obligation on the part of the Financial Advisors to obtain such insurance. Award of Bonds As between acceptable proposals complying with this Notice of Sale, the Bonds will be sold to the responsible bidder whose proposal offers to purchase all the Bonds at such rate or rates of interest as will produce the lowest effective interest rate to the City. The lowest effective interest rate will be determined in accordance with the "Canadian" or "true" interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, not including interest accrued to the date of delivery. EJECTION AND WAIVER 0 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 ADJOURNING OR POSTPONING THE SALE OF THE BONDS 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.June 21, 1991 related to the Bonds,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 Officiai Statement -is subject to revision, amendment and completion in a final Official Statement . Upon:the,sale of the Bonds ,_the City agrees, to provide to the successful bidder, within the earlier of seven business days following the sale of the Bonds or to accompany the successful bidder's confirmation that, requests payment for the Bonds, copies of a final Official Statement in quantities sufficient to comply with the Rule. Goo4 Faith .Each bid must be accompanied by a certified or bank:; cashier's or treasureris check drawn upon an incorporated bank or trust company,- 'in the amount of $100,000, 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 bide will be3 made: on; the date above stated for receipt of bids and the "checks ,off unsuccessful bidders will be returned immediately. The check., of the successful bidder will be cashed and the proceeds, on whih- no. interest will be allowed,, will be head 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 ouch check will constitute full liquidated damages. if it shall be found impossible to issue and deliver -the bond*,,the City will : ede�ii�l the successful bidder a certified or bnl� sGambia' r's Qr �4 • 449r �f x z x _- — e.,i.L., t5 a91Mfi 7 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 Bonds, the proceeds of the check of the successful bidder will be applied to payment for the Bonds. CUSIP Numbers it is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond 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 Bonds in accordance with the terms of their bid. All expenses in relation to the printing of CUSIP numbers on the Bonds and CUSIP Service Bureau charge for the assignment of such numbers will be paid by the City. Delivery of Bonds Delivery of the Bonds in definitive form will be made on or about July 9, 1991, or such other date as shall be appropriate to ensure compliance with the Rule, in New York, New York, against payment therefor in immediately available Federal Reserve Funds to the order of The City of Miami, Florida. The unqualified approving legal opinion of Barnes, Darby and McGhee, Miami, Florida and Matzner, Ziskind, Hermelee & Jaffee, P.A., Miami, Florida, will be furnished without cost to the purchasers of the Bonds. An opinion of Barnes, Darby & McGhee in the capacity of disclosure counsel to the successful bidder to the effect the nothing has come to such counsel's attention which would lead such counsel to believe that the Official Statement as of its date contained, and as of. the date of settlement contains, an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading will be furnished at a cost of $ 7, 500 to such successful bidder. The successful bidder shall. be required, at or prior to delivery of the Bonds, to furnish to the City such information concerning the initial prices at which a substantial amount of the Bonds 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 Bonds -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 Bonds, .the City, Manager and the City'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 Bonds, did not and does not contain any untrue statement of a material fact or omit to state a material fact :necessary to make the statements. contained -ther+ein, in the light. of the circumstances under which theywere: made;,, not misleading. Thee successful bidder shall have the right, at. its, option,:"; to = cancel its obligation to.purchase the Bonds if the City shall fail to tender. the Bondsfordelivery within 60 days -from 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. w . Disclosure obligations pf the pur4ha#seNc - Section 218.30 (1) (b) (1) , Florida Statutes, requires that ttp C - - file, within 120 days after delivery of the Bonds, an inforB�AUO � t statement with the Division of Bond Finance of the State of Florida (the "Division's) containing the following information: (a) the name and address of the managing underwriter, if any, associated with the issuance of the Bonds; (b) the name and address of any attorney or financial consultant who advised the City with respect to the Bonds; (c) any fee, bonus or gratuity paid by the managing underwriter or financial consultant, in connection with the Bond 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 Bonds, including any fee paid to attorneys or financial consultants. The purchaser of the Bonds 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 Bonds, 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 Bonds 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) clays prior to delivery of the Bonds,_ the successful bidder will be required to furnish the City a certificate specifying for each maturity the reoffering price at which at least ten percent (10%) of the Bonds of such maturity were sold (or were offered in a bona fide public offering (to persons other than bond house, brokers, or similar persons or organizationp acting in the capacity of underwriters'or wholesalers) and as of the date of award of the Bonds to the successful bidder reasonably expected to be sold)to the public. Such certificate shall be in form and substance satisfactory to the Co -Bond Counsel and shall include such additional information as may be requested by Co -Bond 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 Bonds 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. Additional information The Official Bid Form and Notice of Sale and copies of the Preliminary, Official Statement relating to the Bonds may be obtained upon request to the undersigned at 3006 Aviation Avenue,_ Miami, Florida, 33131, telephone number (305) 579-6350, or to the Financial Advisors, Howard Gary & Company, 3050 Biscayne Boulevard, Suits 603, Miami, Florida 33137-4163 telephone number, (305) 571- 1300 and Raymond James'& Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716 telephone number, (813) 573-8189. r Vie-_ r u e therein, and stating that there in no litigation pending or, to the knowledge of the signor of such certificate, threatened which would A. —a .I -I iaa 44 siE'$ra—J: A.'Ir— &. i AA4.6:s w& A.lw. . tia "A m fhn U4L".*UA • OPPICIAL BID FORM Proposal For the purchase of $0b00�Obb THE CITY OF MIAMI i FLORIDA GINERAL OBLIGATION BONDS, 8SAIRB 1991 June 24, 1991 is Commission of The City of Miami, Florida city Hall t, 350o Pan American Drive Miami, Florida 33133 y 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 June 17, " 1991 (the "Notice of Sale") , which is hereby made -a part of twe `offer to'purchasa all of the-$7,000,000 Sanitary his proposal, Sewer`'System Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (hereinafter collectively referredto. as the .,"Bonds'') to dated July 1, 1991. We will pay for ahe' z _be , Bonds' at ` the. time of delivery, in immediately available Federal Reserve' Funds; :Ten Million Dollars' ($101000',000),_..plus accrued' innterest, if any, ;from July 1, 1991 to the date of delivery, and`a cash premium of $ for all of the Bonds, which $10,000;•000'constitutes the total for. the separate bids of<par fozq each series of the Bonds as specified above. Such premium, if is` to be allocated to each series of Bonds as provided in .the, n Notice of Sale. ti SCHEDULE OF MATURITIES AND INTEREST RATES The Bonds shall bear interest at the rates set, forth in the following schedule: go 96 ' 1993 $215,000 96 96 2003 $5209000 310�000 2004 55$,000. ,. 1994 1995 330,000 2005 5950000 19Q6 345,000 2006 630,00o ^, 1997 365,000 2007 675,000 n 1998 390.000 2008 720,000 ti 1999 410,000 2009 770,000 ' 2000 435.000, 2010 825,000 r 2001 460,000 2011 880,000 x 4 2002 90,000 _ We enclose herewith acertified bank ashier'. oaf - car w;r>< an �.anr�A crated ` bank or trust co cheekaaapa�aaly, : aan c , amount o 13,0, QQO pal►able to the ord0t of The orida, h eh uneOk is to be applied or returnedia� m+�cc �ra►+�p �s with° the Notice of Baho! ,> � ^�w ho, % .documents oo tQ in the #•���aR� l� #il�R�� �dA� ilk ���i .�� - .#l10 ds Cef�� �a�ip �►tA+� ► 01 # Q(�. day e� ,a/r�c�Q at�s+a}� ss �a} s a BARRRI�!�th,11!'a#!'!!IJ!'A.A '{l'lr�il► VF1�'+ ''^i; { : gip;+; , x , 011 PAILIMINARY OPPIGIAL sTATWMT DAT20 dtlrne ale 1941 N�I�Btt Ri�TINGs t MoodY t � s standard i Poor IaI See "PATING911 herela In the opinion of t:'64ond Counsel, assuming, condttrting conytliance with certain covenants, interest on W Series 1991 Nondt is ercludid from gross income for federal income tax pwposes wider abating statutes, regrlatiow, rulings and cowt decisions. However, see •SAX LX1 MP170N• hereio for it description of the abonative minbawn tax finposed on colnaradons aid certain other federal tax consequences of ownership of the Series 101 Bonds. Co -Bond Counsel are JkHher of the opinion that the Series 1991 Bonds and the interest thereon ore axem# from taxation under the laws of the State of Florida, except as to estate taxes and razes Nosed by Chapter 220, Florida Statutes, as amended, on interest, income or profits on debt obligations owned by co"rations, as d#fned therein. $1090009000 THE CITY OF MIAAUt FLORIDA GENERAL OBLIGATION DOWDs, seize 1991 $7,000,000 sanitary sever sYatela Banda $3,000,000 Piro Fighting, Fire prevention and RaaaU6 Paoilitiee Bonder Dated: July 1, 1991 Due: July 1, as shown below . Interest on the Series 1991 Bonds is payable semi-annually on July 1 and January i in each year, commencing January 1, 1991. The Series 1991 Bonds are issuable as fully registered bonds in the denomination of $5,000 or integral multiple* thereof. Interest on the Series 1991 Bonds will be payable (in the manner described herein) to the registered owners shown on the registration books of The City of Miami, Florida (the "City) maintained by Barnett Banks Trust Company, N.A., (the 'Paying Agent`) in Jacksonville, Florida, as Registrar and Paying Agent, on the fifteenth day of the month preceding an interest payment date, by check or draft mailed by first class mail to such registered owners by the Paying Agent. The principal of, and premium, if any, on the Series 1991 Bonds are payable upon presentation and surrender of the Series 1991 Bonds at the principal corporate trust office of the Paying AgeaL The Series M Bonds are subject to optional redemption as prodded herein. . The Series 1991 Bonds are general obligations of the City, for which its full faith, credit and taxing power are pledged and are payable from unlimited ad valorem taxes on all taxable property within the City (excluding homestead exemptions as required by Florida law). MATURITIES, AMOUNTS, MUMT RATES AND PRICES OR YIELDS (Accrued Interest to be added) Maturity Principal Interest Price Maturity Principal Interest Price or Date July I Amount BW Date Jab 1 AVIM BW Yield 1993 $295,000 % % 2003 S520,000 % % 1994 310,000 2004 555,000 1995 330,000 2005, 595,000 1996 345,000 2006 630,000 1997 365,000 2007 675,OW 1998 390,000 200E 720,000 1999 410,000 2009 770,000 2000 435,000 2010 825,000 2001 460,000 2011 880►000 2002 490,000 This cover page contains certain information for quick reference only. It is awl a summary of this issue. Investor mud read the entire official statement to obtain information essential to the malting of an Informed investment decision. The Series 1991 Bonds are offered subject to prior sale, when, as and if issued by the City, subject to the receipt of the unqualified approving opinions of Barnes, Darby & McGhee, and Mstmer, Zidcind, Hormeleo do Jaffee, P.A., both of Miami, Florida, Co -Bond Counsel, as to the validity and federal tax status of the interest owthe Series 1991 Bonds. Certain legal matters in connection with the Series 1991 Bonds will be passed upon for the City by Jorge L. Fernandez, City Attorney. Howard Gary do Company, Miami, Florida, and Raymond Jame $ Associates, Inc.. St. Petersburg, Florida are serving as Financial Advisors to the City. It is expected that the Sena 1991 Bonds will be available for delivery in New York, New York, on or about July 23, 1991. OFFICIAL. INS ` THE CITY OF MIAMI, FLORIDA MEMBERS OF BOARD OF CITY COMMISSIONERS ;- XAVMR L, SUAREZ, MAYOR �g T, L. PLUMWER, I,., VICE MAYOR MWAM ALONSO _ MILLEP. r. DA XINS VICTOR DE YURRE CITY OFFICIALS City Manager....................................CESAR II. ODIO City Attorney..................JORGE L. F0NANDEZ, ESQ. Director of Finance.... 6 ... # ... . .. . CAnOS E. GARCIA, CPA - City -Clerk ....................... 6..6.............6.MATTY HIRAI Co -Bond Counsel BARNES, DARBY & MCGHEE AND MATZNER, ZISKIND,Ri-EE & JAFFEE, P.A. Financial Advisors HOWARD GARY & COMPANY . AND RAYMOND JAMES AND ASSOCIATES, INC. r Independent Certified Public Accountants DELOPITE & TOUCHE Ia OFFICIAL.INO 2 v � plc tY e 7 s NO DEALER, BROKER, SALESMAN Olt OTHER PERSON HAS BEEN AUTHORIZED BY THE CITY OR ANY UNDERWRITER TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS OFFICIAL STATEMENT, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY ANY OF THE FOREGOING. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THE SERIFS 1991 BONDS BY ANY PERSON IN ANY JURISDICTION IN 'WHICH IT IS UNLAWFUL FOR SUCH PERSON TO MAKE SUCH OFFER, SOLICITATION, OR SALE. THE INFORMATION SET FORTH HEREIN HAS BEEN OBTAINED FROM THE CITY OF MIAMI, FLORIDA, AND OTHER SOURCES WHICH ARE BELIEVED TO BE RELIABLE. THE DELIVERY OF THIS OFFICIAL STATEMENT AT ANY TIME DOES NOT IMPLY THAT ANY INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THE SERIES 1991 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 NOR HAS THE RESOLUTION FOR THE SERIFS 1991 BONDS BEEN QUALIFIED UNDER TH.E TRUST INDENTURE ACT OF 1939. THE SERIES 1991 BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY ENTER INTO OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1991 BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING IF COMMENCED, MAY BE DISCONTINUED AT ANYTIME. THE UNDERWRITERS MAY OFFER AND SELL THE SERIES 1991 BONDS TO CERTAIN DEALERS AND CERTAIN DEALER BANKS AND BANKS ACTING AS AGENTS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED. OFFICIAL.INB 3 �D�JV j\/�� �A��ii►iiiii►r••{Yiiiaaiiiii{i.iri•ii►iiiiiai•iiiiiY.iiiiiiiri►i►►•ira►HlaY►iiiiY.Yia1i 4 14 �R" OY Xim araFLAISO JL77Joil iiiaiiii{i•i•ari/i►•{i•{{•i•►Yiliir/ir/ri r►a i•a•a►►••aiiaiiii•fi{i i - - �1.r•..•ia.iir{��ii,.i``r��i,,��i,,{ii••rL•..ii{.i...Ir.ir.•.ridrir..ii.•.rriii.••...r1rrl..rilrr..{.r► lA�{►r......1...a1..►•r•..•...{.•......{.irr►►.r1{i....►.r..••ra{.iiirra.lrr lioi&Wai wd e a p•ii{i•iiiN•iiiirririrY•1.{{1ri►aiiiN.Niiiil{lrarili{•i - tOM�N{li rriii•aiiii•••r•i{ii•iiiiii{►N•a►ii{{Yi •ia•riNNii{•ri►i••i•iii{• -- Eg&Wpjion• {{.►a..i...........i...ir.6........................{{...rim —r/���,LL�_,,��s�-,�� rO"—at j�� i.►..i.••i.rriNii....ir•.................................Nr A01TM' OC 11 Y AM •"ATION.•..........••••ii.ii•••u...r••r•rs1r....i{...••r•i{.•si.rr..•srii '. APHICAMONOP PROCMS ...... ...................ii.................. ............................. •6...... DEBT SMVIM ON THE W= MlIMM&.............a..........•......r...............ai........•i•...r. USMATII NS. LF.OAL DEBT .............. ........................................... .........{....•......... P • yUd& C"tUfM•..... .••r..rr..• ';+ The ................................................... Tie City C. arti r.......................................................... 6.................. DEBT_SyUrM�M�.A�RY.�i•••..r...................................................................... Debt 17\7................. %:M d R.at&........rr..............1•••...•.r•.••••..........•....••..••...•••••....• Debt Stag and Vacuws Debt ltadas..................... ..•...•..••••.........•.•........ - Coal *Ika&m Bw& Audmx iced Imnot Issued.............................................................................. Clot" TmPruvemmt Plan..................................................................... Leases and Otber Commitmeats•................................................................ ADDITIONAL MANCIAL DM MATION RELATING TO TM CITY OF MIAML.......................................................................... Geomal . Deception of Fimnaal Racfim& .............. .................. ............ ......... D®aripti= of ROCOUM........................................................................ General Fuo&................................................................................... aaRwmwiun&....................................... ................ 0....... .•.. Db&wvi RY.&................. N..... •.......... ................................... • E�.na�t�ara��/. ����............................................................................... RYrdi.�d.1i mim Fun.................................................................. Procaftm for Tax Le" and Tax C.ollecfm.............................................. •....... - Tax Sche&" aad Tables..............................6... Labor Reidiom............................. ....... M........................ ..•........... .... Ple13" ............................ •...... ••.....••.................. �011red Self RYld��id.idi................................6........................ •.................. _ RATINGS•.................................................................•............................... - .. MIGAiiON ........................................... ................................................... i iMANCIAL STATEMENTS...................................................................................„ Ma OFFICIAL:INS`4 D s h 4 rt7 i� -91 4% f �f s P .. y i OVAL OF MAL M jN iYtNi6i 4046444iiii 666666 PRELPAINARY OFFICIAL STATEMENT $1000000000 THE CITY OF NIAM, FLORIDA GENERAL OBLIGATION BONDS, SE.RMS 1"1 $7,000,000 Sanitary Sewer System Bonds $39000,000 Fire Fighting, Fire Prevention and Rescue Faeiiities Bonds INTRODUCTORY STATEMENT The purpose of this official Statement of The City of Miami, Florida (the "City"), which includes the cover page and appendices attached hereto, is to set forth information concerning the City and its General Obligation Bonds to be issued in the total principal amount of $10,000,000 (the "Series 1991 Bonds"), consisting of different series of general obligation bonds of the City authorized by the Commission of the City (the "Commission"), approved by the electors and remaining unissued, as herein below mentioned. DESCRIPTION OF THE SERIES 1991 BONDS General The Series 1991 Bonds are being issued in the aggregate a principal amount of $10,000,000, are dated July 1, 1991, and are issuable as fully registered bonds in the denomination of $5, 000 or integral multiples thereof. Interest on the Series 1991 Bonds will be payable to the registered owners shown on the registration books of the City held by Barnett Banks Trust Company, N.A. of ' Jacksonville, Florida, as registrar and paying agent for the Series 1991Bonds (the "Bond Registrar and Paying Agent")`, on the fifteenth (15th) day (whether or not a business day) of the month next preceding an interest. payment date (the "Record Date"), by check or draft mailed by first class mail to such registered owners by the Bond Registrar and Paying Agent, irrespective of any transfer or exchange of any Series 1991 Bond subsequent to'such Y Record Date and prior to such interest payment .date., unless the City defaults in the payment of interest due on such 'interest payment date. In the event of any such default, ' such defaulted interest; will be a able to the p y person in. whose name su' h` Serie's 1991, Bond, is registered at the close of business on a-- special record date 'fcar,the payment of such defaulted interest, established Pynotice, mailed by the City to the registered owners of the .Series 1991_ Bonds not.less than, fifteen (15) days preceding such special record date.Such notice shall be mailed to the person in whose name the Series 1991 Bonds are registered at`the close of. siness on .the fifth` (5th da whether`'_or not a business day Y ( Y) Preceding the date of mailing of such notice. The. principal of, and premium; if any, on the `Series 1991' Bonds are payable upon 'presentation and OFFICIAL.INS 6' M 1 k i surrender of the Series 1991 Bonds at the principal corporate trust office of the Bond Registrar and Paying Agent. Intrrest paymsht Datas The Series 1991 gonna bear interest at the rates per annum set forth on the cover page of this Official statement, payable semiannually on July i and January 1 of each year, commending January 1, 1991, and mature on July 1 in the years and principal amounts set forth on the cover page of this Official Statement and as follows** MATMITY acHOwLg Maturity Sanitary Sewer Fire Prevention Tct l bete System and Rescue pdnoipal :. Juty l bonds Facilities Bonds Aum 1993 $203,000 $90,000 S295,000 1994 215,000 95,000 310,000 1995 230,000 100,000 330,000 1996 240,000 105,000 345,000 1997 255,000 1101000 363,000 1999 275,000 11S,000 390,000 1999 285,000 125,000 410,000 2000 305,000 130,000 435,000 2001 320.000 140,000 460,000 2002 343,000 145,000 490,000 2003 365,000 1551000 520,000 2004 390,000 165,000 555,000 2005 41S,000 180,000 S9S,000 2006 440,000 190,000 630,000 2007 473,000 200,000 67S,000 2008 505,000 215,000 720,000 2009 540,000 230,000 770,000 2010 _ S80,000 245.000 925,000 2011 615,000 265,000 ' 880,000 Registration and Transfer of ownership The Bond Registrar and Paying Agent shall keep a register for registration of a transfer of any Series 1991 Bonds. Series 1991 - Bonds may be .transferred only on. the registration books kept by the Bond Registrar and Paying Agent.No transfer of 'any' Series 1991 -, Bonds`: shall be ermitte& exce t upon p p p presentation and surrender of ' -' such Series `' 1991 Bond at ' the off ice ` of ` the Bond Registrar "- and Paying Agent with a written instrument or instruments of transfer in form and with 'guaranty of signature satisfactory to the Bond h Registrar'and Paying 'Agent, duly executed by the owner of such Series 1991 Bond,' yin person or by his attorney -in -fact . orF Ie' gal representative containing written instructions as to the details of transfer of such Series 1991 Bonds, along with the social security number or federal employer identification number of the transferee. The City, its agents and the Bond Registrar and Paying Agent may CFFICIAL.INB 7 y, ' n ?r 4 SF i 4 . "k is 0 , r s ? i7. deem and treat the registered owner of any series 1991 Bond as the absolute owner of such Series 1991 Bond for the purpose of receiving payment of the principal thereof and the interest thereon. Upon surrender for registration of transfer of any Series 1991 Bond at the principal corporate trust office of the Bond Registrar and Baying Agent, the c4ty shall execute and deliver to the transferee or transferees a new bond or bonds for a like aggregate principal amount and maturity. Series 1991 Bonds may be exchanged at said office of the Bond Registrar and paying Agent for a like aggregate principal amount of bonds of other authorized denominations of the same series and same maturity. The execution by the city of any Series 1991 Bond in the denomination of $5,000 or any integral multiple thereof shall constitute full and due authorization of such denomination and the Bond Registrar and Paying Agent thereby shall be authorized to deliver such Series 1991 Bond. No charge shall be made to any Bond owner for the privilege of registration of transfer or exchange, but any Bond owner requesting any such registration of transfer or exchange will be required to pay any tax, fee or other governmental charge required to be paid with respect thereto. The Bond Registrar and Paying Agent shall not be required to transfer or exchange any Series 1991 Bond after the mailing of notice calling such Series 1991 Bond for redemption has been made, nor during the period of fifteen days next preceding mailing of a notice of redemption of any Series 1991 Bonds. In case any Series 1991 Bond shall become mutilated or be destroyed, stolen or lost, the City may, in its discretion (i) deliver a duplicate replacement Series 1991 Bond, or (ii) pay a Series 1991 Bond that has matured or is about to mature. The registered owner of such Series 1991 Bond must surrender any mutilated Series 1991 Bond for cancellation, must furnish the City or its agent proof of ownership of any destroyed, stolen or lost Series 1991 Bond, post satisfactory indemnity, comply with any reasonable conditions the City or its agent may prescribe and pay the City's or its agents' reasonable expenses related thereto. Redemption Provisions Optional Redemption. The Series 1991 Bonds maturing on July 11 2002 and thereafter are subject to redemption prior to their maturity at the option of the City on or after July 1, 2001, as a whole at any time or in part on any interest payment date in the inverse order of their maturities (by lot within a maturity) at the redemption prices (expressed as percentages of the principal amount of Series 1991 Bonds to be redeemed), set forth in the following OFFICIAL.INS a A A s table, plus accrued interest from the most recent interest payment date to the redemption data: Redemption periods (both _dates _ I nclusive.). Redemption �_prioe ,.r July 1, 2001 through June 30, 2002 1014 July 1, 2002 through June 300 2001 i01.5$ July 1, 2003 and thereafter 100% Notice of Redemption. At least thirty (30) days and not more than sixty (60) days before the redemption date, a notice of any such redemption, either in whole or in part, signed on behalf of the City by the Series 1991 Bond Registrar shall be mailed, postage prepaid, to all registered owners of Series 1991 Bonds to be redeemed at their addresses as they appear on the registration books provided for in the Resolution, but failure so to mail any such notice to the registered owner of any Series 1991 Bonds shall not affect the validity of any proceedings for the redemption of any Series 1991 Bond for which no such failure or defect has occurred. All such Series 1991 Bonds called for redemption and for the retirement of which funds are duly provided will cease to bear interest on such redemption date. .Notice of call for redemption of any Series 1991 Bond shall set forth the date fixed for redemption, the rate of interest borne by each Series 1991 Bond being redeemed, the date of publication, if any, of a notice of redemption, the name and address.of the Series 1991 Bond Registrar and Paying Agent, the redemption price to be paid and, if less than all of the Series 1991 Bonds then outstanding shall: be called for. redemption, the distinctive:numbersa and.letters, including CUSIP numbers, if any, of such Series 1991 Bonds to e redeemed and, in the case of Series 1991 Bonds to be redeemed in part only, the portion of the.principal amount thereof to :be redeemed. If any Series 1991 Bonds are to be redeemed in part only, the notice of redemption which relates to such Series 1991 Bond shall also state that on orafter the redemption date, '+ upon surrender of such Series 1991 Bond, a new Series 1991 Bond or:: Series 1991 Bondsina principal amount equal to the unredeemed portion of such Series.1991 Bond will.be issued. The Resolution also requires all notices of redemption to be sent;to all, registered securities depositories holding substantial amounts of, obligations similar in type to the Series 1991 Bonds and publication of such notice in THE BOND BUYER, but failure�of any notice of redemption to comply with such.additional requirements shall not in any manner affect the -of fectiveness of a call for redemption otherwise in conformance with the Resolution. OFFICIAL.INS 9 AV"iHO=ATIONt SECMUT Y AND VALIDATION The Series 1991 Bonds shall be issued under and pursuant to the Charter of the City, but only to the extent not inconsistent with and not repealed by tho provisions of Section 166.021, Florida Statutes; Chapter 166, Florida Statutes, Sections 132.33�13247, Florida Statutes; the Constitution of the State of Fibrida, including, but not limited to, Article V11, Section 2 thereof; ordinances and resolutions of the City including but not limited to Resolution No. _,. of the City adopted on June 13, 1991, as supplemented by Resolution No. — and Resolution No. both of the City, both adopted on June 27, 1991 (the "Resolut on"); and other applicable provisions of law. The Series 1991 Bonds were approved by the qualified electors of the City and were validated as follows: The Sanitary Sewer System Bonds were authorized by Ordinance No. 9128 enacted by the City on June 10, 1980, as supplemented and amended, were approved by the. electors on October 7, 1980, and were validated by judgment of the Circuit Court of Dade County on January 11, 1982. No appeal was taken. The Fire Fighting, Fire Prevention and Rescue Facilities Bonds were authorized by ordinance No. 9296 enacted by the City on July 23, 1981, as supplemented and amended, were approved by the electors on November 3, 1981, and were validated by judgment of the Circuit Court of Dade County on July 13, 1982. No appeal was taken. The Series 1991 Bonds are general obligations of the City for which its full faith, czedit and taxing power have been irrevocably pledged. The Series 1991 Bonds are payable from unlimited ad valorem taxes levied on all taxable property located in the City (excluding homestead exemptions as required by applicable law). The City has covenanted in the Resolution that it will diligently enforce its right to receive tax revenues and will enforce and collect such taxes. The City has further covenanted therein that it will not take any action that will impair or adversely affect its rights to levy, collect and receive and taxes, or impair or adversely affect in any manner the pledge made therein on the rights of the holders of the Bonds. The taxes assessed, levied and collected for the security and payment of the Series 1991 Bonds are required, pursuant to the terms of the Resolution, to be assessed, levied and collected in the same manner and at the same time as other ad -valorem taxes are assessed and collected and the proceeds" of said taxes, except as described above and in the Resolution, are 3 to be applied solely to the payment of the principal of, premium, if any, and interest on general obligation bonds of the City. sit 0000 000 kwo y sewer system Benda DEBT S �VE ON TIM SM 1"I BONDS The follawing tables set forth the scheduled annual debt servios 6n the aariee,19+01 bands - TOW Piti yd &s* Debt 1993 29S,000 1994 310,000 1905 330,000 } 106 30,000 1997 _ ,36.5,000 _ 1999 390,000 1999 410,000- 2000 43S,000 2001 460,000 2002 4900000 .t. 2003 520,000 2004 555,000' 200E 59S000 - 2006 630,000 2007 675,000 2008 720,000 k '2009 770,000 2010 $25,000 2011 $80,000 TOTAL 'Preliminary,; Subject to Change` ' (1) Exclusive accrued interest. LEGAL DEBT LBUTATIONS The Florida Constitution The Florida Constitution does not provide a limit on the amount of ad valorem'taxes � the `City ``may: levy a fox 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 m lls'per $1' 00 ($10 per $l 000)-,`of-,'the' assessed `value of real estate and tangible personal property for municipal purposes, other - ur 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 such 10 mill limitation. ;Atha Article VII, Section 12 of the Florida Constitution requires L, the 'approval of electors prior to the issuance of bonds payable - OFFICIAL.INS 12 { F� w j 4 f r.,K„�C'ksS`.- -----_ _ from ad valorem taxes and maturing more than twelve months after issuance. The provision in Article VII, Section 12, which limits such vote to electors who are owners of freeholds not wholly 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 has been held valid and remains operative. , The City Charter The City Charter limits general obligation debt of the City to 15* of the assessed valuation of all real and personal property within the City limits as shown by the last preceding assessment roll of the City and provides that bonds for street, sewer, sidewalk and other public improvements which are paid from special 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, 1990 was $1,580,007,572, based on' the net assessed valuation of $10,533,383,819. Outstanding general obligation debt applicable to the City's debt limitation as of September 30, 1990 totaled $185,840,000, 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 the General Purpose Financial Statements of the City for the Fiscal Year Ended September 30, 1990 attached hereto as Appendix B. Selected Debt Data The following several tables provide details of the City's principal and interest requirements on general obligation bonds, principal and interest requirements on revenue and special obligation bonds and overlapping debt of. the County. OFFICIAL.INS General obligation heads outstanding on Saptianber 3dt iota Final lasue maturity Amount Amount enerai Obliietien..issue PAU IM Issued Outatandino Storm Sewer improvement ..............i........Y... 2.1.71 1991 S 1,500,006 6 $0,000 Highway iinprevament...iiii.i.i....... 6.6........ :. 9-ti71 199i 2,000,000 100000 Sanitary Sewer......i...i...................iii... 9.1.1 1991 500'0000 110:0000 Fire €fighting•. ... .....ii.i.Y..i.ii.......... 1.... 6•1-i7�2 1"1 1:100,000 120,000 Sanitery boor:.i.mamma:iii.iiii.i...ii.iif.s..... 6.1.72 1992 5,000,000 160,000 Police Haadquarty�ers�.y...iiY.....i..i............i... 6-i-72 1992 1,500,000 iS0,006 Storm Sewer If Love.IR..tii....i..i................: 6.1.72 1992 3,000,000 Swim Street and Highway Improveament...i................ 6.1.72 i992 2,000,000 90,000 Public Perk and k6ereetionet Facilities. ..... .-... 10.1.72 1997 28,350,000 6,225,000 Storm Sewer Improvement............i.............. 9-1.73 M3 2,000,000 325,000 Police Headquarters.........i.i................... 9-1.73 1993 4:000,000 679,000 Store sewer improvement....i:ii....i.............i 3.1.75 Ms 3,000,000 775,000 Police Headquarters.... ........................... 3.1-75 1995 8,000,000 2,075,000 Sanitary Sewer... . ... .i.........:............ i0-1.75 i995 5,000,000 865,000 Police Headquarters.i......iii..1................. 10.1.75 1995 2,000,000 470000 sanitary Sewer.............i.:.iiYY..:............ S-1.77 1977 13,000,000 4420:000 Fire Fighting..........:.i.iii.:i.......i......... 5-i-T7 19" 5,000,000 1:820,000 Police Headquarters ............................... S-1.77 1977 3,000.000 1,130000 em Storm sewer Improvents........ i.:............... 5-1.77 1977 2,000,000 740:000 Fire Fighting ...... 6.6... i.iii..i................. 12.1.77 1998 1,000,000 "0'000 Public Perk and Recreational Facilities........... 12-1.77 2003 11,540,000 6240,000 Housing. ... 6 ............. b.bb..* ................. 12-1.77 " 2008 1,500,000 1:210,000 Street and Highway Improvement .................... 12-1.78 1998 5,000,000 2,050,000 Sanitary Sewer .................................... 12-1.78 1998 6,000,000 2,790,000 Fire Fighting, prevention atd Rescue Facilities... 12-1-78 1998 2,250,000 1:060:000 Storm Sewer Improvement ........................... 12-1-78 Me 5,000,000 3,050,000 Fire Fighting, Prevention and Rescue Facilities... 8-1-81 2001 1,750,000 1,005,000 Storm Sewer Improvement.......... 6................ 8.1-81 2001 3,000,000 2,120,000 Housing* .................... t.66 .................. 8.1.81 2011 4.400.000 3,795,000 Fire Fighting, Prevention and Rescue Facitities(1) 5-1.83 2003 8,000,000 5,980,000 Storm Same Improvement(1)........................ 5-1.83 2003 4,000,000 3,175,000 Sanitary Sewer(1)................................. 5-1.83 2003 6,000,000 4,050,000 Street Highway Improvement(1)..................... 5-1.83 2003• 6,000,000 4,990,000 Housing(1)......... .................... 5.1.83 2013 1000,000 905,000 Fire Fighting ..................................... 4-1.85 1998 2:075.000 1,695,000 Sanitary Sewer .................................... 4-1.115 1998 4205,000 3,090,000 Storm Sewer ....................................... 4-1-85 1998 2:265,000 1,760,000 Highway Improvement ................................ 4-1-85 1998 2Ms 000 2,220,000 Police Headquarters ............................... 4-1.85 1998 2:145:000 1,670,000 Police Headquarters ............................... 6.1.86 2005 12,000,000 11,045,000 Storm Sewer ....................................... 6-1-86' 2011 5,000,000 4,735,000 Sanitary Sewer .................................... 6-1.86 2006 3,000,000 2,835,000 Street and Highway...... 4......................... 6-1.86 2006- - '2,000,000 1,885;000 General Obligation Refunding ...................... 8-1-86 20% 38,355,000 33385,000 Pollution Control Facilities ...................... 10-1-66 2006 4,000,000 3:370,000 Street and Highway improvement .................... 10-1.86 2006 2,375,000 1,955,000 Police Headquarters ............................... 8-1.87 2007 1,500,000 1,425,000 Storm Sewer ....................................... 8-1-87 2007 1,000.000 970,000 Sanitary Sewer Improvement ........................ 8-1-87 2007 2,500,000 2,430,000 Street and Highway Improvement .................... 8-1.87 2007 5,000,000 4,865,000 Police Headquarters ............................... 11-1-88 20M 1,500,000 1,500,000 Storm Sewer Improvement ........................... 11-1.88 2013 5,000,000 5,000,000 Sanitary Sewer .................................... 11-1-se 2008 5,000,000 5:000,000 Street and Highway Improvement .................... 11-1.88 2008 3,900,000 3,"0'000 Fire Fighting; Prevention and Rescue Facilities... 11-1.88 20M 3,000,000 3,000,000 General Obligation Refunding ...................... 4-1-89 2010 22.605.000 21,605,000 TOTAL..................................... 94 00200 M.340.000 (1) These bonds were partially refunded by s16,135,000 General Obligation Refunding Bonds, Series 1991 issued on April 30, 1"1. OFFICIAL.INB 14 S ",� -rn ..., _+f ., .�.. .. 5�. _: f.t u t .. _•7-. ,f. +n-.< i. . t.. ,. r f �. — a -- ' General Obligation Bonded Indebtedness Principal and Interest Requirements as of deptember 30, 1990 :a rt hiscal Year jading-9/2aY PriecmalInterest.. ; 101 $ 8,6SS,000 $ 11,317,S2S $ 19,972,525(1) 1992 11191S1000 12,251,774 24,166,774 1903 11,270,000 11,423,490 22,693,490 1994 1112051000 10,S78,279 21,783,179 199S 11,5301000 9,829,419 21,3S8,419 1996 11,425,000 9,065,429 20,490,429 1997 11,52S,000 9,310,893 19,83S,893 1998 10,745,000 7,569,964 18,313,964 1999 9,965,000 6,845,202 16,810,202 20M 91300,000 6,079,556 15,379,556 2001 9,875,000 5,327,630 1S,202,630 2002 9,970,000 4,742,100 14,712,100 2003 10,490,000 3,996,946 14,486,946 '2004 8,750,000 3,21S,336 11,96S,336 2005 8,300,000 2,579,221 10,979,221 2006 6,S65,000 11961,511 8,526,S11 • 2007 5,160,000 1,488,913 6,648,913 2008 4,190,000 1,138,467 S,328,467 2009 4,225,000 876,615 5,101,615 2010 3,070,000 655,184 3,725,184 2011 2,395,000 461,404 2,856,404 2012 1,735,000 324,169 2,059,169 2013 1,795,000 212,681 2,007,681 2014 1,785.000 97.006 1•882.006 TOTAL $185.840.000 S 120� 3 4 S306.186.714 (1) Excludes October 1, 1990 installment in the amount of $3,997,133 recorded in the obligation ation debt 8 S service fund. OFFICIAL.IN Is 4 ra CSC f 5 iidd " X 4 Ink I • jevanue and Spoei&I obligation Bonds outstanding on septateber 30, 1990 Final mete of Matut°ity Amount AtlYMt ��at11 Year Fatted Otttate�lding �&,= Bond .Issue = Special Revenue Refeding 70i,32S 2015 $65,271,325 $63, Gonda, Series 19$7(1). 5.23.90 2008 12,3$6,6S7 12,386,6S7 Special Obligation Bonds(2)............. Miami Sports: end Exhibition Authority Molting/ Fisted Rate Special Obligation Bonds Series 1985(3) 12-26-85 2015 39,000,000 39,000,000 Missal Sports and Exhibition Authority Special Obligation Bonds 19$9A (4) - 05-04-89 2004 8,750,000 $,400+ parking System Revenue Bonds Series 1986(5�..... 07-01-86 2009 16,27S,000 15,19S.000 Housing Special Obligation Bonds(6).... 10-01-86 2006 4,290.000 3,$20,000 5 000,00i1 is panting System subordinate Revenue Ronds(7).... Various 2006 5,300,000 , Sunshine State Governmental Financing 27,630,900 26,163,100 Commission Loans(8). .......I.......6....., Various 2015 Florida League of Cities First Municipal 1600,000 16,000,000 .. ........................6-15-89 1995 + Loan (9)......:. ......... ...... Florida League of Cities First Municipal 6,500,000 6,500,000 Loan (10)............ Various 1995 Rental Revenue Bonds Series 1988 (11)............ 7-17-89 2019 30,000,000 30,000,000 Guaranteed Entitlenmt Revenue Bonds f 6-1-89 2009 6.500.0006,335, Series 1989(12)................................. 37 8 5231 4 SOLOBI Total ................................. (1) Debt aervice is provided by nat revem►aa of the Convention CeNer t3ataEe+ a pledge of certain public ssrvtces tax nsveouss, and by a covewm of the City to provide, to the extent neeesary, revenues of the City, other than ad valorem property tax revamtw, de6ciene in the required dnkiM Dud. Sea Nato E in Appendix B, '�� �tPoaa Fiatoaial sufficient to make up any Y StMtemarW.' _ and cettYia sort ad (2) Them Special Obligation Bonds ate payable fiom the net revenues of;dw Government Crater Parltiog Ganges valorem revenues of the City. See Note E in Appendix B, 'Gaaeral Purpose Finsuem' Statements.• payable. Bonds have been refunded u of 1-1-91 by *a Miami Sports Mad Exbibkion AuWoeq PMYy (3) The Flwting/Fixed from and aauued by a pledge of n aao-tbird of the not taxeeveaues from the convention davelopmsat tax levied and eoUeeted is the Gauntry; sad (u)investa►au escninga on cenain monies dgwdted in cuuin west funds. See Nota E in Appendix B, 'General Purposes _ F'mancial Stammeau.- and EAdbition Authority Fired Rate Bonds, a Special obGSatioa Series 1989A (4) SimWianeously with the issuance of the Miami Spore Y led of the one-tbird of the not FloatinglFixed Rate Booda. of $S,7S0,000 wets issued on May 4, 1989. secured b a subordinate pledge tax revenues from the convention development tor. See Now E in Appendix B. 'General PWPoa° FiaaacW SteWmeou'- (S) Secured by a pledge of the not revenues of the off-street parkint facilities and the on -street puiont matars of the City. See Note E g B. 'General Purpose Fummial Statements.' E �� Then Obligation Goads ere payable from •portion of the ftwuhise fee collected from Southern Bell Telephone do Telegraph eon and mainrenaaee of telepbooa and telegraph Unee within the City. See Noe E is Company is relation w the eaWt+retion. opera' Appendix B. 'General Purpose Financial Swomenta.- t1 Cl) bonds are secured by aubordiaate pledges of the suer revenues of the off-street parking facilities and the on street rotten of the Cam'' rovemaats, and other capita projeeu. The City ban pledged M MW proceeds from these loans are iataaded to Gaauca part, marina imp debt service. See Note E in samara revenues and made a covenant to budget and appropriate from aon-ad valorem revenues a WY Appeadtx B. 'General Purpose Futancial Statements.- (9) Tble loan is being repaid with revenues from the Orange Bowl operations, and a pledge of S2,000,000 from the Guaratttesd Emitlement Revenue. (10) We loan is secured by a subordiautte pledge of tat he sreverares of ties oR-street puking tacilittw and the on Mat meters of ties City. (11) These bonds are secured with monthly Us" payments by the Federal gm'e• ■ (12) Tbeae bonda are secured by a partial pledge from the Guaranteed ismitlemtnt ltawnua. ME_ OFFICIAL+. INB 16 2oP�� 9> t � r 4� _ i ram - Ant �_ k Revenue Bonds and SpetIdJ Obligation Bonds PrinEipoi and Interest RegWronenti , 5 As of September A Pistil htwnE Garage First MIA Year 1 Sutordiruta spatial 5ystarn Piro 3p itl Obli �stiaa ttenul tunicipsl 11t u1 ndin� 3yetetn �rkin� Syrte� Revenue lle MU Ravo lue Pool tSbL'Eation Stptetuber 1levenue ilevetMle bodst Pool 1906 ice!Lim Bob kffi1 low 3 li00,000 1441 s 370,000 S 2,060,000 3 380,0W 3 100.000 645,000 t442 S85,000 2,460.000 21980,000 545,000 500.000 1443 413,000 3,t60,000 515.000 S00,000 735,000 1994� 465,000 3,3S5.000 St,065,000 625,000 1S,100,000 7ES,000 845,000 1943 1996 300,000 3,570,000 3,805.000 670,000 720,E+ " 1097 1498 S35,000 575,000 4,05S,000 775,000 965,000' 1,030,000 1999 620,000 4,345,000 935,000 89S,000 $ 610,000 1,105,000 2000 665,E 715,000 4,660,000 4,755,000 459,E21 660,000 1,1801000 1,263,000 ' 2001 2002 77S,000 5,110.000 428,479 403,35E 720.000 7Eo,000 103SS,000 2003 835,000 5,490,000 1,911.064 973,000 950,000 19450,000' 2004 E93,OOb 1,653,929 1,OS0,000 425,000 1,530,000 - 200S 970,000 1,520,371 11135,000 1,00S,000 1,6S5,000 ' 2006 2007 1,040,000 1,11S,000 2,000.000 1,280,099 1.225,000 680,000 1,090,000 1,165,000 1,775,000 1+ +� 200E 1,200,000 1,280,099 1,150,359 1,285,000 2,030:000 ' + V09 1,290,000 1,063,229 1,395,000 2,175,000 :010 1.390,000 983.410 1,520,000 21325.000 2011 965,815 1,650,000 21495,000, = 2012 801,229 1,79S,000 2,660,000 2013 731,160 11950,000 2.850,000 ` 2014 629,407 2,113,000 3,04S:000 20i5 2,300,000 2016 2.500,000 2017 2,715,000 2018 2,950, 1 2019 Total S 9 t 000 000 $�..+- S '0 63 70 t 000 1 3E6 6 E i $3.�000 1 �0" 339,...� r. i t - w Y a `st t �FFIGIAL.IN4 7 1° "e5 = bTg Y yn T / X t � k kan�; ® i Wx "� r+� stc Jk SutAW SuboMiiute Stats spacial t8 M.SAA, "att>ettetnai Obligation n spacial Subtndiaate pituncinx Ouatatueed HUD foul serhies1000 Obligation Obliitatift Comilioo molden"fit section awfiaaitea Tioidi Ptincipai ' s 12::44 2906 me lab DOM, 108IAR iCC mcictdo incipAl �total $140,000 S 370,000 S 391,400 S 175,000 S2,335,000 3 6,641,400 S 1S,859,339 3 22,S00,739 130,000 400,000 628,406 18S1000 3,240,000 10,573,400 13,40,290 26,009,600 160,000 425,000 669.400 20,000 S1,986,000 8,360.460 14,161,065 23,130,46S 170,000 45S,000 710,400 210.000 1,086,000 8,951,400 -14,212,350 23,163,630 S3,000,000 190,000 490,000 7$3,400 22S,000 1,986,400 28,029. 00 13,616,087 41,64S,887 190,000 S20,000 799,400 240,000 7,334,400 110048,901 19,283,291 200,000 560,000 949,400 233,000 7,824,400 11,451,893 10,276,203 213.000 600,000 901.400 273,000 1,371,400 10.910,140 19,281,546 ; 230,000 6401000 9S6,400 2901000 8,946,400 104201930 19,26700 230,000 585,000 1,01S,400 310,000 10,19S,400 0.685411 19,880,721 270,000 7SS,000 1,077,400 330,b00 10,182,221 9,478,689 19,660#010 ' 290,000 785,000 1,143,400 355,000 10,871,879 8,803,233 19,675,112' 310,000 840,000 1,211,400 380,000 11,604,758 8,068,747 19,673,SOS 330,000 895,OW 1,298,400 40S,000 8,899,464 10,724,925 19,624,380 3SS,000 1,366,400 435,000 8,30S,229 1009,965 18,666,194 380,000 1,450,400 465,000 8,6S0,771 10,001,00S 1801,776 1,S37,400 S00,000 10,638,763 9,456,400 20,095,iS3 1,632.400 530,000 8,407,499 9,0S3,643 17,461,142 't 1,730,400 $70,000 8,055,750 8,683,644 16,739,401 g. 1,936.400 7,159,629 8,259,612 16,119.261 19948,400 6,776,810 7,892,308 14,669,118 2,066,700 7,067,51S 7.303,048 14,370,S63 5,256,229 6,917,044 12,173,273 5,S31,160 6,578,771 12.109,931 5,789,407 5,936,663 11.726,070 2,300,000 1,011,798 3,311,799 1 2,600,000 706,273 3,206,273 2,71S,000 490,023 3,206,023 2,950.000 255.17S 3,205.175 S3 3 820 38 26 16 100 6 335 SS•9 7S •S 99 4 jjjjjj8j& 9 112111.8.066j$ t 'i 1 a l QFFICIA,L.INS is x; 1 .. t .'i } �r L}} +. �t z. stet Direot and overiapping Debt as of deptember 30, logo (Amounts rounded to nearest thousands) General -special obligation Obligation Combined bibt Debt t Met.1 t i.1 -.-A. ... City of Miami $185,840,000 $217,378,000(2) $403,218,000 Dade County(3) $520,182.000 $315.411.000 $835,593,000 TOTh2. $706.022.000 $532,789.000 $1.._2.38,811,000 (1) special obligation debt is payable from revenue sources other than ad valorem taxes and includes special obligation bonds and revenue bonds. (2) Amount shown does not include accretion of the portion of the city's Special Revenue Refunding Bonds, Series 1987 issued as capital appreciation bonds, which accretion amounted to approximately $4,574,000 as of September 30, 1990. (3) Excludes $80,873.,000 Waterworks System Bonds which are outstanding and are secured by revenues of the Miami Dade Water and Sewer Authority as well as a pledge of the County to make payments from ad valorem taxes, if necessary.'• As of September 30, 1990, Dade County's total General Obligation Debt was $520,182,000, its total Special Obligation Debt was { $315,411,000, and its total Combined Debt was $835,593,000. The City's share of Dade County' s Debt based on assessed valuation is 19% of tits County total. The issuance of $980,000,000 of general obligation bonds by the School Board of Dade County was approved by referendum on March 8, 1988. As of the date hereof, the Board has issued $200,000,000 of such bonds. Such bonds are not included as part of the general obligation debt of the County. i i _1 OFFICIAL.INS 19 7 �: .• S X Al bobt statistics and various Debt uaties .r; The following tables detail the City t a debt statistics and significant comparative ratios of debt to population, and to the Cit tG tax base. � Debt Ratios of the City of Miami - September 30, 1990 l��rctoi.r�t t�iyi� p Net Assessed Value (1) (2) i i ..... ..... ............... 6 .. .. i .. i ... $11, 515,111, 0Oo Not Taxable Assessed for �jValuation Operating Purpose (2i) _(3) ♦ i i i i i i i i i. i i. i a i i i i ... i i .. ► i. i .. i i i i i i $10 0 $33 383 0 000 City; of Miami Debt_ Net General Obligation(g)(5)............$184,302#000 Net.Special Obligation(2)(4)(6)......... S217.378i000 ' Combined Net Direct Debt(2).................................... $40106$0,000 Overlapping Debt - General obligation(2)*.,,.6 ... ........ i.*$98#834,000 Special,Obligation(2)(6)................S59.928.000 .. Combined Net Overlapping. Debt (2) .... .........................i. S158i762.000 ', Total Combined Net Direct and Net Overlapping Debt(2) . . . . . . ...................... S560442.000 i Population of Miami(8)...........`.............................. 383,000 Assessed Valuation Per Capita .................................. $30#066 Net Taxable Assessed Valuation Per Capita ...................... $27,502 Debt Ratiost Net Direct General Obligation Debt as a Percent of NetTaxable `Assessed `Valuation ........................ 1.75% x Combined''Net Direct and Overlapping General Obligation Debt as Percent of Net Taxable Assessed 'Valuation.... .............. 0................ 2.68% Net -Direct General Obligation Debt Per Capita .................... $481.20 Combined.,Net Direct General and Special:Obligation Debt par'Capita....::................................. $1,048.77 Combined Net Direct and Overlapping General obligation Debt per Capita ....................................... $739e26 ' Combined Net Direct and Overlapping General and Special Obligation Debt Per 'Ca pital.........'............:.....:.` $146300' 7 (1) Assessed valuation at of the foul tax roll, MUGS too 7 assessed values asmandated by the lawn of the State of Florida, excludirhS exempt soveemnental properties. Amount rounded to nearest thousands. (3) Net of homestead examptions established by law. Homestead exemptions an applicable to taxable property for o+va occupied x.At h and certain persons who are a disabled or oth.»wiw ualifed therefor, as ...: Pe C y required by the, laws of the State of Florida, (4) Net of reserve funds. r (S) Net of existing funds on hsnd. (6) • - Special ob ' adon.debt wbieh include special obligation bonds as well as nveaua bonds is payable flan pec 1h6 r spec g p yab revanw acuecss odor;thaa ti , ad taxes, :_ Amount shown does not includ6ideretion of the of the C s S Ravenua its Shies poetics hty' penal . . lumFing looda, ' 1987 ImW as capital appreciation bonds, which ace ation amounted to Approximately $4,674,066 u of September 3tl,199Q♦ ` _ ' (n Based an the Ci s slurs of Dade Count s real and racrnl ry' y' pe property,+hich is 199i of the Couetty""tow. - , (8) Bued'af the Citya emote. 1be 1990 U.S. Bureau of Cenws'peeliwioary popuetirxh count of 358,458 is begd b,_ the - ; City and is expected to be adjusted. r� OOPICZU. INS - # *t � d{k 5 Pe ' Sit � v+ d, k� t. [ t a .........s�, ;.r H F 9 Ratio of Not General obligation Bonded Debt to met Assessed value and Not General obligation Bonded Debt Per Capita ($ in thousands) Net Gedeftl Assessed Homestead Net Assessed Obligation Fistjllear p6bulation Value Exemption dye,,_ Bonded Debt $atk Per Csjb 1990 $383,000(4) $11,S15,111 S981,728 $10,533,383 $194,302 1.75% $481420 1980 371,444(i) 11,210.995 969,335 10,241,650 195,860 1.01 527.20 1998 369.007(1) 10,761,797 954,976 9,806,819 196,041 1.90 504.17 1997 368,210(1) 10,420,911 933,300 0,487,611 195,579 2.06 531.1S 1886 371197S(1) 10,184,933 953,516 9.231,417 190,697 2.07 S12.66 198S 380,446(1) 0,696,610 952,430 8,744,180 170,087 1.95 447.07 1994 383,027(1) 9,346,033 9S4,979 8,391,054 146,102 1.74 381.74 1993 382,726(2) 8,659,281 920,89S 7,739,396 124,95S 1.61 326.49 1982 382,726(2) 7,962,129 7S0,66S 7,211,464 109,398 1.S2 285.84 1981 399,99S(3) 6,622,365 S64,238 6,058,127 118,038 1.95 29S.09 (1) Based on annual population estirnates provided by the State of Florida, Division of Population Studies, Bureau of Business and Economic Research, University of Florida. (2) Based on the July 1, 1992 population estimate used by the Office of Revenue Sharing of the Federal Covemment. (3) The City was involved in litigation with the Federal Census Bureau challenging the 346,865 population count of 1980; as a result, during 1991 the population count was adjusted upward to 399,99S for Federal Revenue Sharing purposes. (4) Estimated by the City on the basis of added electric and water connections and new dwelling units constructed. 'fie 1990 U.S. Bureau of Census preliminary population count of 358,458 is being challenged by the City and is expected to be adjusted. A"-----1 AM1 4 wm♦4 ww uownAAut Nat Tanued the expansion of the City's economic base. Shown below is a functional breakdown of the Capital Improvement Ordinance and proposed funding sources, excluding projects financed by the Department of Off-Streat Parking and the Miami Sports and Exhibition authority. The general government category includes 29.7 million dollars for a Pederal law enforcement building to be leased to the Federal government: FUNCTIONAL CATEGORY AMOUNT MOUSING PROGRAMS $ 1818051000 STREET IMPROVEMENTS 17,2490000. PARK FACILITIES 42,070,000 STORM SEWERS 31,348,000 COMMITY REDEVELOPMENT 23,2250000 SANITARY SEWERS 14,582,000 POLICE 1515801000 PtRE 16,3091000 MARINAS 18,4401000 SOLID WASTE 31789,000 AUDITORIUM 8,521,000 STADIUMS 111602,000 ECONOMIC DEVELOPMENT 51482,000 GENERAL GOVERNMENT 44,324,000 MASS TRANSIT 31808,000 ' PARKING 21,757,000 TOTAL CAPITAL IMPROVEMENT PROGRAM $296,900,200 PROPOSED SOURCES OF FUNDING CITY: General Obligation Bonds $103,7544-000 Revenue and Special Obl. Bonds 95874,000 Interest earnings and other 571804,000 NON -CITY: r Federal.Grants 30,747,000 State Grants..:._ 6169,000 Private Developer Contribution 2,552:000 ,G ' TOTAL FUNDING $296.900.000.1 Leases and Other Commitments ;... s The City has entered into several agreements running until 1996 ! for the lease -purchase of various copying, word processing, data processing. and computer equipment with total future payments amounting to approximately $5.3 million. a The City maintains a Self -Insurance Expendable Trust Fund' to administer insurance activities relating to certain property,and44. liability risks, group accident and health and workers' yr. i OFF CIAL.1N0 22 40 h r , r 1 s 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 include the estimated future liability on a case-byY-case basis for all pending claims and an actually determined amount for claims incurred but not reported. The unfunded long-term portion of the total estimated liability, which is expected to be funded from future operations, is reflected in the General Long -Teas Debt account group and totalled to approximately $50,052,000 as of September 30, 1990. See Note 10 in the General Purpose financial Statements of the City for the Fiscal Year Ended September 30, 1990 attached hereto as Appendix h for additional information, related to the city's Self -Insurance Expendable Trust Fund. In 1986 the City issued $16,175, 000 Certificates of Participation to finance the acquisition of police vehicles, fleet vehicles and heavy equipment through August 1, 1990, of which $7,575,000 were outstanding as of September 30, 1990, maturing as follows: Date -of Maturity principal Amount September 1, 1991........... $2,355,000 September 1, 1992........... $5,240,000 ADDITIONAL FINANCIAL INFORMATION RELATING TO THE CITY OF MIAKI General Description of Financial Practices The City Charter requires the City Manager to submit a budget estimatenot later than one month before September 30 of each fiscal year. Each department prepares its own budget request for review, by the City Manager. •The City Commission holds public hearings on the budget plan and must adopt the budget not later than October 1. j a The City's Governmental Funds (General, Special Revenue, Debt Service and Capital Projects Funds) and Expendable Trust Funds follow the modified accrual basis of accounting, under which expenditures, other than interest on long-term debt, are generally recorded when the liability is incurred and revenues are recorded when measurable.and available to finance the City's operations. The accrual basis is utilized by all Proprietary and Pension Trust. Funds. OFFICIAL -INS 23 s The financial ,statements of the City are audited annually by a �k ;t= - - firm of independent certified public accountants, presently beloitts & Touche. The opinion of the independent certified public accountants is included in Appendix b, "General Purpose oinancial 44 '�t�lteRlefttsli . The following table presents certain financial information of the r city. sae appendix h, "General Purpose Financial statementsO for audited financial statements of the City for the fiscal year ended September lot 1990. gumary of Revenues, Expenditures and Year -End Fund Balances general Fund and General Obligation Debt Servioe Fund Fiscal Years Ended eeptember.30 �$ in thousands) a,aget)(t) Genetnt Ihtod: . Revenues and Other Finaacin`Sources ........ $193,431 S198,392 $191,343(2) $191,664 $194,262 Expenditures and Other.Uns 194,831 198.522 .193,418a) 1$6+33 1 + Mu6se (De6ciamy) of Revenues and Other Financing Sources Over t Expenditures and Other U"I,,,,,,,,,,,,,,,,,,,,,, < 400> <130> <1,675> <4,673> <3,438> Equity TranAr-Nat ......... Soo Year -End Fund Balance....... 5 7 LS 305 Q S1 GenaW Obligation Debt Serriee Fuo&. 3 Revenues................$25,614 $26,913 S25,741 S23,912 S25,910 Expenditures and Other Uses...... ............ 27.06S 25.360 26.375 ZAN a fins" (Doickncy) of ' Revenues Oi►er $ Expenditures and Other Una.. .•...:.........• - <152> M <2.463> _ 4 i Year -End Fund Balance....... LLL3 : 5h690 1632 (1) Budget; adopted in September IM, appropriated fund balance to cover projected deficit. (2) Accounting transaction for a capital lease/purchase of computer equipment, net present value of $5,769,000, has been excludedfrom this schedule to provide a commuiRon consistent with other years. Description of Revenues The following is a description of the City's revenue structure. r k OFFICIAL.INO 24 nL t r �� C2f rT t Q� • General rued Pr6perty raxes—Article VIT, Section 9 of the Florida Constitution provides that except for taxes levied for payment of bonds and certain voter approved levies, municipalities in the State may not levy ad valorem taxes in excess of ten mills per $i.o0 ($10 per $1,000) of assessed valuation upon real estate and tangible personal property having a situs within the taxing city, when the tax is being imposed to generate monies for municipal purposes. Soth Dade County and the City tax real and tangible personal properties within the City. Dade County and its twenty-seven incorporated municipalities, including the City, do not levy personal income tax, gross receipts tax, inheritance tax, gift tax or commuter tax. Public Service Taxes --These taxes are deposited in the Public Service Tax Special Revenue Fund, as explained in page 27 of this Official Statement, and subsequently transferred to other funds, including the General Fund. Franchise Taxes --The City has entered into franchise agreements with utilities to generate revenues for the City based on the • dollar volume of services rendered to City residents. The most significant of these agreements is with Florida Power & Light Company for a 30-year period, with an estimated revenue of $12.4 million in fiscal year 1991. Local Option Gas Tax --This is a tax levied: on the sale of gasoline. j The funds generated are to be used for street and highway maintenance. This tax was originated in 1984 and was recorded in l a"special revenue fund at the time. Since 1985 it has been recorded directly in the General Fund. Occupational Licenses --The City levies a license tax for business privilege licenses. License taxes vary according to the type,.of business. The exception to this are the contractors' licenses, j which, are collected only by the Dade County Tax Collector. There is a set contractor's fee for all contractors within the County. After collection, Dade County returns to the cities its pro rate } share of revenue ,collected. The pro rata share due each city depends on the number of contractors doing business within each city's limits. State Revenue Sharing --The_ revenues distributed to-:: the 31 municipalities by the State of Florida under the State's revenue z sharing program_ -are derived from a percentage of its collection of the State cigarette tak, the State motor fuel tax and the State road tax. 4 Sales Taxes-�-The state of Florida - levies a 6percent sales ' tax. A portion of this tax, one half of one percent of the 6 percent OFFICIAL.INB 25 �7 i �z ' 4.4 TN # Lr a 4 leviedp is shared by municipalities based on their population. The City i s Cefl6ral Fund receives revenues from a variety of sourc(As. The following table lists the revenues received by the City from these sources for the past five fiscal years. Certain financing sources presented as "Operating Transfars In" in Appendix b, "agneral purpose Financial statementsl+ are reclassified in this table according to their sources of origin. Oeneral Puna Revenues and Other Vinanoinq sources t$ in thousands) (Budga)(1) 1241 12�4 - 1� 14� 125� Takes: Property Take $100,570 $98,366 $94,001 $ 69,396 $00,886 Public Service Tatra 21,181 21,410 22,067 22,659 23,756 Pranchise Takes 1= M90 1= M404 _ 12MO 139,663 137.784 133.635 1.2,139 131,708 Lieehae and Pertnia IM Cable T. V. --This fund accounts for revenues frond the Cable T . V. license and its specific uses$ Miami Sporn and Exhibition Authority --Dade County levies a 3% Convention Development Tax on hotel rooms, of which The City of Miami Sports and Exhibition Authority receives one-third used to support the Authority's administration and debt service, Law EgYbrcement Fund --Accounts for confiscated moneys awarded to the City under State statutes to be used for law enforcement related expenses. Metro -Dade Tourist Tax ---This fund accounts for the Dade County transfer of a resort tax restricted to expenditures related to tourism industry. Storm Sewer Water Fund ---Fees and charges collected for the operation and maintenance of the stormwater management system and the funding of pollution abatement devices of said system. Public Service Tax Fund --The City imposes public service taxes of 10% on each purchase of electricity, metered gas, bottled gas water and fuel oil, and 7% on telecommunications service. This revenue source is partially pledged as an additional resource for debt service requirements of the Special Revenue Refunding Bonds, Series 1987 and the Special Obligation Refunding Bonds, Series 1990. These pledges required cash transfers of approximately $5.0 million in,1990. $21.2 million of the remaining funds were transferred to the General Fund in 1990. Debt Service Funds General Obligation Bonds --This fund accounts for monies for payment of principal, interest, and other costs related to various 'issues of long-term general obligation bonds. Debt service is financed primarily by an ad valorem tax as authorized by State Statutes and the City Charter. MSEA Special, Obligation Bonds --This fund accounts for monies for payment of principal, interest and other costs related to the MSEA Special Obligation Bonds. Debt service is financed through proceeds from the City portion of a 3% convention development tax.:.. MSEA Subordinate Obligation Bonds --This fund accounts for the payment of principal, interest and other costs related to the Subordinate Obligation Bonds.'. The Bonds are.collateralized by the convention development tax proceeds, but on a basis subordinated to the MSEA Special Obligation Bonds. Other Special Obligation Bonds --This fund accounts for monies for payment of principal, interest and other costs .related to, the Special Obligation Bonds, Series 1986A; Guaranteed Entitlemer)t OFFICM.INS 27 r. y Revenue Bonds, Series 1959,' and Mental Revenue Bonds, Series 19800 funded by telephone franchise tastes, State of Florida guaranteed entitlement revenues and lease payments from the Federal Government, respectively. Enterprise Funds a Revenues forthesefunds are primarily generated by user fees i-_ and charges. Certain facilities are subsidized by the Cityts , general fund and other discretionary funds. a Enterprise facilities include: Orange Bowl Stadium --primarily used for football games, the stadium serves as the home to the University of Miami Hurricanes. .s Miami Stadium --Local baseball teams play at the stadium,. which is also used.for rock concerts and other events. Marine Stadium --Various regattas, concerts and nautical events are held at this stadium. Marinas --This fund includes the Miamarina and Dinner Key Marinas. ' Warehouse Property --This property has a lease with the orange Bowl committee 'and is used to build floats and other festival -related equipment. Goy Courses -.-The two City -owned and operated golf courses are used year round by local residents and tourists. Exhibition Center --The Coconut Grove Exhibition Center is a favorite of local exhibitors and hosts conventions jointly with the City's-Convention Center. Miami Convention Center --The convention. Center is part of a complex shared with the University of Miami Conference Center, .,a private hotel, a multi -level parking -garage and an office tower atop the garage. Department of Off -Street Parking --The Department runs f ive -parking garages'''in the City as, well as'on-street meters and=off-street lots, with a total of over 18,900 parking spaces. Property and Lease Management --This fund accounts . for the rent and lease of city -owned property by private entities.; 4 Governmental Center Parking Garage= -This 1,100 car garage serves the . Government Center, and in particular the Cultural.Center complexr. G do Enterprise Fund --The operations of the Gusman Center ;of; the ,O Performing Arts and the olympia Building are accounted for in this OFFICIAL.INB 26 J y x a n i N3 7 xp uildingand Zoning --This department provides toning and building permit services, and ensures that the south Florida building code ib enforrced. Solid Waste --The collection and disposal of solid waste are accounted for in this fund. MdnuelAnlme Center- -The Mandel Artime Center promotes educetioral and cultural programs and provides special community services to citizens of Miami and is funded through fees and a general fund subsidy. Internal service Funds There are six internal service.funds that are self-supporting because their revenues are derived from charges for services to other City departments. These funds are: Fleet Management Fund --For purchases and maintenance of motor vehicles and heavy equipment used by the City. t Communication Services Fund --For the maintenance of communications i and data processing equipment. Print Shop Fund --For all of the City Is basic printing needs. Property Maintenance Fund --For regular building maintenance, and a limited amount'of"building alterations and additions. Procurement Management --For centralized purchasing and supplies services. _# Procedure For Tax Levy and Tax Collection -i Real and personal property valuations are determined each year as of January 1 by the Dade County Assessor of Property at`100% of as market value. A notice is mailed to each property owner indicating E 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 F. County Board of Equalization. The Board certifies the assessment roll upon completion of the hearing of all appeals so filed. r E All taxes are due and payable on November 1 of each year, or as Y soon thereafter as the assessment roll 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 h levied. Taxes may be paid upon receipt of such notice, with } discounts at the rate of four percent if paid in the month of w OFFICIAL INS 39 Y i 1: f. }i r .., i R ' y -w .r " November, three percent if paid in the month of December, two percent if paid in the month of aanuary 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 aunt 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 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by bade county. The delinquent real property taxes bear interest at the rate of eighteen percent per year from April 1 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 Sebedules 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. Assessed Value of All Taxable Property Fiscal Year Ended September 30 (in thousands) REAL PERSONAL EiaMl;srEAn SSEEtscAL ASSESSED YEAR PROPERTY PROPERTY EXEMPTIONS VALUE 1990 $10,243,901 $1,271,210 $11,515,111 $981,728 $10,533,383 1999 9,997,519 1,213,466 11,210,985 969,335 10,241,650 1988 9,S19,481 1,242,316 10,761,797 954,978 9,806,819 1987 9,210,476 1,210,435 10,420911 933,300 9,487,611 1986 8,979,226 1,205,707 10,194,933 953,516 9,231,417 1985 8,538,398 1,159,212 9,696,610 952,430 8,744,180 1984 8,230,309 1,115,724 9,346,033 954,979 8,391,054 i' is 1983 7,616,829 1,042,452 8,699,281 920,895 7,738,386 i` 1982 6,976,847 985,282 7,962,129 750,665 6,058,127 1981 5,748,550 873,815 6,622,365 564,238 6,058,127 �i SOURCE: Metropolitan Dade County Property Appraiser's Office 8 OFFICIAL.INS 30 -�f 91 4 k k. i .. tf i 1 & y The following table liata the ten largest tax assessment# in the City of Miami. Tea Largest Property Tax htasesamenti in the City of Miazi 990 A66664ed ValUer Na�a_.of=Tax a er - attre_oi'.Actyity Assessed, Value. MOM f: 1. City National Bank BadUTrustee S2S3,837 2, Southern Bell Telephone Utility 230,061 3: Southeast Bank Bank/Office Building 202,832 4. EqulMle Life Assurance heal Estate Investments 1y9,02S S. Florida power & Light Co. Utility 144,025 6. Arickell Associates Office Building 91,300 7.: Mayfair Hotel/Shopping Center 88,650 3' 8. C.P. Tower Office Building 75,000 9. One Biscayne Tower Office Building 63,800 10. Miami Center Joint Venture Developer 62,716 Source: Metropolitan Dade County Property Appraiser's Office A i t.: f M1' ' OFFICIAL.INB 31 ` r r 4' g f I3 h A M1 '3 a� t s ILI j L City has levied certified millages of 11.9376 nplls forfiscal'year 1990-1991 beginning October`I, I990, consistingof .5995 milts for geoerd govemmen and 2"1# mills for debt service.:.. The Following table shows thelevies cad collections of the City fovea& of the fist ten eoagrieted frscaf,years. .. Tax Lewieg and Collections Hwd years Ended Septem6erc 30 • (in thoWatrds) CoUectiooa Percent.. Collection CoQectioas DeEmpnot T=m -ToW ., or Current . or; of Total as Percent Ontsbuirog As Perseat 1Sscat Tau Year's Lary Year Taxes Dd`uequeot Tax o[ Carreat Tazp Len TaxeaQl oL tin r+eai 14"_ fletll� 1990....: $12S,743 ` $119,363 94.93'X $4,S92 $123,955 98.58% $5,1624 4.119rr 11�9376 1989.... 122.260 ` 114,535 93.68-` `__ -3,710 113,245 96.72 5.742 4.70 It.9376 1988.... 115,935 107.908 93.08. 2,356 110,264 95.11 4,62r 3.99 ILS219 1987 .... 116,612 7, 111,740 95.82 . , 1,606 113,346 97.20 2,9% 2.49 M29t0 1993.... 109MA 105,457 95.9Z 944 106,401 96.33 3,319 3.01 H.9091 104,135 100,970 %.97 722(3) 101,698 97.66 3,970' 3.8t 119091 1986 .... 93,3+0 $3,992 95.33 3,036 , 92,019 _ 93.59 3,367 3.61 10:1239 1985 ...." 83.025 78.815 94.93; 1,209 $0,024 96.38 2.925 332 10-7290 1984.... 76.903 ' • 74,040 96.28 1.067 75,107 97.66 2.40 3.24 10t6640 f983 .... 72,619'" 70,289 96.79 437 70,725 9739 2,027 2.7% 11.9m (1) Includes levies for.general operations and.debt service. (2) Net of reserve for'early payment discounts and uncollectable tax of approximately 5 % of total tax levy. (3) Starting in, fiscal year,1985, current year'sdelinquent tax collections are included with collection of current year's lases. For years prior to 1985, coffectionotdefinquent taxes included both current year and prior year's delinquenttaxcollections. t . „ rY y r r x. sy i { _ hFFICZAb :IN 32 l • 5 v3.»w. G .. -: r. :. «.L .. .M. itCJ1. ...,, ,J-.. .E, t;l;v. ... < _ - ,.. 1. ...-, .,...,.:..: <.. w ... ,. w-. ...4 's. ,-11,.N ...u... .Y. t v-.:.,1 G r ++ • ii,..', ii ...i e...4i ..Se......1,.Cl.n:'�.u:.�:.3.:....:......4•a...\::...Ys...9...r.F n.ik.tk. x.+... ,.l.. L'..:. ..�, ..Yd ..-...-.t Y..t .__ J ....... .. ..... .. ...... ., ,_ .......-.... ..«. .... ,.. _... .... ... .... _. WQ Labor 1e1xtions The City Manager's staff dedicated solely administration, go Office has a professional labor relations to labor negotiations and labor contract The City has entered into new contracts with the International. Association of Firefighters (I.a.F.F. Local 597) and the American Federation of State, County and Municipal Employees (A.F.S.C.M.Es` Local 1901). The contracts with the I.A.F.F. and A.P.S.C.M.E. expire on September 30, 1993. The City began contract negotiations with the Fraternal ordaiof Police (F.O.P. Lodge 20) and sanitation` Employees association (S.E.A.) in May, 1991. The current F.o.P and S.E.A. contracts expire September 30, 1991. pension Trust Funds The City has two separate pension funds, The City of Miami Fire Fighters' and the police Officers' Retirement Trust ("FIPO"), and the City of Miami General Employees' and sanitation Employees Retirement Trust ("GESE"). The Actuary of GESE is Noble & Lowndes. For`FIPG, the *actuary is 'Stanley, Holcombe and Associates, Inc. Both firms were selected independently by the Board of Trustees.. Additionally, the actuarial firm of A. Foster Higgins, a consulting subsidiary of Johnson and Higgins of Washington, D.C., assists the ` City in pension -related issues. In 1985, the City approved the Gates Settlement which settled litigation with the Pension Boards of Trustees for FIPO and GESE.' The' Gates Settlement, among other things, provides for annual unfunded liability contributions by the City to FIFO an&GESEI on, a schedule that called for paymentswith respect to 'FIPO of $5,'006,000 and with respect to GESE of $6,400,000 for Fiscal'.Year' 1994119851, with such payments increasing thereafter by approximately 5* per year. The total unfunded liability, including the effect of certain plan improvements, was calculated to be approximately $104,500,000 for FIPO as of January 1, 1983 and $108,954,000 for GESE as of October 1, 1982, establishing the basis for the contributions schedule. A detailed discussion of the pension trusts, including the Gates Settlement, the principal actuarial assumption with respect to GESE and FIPO, and funding status, is contained in Appendix B. Note 12 to the "General Purpose Financial Statements." Belt Insurance A Charter Amendment was approved by the electorate in'19.71,, allowing the City to set up a Self -Insurance and Insurance Trust, Fund. The City Commission created, by Ordinance, a Board of Trustees composed of the City Manager, the Director of Finance and the Insurance Manager to handle the security investments of the fund. Also created was Self -Insurance Committee, appointed by the city Manager to administer the Plan. The City is self -insured for most casualty exposures with the OFFICIAL.INB'` 33 ZE t i t y{ 4 y .l f fe�3 �aa•s...__........_.,,._„•,.,,..,, - _ ...r•_..x_ ._ .� u......,.�... ,_ -... _ _ — - _ , ... _ , t k ....n..'�.�x{'E3 k_' AA�ii.,'. �• exception that coverage by outside insurance is secured when it is available at acceptable rates, purchased policies include a broad, all-risk property policy covering all City property, general liability insurance for its exposure at the Miami Convention Center, Dinner Rey Marina, and fidelity bonds on certain City employees. Group life insurance and accidental death and dismemberment insurance are also commercially purchased. The City self -insures all exposures not commercially insured including vehicular accidents, police torts and general liability. The City's liability for damages in most tort claims is limited to $100,000 per claimant, and $200,000 per occurrence in accordance with the Florida Statutes, section 768628, which waives sovereign immunity in torts claims to the extent of such amounts. See Appendix Be "General Purpose Financial Statements," Note 10 for a discussion relating to the City's self insurance program. Group health ' benefits are self -insured for employees represented by International Association of Firefighters and the American Federation of State, County, and Municipal Employees, Local 1907, ..certain managerial confidential employees not represented by the labor union, and retirees of these group. The 'City also offers these groups of employees the choice between the indemnity group benefit and the pre -paid health maintenance organization. The City has purchased a specific stop loss policy • for self -insured health insurance claims that limits the City's liability to $150,000 per person. The Fraternal order of Police and the Sanitation Employees Association have ,established separate group benefits plans for both active employees represented by those bargaining units and retirees formerly represented by those bargaining units as their sole health benefit option. The City's contribution to provide group health benefits for these bargaining unit employees is limited by the labor agreements. OFFICIAL.INS 34 AATING9 Moody's Investors Service, Inc. and Standard & poor's Corporation (the ''Mating Agencies") rate all new issues of the City of _" and 11.10 respectively. An explanation of the significance of the rating may be obtained from the Mating Agencies. The rating reflects only the respective views of the dating Agencies and the City makes no representation as to the appropriateness of the ratings. There is no assurance that the ratings assigned will continue for any given period of time or that they will not be changed, suspended or withdrawn by either of the Mating Agencies. Any change, suspension or withdrawal by the ratings may have an effect on the market price of the Series 1991 Bonds. LITIGATION There is not now pending any litigation restraining or enjoining the issuance or delivery of the Series 1991 Bonds or the levy or collection of ad valorem taxes to pay the principal of premium, if any, and the interest on the Series 1991 Bonds, or questioning the proceedings or authorization under which the Series 1991 Bonds are to be issued, or affecting the validity of the 1991 Bonds, The City is a defendant, from time to time in various lawsuits. In the opinion of the City Attorney, any such pending litigation which represents potential liability for the City will not have a material effect on its ability to pay the principal of, premium, if any, or interest on the Series 1991 Bonds. FINANCIAL STATEMENTS The financial statements of the City set forth in this Official Statement have been examined by Deloitte & Touche, independent certified public accountants, for the fiscal year ended September 30, 1990, as stated in their report to the City Commission dated March 25, 1991, and are an integral partof this Official Statement. See Appendix B, "General Purpose Financial Statements." APPROVAL OF LEGAL PROCEEDINGS Legal matters incident to the authorization, delivery and sale of the Series 1991 Bonds, and with regard to the tax status thereof under existing laws, regulations, rulings and judicial decisions, are subject to the unqualified approving opinion of Barnes, Darby & McGhee and Matzner Ziskind _Hermelee & Jaffee, P.A. each of Miami,` Florida, Co -Bond Counsel. The form of such opinion is attached hereto as Appendix C. Certain legal matters will be passed on for the City by Jorge.L. Fernandez, City Attorney. TAX EXEMPTION The Internal Revenue Code of 1986 as amended (the "Code"), OFFICIAL.INS 35 �y 91, t t7� includes requirements which the City must continue to meet after the issuance of the Series 1991 bonds in order that interest on the Series 1991 Bonds not be included in gross income for Federal income tax purposes. The City f s failure to meet these requirements may cause interest on the Series 1991 bonds to be included in gross income for Federal income tax purposes retroactive to their data of issuance. The City has covenanted in the Resolution to take the actions required by the Code in order to maintain the exclusion from gross income for Federal income tax purposes of interest on the Series 1991 Bonds. in the opinion of Co -Bond counsel, assuming continuing compliance with the tax covenants referred to above, under existing statutes, regulations, rulings, and court decisions, interest on the Series 1991 Bonds is excluded from gross income for Federal income tax purposes. Interest on the Series 1991 Bonds is not an item of tax preference for purposes of the Federal alternative minimum tax imposed on individuals and corporations, however, interest on the series 1991 Bonds is taken into account in determining adjusted current earnings for the purposes of computing the alternative minimum tax imposed on corporations. Co -Bond Counsel are further of the opinion that the Series 1991 Bonds and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by chapter 220, Florida Statutes, as amended, on interest, income or profits on debt obligations owned by corporations, as defined therein. Except as described above, Co -Bond Counsel will express no opinion regarding the Federal income tax consequences resulting from the ownership of, receipt or accrual of interest on, or the disposition of the Series 1991 Bonds. Prospective purchasers of the Series 1991 Bonds should be aware that the ownership of the series 1991 Bonds may result in other collateral Federal tax consequences, including (i) the denial of a deduction for indebtedness incurred or continued to purchase or carry the Series 1991 Bonds or, in the case of a financial institution, that a portion of the owner's interest expense allocable to interest on a Series 1991 Bonds, (ii) the reduction of the loss reserve deduction for property and casualty insurance companies by 15 percent of certain items, including interest on the Series 1991 Bonds, (iii) for taxable years beginning before 1996, the inclusion of interest on the Series 1991.Bonds in "modified alternative minimum taxable income"- for purposes of the environmental tax imposed on corporations, -(iv) the inclusion of interest on the Series 1991 Bonds in'the earnings of certain foreign corporations doing business in the United States for purposes of a branch doing business in the United States for purposes of a branch profits tax, (v) the inclusion of interest on the Series 1991 Bonds in the passive income subject to Federal income taxation of certain Subchapter S corporations with Subchapter C earnings and profits' at the close of the taxable year, and (vi) the inclusion in gross income of interest on the Series 1991 Bonds by recipients of certain Social Security and Railroad Retirement benefits. OFFICIAL.INB 36 UNBBRUITING 6 The Underwriters) have agreed, subject to the proceeding authorizing the issuance.of the series 1991 bonds, to purchase the Series 1991 Bonds from the City, at a price of (_ It of the aggregate principal amount plus accrued interest from their date, for the purpose of resale. The Underwriters) or their representatives have furnished the information in this official Statement pertaining to the public offering price of the series 1991 Bonds, and have participated in the preparation of portions of this official Statement. The public offering price of the Series 1991 Bonds may be changed from time to time by the Underwrriter(s), and the Undbrwriters(s) may allow a concession from the public offering price to certain dailere. None of the Series 1991 Bonds will be delivered by the City to the Underwriter(s) unless all of the Series 1991 Bonds 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 Series 1991 Bonds. The Financial Advisors are not obligated to undertake and have not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in the Official Statement. Howard Gary & Company and Raymond James & Associates, Inc., are full service investment banking firm's which provide financial advisory and underwriting services to governmental entities throughout the nation. DISCLOSURE 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 or`guaranteed by the City. Rule`3E-400.003 further provides, f i however, that if L. e.City is good fa th bel eves that such disclosure would not be considered material ' by reasonable investors, such disclosure may be omitted. Certain obligations issued L 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. Becaus6 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 Series 1991 Bonds. Accordingly, the City has not taken affirmative steps toycontact the various trustees of conduit bond issues of the City to' determine the existence of prior defaults. OFFICIAL.INS 37 t i 4 £. E 1 v ty� Notwithstanding the foregoing, to the beat knowledge of the Director of Finance of the City, the City has not received actual notice of any default in the payment of principal or interest after December 31, 1975 on any obligation issued or guaranteed by the City, Nevertheless, given the number of bond issues of the City and the turnover in administrative person►•iel since December 31, 1075, there is no assurance that no obligations issued by the City were ever in default with respect to the payment of principal and/or interest. CERTAIN CLOSING CERTIFICATES Concurrently with the delivery of the Series 1991 Bonds, 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 Series 1991 Bonds, did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. In addition, at the time of delivery of the Series 1991 Bonds to the Underwriter(s), the City will provide to the Underwriters) a certificate (which may be included in a consolidated closing certificate of the City described in this section immediately above), signed by those City officials who signed the Official Statement, relating to the accuracy and completeness of this Official Statement and to its being a "final official statement" in the judgment of the City for the purposes of Rule 15c2-12 (b) (3) of the Securities and Exchange Commission. APPROVAL OF OFFICIAL STATEN ENT The references, excepts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 1991 Bonds, the security for the payment of the Series 1991 Bonds and the rights and obligations of the holders thereof. Copies of such documents may be obtained from the City's Director of Finance at 3006 Aviation Avenue, Miami, Florida 33133, telephone number (305) 579-6350, or from its Financial Advisors, Howard Gary & Company, 3050 Biscayne Boulevard, Suite 603, Miami, Florida 33137-4163, telephone number (305) 571-1380, and Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida, 33716, telephone number (813) 573-8189. The information contained in this Official Statement has been compiled from official and other sources deemed to be reliable, and is believed to be correct as of this date, but is not guaranteed as , to accuracy or completeness by, and is not to be construed as a representation by, the Financial Advisors. Any statement made in this Official Statement involving matters OFFICIAL.INB IN of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation in 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 nor any said 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 of -this Official Statement has been duly authorized by the Commission of the City of Miami. <08FICIAL.INB APPENDIX - DESCRIPTION cF TNS CITY OP MYAMY Geography The City of Miami (the "City"), situated at the Mouth of the Miami River on the western shore of Biscayne Say, is a main port of entry in Florida and the county seat of Metropolitan bade County (the "County") which encompasses over 2,000 square miles of Florida's southeastern region. The city comprises 34.3 square miles of land and 19.5 square miles of: water. Miami is the southernmost 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. City elections are held in November every two years on a not - 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 on the Commission. The City Manager serves as the administrative head of the municipal government, charged with the responsibility of managing the City's financial operations and organizing and directing the administrative infrastructure. The City Manager also retains full authority in the appointment and supervision of department directors, preparation of the City's annual budget and initiation of investigative procedures. In addition, the City Manager takes appropriate action on all administrative matters. Mayor and City commissioners Xavier L. Suarez was elected Mayor in November, 1985 and 1987 for respective two-year terms and re-elected in 1989 to a four-year term. Mayor Suarez is a summa cum 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 Juris Doctorate from Harvard Law School. He is currently a partner in the Miami law firm of Jorden & Schulte. Mayor Suarez actively has served the Miami community for a number of years through participation on numerous advisory boards and committees. Dr. Miriam Alonso was 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 real estate investment - company. Commissioner Alonso has served on several civic and community boards. Miller J. Dawkins was elected Commissioner in November,.1981 for a four-year term. He is a graduate of Florida Memorial ,College and holds a Master of Science degree from the University ;of Northern Colorado. Commissioner Dawkins has been employed for over 19 years at Miami Dade Community College. Victor H. De Yurre was elected Commissioner in November, 1987 for a four-year term. Mr. De Yurre is a graduate of the University of Miami and holds a Juris Doctorate from St. Mary's University School of Law and. a Master of Laws degree in Taxation from. the School of Law of the University of Miami. He, 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 and 1987 for consecutive four-year terms, Commissioner Plummer is a graduate of Miami senior High School and the Cincinnati College of Mortuary Science. He is Chairman -of -the OFFICIAL.INS 41 70 .. 40 f { p�7"4 F r Board of Ahern-Pluamer Funeral Homes, Miami, Florida. Commissioner Plummer was elected 'vice Mayor for a one-year terra commencing January 11 1990, Administration of the City Cesar H. Odio was appointed City Manager, effective December 16, 1988. Prior to his appointment to the top administrative position in the City, Mr. Odio served as Assistant City Manager for the City since January, 1990. His responsibilities extended over the functions of parks and recreation, building and vehicle maintenance, and public facilities. During the Mariel boatlift in 1980, he was appointers to the President's Task Force on Refugee Affairs, Mr. Odio has a Bachelor of Science degree in Public Administration from Florida Memorial College, Miami, Florida and majored in Business Administration at the University of Santo Tomas de Villanova, Havana, Cuba. Carlos E. Garcia was appointed Director of Finance in July 1980. He joined the City in November, 1976 as Assistant Finance Director. He.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. He 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. Jorge L. Fernandez, the City Attorney, has been with the City Attorneys Office since,1982. Mr. Fernandez graduated from Calvin College with a degree in History and Education and receiveda Masters Degree 'in Administration and Supervision from Florida International University. He received his J.D. degree from Wayne State University School of Law, Detroit, Michigan, and is active in several professional and community organizations including the Florida Bar Local Government Law Section, the American Bar Association's Urban, State and Local Government Law 'Section, the - National Institute of Municipal Law Officers,. the Dade County Bar Association and the Cuban -American Bar Association. Matty Hirai was appointed City Clerk on September 1,' 1985. She was the City's. Assistant City Clerk from September, 1976 to August; 1985. She is a graduate of Edison High -School and has completed course work at Pasadena City College, University of California'at Los Angeles`, and Hunter College, New York. She 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, OFFICIAL.INS 42 street maintenance, construction and maintenance of storm drain systems, planning and development functions, construction of capital improvements, and building code, inspection and enforcement services. The Police Department provides a full range of police services and presently has a uniformed force of 1,114 and 449 full-time, permanent civilian employees. The Fire Department is rated as Class Land provides a full range of fire protection and emergency services as well as providing a full range of medical and rescue services. The City provides garbage and trash pick-up and enforces sanitation requirements. Disposal of trash and garbage is performed by the County under contract with the City. The Department of Public Works maintains certain streets and sidewalks and manages construction of sewers and 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. Regional Government Services .I 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 27 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 its inception, the County government has assumed responsibility for a number of functions, including delivery" -of County -wide police services, which .complementmunicipal 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'. OFFICIAL.INS 43 91.. 37 449 consolidated public transportation system and a unified rapid transit system; operation of a central traffic control computer System; implementation of a combined public library system of the County and eighteen municipalities, which together operate the main library, seventeen branches and six mobile units servicing forty- four Countywide locations; centralization of the property appraiser and tax collector functions; furnishing of data to municipalities, the Board of Public Instruction and several state agencies for the purpose of budget preparation and for their respective governmental operations; collection by the County Tax Collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies; and development of minimum acceptable standards by the County Commission, enforceable throughout the County in such areas as environmental resources management, building and zoning, consumer protection,health, housing and welfare. ECONOMIC AND 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. 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 $250 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. Miami International Airport is undergoing $1.0 billion expansion program. A seven story 7,5en 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. - Downtown Miami experienced unprecedented growth during the 1980's particularly in the development of commercial office space. Completed projects represent an estimated investment of public and private funds in excess of $2.4 billion. Bayside The Rouse Company, a leading builder of specialty marketplaces in downtown waterfront settings, has developed the Bayside Specialty Center on twenty acres of City -owed property along the waterfront in Downtown Miami. The project currently features 235,000 square feet of retail space. Total project cost was $129 million, with City participation limited to a $4 million investment in infrastructure improvements. The Sayside Parking Garage, located adjacent to the Specialty Center, contains 1,200 parking spaces gayfront Park Bayfront Park, adjacent to the Eayside project area, currently is being redeveloped at a total project cost in excess of $20 million. More than fifty percent (504) of the project financing has been .secured by the City through a variety of Federal, state and private funding sources. Southeast Overtown/Parkwest The southeast Overtown/Parkwest Redevelopment Program entails the redevelopment of 200 acres of prime real estate, adjacent to the central -business- district, for new residential commercial activity. The general redevelopment concept for the project area is the provision of a wide range of housing opportunities, with supporting commercial uses, to serve the area's future population. By the end of the century the project area is envisioned to have the capacity to support over 9,000 residential units and over one • million square feet of commercial space. The City has been delegated limited redevelopment powers for the implementation of the redevelopment plan. Public sector involvement will focus on land acquisition, resident, relocation, demolition, project marketing, infrastructure improvements and construction and, in some instances,, the provision of "gap" financing. The City has estimated that over $1.0 billion in private investment will occur during the next 20 years. Phase I development is under way with 1,200 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 programmed to .occur over the next five years for a total of 1,900 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 taxis received by the Miami' Sports and Exhibition, Authority to finance ,its operations and debtservice 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 1968 at a total-:Cost'af' $48 million accommodates , _ up to 15,600 spectators.: Corporate Expansion 3 OFFICIAL.IHB 45 -:f kt i Yt i z The favorable geographic location of Greater Miami, the trained commercial and industrial labor force and the favorable transportation facilities have caused the economic base of the area to expand by attracting to the area many national and international firms doing business in Latin America. in Greater Miami, over 100 international corporations have not up hemispheric operations. Among them are such corporations as Dow Chemical, Gulf oil Corporation, Owens-Corning Fiberglass corporation, American Hospital Supply, Coca-Cola lnteramerican Corporation, ocean Chemicals, Inc., a subsidiary of Rohm & Hass Company, Rowye Trading, A.G., Mayr Brothers International 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 companies occupy the bulk of the remaining 15% of the city's industrial space. .The Industrial Development Authority (IDA) of the County reports that approximately two-thirds of Greater Miami's industrial firms own their facilities. There are currently 37 industrial parks in Greater Miami. Greater Miami's apparel industry is one of the largest in the nation, primarily consisting of numerous -small firms rather "than' a few large operations. Approximately 30,000 jobs are provided by nearly 500 manufacturers. Florida apparel firms, most of which have their principal facilities in the Miami area, shipped $840 million of merchandise in 1980,'a 56% increase over 1970 figures. Financial Institutions The County is second only to New York in the concentration of international and Edge Acts Banks in North America; approximately 41 foreign banks branches and 10 representative offices "are presently operating in the County. Additionally, there are"'20 Edge Act Banks that are located in the Miami area. These include: A§ank America International,Bankers Trust International, Banco de Santander International, Chase Bank International, Citibank International, Irving Trust, American Express Bank International, Manufacturer's Hanover International, and Morgan" Guaranty International. The Federal Reserve System has establish aid 'a branch office in the County to assist the Atlanta office with `f inancial transactions in the South Florida area. OFFICIALoIN$ )I)' a This ten year summary presented below is for the County which includes the City of Miami.. These figures include national and state chartered banks which are FDIC insured. Non-insured state - chartered banks are excluded. Mud or total bs2gsitrl r 1990 69 s22, ")83, 6d7, 00�f 1999 73 21, 695 037, 000 1oh38 75 20,070,795,000(1) 1987 69 25, 958, 000400 1996 73 23,042,378,000 logs 75 21,615,733,000 1994 76 21,170,02g,000 1983 74 19,2560581000 1982 70 16,158,326,000 1981 65 13,488,246,000 Source: FDIC Ablate, GA (1) IteduWou in d"otiu Is aMbuabhe to more drWpW FDIC reSulethoru, wh1ch have oeund a AM to wh r Wveatmerw not Imured 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, Kwanza 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 beenrunannually in.downtown Miami. since 1983. Cars and drivers from around the world competed for more than $300,000 in prize money in 1991. During 1990, approximately S.1 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'1990, according.to the estimates of ..he 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' 'I Y OFFICIAL.XNS 47 is a ti � � u d� t 2� t P� Sa the forefront of communities with comprehensive medical Y capabilities. itooriational Facilities t` 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 howl 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 wide range of subtropical nature. settings unique only to South Florida in the } continental 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. cultural Facilities and Affairs The Greater Miami area has an extensive library system, several museums of art and history and art galleries. A new cultural center built by the County at a cost of $26.6 million opened in downtown Miami in 1984. The complex, designed by Philip Johnson, is composed of a library; fine arts center, and a historical museum. Symphonic and o concerts are -, pop performed regularly. - 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. f Educational Institutions The 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: OFFICIAL.INS 48 k J.+L county LAMI Total 5/ 2o.2214� 1(y.02o 44yll 1969{{{.......i....1...• SV,/5/ 27812 S 19866 a . 0 ......r•....... 41,521 262,213 : 1007 *pg :......... 6 { { ...... 36,994 244,714 190v....r.. i............ 38,345 236,121 1985.6.1..a0.66.6/46.4.66., 370093 227,906 1984.....:......►...... 36,992 223,684 .............. 35,394 223,948 1982666606r......... ... 36,662 226r 324 1981..................1. 36,430 233,886 Sources Da a county sc oo Hoar Over 70,000 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 CommunityCollege St. Thomas University University of Miami Film Industry The Dade 'County film and television industry ranks third nationally behind New York and Los Angeles in its annual` dollar volume of production expenditures As estimated by the°State"of Florida, the total production`expenditures`for the"State were $250` million 'in,'1990 and the Greater Miami portion was estimated at approximately $150 million. Agriaultur® ,The land area of Greater Miami includes large;:agricultural expanses, on which limes,avocadoes, mangoes,. tomatoes, and pole M beans 'are grown: for the freshproduce market. During the sunny and 7 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.frut, papaya, sugar apples and Persian limes grow in the area and cannot be grown anywhere else in. the, k` United States. Foreign Trade t,« More than 71t of Florida's export trade and 52% of Florida's import `trade- f lowed through -the ports 'of the: City during'.the giscal -" OFFICIAL.ING 49 z } r } 0 r _ r ^ � t m i t 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 V.S. of material goods produced in the region, is also expected to bring greater economic stability to those countries. Trade offices have been established in South Florida by several 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. Miami international Airport The county is the owner of five se -crate airports within its boundaries. The respon§ibilities for their operation are assigned to the Dade County Aviation Department. Miami International Airport (the "Airport") ranks 8th in the nation and loth in the world in the number of passengers using its facilities. It ranks 3rd in the nation and 5th in the world in the movements 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 1990, the Airport handled 1.8'billion pounds presented below: served 25.8 million passengers and of cargo. Statistics from 1981 are Passengers Year (00018) 1990.................. 25,837 1989.................. 25,408 1988.................. 24,224 1987.................. 23,801 1986...0.0............. 21,357 1985.................. 19,853 1984............:.. — 19,328 1983.................. 19,322 1982.................. 19,388 19810.......0.....0... 19,849 Source: Dade County Aviation Department Port of Miami The Port of Miami (the "Port") OFFICIAL.INS 50 Cargo 100019 lbs.1 1,815,374 1,730,850 1,429,944 1,374,380 1,200,270 1,031,700 1,130,184 1,184,526 1,246,700 1,170,009 is owned by the County and is . a t� }k is i i,. The summary of the growth in revenues, passengers and cargo for previous years is presented belowt Yaar Reyeffues Passencers Carao__.(Tonnaael t' 1990...... $29,136,465(1) 2034,816• 30590,931 1989...... 300035,8s9 31100,055 3o206,411 1988...... 26,489,275 2,502,411 2,602,556 1987...... 19,933,917 2,633,041 2,425,937 1006...... 17073,522 2,520o511 2,406,044 1995..6.6 17,135,048 2,326,685 2,333,026 1984�..... 15,943,548 2,217,065 2,287,281 1983.....6 14401,008 2,002,654 2,305,645 t1992...... 12,949;687 1,760,255 2,665,921 1981....6. 12,468,522 1,567,709 2,757,374 sources a a county Seaport Department (1) Previous years data included Internal Revenue Service transfers► Actual r6venue-indreased 7% over the prior year. Demographic Data The following table indicates the distribution by age groups among the population of residents o* the City and of the County. Age Group as a Percentage of Total Population ' Miami 1980. Dade Adte Grouo Number 0-5..... 23,459 Percentaae Numbed 74 113,544 Percentage 7• 4 6-19....61,826 17 330,738 20 20-34... 75,919 22 374,276 23 35-59... 106*569 31 471,351 29 60-75..655,924 16 230,136 14 F. 75+..`... 23_168 -1 105,736 _7 346,865 10094 1,625,781 100% sources 1980 U.S. census of Population and Hous ng The 1990 data was not available as of the printing date of this report. Retsil sales Although the City contains 22 percent of the population of the County', almost half of the dollar volume of sales transactions for theCounty are'reported in the City. The following table presents five years- of taxable sales information for the City and the county. S OPPICIAL 1NB 52 z1. • t 3' NAB rs,. a MW L , "utfiy� Taxable galas in thousands) " Ji8SY1 199�(It .�ov ,� ' Ivtietni.,,.... $8,614,420 $8,226,128 S 9,708,334 $6,696,603 $6,400,652 We County. 1912071737 518,089,189 $19,401,045 S1 ,9t90,503 $14456,903 MlifallbAdc. 47% 4396 47% 42% 44% Soutew pepanmeet of Imaue; Sate of Florida j Imiudee amoutda received from the State of Florida az on the sale of proteaeiorW services which became effective la July,1987 was "pealed in becetuber, 1997. The'tables below indicate the scope of employment throughout the City and the County. Employed Persons by Industry Type 1980 Miami Percentage Dade- County Percentage a Agriculture, Forestry,Fishinq Hieing............ 1,590 1% 14,850 2$ ". Construction...... 11,150 7 44,560 6 Manufacturing..... 27,070 17. 103,970, 14 Transportation, Communication Public Utilities.. 12,740 8 81,600 11 Wholesale Trade... 9,550 6 44,560 6 t Retail Trade...... 27,070 17 133,670' 18 Finance, Insurance, Real Estate...:... 111140 7' 59,410 8 ,. Business, and Repair 9,550 6 37,130 5 Personal Entertain- ment- and- Services.. 15,920 10 - - S1, 980 7 Hea1£h services:... 12,740 8' S9,410 ;,8 Educational s Services........... 7,960 5 44,560 6 e Other Professional - Services........... 6,370 4 37,130 5 Public Administra- tion ................ 6.360 4 29.710 4 ' Total......... 159,21 0� 0 f,�,3 7 6 742,630 0 ` 100% r„ p Source: 1980 Census of the Population and Housing.'' ® The 1990 data was not available as of the printing date of this report. r t y{ 1 QF3�'�AL.INS 5 ax 10 y5 y r �6 i f t ty 1 i ,ss vnamployment hates �►�hLa� 1►•verace.___ _... ....,.. __.... I fifth afw 1 667 ft Mianti.....rr. 8.39 1.9% 6.7% 7.2% 8,2% p Dade county.. 6.7 6.4 9.4 5.8 6.7 t1.8.......... +5.5 5.3 5.5 6.2 7.0— source: n to tatae nepartment oEMor, u bureau of Labor Statistics. sousing The U.S. Census figures for 1980 Show that the iaadian value o owner occupied housing was $47,517 which is an increase of 171 of the median Value of $17,500 per owner occupied housing as outlined £- in the 1970 U.S. Census figures. The following tables detail the characteristic of housing by units in the City and the County. Values of Owner Occupied Non -Condominium Housing Units 1980 Miami Percentage Dade Percentage �156 6s $ 14690 ►;lli Less than $25,000.. $ 3 25`,000-39,999.... 8,283 25 43,732 18 4011000-49,999..- 6,326 19 39,978 17 501000-79,999..... 11,012 33 81,130 35 80,000-99,999..... 1,684 5 21,211 9 100,000 and over... 2,462: .7 34.6a _—i-s i. Total......... 33 �.Q 234,86Sa .0% Median Value...... $47,517 S 57,200 _ Sources 1980 U.S. Census o t e Population and Housing. i The 1990 data was not available an of the printing date of this report. j fee E qqff3 = t 4 OFFICIAL.INO 54 } i-sc + MIS t x� r:py-• yrrt� iri too I�it rinse 1981 his boar► animated as Now a idontial onatsr tt �n fallawat t�v�abia� of - Yas --units r yq 1 i i i i i i i +i i i i i► i►• i• i i►• i i i• i i i ► i i i•21 1,624 s y�0y�ii goo i i i i i i i i• i i i i lbi i• i►• i i i i i► I 1888i►i iii i►i iii i•iiliili i••••ii••i 1 4LD i •. i i i i i• i•• i•• i i• i i•►• i•• i• i• i i i1j iyQ$� 1988iii•1iiii•f•i•iiiiiiif•ii►i•i►i 6010 h 19SS i i i i i i i i i i• i i i 1,d18 1984ii iiiii iiiii •ii•ii it iii i•i i•iii X 17�{{0iii0�rii i i►• i i• i i i i i i ii i•• i•• i i i i. i i i.• p6/i41 1/ S3 a 1962 . • i i i i i• i i i♦ i i i l i i• i•• i i•►• i i.► l%164 1881••...•.ii..•i...••.►..•ii.•••i• i _.....' ._ --._. __ M am apartment o u ng an on nq• t r. ourco: o c y o u f 3 ^ S 11`v 2_ p { t I n YR OFF I NO sc b ,V+ ! ,fy Al P. .` 1 {5 x I PrOPOSOd ForI[I _ N E _.► 1091 The Commission of the City of Miami, Florida Miami, Florida I $10#000#000 _ THE CITY OF MIAMI* FLORIDA GENERAL OBLIGATION BOND80 88RI88 1991 f $70000,000 storm Bever Improvement Bonds Fightinq. Fire prevention $3,0000000 Fire and ResaUe Facilities Bonds } near Commissioners: We have acted as co -bond counsel in connection with the Miami, Florida (the "City") of its „,. 'EE issuance and "sale by The city of Obligation Bonds, Series 1991, consisting of initially i +� General issued=and <delivered on this date (the "Series 1991 Bonds:') ida pursuant to the Constitution and laws power Act at(Chapter�r166, Rule y particularly the Municipal Home am and the Charter of the City (Chapter Florida Statutes, as Special Laws of Florida, 19251 as amended) (collectively, !j 10847, the "Act") and Resolution No. duly adopted by the -Commission as supplemented by of the City°=(the ,Commission") on June 13, 1991 Resolution No both duly "adopted''by'the City -� Resolution No and "on 27, 1991 (collectively,.'the-"Resolution"). °<The 0l4 Commission :June series ;1991- `Bonds are being issued to finance certain capital �r improvements of the City. 8 We have examined the - Act '"the 'Resolution, certified copies-- of the I' the proceedings of the City relating=to the issuance of -Series 1991'Bonds and such other documents as.we have-deemed:-necessaryfto one°of the'Series 1991 render`this'opinioh. We`also have examined < and authenticated or.a facsimile thereof - :As to h Bonds as executed questions of°-fact'material, Our, opinion, we have relied upon the undertaking to u a resentations of the City furnished to us without investigation. _ verify such. representations.byindependent Based on the foregoing, we are:of ahe opinion that: 1. The City is duly created and validly existing as a to u% municipal corporation of the State of Florida, with the power its obligations thereunder and to i adopt the Resolution, to perform issue and sell the Series 1991 Bonds. 2. The Series 1991 Bonds are legal, valid and 'binding, I - i 0FFICIAL.IN6 58 t x 51 i t. '1 3 h _ s. W general obligations of the City, for the payment of which and the interest thereon the fall faith, credit and taxing power of the City have been pledged, and said Series 1991 Bonds are payable from taxes, without limitation as to rate or amount, on all taxable property within the corporate limits of the city (excluding homestead exemptions as required by appAcable law). 3. Under existing statutes, regulations, rulings and court decisions, subject to the assumption stated below, interest on the Series 1991 Bonds is excluded from gross income for federal income tax purposes. Furthermore, interest on the Series 1991 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Series 1991 Bonds is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on corporations. We express no opinion regarding other federal tax consequences resulting from the ownership of, receipt or accrual of interest on, or the disposition of the Series 1991 Bonds. In rendering the opinion contained in this paragraph 41 we have assumed continuing compliance with the requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be met after the issuance of the Series 1991 Bonds in order that interest on the Series 1991 Bonds not be included in gross income for federal income tax purposes. The City's failure to meet these requirements may cause interest on the • Series 1991 Bonds to be included in gross income for federal income tax purposes retroactive to their date of issuance. The City has covenanted in the Resolution to take the actions required by the Code in order to maintain the exclusion from gross income for federal income tax purposes of interest on the Series 1991 Bonds. 4. The Series 1991 Bonds and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by chapter 220, Florida Statutes, as amended, on interest, income or profits on debt obligations owned by corporations, as defined in said Chapter 220, Florida Statutes, as amended. It is to be understood that the rights of the holder of the Series 1991 Bonds and the enforceability thereof may be subject to bankruptcy, insolvency,. reorganization, moratorium or other similar laws affecting creditors' rights heretofore or hereinafter enacted and that their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity. OFFICIAL. INS Respectfully submitted, 59 14 77 S 1 � Y� I s EY Lattea ' of City Attarn6y ti s � k hi { N 7+ ' r. OF].;g = 1, 14 Y 60 . t a } t — � s { A Y4 VV A SY r! } S , PEMIX a asneriki Purpose Financial statelbents , t. , Y .. K i tzx k v� . t ✓ :, 0"} A F L: tF(fi- 1 � OFFICIAL -INS 5 >s. � '• - � � � � ,� tom^ > ��� a e3 f Y f q e•tp( Wulu1 U9 Q buche- Certified Public Accountants 100 Southeast Second Street Miami, Florida 33i31--2135 Telephone: (305) 358.414i Facsimile- (305) 358-1451 INDEP9NDENT AUDITORS' REPORT The Honorable Mayor and City Commissioners described in Note 13 to the accorn► snying general purpose City of Miami, Florida: financial statements, the effectt of which, in our opinion, are not material in relation to th$ general purpose Financial We have audited the accompanying general purpose statements) have been provided to us. and our opinion financial statements of 'City of Miami, Florida as of expressed herein, insofar as it relates to the amounts September 30, 1990 and for the year than ended, listed in included for those entities, is based solely on the reports of a the foregoing table of contents. These general purpose other auditors. financial statements are the resp ibility s oCity Florida, administration. Our responsibilityMiami. express an We conducted our audit in accordance with generally opinion on these general purpose Financial statements accepted auditing standards. Those standards require that based on our audit. We did not audit the Financial we plan and perform the audit to obtain reasonable statements of the following component units: assurance about whether the general purpose Financial statements are free of material rrssstatement. An audit Percentage of Tool includes examining, on a test basis, evidence supporting Fund T"e the amounts and disclosures in the general purpose cornpon•tit units Assets Revenues Financial statements. An audit also includes assessing the accounting principles used and significant estimates made Miami Sports end Exhibition MiamiSby management, as well as evaluating the overall financial Authority: statement presentation. We believe that our audit and the Special Revenue Funds ...... 27% 1 % reports of other auditors provide a reasonable basis for our Debt.Service Funds ........... 43% 17% opinion. a Capital Projects Funds ........ 3% 1 % In our opinion, based upon our audit and the reports of Downtown Development other auditors, such general purpose financial statements Authority --Special Revenue present fairly, in all material respects, the financial position Fund ...... ...... 1 % 2% of City of Miami, Florida at September 30, 1990 and the Department of Off -Street results of its operations and the changes in the financial Parldng"—Enterprise Fund ......17% 21 % position of its proprietary and similar trust fund types for the Gusman Cultural Center and year then ended in conformity with generally accepted Olympia Building —Enterprise accounting principles. Fund .................... 1% 2% Fire Fighters' and Police Officers' , Retirement Trust and General Employees' and Sanitation. ` Employees' Retirement Trust— Pension Trust Funds... 95% 100% r Those financial statements were, audited by other March 25, 1991 . auditors whose reports _thereon (which as to Gutman L Cultural Center and Olympia Building and Miami Spats and Exhibition . Authority contain explanatory paragraphs B-5 a ' a 's. Yf J' IDS „b k �F 1 Y }w �2 1. ,F tkr�Sh' 0. nR • Ad i E KHtBFF I CITY OF MIAMI, FLORIDA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30,1990 _ fin ndsi r1r Find' Feed Tetmw awsermnentel Fund Typos Types Account Grow BpodN Dsbt C Inte Tnre and Fbod taq- m �n•rsl Rwionw Sonim Entwp lee swviee Agony, Ammm w�bE 1990 191119 ASSETS AND OTHER DEBITS Assets: Equity in poobd cash and «vestments [[Notes 2(E) and 4] .................. Ottweash„end kwestnm is [Note 41 ...... S 8.808 $4.356 S 4.530 S50.118 S 30 S 537 - 1.888 - - 4,167 - S 4.473 24.895 S - S - S - - 70.6m 30.950 S 87.884 25.208t Pension cash and, invsst W*' inckV ft . womied:interest [Notes2(F) and 41 . Receivables. d for doubdW - - - - - - 589,928 - - 59F28 89.... 543.053 net allmai>ca accotints d S3.411 Taxes 3.050. - 1.468 - - - - - - 4.518 1.434 { Acoourits . ............ ... . 3,750 3.554 6 4.619 - 373 - - 12.302 10.62.2 Assessment liens, [Note 2(c) ... - - 6.667 - - - - - 9.132 - - - - 6.867P 9,132 4 067 1,402 Proceeds,iromAwtvities ........::. - - - - - Pension'membets^contnbutions.. - - - - - - 15 - - 15, 306 sip Due from other fluids [Note,S ...: , . 329 4.953 - 168 1.771 1.50D 2_602. 869< 359 - - 9.OED 3.578 13.318 6.320 Due from other Note Notes roceit►able - -47 - - - - - 125r. Note :2(G)l ;' . 804 804 Ot 1 - 1.559 - - - 1.704 Aestricted'cash and investments. onekxkw accrued jntemt [Notes 2(H), 4 and 8(F)j - 1.422 8.316 29.184 20.749 2.566 - - - 02.237 ° 75,683 Property, pisnt'and equiprnent .,net (Notes 2(L) and 71 .....:...... - - - - 156.333 12.605 - 47f 380 - W.318 825;251 ... Bond issuance costs.net ..... - 1 449 185 18 1578i... f Amount'eveiable for debt serwce: General'obipetion bonds:. .... Special obipetwn bonds ` - - - - - - - - - - - - - - - 1.538 - 8.001 1.538 8.001, 1.69te: 6.274 ` Subordinate obfipstion debt ............ - - - - - - - - 1 1 84 Amount aveiable in; Self Insurance Fund for ............. - - - - W 540i 11.221 claims payable . ....... - - - - Amount to be d for retirement Of general 1or*debt:. General obLpation bonds ....... `bonds - - - - - - - - - 184.302 - 88158 184.302 SEL156. f95.860 88.504 Special obligation and loans .. - - - - - _ St�bordrtiste obfpatan,debt ...... - - - - - - - - 8.399 8.399 8.666, Aaxued'compensetsd absertcss _ _ _ _ _ - _ _ _ t7.228 - 54.832 t7.228 54.832 15.580 = 46.127 f:Wrr>d and other Toth assets grid other debits..;.... _ S16.480 S17.046 $20.981 S79.521 S190.677 ,177 $629.175 S471.38D S362.997 Sf•806.434 S1,765.3.38 .. -S-1-8-- Olt f71 Y � .t , `I q�syy' . - w•'�" , 'L'F . � `i. a+L � ., 4.. 4:,}x.n ,.F »: . r F, f "wu .'"i T.-'±'-: s.`w�.,-2,*.+ec4 eaJ...,+w,t =......:,:....._-+w....._..., rt _ I ..:... ,.»«,e..wo. ,.. es W , EUIUM i Totaw I, Flllla FMUGhW FWW TYaw Accomwenups Gavei wRR�� �ia� OftCapI�M � T�arrrd Terns 1996 Isms General1N� m�laa, Era UABIUTIES Vouchers and aeeaurts payable .......... S 3J48 S 2 760 S S 4,150 S 7,747 S 758 S 1,.405 ' '- S- S 22896 Payable for aeourRM Purchased .... - - _ - 5 488 _ 17,22f# Z4.705� 22,516 Accrue expenses (Note 2p)j :. ... 4,565 227 .- 9.080: 13.316 8 1,783 89 Ore to other fixeds (Note Sj . - 2_179 720 102 5.189 531 359 i - 268 370 Due to other govemmerets .. - 268 - _ - - 17F1 1 Deterred rsvw a .. .. 2,835 2,338 5_954 - 1,532 - 1.002 - - �° 7Ei7 2-°' DePoo�• . • . .. .. _835 338 - - 532 - _ 50,092 5Z592 43: Pay" [Notes 8 and 10j - 2' 4.704 4, Nita u ld bolls and interest pri" (Note 81 - 4,704 - - 0 13 P from restricted assets: - - - - 5 _ _ 1890 1,936 �Go�nstruc 'tan contracts Old other ..... -_ -- -_ _ 1.850 40 5.084. j Accrued Merest bonds . . bk...... -- - - 2,749 2,335 - - - . 4.115. R ve (bonds peportim ayabN -net of currant- - _ _ 83.028 _ i = - 85.018 97.550 81 185.84(>b t85s40 t�ff.75th ga*mbonds "payable (Note 81 _ 8 400k SA S bon�te obip*m debt (N� 81 , 8j. _ _ _ _ 43.282 - - - 96.1ST . 139.439 1371. 75 Special obipew bonds ancf 1N - ._ - 5.240' - - e;ertificates of participation Note 8 .. - 24,895 20724t � [[Noss w .... _ _ � _ __ - 2__ 5.280 5 5• v Otherpayebles...... ..... 35.647 - 362.997 Total isbidss . ............. 11.305 8.043 11,441 4.526 147.680 9.800 .__ _- EOUITY AND, OTHER CREDITS 75.430 10,446 - - - 85,876 ".240 Contributed capWd (Note 2 O -- - - - - - (, )l • 47,38t3 471,38f1 45Sa36s 1"Amtmept in general fixed assets • • •4.878 -_--- 4,181i Retained esmkW (defeat) - - - 4,878 .089) -' ., _ - 139:.1801 ( 1 Reserved (Notes 2(0) and 9) _ - - - (37.111) (2- Unreserved • Note 2 Fund balances. (� Ol - _. 592,988 54I;5T9r Reserved for _, - - - - 592,988 9.548 10.518t Employee rg*omem Plan benefits - - - • - - - 8,897 - - _ _ _ 14,754 11. Zd9 ... ....... 851 _ 9,540 5.214 - - - - 2,142 Debt servece .... _ - - - Miemi Arena . .. 2.142 500 - _ 500r Unreserved .. bss .. - - _ _ - - 40�' - - 40 Desouted for hurricane .... - - Designated for cleima payments ........ _ 62, 5€> 82.350 - Designated for subsequent years 1,866 . 60,884 - _ _ _ 9:519e $1•825- a and approved prolecta 4,524 4,995 i Undesepnated 3h ' Tonal retained earnings (defiat)/femd `:7�39 e537.Z65 5;175 9.003 9.540 74.995 (32•'433) (_ Z.089i 593.528 ' --_ Q balances 75 g p 9 540 42,997593.529 _ 4 15 •i• `INS, 4,995 1.178 43er S i,765,3n ._. Total 75r S47T: `5362:997 S1.806 • 74,995 7ot�; iabbas. equcN _ and other S18i48O S7_ 9s521 518.177� �6291 Si7.O48 520.981 -_- s > w-. irrereeeal statements. w,.w� See nl�g �� -. Y - kyt0 the.. 5 , ` 3 EXHIBIT It CITY OF MIAMI, FLORIDA COMBIN90 STATEMENT OF REVENUES- EXPENDITURES, AND CHAN018 IN FUND SALANC99 ALL CIO'VI RNMENTAL FUND TYPE$ AND EXPENDABLE TRUST FUNDS FON THE YEAR ENDED 81PUM61111 30,199E (in thousasnds) 1r , fia�rsrrwar+�i fund Revenues• Taxes (Note 31 ............... . .......... $I 166.3770 $36.447 $30.182 $ �-- $ �-- $182,990 $1746 810 Llconses and permits .. Intergovernmental ... . ... ... . .......... - -- -� 25.037 26,007 3.629 4.884 6,969 66.628 SS AW Intragovemmental ........................ 2,657 - -- - 34,480 37,137 36.806 Charges for services ...................... 3,856 -- - -� 3.866 3,297 Contributions from employees and retirees ... -_ 3.370 3.37 1.337 Assessment lien collections ................ - 2,093 - Interest . ...... . ........................ Other 2,234 1.399 1.078 4.793 462 3 1,579 366 2,029 11,886 9,966 7.283 10,579 7,1.17 ......... . ........................ Total revenues ............... . ....... 157,590 65,432 37,338 11,706 46,167 318,233 311,780 Expenditures: Current: General povemment .................... 19,173 - - - - 19,173 �19. 613 Public safe ................ 125,478 4.616 - - - 130,094 121:502 Public im)rd ements� ..... i ............ 9,726 - - - - 9.726 11.623 Culture and recreation .................. 10,854 - 10,854 10.773 Grants and related expenditures .......... _ _ 22,428 22.428 24,823 Contributions to pone= funds (Note 121 - - - - 27.67 27.673 27.132 Insurance ... ....... ................ - - - - 986 EconorNc development ................. - 1.292 - - - 1,292 1.651 • Claim payments ....................... - - - - 18,068 18.068 16.281 Other ... . . . . . . ....................... 16.478 6.017 932 - 3.349 24.776 23,034 Debt service: Principal retirement (Note 81 .............. 284 - 12,361 - - 12,645 11,579 Interest and fiscal charges ............... 1.932 - 19.799 802 - 22,533 18.466 Capital outlay ........................... - - - 27,018 - 27,018 40,021 _ Total expenditures .................... 182,925 33,353 33,092 27,820 50,087 327,277 326,184 Excess (deficiency) of revenues over expenditures ....................... (25,335 ) 32,079 4,246 16.114) (3,920) (9,044) 1( 4.404) Other financing sources (uses): Operating transfers in ..................... 40,802 3.079 3,834 11,696 3.239 62.650 55.239 , Operating transfers out ................... (15,697) (36.844) (8.528) (15,422) - (76,391) (72,377) Proceeds from debt issuance, net .......... - - - - - - 63.222 Repsyrnent of subordinate debt ........... - - - - - - (8,760) { Proceeds of refunding bonds, net........... - - - - - - 21,694 Payment to refunded bond escrow agent .... - - - - - - (21.694) A' Other.. ........ .................. 5.769 Total other financing sources (uses) ..... 25,206 (33,765 ) (4.694) (3,726) 3.239 13,741) 43.103 Excess (deficiency) of revenues and other fnanang sources over expenditures and other financing usq� ................ (130) (1,686) _(448) 1( 9,840) (681) 2( 2,785) 28,699 Fund balances at beginning of year, as previously reported..... ..................... 5,305 10.570 9,988 94,954 1,221 122.038 102.823 Reclassification of Moen ...•.... ........... - - - - - (9,484) Fund balances at beginning of year, as reclassified ............................. 5.305 10,570 9,988 94.954 1.221 122,038 93,339 uity transfer from (to) other funds .......... - 119 - (119) ind balances at end of year ................ S 5,175 S 9.003 S 9.540 S74,995 S 540 S 99,253 $122.038 See accompanying notes to the finarx3al statements. Sf_ - Fait m r 7: 4� N hJ t�i ^�=r r 4f# { CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN #' FUND SALANCES—BUDGET AND ACTUAL GENERAL FUND. SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30. 1990 (I6 thousands) tlsinl 1 Fund EnsurnbfGhtls i GM � f grid of 8r to I rAft�We ' eeeis ynr rear eau. 8uWWI OWN_WfW1 e) fiavanue: I Taxes [Note 31.:........................................ $116.370 S -- S— $116.370 $117,806 3(1,32e) j Licenses and permits .. ................................... 6.003 -- — 8.003 e,255 (262) Intergovernmental ....................................... 26,037 — — 26.031 24,964 73 Intragmemmental : ...................................... 2,657 - - 2.657 2,483 174 ; Cho" for services........4........................... 3,856 — 3.856 4,800 (744) easm Asaenthen collections ............... .., ........ — — — — — — Interest ................................................ 2,234 — — 2.234 2,028 208 : Other ................... .................. .......... 1.433 — — 1.433 1,285 148 Total revenues ...................................... 157,590 157.690 159,311 (1,721 ) I Emmditurea: 1 General government ............................ . ..... 19,173 201 97 19,069 19.367 298 Public safety ...:: ..................................... 125.478 153 17 125.342 125.988 648 Public improvements .. I 9,726 51 8 9.683 10,322 639 Culture and recreation ..'................. . .... ......... 10.854 41 51 10.864 10,885 21 Grants and related expenditures ............................ — — — — — ccontm, development ................................... Other, .... ..................... ................ 15.478 373 478 16,583 18,000 417 Debt servk:e: — — — — — — Principal retirement (Note 81 ... . ........................ 284 — — 284 284 — Interest and fiscal charges .. ................. ........ 1.932 - — 1.932 1.967 35 Total expenditures ..... ...................... ..... 182,925 B19 651 182.757 184,813 2,050 ti Excess (deficiency) of revenues over expenditures ......... (25,335) (819) (851) (25.167) (25,502) 335 Other financing sources (uses): Operating transfers in ..................................... 40.802 — — 40.802 40,888 136 Operating transfers out .. .... ............. (15.597) — — (15,597) (15.164) (433) Total other financing sources (uses) ................... 25,205 — — 25,205 25.502 (297) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses......... ... ..... (130) S (819) SJ851) $ 38 $ — S 38 Fund balances at beginning of year ............................ 5,305 ,f l Fund balances at end of year ................................ S 5.176 ' (1) Does not include funds for which budgets have not been adopted. See Note 2(d)(1). See accompanying notes to financial statem©nts. B-10 � L •//J1///J � // .rRxy .¢� Y i+�Yn t ; ZT 9y .: � t�yT� x S �9rG �� 'fifes Lit � Lliilt OF MIAMI, FLORIDA lrOMbIN0 8TATENIENT OF REVENUES. _ EXPENSE$ AND CHANG118 IN FUND COUITY ALL PROPRIETA$V FUND TYPE$ AND PENSION.TRUST FUND$ FOR THE YEAR ENDED 89PTEMBER 30, 1990 (In thwueefrdsl Operating revenues• Charges for services ...... .. . Contributions frorri emplWars �NoW 121 .......... Flduelary Proorie" Fund Ttrpra Fund 7`ypss Intsrnsl powon Ent " S+mw Tnist $ 48.094 $16,736 $ -- .••.• 22.191 Contributions from employees and retirees (Note 121 . ....... , ... , .. , ....... -- — 14,209 14,209 1,521 Realized gain (Ions) on sale of investments ........ — -- 17.015 17.015 17.630 Interest and dividends ...... . .. . ............... 33.337 33,337 32 114 Total operating revenues ..... • ............... 4,-8.094 15,736 86.752 150.582 143.793 Operating expenses; Personal seNices ... .......... 31.055 9,283 1.488 41.826 41.342 ... ... Contractual services . .. .. , .................. Materials" and supplies . ... ... .......... 7.090 487 1.314 3,031 — — 8.404 3.618 6,763 3,576 Benefit payments — — 31.443 31,443 29,017 ... ..... ................. Refunds. ........... .............. — — 2.437 2.437 2,040 Utilities... , .. .... ................:. 1.377 1,746 — 3.123 3,036 intragovemmental charges• . ..... ............ 3.462 — — 3,462 3,279 Other ..•,.......:.,..... .. ..... ....... ... 10,451 458 — 10,909 12.672 Total operating 'expenses. , ................ 53.922 15,832 36.368 105.122 101.715 Operating income (loss) before depreciation expense , , • , , „, , .. • .. (6.828) (96) 51.384 45,460 42.078 Depreciation expense ........ ................ 6,144 1340 — 8.484 8,763 Operating income (loss) .: . .:........... ..... ,,10,972) 3,436) ,�� 61.384 36,976 33.315 Non -operating revenues (expenses) Interest income ... ....... 1.604 356 — 1.960 1,814 Interest and fiscal charges......... ......... (8,249) (586) -- (8,835) (9196) Other..., .,.:<:....:........................... 609 63 25 697 2 476 Net non -operating revenue (expenses) .......... (6.036) (167) 25 (6.178) (4,906) Income (loss) before operating transfers ........ 117.008 ) (3,603) 61.409 30.798 28.409 Operating. transfers in ... ........ ... 17.425 4.431 — 21.866 230232 Operatingtransfers out . ... ............... (7,366) (749) _ - (8,115) 46.0941 Nat'operating transfers ...................... 10.059 3,682 - 13,741 17 138 Income'. (loss) before, extraordinary item ......... (6.949) 79 51.409 44,539 5 45,47 Extraordinary it loss on debt refinancing (Note 8lgl) • . . ... .. .. .. �,_) — — �_) Net income (loss) . ................... (8.229) 79 . 61.409 43,259 45.547 Retained. earnings (deficit) It beginning of year. as previously reported.: ....................... (24.204) (2,148) 541.579 515,227 474,616 4' 938 Reclassification of loan .......................... — — — — Retained earnings (deficit) at beginning of year, as reclassified ................................. 2( 4.204) (2,148) 541.579 515.227 4690680 9tainedeamings (deficit)at�and of year . .... .. (32.433 ) (2,069) 592.988 558.486 615.227 ontnbuted capital at beginning of year ............. 74.778 9,462 — 84.240 77,549 Contributions from other governments .......... 150 - — 160 976 Contributions from other funds ................ 502 984 — 1,486 5.71 & Contributed capital at and of year . .... .... 75.430 10.446 — 85.876 84 240 Total fund equity ............................. $ 42.997 $ 8.377 $592,988 $644.362 $599.467 See accomparrying notes to financial statements. B-12 r - r� i ° k� nor{• a �i{'�i fa;�� �-3 � .�" zt f2,K 1 �► a U"IB1T V CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF CHANGES IN FINANCIAL POBITION ALL PROPRIETARY FUND ?Y10E8 AND PEN81ON TRUST FUNDS FOR THE YEAR ENDED SEPUMB91130, 1990 On thousand) Proptletsry Fund _TO*$ Into" Wonting capital provided (used) by: Operations: Income (loss) before extraordinary Item ..... $ (6,949) S 79 Items not requiring Current outlays of working capital: Depreciation amortization and bond FIdudry Totsb Fund.Tvpii (Memorandum_ Or Pismo" Trust 1990 -Iff $51.409 $44,539 $ 46,647 accretion .......................... 6,863 3.424 -- 10,287 10,167 Loss on dispositions of property, plant and equipment ......................... 436 - 436 996 Total provided by operations before extraordinary item ....................... 349 3.503 51.409 56,261 66.710 Extraordinary item -loss on debt ntfa>enang .... 1,280) -- - (1,280) •-, .. Total provided (used) by operations ........ (931) 3�603 51.409 53,981 66, 0 Other: Decrease (increase) In restricted accounts 8.184 867 -- 9.041 (13,176) Contributions and equity transfers, net........ 662 984 - 1,636 6.694 ' Proceeds from Conti term debt ............. 16,952 16,952 26,727 Total ................................ 24,867 5.344 51,409 81,610 76,965 Worlan capital applied to: 'of Addit Ionsproperty, plant and equipment.... 5,475 2,309 - 7,844 18,616 Reduction of debt... .. ......... 18,772 2.336 - 21,107 2,776 Increase (decrease) in bond�discount......... 700 - - 700 (76) Decrease in other liabilities ... ........ 64 - -- 64 139 Increase (decrease) in other assets......... (239) (239) 496 Total ................................ 24,772 4.704 29,476 21.949 Increase in woddng capital ........... $ 85 S 640 __.-__ S61,409 S 52,134 $ 54.006 Summary of increases (decreases) in working capital: Cash and.investments . .. S (389) S 88 - (301) S 3,217 Pension investments.. 46.875 46,875 54 440 Accounts receivabla, net ................... 689 -- 7.439 8,128 2,125 Due from other .funds ..... . .. 965 289 (72) 74$ 2,773 Inventories ..... . .. 123 11391 (3) - 126 1139),.- 82 Prepaid expenses . ... ........ - - 873 Accounts payable and aocrued expenses ... 108 (105) 1,757 1.760 (4 71% Due. to other funds .. .. .... 1.666 791 - 2,447 (6 042 Deposits refundable ..... l i) Payable for securities purchased..... -- -- (4,590) (4,580 1 1$0) Deferred revenue ........... .... ...... (761) - - 751 12 Current portion of certificate of participation ... - _(420) - 420 335 Increase in working capital ................... S 85 S ' 640 $61 409 S 52,134 :5" 64.006 See accompanying notes to financial statements. 4 *4 CITY OF MIAMI, FLORIDA NOTES in FINANCIAL STATEMENTS 1, GENERAL DESCRIPTION The City of Miami, (the "City"), in the County of Dade, was incorpotAted in 1898, and comprises approximately 34 square stiles of land and 20 aquare miles of water. The City operates under the Commission/City Manager form of gov- ernment and provides the following services: public safety, public works, solid waste, parks and recreation, public facili- ties, planning, zoning, housing, and community develop- ment. Dade County (the "County") is a separate govem- mental 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) if 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 Govern- 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 various 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 ("GASS") 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 authorities 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 w 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 8-14 potential component units addressed in defining the report- ing entity for the City: (1) Included wkhin the entity DOWNTOWN DEVELOPMENT AUTHORITY ("DDA")--The DDA is governed by a board appointed by the City Commission. The Commission must ap= prove the mglage levied on the special taxing district es. tablished to fund DDA. DDA has been included within the reporting 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. The City Commission must approve the MSEA's board membership and op -. budget. The various funds of the MSEA have been included within the reporting entity as special rev- enue, debt service and capital project funds. DEPARTMENT OF OFF-STREET PARKING ("DOSP")—The DOSP is an agency and instrumentali- ty of the City, which owns and operates parking Will - ties within the City. The City Commission has reserved the right to confirm new members of the Off -Street Parking Board, to establish and fix rates and charges for parking services, to approve the DOSP operating budg- et and to authorize the issuance of revenue bonds. The DOSP is included within the reporting entity as an en- terprise 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 reporting entity. under the title of the "G&O Enterprise Fund". In the event that operating revenues of the G&O Enterprise are not sufficient to cover its operating expenses, the DOSP or the City wig provide any necessary cash re- quirement subject to authorization by the City Commis- sion. 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 employee retirement systems under the administration and management of separate Boards of Trustees and are included within the reporting entity as pension trust funds. (2) Excluded from the entity MIAMI CAPITAL DEVELOPMENT, INC. ("MCDI")= . MCDI is anon -profit corporation which facilitates busi- ness development within the City under a delegate - 449 �d y+ s E Ail City of Miami, Florida Notes to Financial Statements agency agreement with the City by providing financial assistance to entrepreneurs and thus fosters City-wide and neighborhood economic development. MCDI's acopa of services is not limited solely to the City limits and the City Commission has limited ability to influence operations or the appointment of MCIJI's Board of Di- rectors, representing principally the private business and financial community. HEALTH FACILITIES AUTHORITY ("HFA")—The HFA is an agency established by State Statute to issue reve- nue bonds. Such debt is not an obligation of the City. The HFA has no significant operations other than the issuance of such debt. MIAMI POLICE AND FIRE FIGHTERS' AEUEF 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 respon6lblity for these plans, nor are plan benefits financially integrated with those provided under the City's FIPO Trust. Boards of trustees are in- dependent of the City Commission (See Note 12(9). S. Basis of Presentation The financial transactions of the City are recorded in individ- ual funds and account groups. Each is accounted for by providing ' s 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: Govemmental 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 for in proprietary, funds) are accounted for through governmental funds. The following are the City's govem- 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) that are legally restricted to expenditures for specified purposes. Debt Service Funda -Debt service funds are used to ec. count for the accumulation of resources for, and the pey- ment of, general long-term debt principal, interest and mist. ad costs. Capital Projects Funds --Capital projects funds are used to account for financial resources to be used for the acquisi- tion or construction of major capital facilities (other then those financed by proprietary funds). Proprietary Funds Proprietary funds are used to account for the City's organi- zations and activities which are sin►ilar 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 —Enterprise funds are used to account for operations: B-15 • that are financed and operated in a manner similar to private business enterprises —where the interest of the City 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 detenNna- tion of revenues earned. expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Certain enterprise funds have historically operated ate loss and have required operating subsidies fnxn the Genre! fund., if future operations are not sufficient to offset these deficits, the City will continue to support those activities from the general fund or other discretionary funds (See Note 9). Internal Service Funds—Intemal service funds are used to account for the financing of goods or services provided ,by one department or agency to other` departments or agen- cies of the City, on a cost -reimbursement basis. City► of Mismi, Fiorillo Notes to Financial Statements iesu�we of a c►aat T.V. aicen account ass deposits ludder three deferred compensation plans for certain amployeas. A000uht Groups Account Groups are used to establish accounting control and accountability for the City's general faced assets and the unmatured principal of its general kw*tarm obligations. The two account groups are not funds, They do not reflect available financial resources and related liabiities—but are accounting records of the general faced asset& and general long-term obligations. General Fixed Assets —This account group is used to ac- count for all fixed assets of the City, other then 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 -tern liabilities recorded in the enterprise funds and internal service funds. Totals (Memorandum Only) —Amounts in the "Totals (Memorandum Only)" columns in the combined financial statements represent a summation of the combined finan- cial statement line items. of the fund types and account groups and are presented for analytical purposes only. The summation Includes fund types and account groups that use different bases of accounting, includes interfund trans- actions that have not been eliminated and the caption "Amounts to be provided," which is not an asset in the usual sense. Consequently, amounts shown in the "Totals (Memorandum Only)" columns are not comparable to a consolidation and do not represent the total resources avail- able or total revenues and expenditures/expenses of the City. C. Basis of Accounting The accounting and financial reporting treatment ap- plied to a fund is determined by its measurement focus. AN governmental funds aqd 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. AN proprietary.funds, nonexpendable trust funds and pension trust funds are accounted for on 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 contributed capital and retained earnings components. proprietary fund - type operating statements present increases (e.g., rave- nues) and decreases (e.g., expenses) in net total assets, B-16 (1) Modified AO6MI AN governmental funds and expendable 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 period. Ad valorem taxes, utility service taxes, charges for service. investment earnings, fines and forfeitures, franchise taxes, are susceptible to so- cruel when collected in the current year or within. 60 days subsequent to September 30th. A one year avail ability period is used for revenue recognition for all oth- er governmental fund revenues. Occupational license revenues collected in advance of periods to which they relate are recorded as deferred revenues. Where grants revenue is dependent upon expenditures by the City. revenue is accrued as such expenditures are incurred. Special assessments are recorded as receivables and deferred revenue when levied and recognized as reve- nue when due, provided they are collected in the cur- rent year or within 60 days subsequent to September 30th. Special assessments are recorded in the General Obligation Bonds Debt Service fund, representing a partial reimbursement of costs incurred in certain capl- tal projects originally financed with general obligation bonds, and in the capital projects fund. The City does not issue special assessment 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 current, 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 ad-` 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. ri. d City of Miami, Florida Notes to Financial Statements ily. Bud®ebty Policy lba et ""owes old Other (1) Budget Polley Financing The City Commission annually adopts the budget ordi- ExeesrdlWr POW eed Other BMW" i naned for an governmental funds of the City, except for Fhsertohsg tertalser the follaiving funds: elal frleveme Funds Uses 3 , Debt 8"ae Funds • Other Special Revenue Funds Actual-- Exhibit It ..... , . S (448) $ 4,W a MSEA Subordinate Obligation Note Debt Service Plus (lean) Funds not w Buddg�eted: t _ Fund MSEA Subordinate Obligation Debt ..... 83 f t) MSEA Special Obligation fonds Debt Service Fund MSEA Spacial Obligation Bonds ... 2922 ........ • All Capital Projects Funds (budgets are adopted on a Actual --Exhibit III ...... t731 S i project basis) In addition, capital project funds are budgeted on a to - tal project basis for which annual budgets are not avail - Annual operating budgets are adopted on a basis sub- Annual stantially consistent with generally accepted account- ing principles (GAAP) except that budgetary compari- The City also adopts non -appropriated operating budg- sons for the General fund include encumbrances as ets for the proprietary funds substantially on a GAAP expenditures. basis. with certain exceptions. Such exceptions in - In prior Iyears, certain activity within the MSEA Special clude: Revenuefund related to the Miami Arena operations . Debt principal payments are budgeted as debt set - was not induded within the administrative budget and lice. The portion of debt service representing pdnci-' j certain receivables of DDA had been written off and the pal payments reduces the related liability on a GAAP 1 advance from the City recorded as a liability. basis. Adjustments necessary to compare the results of oper- . Certain non -operating expenditures for capital outlays ations in the special revenue and debt service funds as are not budgeted. presented in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit II) . (2) Budget —Legal Compliance to that presented in the Combined Statement of Reve- nues, Expenditures end Changes in Fund Balance— The City follovvs these procedures in establishing the , Budget and Actual ' (Exhibit III) are as follows (in budgetary data reflected in the financial statements: t thousands): Excess • prior to August 31 st, the City Manager submits to the >1 City Commission a proposed operating budget for the of Revenues fiscal year commencing the upcoming October 1 st. and Other Financing The operating budget includes `proposed expen& Sources ow tures end the means of financing them EVenditures Fund and Other Balance Public hearings are conducted to obtain taxpayer Financing Se terrrber cents. Special Revenue Funds Uses 30.1990 Actual —Exhibit 11....... S(1.686) $ 9.003 • Prior to October 1 st, the budget is legally, enacted Pius (less) funds not through passage of an ordinance. :.budgeted*,, Other Funds ...:....: 1.620 (1.248) • Overall changes to the adopted budget must be ap- Plus "nereffect of MSEA proved by a. majority vote of the Commission activity not budgeted — 572 - Plus neteffect of DDA • Generally, the Commission and City- Manager trrey write off of receivable and advance from City, transfer among departments any part of an unencum- recorded as I�abi6tyy ... =' 12b bared balance of an a mpriation to a e for pP i�� i i { - Actual -Exhibit III ....: S 0 66) $ 8.451 .__ - which an appropriation for, the current year has -seal year, proved insufficient. At the close of each fi B-17 1 ti , T i 1}� 5 r J 1 _ L� 4 t Ire City of Miami, Florida Notes to Financial Statements 0. Budgetary Polley (1) Budget Paley The City Commission anhualiy adopts the budget otdi- hence for all goveMmental funds of the City, except for the foil&Mng funds: • Other Special RAVenua Funds • MSEA Subordinate Obligation Note Debt Service Fund • MSEA Special Obligation Bonds Debt Service Fund All Capital Projects Funds (budgets are adopted on a project basis) 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. In prior years, certain activity within the MSEA Special • Revenue fund related to the Miami Arena operations was not included within the administrative budget and certain receivables of DOA had been written off and the advance from the City recorded as a liability. 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 III) are as follows (in thousands): Excess ( ticiency) of Revenues and Other Financing sounats Over Expenditures Fund and Other Balance Financing Wember Special Revenue Funds Uses 38. 1990 Actual —Exhibit 11....... s{ 1.686) $9.003 Plus (ins) funds.not budgeted: Other Funds . 1,520 11,249) Plus net effect of MSEA activity not budgeted — 572 Plus net effect of DDA write off of receivable and advance from City recorded as liability — 125 Actual —Exhibit III . S - (168) $8,451 B-1 i ,gees er } E�NFtdItuNlr Purwt and OtM ardow" l Finn ho +lrnbar spRevenue Funds me" Debt 8000* Furls Actual--f xhibit II , . , ... , S (440) S f1.W Pius (ass) Funds not Bu�doeted: MSEA Subordineta , ObNgalion Deb t ..... MSEA Special Obligation Bonds .... , ...... 292 7,f387) Actual —Exhibit III ...... 5 73) S 1,872 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 funds substantially on a GAAP basis, with certain exceptions. Such exceptions in- clude: • Debt principal payments are budgeted as debt ser- vice. The portion of debt service representing princi- pal payments reduces the related liability on a GAAP basis. • Certain non -operating expenditures for capital outlays are not budgeted. I 12) 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 All fiscal year commencing the upcoming October 1st. The operating budget Includes proposed expendi- tures end the means of financing them. • Public hearings„ are conducted to obtain taxpayer comments. • Prior to October 1st, the budget is legally enacted through passage of an ordinance. pis • Overall changes to the adopted budget must be ep- proved by a majority vote of the Commission. • Generally, the Commission and City-, Manager -may transfer among departments any part of an unencum- j'. bared balance of an appropriation to a purpose for` which an appropriation for • the current year has ( proved insufficient. At the dose of eacWfiscai'year, f° 7 { k x i IurlfT,�17aM. -0 El City of Miami, Florida Notes to Financial Statements the unencumbered balance of each appropriation m- varta to the fund from which it was appropriated and is subject to future appropriations. • Budgets are monitored at varying levels of classifica- tion datail, however, budgetary control Is legally maintained at the fund level except for the Ger►eral fund, which is maintained at the departmental level. Budgeted amounts in the acoompanykV financial statements are as originally adopted, or as amended by the City Commission and City Manager throughout the year. Curing the year, supplementary appropriations were approved totaling approximately S22.5 million in- cluding approximately S 16 million related to the sale and repayment of Tax Anticipation Notes, Series 1989. 13► Encumb'ances Encumbrance accounting, under which purchase or- ders, contracts, and other commitments 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 commitments will be honored during the subsequent year. (4) Excess of Expenditures Over Approprilations In Individual Funds The following funds incurred an excess of expenditures over appropriations for the fiscal year ended September 30. 1990 (in thousands): Special Revenue Funds: • Community Development ......... S 885 • Cable T.V................... .. 33 • Metro -Dade Tourist Tax........... 69 Debt Service Funds: • Other Special Obligation Bonds .... 2.469 E. Pooled Cash and fhvestments 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. Ali investments consist of U.S. governmental obliga- tion and prune 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. B-18 Individual fund overdrafts (deficit poolod cash accounts) have been reported as an interfund payable in the respeo- the fund with an offsetting Interfund receivable reported, in another fund (Sae Note 5). The funds listed below main- tained separate cash and investment balances and ere re. corded as "Other cash and investments" in the accompa• vying financial statements. In addition. certain other City funds maintain separate restricted cash and investment ac. counts in compliance with debt requirements (See Notes 4 and 8). • Miami Sports and Exhibition Authority Special Revs. nue Fund • Downtown Development Authority Special Revenue Fund • Special Obligation Bonds Debt Service Fund (MSEA) • Subordinate Obligation Note Debt Service Fund (MSEA) • Miami Arena Capital Projects Fund (MSEA) • Exhibition Expansion Capital Projects Fund (MSEA) • Off•Stmet Parking Enterprise Fund • G & 0 Enterprise Fund • FIPO Pension Trust Fund • GESE Pension Trust Fund • Deferred Compensation Agency Fund F. 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 .. City of Miami, Florida Notes to Financial Statements Corporate common stock, preferred stock, convert!- ble debentures (subject to 5% limitation for any one entity of the equity portfolio and provided the aggre- gate investment does not exceed 1 percent of total outstanding capital stock of any one corporation), • Notes coilateralitod by first mortgages on real proper- ty or guaranteed by the federal Housing AdmiNstre- tion or the Veterans Administration, • Corporate interest bearing obligations, • Venture capitol, private placements and letter stocks, a 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 (66%), faced income (65%), real estate (16%). 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 Government 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 total out- standing capital stock of any one corporation) • Notes collateralized by first mortgages on real property or guaranteed by the Federal Housing Adrrunistration or the Veterans Administration • o 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. Q. 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. H. Restricted Assets Certain proceeds of bonds, notes and loans, as well as car - Jain resources set aside for their repayment are classified as restricted cash and investments as their use is limited by ap- plicable bond covenants. 1. Acaurnulatsd unpaid Vacation, sSlak Pay, and Other Employs-► Benefit Amounts Under terms of Civil Service regulations, labor contracts and administrative policy, City employees are granted vacation and sick leave In varying amounts. Additionally. certain over. time hours can be seemed and carried forward as earned 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 #arvIw classification, The City has significantly decreased adcumulated 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 proprietary funds. with the long-term portion of govern. mental funds' liability being recorded in the general long- term account group. J. intragovemmental Allocation of Adminlatrstive Ex- penses 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' sppro*hetaly $1,794.000 for fiscal 1990. . • Indirect Cost Allocation. The General fund charges other funds for general and administrative expenses. Such charges approximated ,$393,000 for fiscal 1990. K. Bond Discount and Issuance Costs Discounts on revenue and special obligation bonds payable within the proprietary funds are amortized using the interest ` method over the life of the bonds. Bond issuance costs are capitalized and amortized on astraight-line basis over the life of the bonds. L Property, Plant and Equipment Property, plant and equipment used in governmental fund type operations (general faced assets) are accounted for in the general faced assets account group. Public.domaln ("in- frastructure") general foxed 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 B-19 el t> 5 0 1A 1 G� bi �i u xr t r i Md L � C] City of Miarnit Florida Notes to Financial Statements general fixed assets. No depreclation his been provided on general fixed assets. All property, plat and equipment are valued at historical cost or estimated historical coot. Donated property, plant and equipment are valued at their estimated fair market value on the date received. Depredation of all exhaustible fixed assets used by the pro- prietary funds is charged 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 current period as part of the cost of the as- sets, net of related interest earned on unexpended portions of such borrowings. During 1990, no such interest was capitalized. M. Interfund Transactions Oussi-external transactions are accounted for as fund reve- nues, expenditures or expenses (as appropriate). All in- terfund transactions except advances, quasi -external trans- actions and reimbursements are accounted for as transfers. Nonrecurring or 'nonroutine transfers of equity between funds are considered equity transfers. All other interfund transactions are.tmated as operating transfers. N. Defen-ed Compensation The City offers its employees three deferred compensation plans created in accordance with Internal Revenue Code Section 457 that permit the deferral of a portion of an am- ployee's'salary until future years. The deferred compensa- tion is not available to employees until termination, retire - merit, 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 thsaugh employee payroll deductions. All contributions are paid to outside fiduciary agents. How- 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 being 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. O. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from develop- ers, customers or other funds. Resarvas represent those portions of fund balance which are either not available for appropriations or ere legally segregated for a specific use. Designated fund balances represent tentative plans for fu- ture use of financial resources. P. Comparative 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 fi- 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 1990 presen- tation. 3. PROPERTY TAX Property taxes are levied on January 1 st and are payable on November 1st, with discounts allowed of one to four per- cent if paid prior to March tat of the following calendar year. Taxpayers 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 at and bear interest at 18% until a tax sale certificate rs sold at auction. Dade 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 Dade County Assessor of Property, at January 1. 1989. upon which the 1989-1990 levy was based, was approximately $10,633,383.000. 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 governmental services (other than the pay- ment of principal and interest on general obligation long- term debt) for the year ended September 30, 1990. was $9.5995 per $1.000. The debt service tax rate for the same period was $2.3381 per $1,000. Property taxes receivable as of the end of the fiscal year, representing collections within 60 days subsequent to Sep- tember 30. for billings through the fiscal year then ended_''*, amounted to approximately $3,050.000and $8110000 for the general and debt service funds, respectively. 4. Ef UITY IN, POOLED CASH AND INVESTMENTS, RESTRICTED AND OTHER CASH AND INVESTMENT$ At September 30, 19ff0, the City`s non -pension cash and investments consisted of the folkNMg (in thousands): Equity in pooled cash ..... . ....... . ... . . . ...... . ...... 70,860 JC,BSD Y Other cash and investments ... . ........ . ... . ......... . . 62,27 Restricted cash and investments ......................... Total............................................ t163 83i _= Investments .......................................... 5159,23t1 4,210 Deposits ..................................... . . ... 1,3J8= Accrued interest ................................. . . Total non-pansion cash and investments .............. S163 37 a i Deposlb The City's bank deposits at September 30, 1990 were as follows (in thousands): i Carry1np Bohm" Arnourri Per Banks Demand deposits ...................................... $(2.278) $ 3 867 Time deposits ............ . ............................ 6,488 6,488 t i Total ............................................. $4,210 $10,356 } All 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 Pubic 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% of daily balance for month of all deposits in wmas of any applicable deposit insurance held. f to 125% the average each public The percentage of eligible collateral (generally. U.S. Governmental and agency securities, state or local govemrnent debt. or corporate bonds) to public deposits is dependent upon the depository's financial 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, ail cash and time deposits held by banks can be classified as category one credit risk as defined in GASS Statement No. 3 which means they are fully insured or collateralized. i 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 { r ' states, municipalities, school districts, or other political subdivisions; revenue and exddse tax bonds of the various rrnmicipel'� , 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. f `Investments are categorized to give an indication of the level of risk assumed by the entity at yearend. The three categtxies risk are as follows: i ; J E (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 a (3) Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in r, the entity's name. `^ „. The City's non-perteion investments consisted of the following at September 30, 1990 and ere classlkd he feilowtt thnuaan�sh Ctrdlt Wak Catagory 0r�qp i�Aariurt _ 1 2 8 AIttE V�ik1e } U.S. Treasury Notes and Bills ...... , . , , ., $37.637 $ 7.764 $1.000 $ 46.291 $ 46,196 U.S. Agency Securities .........:.. . .:.. 18,126 19.661 2.000 39,777 39,668 Short -Term C6rnm0dal Paper .:... , . , ... 20.980 — 1.947 22.927 22.921 Municipal bonds ....................... — — 1.000 1.000 1,000 l Corporate bonds. 6 ..................... -- -- 2,947 2.947 2.966 ' } Totals ........................ $76.643 $27,405 $9.894 112.942 112.745 { Short Term Investment Pod ............. 20,394 20.393 Deterred Compensation Ilan Assets ....... 24.896 24.896 Totals ...... ...... ..... I $158,231 $168.033 Investments held by the City's pension plans consisted of the following at September 30. 1990 and are classified as folk ws (in thousands): Cm t Risk Cabpoty Total i 1 2 3 Amount Value I U.S. Government and Agency Obligations ::.... ...:. . I. ..... $186.419 $11,299 — $197.718 $196.134 Corporate'Stocks ....'................... i 267.943 — — 267.943 262,994 Corporate Bonds .... ... .......... .. .. 49.655 — — 49.656 47,877 Commercial Paper ........................ 5,658 — — 5,658 51617 Totals .......... $509.675 $11,299 $— 520,974 512,622 Short Term Investment Poor .............. 63,516 60*266 ; Accrued Interest and Other ............... 5,438 b.437 Total'Pensiorllnvestments ...... .. $589,928 -- $578,315 t . - l The investments in the short-term investment pods are not categorized because they are evidenced by securities that l _ exist in physical or book entry form. not six V .. r ( B-22' . L � u �4 A i J�Nr IIi r 2 i t v a� 4 � t j }��- Wit - city f We rl,Florida stateirn,errtts Was tO FIr'id"Claal , i, but Fitowro OyNth aF wos 7., Duo fromlio other fundii re )oene train ono fund to another for speeific purposes. At September 30, 1990 the balenco in dub o ftonVto other funds consisted of the foltoivving (in thousands): Due from Due to .: Pund Other NMI* Ottw funds _ General ..... $ 329 S ..:..................................... Special aAerrenue. r Miami Sports and Exhibition Authority .............. . ...... 720 Downtown Development Authority ........................ 102 xntl Deese) nt.....,.,........................ GolTni1y 2,3 1(1) Tax.Public �-» 2,1 y9 ..,........ Service............ Service ............. ,- Other Funds .................................... .. 1,800(1) -- Debt Service:. M5EA Special Obligation Bonds ................. ....... -- 720 Capital Projects: Street Improvement ......... .. ... .. ...... 188 — Municipal Use ...................................:... -- 102 EntaroriseFunds: Department of Off -Street Parking ... 744 - ................... G IN 0 Enterprise Fund ... ......................... 660 Marine Stadium.,. ...... .................. 212 Miami Stadium ........ ... ............ — 607 wlOrange Ba. .... ................. .............. 123 Convention Center; .... ... ... ........ .. — 8 Marines ... ....... ..._ . 342 .............. Exhibition Center. .. ...... 290(1) — Golf Courses .. ....... 278 r Parldng Garage ............................. .. 3920) 91 Building and Zoning .. 275(J) — .......... ...... Solid Waste, .... ............... ......... — 2,710 L Property and Lease Management ......................... 70(1) 168 Internal Service: Fleet Management . ...... ........... .... .... ... -- 17 �. .. Property Maintenance .. ........ ... — — �. Print Shop .... .... ................... ...... _ 514 Communication Services ................................ 1.6000) .. Trust and Agency: ' Pension Administration ................................... — 359 Cable T.V'..:......................................... 359(i) -- Total . .... ..... . ..... (..... . $9,080 59.080 ti t (1) These amounts relate to loans to cover other funds deficits in pooled cash and investments. - . r .T, " h B-23 iY T k G iq1 AN A.i Mtn Y s 47 5 ,t giSSP N. , I U City of Miami' Florida Note to Financial Statements a. MEN Ril CtIV'ARLEG Amounts due irom other gWemrndnts primarily represent amounts relating to grants awarded by other governmental span - ciao, and other receivables from state and local governments. As part of its Communhy Development block Grant program, the City issues single and multifamily housing rehabilitation bona to qualified residents. AN repayments of the loans, which carry low interest rates, are to remain in the loan program. As collection of the loons is not assured, the be ara not recorded as receivables, but are maintained in the City's accounting system on a memorandum basis. As of September 30, 1990, , rehabilitation loans outstanding totaled approximately $37.610.000. 7. PROPERTY. PLANT AND EQUIPMENT The follovAng is a summary of changes in general fixed assets for the year ending September 30, 1990 (in thousands): 9alanec Adddons DoW lorm BYance 1. end O19b ash 0 S0. w Tr Tr 19" Land ............................................. $ 81.123. $ 982 $— $ 82.106 Building & Improvements ............................ 73.339 984 •- 74.323 R Machinery & Equipment ....................... . ..... 27.096 3,399 1.432 29,062 `• Improvements Othar than Buildings ................... 193.161 7,834 — 200.985 Construction in Progress ............................ 80.653 12,086 7,834 84.906 Total ........................................... $455.381 526,286 $9,266 $471,380 See Note 13 for a discussion of the construction projects currently in progress. A summary of proprietary fund type property, plant and equipment at September 30. 1990 is as folkwvs (in thousands): Intwnal Entwprlso 8 Mae Land ........................... S 18.687 S — Buildings and Improvements ....... 143.129 4,408 Machinery and Equipment ......... 8.385 30.834 Construction in Progress .......... 30,194 Total .. .... ...... 200,395 - 35.242 Less Accumulated Depreciation .... (44.062) (22.037 ) Net ............................ $156.333 $12,605 IL M B-24 Y rr f44 91- i. ,lr F - City of Mismit Florida Notes to Financial Statements 8, LON01.1VIM DEBT A. Clalnoes in Ltr►B-'Term Debt 'the following is a eUrrwnary of changes in long-term debt for the year ended September •30, 19g0 (in thousands): daww teM.T.nn b.fe _ - I�i�isp► �wrr writ. _ _- s a nea.hl cWM" bow sin r ►M+w .w.' a7wt "�" ill . Balance at October 1, 1989 ... $197.550 $105.465 $41,579 $5.769 $15,580 $365.943 388,043 543,520 71I.T900 �-- 3, 0 13,462 New bonds and loans issued -- -- -- — —. Accretion on Capital . — '� ._,. .... t,25 30 -� Apprerdation BotxJa .... , . — — +— — +— (13,100) �-- Debt dafeesed ..:.. , .... �- --� Decrease in lease, payables .... — — -- (489) -- (489) .._ _ ..�. Increase in long-term claim 8,6 t 3 liabilities — ... 8,513 -- Increase in long-term accumulated unpaid compensated absences ... . . Debt retired ...... ...... . .(11.710 1 (9oe1 - — 1.60 t.648 .,. .... b 936) (301) t� ,9.16) --- 112618 ) ,rL:._. Balance at September 30, 1990 S186,840" $104.567 $60.092 $5.2 Si7,228 3382.997 $86.858 $43 011 57,57�5 B. Summary of Annual Debt Service Requirements The annual requirements for all bonds, notes, loans, certificates and, other parables outstanding as of September 30, 1890, including interest of $379,614,000 are as follows (in thousands): Genarai Lone -Term Debt ProprNtatY Fund Debt - Rownus ce dficates and General Obligation Sp sdal Oblieation(1)(2) Pa es Participation GbNostition (2) 1991 $ 19,973 $ 10115 $1,273 $2.815 " $ 9,571 1992 24,167 10,248 1,273 5,576 10,185 1993 22,693 12,428 1.273 - 10,702 1994 21,784 12.463 1.273 — 10.700 1995 21.359 27,145 1,274 - 14.501 1996-2000 90.829 45,258 — — 51.731 2001-2005 67245 46.726 — 60,573 2006-2010 ' 29,332 40,587 — — . 48.469 .. 201,1-2015;_ 8,805 34,763 — — 30,286 2016-2020 ` 12,928 — — — $308,187 $252,871 $6,366 $8.391 $238 718 (1) Includes debt service on the Floating/Fixed Rate Special Obligation Bonds, the Subordinate Obligation Note, and the HUD loan at a rate of 7%. (2). Includes accretion an the Capital Appreciation Bonds. B-25 r; t 5 i- ME . } City of Miami, Florida Notes to Financial Statements 0. Gurn tttry of La no -Term bobt Lono-tern debt at September 30, 1900 wag comprised of the foll*Mho: det*wl aril spaolal t5 W_tlon §wWss, Was and Laaas—taq•Tormn $39,890 000-Pubk Parka and Recreation Facilites �otu ids; two issues, Maturingthrough 2003; interest at rate& ranging from 3.5% to 7.6%..... • .... . $8,750,000 Miami Sports and Exhibitlon Authority F oatinaFbced Subordinate Obligation Bonds, Seas 1089 A. maturing in various umounta from 1991 through2004; interest rates vary weekly as described above ....... $4,290,000 Housing Special Obligation Bonds: one issue, matud g through 2006. Interest at rates from 4.1 to 7.4% ........ S6.500 000 Guaranteed Entitlement Revenue Bonds, SSeriss 1989, maturingg through 2009. Interest rates ranging from 6.25% to 7% .... $22.605.000 General Obligation Refund Bonds, Series 1987. maturing through 20 0; interest rates ranging from 6.8% to 7 4% .... $38.355.000 General Obligation Refunds Bonds, Series 1988, maturi►g ttuauflh 20 4; Interest rates ranging from 4.5% to 7.7% S54.705,000--Sanitary Sewer Improvement Bads; ten issues, maturing through 2014. Interest at rates ranging from 3% to 11 % .... $31,060.000-Streat and Highway Improvement Bonds; nine issues, maturing through 2014; interest at rates ranging from 3% to 11% ............................ S38.765.000-Storm Sewer Improvement Bonds; tweAre issues, maturing through 2014: interest at rates ranging from •2.5%to 11% $36,645.000--Police Headquarters Improvement Bonds; eight issues, maturing through 2014; interest a( rates ranging from 3% to 11 % .. ....... 538,000,000 Miami Sports and Exhibition Authority or Special Obligation Borxjs, Series 1985, maturing in various amounts from 1991 through 2015; interest rates vaty,vveeW at 70% of prime rate (the prime rate was 10% at September 30, 1990) subject to adjustment under certain circumstances .......................... S13,210.900 Sunshine State Governmental Financing Commission, maturing through 2015; interest at variable rate (5.96% at September 30. 1990) . • . .... ... . S30.000.000 Rental Revenue Bonds, Series 1988. maturing through 2019; with Interest at 8.65%................................ two) $5,968.400 Section 108 HUD Promtesof�► note, Interest to be paid Annual y at w vatiabla tote; annual principal Payments d $1.088.000 beginning in fiscal 1993 ........ $39.016.000 Other Issues, maturing th to ough 2014; interest at rates ranging from 3 11%................................. 2 S2 S 14.466 Revenue and 111o" l 0MInatlon Dads abd Otter DOM --Proprietary Funds: 518.176,000 Certificates of Part tion. 1986. 2; interest Series maturing through 19 at rates ranging from 4.6% to 8.4% ........ S 7,575 '. 8,400 $5.500.000 Subordinated Paridrq System ' Revenue Bonds, $3,000,000 due in 1994. �. interest at 81 % of the prom rate 10% at 3,820 September 30. 1990) and S2.000,000 due in 2006. interest at 6% through 1991, thereafter at 80% of the prime rate ................. 5.000 6,336 $6.500,000 First Municipal Loan Council Pooled Loan Program. due in primal December 1995. interest at a calculated variable rate (6.96% at September 30. 1990) 1.065. 22,605 $16,000.000 Florida League of Chian' Firsst Municipal Loan: maturing through 1996; €; 33.385 interest at variable rate (5.51% at September 30. 1990) ..... .... ... j 16.000. $12,388.658 Government Center Parking Garage Refunding Special Obligation Bonds; interest ' 25,695 maturing through 2007; at rates 6.2% ranging from to 7.375% (The portion of the londs issued in capital appreciation bond i form had accreted value of proximately 12,417 $30.000 as of September30, 1990) ......', s, 22.055 $16,275,000 Parking System Refunding 9 Bonds. Series 1986, maturing through � at vatry'np rates of interest ranging froth 4.25% MR 15,195 23.040 to ._ .... ...........I....... $65.271,325 Special Revenue Rafundiny . due Bonds, Series 1987. in installments rom , i 20,195 approximate M $630,000.to S5,490,000 through 20155 Interest at rates ranging from 5.25 to 7.31K (The portion of the bonds issued in capital appreciation bond form had e accreted value of u]Prlrnately $2.96 m►ilion as of September31990) ................ 68,683 $14.420.000 Sunshine State Governmental Financing Commission, maturing through 2015. interest 38,000 at variable rate (5.96% at September 30, ;1990) . .... • ..... • ... 1* 119 138,034•-" Less Unamortized Bond Discount .. (1.400)' 12,044 St38,834'. 30,000 B•26 (t Z r: 4 4 a nr 'r 1 fi 3 S p It City of Miami, Florida Notes to Financial Statements D. Summary of Now Debt Issuances $12,388,688 Special Obligation Refunding Bonds, god" 1990--in May 1990. the City sold S 12,386.658 Special Obligation Refundin Bonds, Series 1990. with interest rates between 6.29G and 7.376% to advance refund the $13,720.000 Special Obligation Bonds dated April 1. 1985. which carry interest rates between 6.62 and 8.876%. The proceeds from the Series 1990 Bonds (net of approximately $402,000 In issuance costs and original Is- sue discount) were used to purchase U.S. Govemmenuse- curities which were deposited in an irrevocable trust with an escrow agent to provide for all future debt service peymants on the Special Obligation Bonds dated April 1. 1985 (see Note 8(gi). The Series 1990 bonds are made up of $11.095. in current interest town and $1,291.658 in capital appreciation form. The Series 1990 bonds are col- lateriliized by a pledge of net revenues of the Government Center Parlang Garage and utilities services taxes collected by the City from the sale of water. $3,500,000 Subordinated Parking System Refunding Revenue Bonds, Series 1990. in April 1990. the City sold $3,500,000 Subordinated Parking System Refunding Rev- enue Bonds, Series 1990. with interest at 81 % of the prime rate. The Series 1990 bonds are secured by DOSP paridng revenues. $6,600,000 First Municipal Loan Council Pooled Loan Program. During 1989, DOSP and the City entered into a participation agreement to draw up to $6.600.000 in fund- Ing under the First Municipal Loan Council Pooled Loan Pro- grams sponsored by the Florida League of Cities. As of Sep- tember 30. 1990, $1,065.000 had been drawn under such agreement. Amounts drawn bear interest at a calculat- ed variable rate. The loan is secured by a pledge of DOSP parWng revenues. E. Obligation under Capital Lease During 1989, the City entered into a capital lease to purchase equipment totaling $5.769.000. Such costs have been recorded as capital outlay in the General fund. The funding provided by the lease agreement was reflected as "other financing sources" recorded in the General fund. The related capital lease obligation is in the General Long - Term Debt account group. Future minimum lease payments under the lease as of September 30. 1990 are as follows: Amount Year ending: 1991 .......................... $1,273,000 1992 .......................... 1,273,000 1993 .......................... 1,273.(= 1994 .......................... 1.273,000 1996 .......................... 1.274,000 Total minimum lease payments .......... 6,368.000 Less amount representing interest at 7.15% 1.086,000 Present value of minimum lease payments $5.280.000 F. Synopsis of Bond Covenants The various bond indentures contain significant limitations and restrictions on annual debt service requirements, trraht- tenance of and flow of monies through various restricted re- 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 te- quirements follows: General Obligation Bonds --Debt service is provided for by a tax "on non-exempt property Val o and certain colloo, tions of assessment liens from projects financed by pro- ceeds of such bonds. The total general obligation debt out- standing is limited by the City Charter to fifteen percent of the assessed non-exempt property value. At September 30, 1990. the statutory limitation for the City amounted to approximately $1.576,410,000 providing a debt margin of approximately $1.391.269.000 after consideration of the $185,840.000 of general obligation bonds outstanding at September 30, 1990. less approximately $699.000 availa- ble in the related debt service fund. General obligation bonds authorized but unissued at Sep- tember 30. 1990, totaled $42.600.000. $65.271.325 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 taut 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 terns of the Trust Inden- ture pursuant to which the bonds were issued. Those funds or accounts pertaining to these provisions include the Reve- nue 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 provides that the gross revenues of the Convention Center/Garage will be deposited, as received, with the Trustee to the credit of the Revenue Fund. The Trustee shall transfer from the Revenue Fund, on a monthly basis, all money remaining in the fund in excess of current expenses to the following accounts or funds in the following to the Bond Service Account the amount. if any, re- quired so that the account balance shall equal the ac- 1 creed aggregate debt service as of the last day of the month. Accrued aggregate debt service is equal to the sum of interest accrued and unpaid, principal in- stallments due and unpaid and the portion of principal Installments for the series next due accrued to end of the month: City of Miami, Florida Notes to Financial Statements • to the Redemption Account, the amount, if any, so that the account balance shall equal the component of accrued aggregate debt service comprised of amortization installments or portions thereof, as of the last day of the month in which the transfer is made; • to the Reserve Account, such amount, if any, of the balance remaining after making the deposits under the two preceding provisions, as may be required to make the amount then held for the credit of the Re- serve Account equal to the debt service reserve to- quirament as of the last day of the month; • to the Renewal and Replacement Fund, commencing on April 1, 1988, one -twelfth (1/ 12) of $100.000 and one -twelfth (1/12) of such additional amount, if any, which a consultant retained for such purpose in Its latest written report prepared pursuant to the Trust Indenture shall have recommended; + to the Supplemental Reserve Fund, such amount, if any, as may be required • to make the amount then held for the credit of the Supplemental Reserve Fund equal to approximately $1,ii00,000; • to the Surplus Fund, the balance, if any, of the amount so withdrawn. At September 30, 1990. the City had on deposit with the Trustee for these bonds approximately $4,348,000 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. The released cash was used to fund ap- proximately $2.600.000 in expenses of the Miami Conven- tion Center with the rest being transferred to the general fund. $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 paygbie in installments of $315,000 to $1.390,000 from 1988 through 2009. At September 30. 1990 the City had on deposit with the Trustee for these bonds approxamately 3.172,000 including accrued inter- est receivable in various reserve accounts. 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-thowdescribed above relative to the Convention Center. $2,000,000 Subordinated Parking System Revenue Bonds—ln 1986, the City's Department of Cuff Street Park- ing sold $2,000.000 in Subordinated Bonds to provide fi- nancing for parking 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, $319,000,000 MSEA Special Obligation Bonds, Was 1985—These Bonds are limited special obligations of the Miami Sports ik Exhibition Authority (MSirA) and are paya- ble solely from and secured by a pledge of (i) MSEAia ano• cated portion of the 3% Convention Development Tax levied and collected in Dade County, (if) investment earnings on certain reserve accounts required to be maintained with the Trustee, and (III) from the date of original issuance of the Bonds through December 30. 1990 (except upon the earli- er occurrence of certain events) from funds drawn under a bank letter of credit in a stated amount equal to the principal amount of the Bonds plus 66 days interest thereon at an in- terest rate of 12%. No funds were drawn on the Letter of Credit as of September 30. 1990. The bonds carry a varia- ble interest rate calculated weekly. During 1990. the aver- age rate on the bonds was 5.96%. The bonds were Issued to provide funding for the construction of the Miami Arena (see Note 13). Upon issuance in December 1985. the proceeds of these Bonds. net of original issue discount of $612,000. were distributed to various reserve funds and accounts held by the Trustee in compliance with the provisions of the Bond Indenture. Those funds and accounts pertaining to these provisions include the Tax Fund, the Bond Interest and Prin- cipal Accounts, the Debt Service Reserve Account, the Re- placement Reserve Fund, the Maintenance fund. the Capi. talized Interest Account and the Expense Account. Receipts of convention development tax proceeds are to be deposit- ed in the Tax Fund and distributed to the following funds or accounts as follows: • to the Interest Account, deposits to bring balance to 125% of the preceding interest payment plus one= third of the letter of credit fee due for the ensuing fis- cal quarter, or 100% of the ensuing interest payment, whichever is greater; • to the Principal Fund Account, deposits to bring bal- ance on the business day prior to each interest pay- ment equal to 125% of one -twelfth of the principal re- tirement for the ensuing fiscal year, beginning January 1, 1991; • to the Debt Service Reserve Account, deposits to bring balance to $3.375,000 (fully funded at bond closing); • to the MSEA's Operating Fund, $30,000 per month up to $350,OD0 adjusted by the. consumer price in- dex; • to the Replacement Reserve Fund, deposits to bring balance to $5,000,000 (fully funded in 1987); how- ever the required balance was amended to $3,700,000 in 1988 and the exceas of $1•,3 milion was transferred to the Miami Arena Capital Project Fund); • to the Authority for any of its lawful purposes. B-28 I �Y - 46 11 City of Miami, Florida Notes to Financial Statements $18.116,000 Certificates of Participation --During 1986, the City issued $16.116,000 Certificates of Participation, series 1986 (the "Certificates") to finance the acquisition through August 1, 1980 of equipment for use by the Fleet Management Internal Service fund in providing essential City servicas and to reimburse the City for equipment ac- quired during the prior two years. The Certificates represent a limited and spacial obligation of the City and evidence un- divided proportionate interests in "basic rent payments" to be made by the City pursuant to a lease purchase agree- ment for the acquisition and financing of the equipment. Ti- tle to all equipment purchased rests in the City. Basic rent payments consist of an annual principal component and semi-annual interest components at interest rates from 4.6% to 6.4% through 1992. The City is obligated to make rental payments under the lease only from funds appropdat- ad from general revenues of the City from sources other than ad valorem taxes. The obligation of the City to make rental payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation. $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 payment of $2.830.000 In 2006. Debt service on the bonds, are payable solely from certain telephone and tele- graph franchise fees. Section. 108 HUD Promissory Note —During 1987, the City drew down a $5,958,400 promissory note from the U.S. Department of Housing and Urban Development ("HUD") issued under Section 108 of the Housing and Commur%tV Development Act of 1974 to partially fund the Southeast Overtown/Parkwest project. Interest is paid an- nually on August 1 at a variable rate. During 1990 the annu- al principal payments of $1.986,000 were rescheduled to begin in 1993. All HUD grants and related program income are pledged as security for the note. $27,630,900 Sunshine State Governmental 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 are to be 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 in- terlocal agreement, as a pooled financing vehicle to slow for a limited number of high quality local governmental units (Cities and Counties) to join together in a variable rate fi- nancing program and thereby benefit from the inherent economies of scale. The City has pledged certain non -ad valorem revenues to pay the debt service on these loans. $16,000.000 Florida League of Cities' First Municipal Loan ---During 1989. the City obtained a loan from the Fiot- ida League of Cities' First Municipal Loan Council to finant o the Orange Bowl renovation project and other capital projects. Interest rates are variable. The loan will be repaid with revenues from Orange Howl operations and an annual pledge of up to $2,000►000 in guaranteed entitlement rew enues. $8,750.000 Flosting/Fixed Rate Subordinate Special Ob- Iigatfon Bonds, Series 1989A—On May 4, 1989. MSEA issued $8.760,000 in Floating/Fixed Rate Subordinate Special Obligation Bonds. Series 1989A to refund the out standing balance of the $10.000,000 Subordinate Oblige tion Note Series 1985, which was paid in full using pro- ceeds from the bond issuance. The bonds are secured by a pledge of MSEA's allocated portion of the 3% Convention Development Tax► but on a basis subordinate and junior to the pledge to the senior bonds and from the date of original Issuance through April 29, 1994 (except upon earlier oc- currence of certain events) by funds drawn under a bank let- ter of credit in a stated amount equal to the principal amount of the bonds plus 55 days interest thereon at an in- terest rate of 12%. The bonds carry a variable interest cal- culated weekly. For the year ended September 30. 1990. the average rate on the bonds was 5.95%. Interest is paya- ble monthly. Upon meeting certain conditions and providing notices. MSEA may convert the bonds to a fixed interest rate. as de- termined by a remarketing agent. that would allow the Bonds to be remarketed at per value. Upon conversion to fixed rate, the bonds will no longer be secured by the Bank Letter of Credit. $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 250.000 square foot office building to be leased from the City by the United States Government. The Resolution establishes as trust funds with the Trustee the Construction Fund, the Revenue Fund, the Reserve Fund and the Sinking Fund to be provided as follows: • to the Constriction Fund, a portion of the net pro- ceeds of the Bonds will be deposited into the Con- struction Fund to pay costs of issuance of the Bonds. to pay capitalized interest on the Bonds and to pay costs related to the acquisition, construction and de- velopment of the project and purposes incidental thereto. • to the Revenue Fund, all of the pledged revenues as soon as received. Amounts are to be withdrawn from the funds in amounts sufficient to timely pay interest and principal as they become due. B-29 91 4 City of Miami, Florida Notes to Financial Statements • to the SinWng Fund, in an amount sufficient to pay the interest on the bonds when due and to pay the principal of maturing bonds. • to the Reserve Fund, amounts to be deposited there - In to be used to pay the principal of and Interest on the bonds and any additional bonds issued under the resolution. In accordance with the resolution, the City has determined not to fund the Passive Fund in con- naction with the issuance of the bonds. Consequent - IV. no funds will be available, from any source, in the Reserve Fund to pay debt service on the bonds. $6,900.000 Guaranteed Entitlement Revenue bonds. Se- ries 1980--During 1989, the City issued $6,1500.000 Guaranteed Entitlement Revenue Bonds, Sadao 1989 to fi- nance the cost of certain capital improvements and equip- ment within the City. At September 30. 1990, the City had on deposit with the Trustee for these bonds approximately $612,000 in various reserve accounts within a Sinking Fund. These accounts consist of the Interest Account, the Principal Account, the Bond Redemption Account and the Service Account. Guaranteed Entitlement Revenues shall be applied to the various funds in the following order. • to the Interest Account in the Sinking Fund, on the fif- teenth day of each month, of such sums as shall be sufficient to pay one -sixth 11 /6) of the interest be- coming due on the bonds on the next semiannual in- terest payment date to the extent that additional monies are required therein for such purpose; B-30 • to the principal Account, on the Fifteenth day of each month. of such sums as shall be sufficient to pay one- sixth 11/6) of the principal amount of serial bonds which will mature and become due on such semi- an-nual maturity dates and one -twelfth (1/12) of the principal amount of sarial bonds which will mature and become due on such annual maturity dates to the extent that additional monies are regulred.therein for such purpose; • to the Bond Redemption Account, on the fifteenth day of each month, beginning on such date, of such amortization requirements as may be required for the payment of the term bonds payable from the Bond Redemption Account, as shall be determined by sub- sequent proceedings of the City; , • to the Debt Service Reserve Account, on the fifteenth day of each month, an amount equal to the difference between the amount on deposit in the Debt Service Reserve Account and the maximum annual debt ser- vice for the bonds outstanding. No payments shall be required whenever the amount deposited therein shall be equal to the maximum annual debt service for the Series 1989 Bonds outstanding (fully funded as of September 30. 1990). x .w City of Miami, Florida Notes to Financial Statements b. Defessances of Long -Tell" Debt In May 1990, the City sold $12,386.658 Special Obligation Refunding Bona, Series 1990, to advance refund thhe $13.120,000 Special Obligation Bonds, Sodas 1985 dated July 9, 1986, The outstanding balance of the Bonds rafundad totaled $ 13.100.000. The proceeds from the Series 19900 Bonds (net of approximately S402,000 in Issuance costa and original issue discount) were used to purchase U.S., State and Local Government Securities which were deposited in an irrev- ocable trust with an escrow agent to provide for all future debt service payments on the Series 1986 Bonds refunded, As a result, the Series 1985 Bonds are considered to be defeased. Although the advance refunding results In the accounting ree• ognition of an extraordinary loss in the Parking Garage enterprise fund of approximately $1,280,000 for the year ended Sep, tember W, 1990,the issuance of refunding debt at interest rates lower than the Series 1986 bonds will cause aggregate debt service payments to be reduced by approximately $626.500 with a net present value savings of approximately $604,000, In prior years, the City defeased certain outstanding general obligation and revenue bonds by placing the proceeds of the refunding bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust accounts and the defeased bonds are not included in the City's financial statements. At September 30, 1990. in addition to the above, the following outstanding bonds are considered defeased (in thousands): Parking Facilities Revenue Bonds: Series8 ............................................................. $ 1,190 SeriesC............................................................ 2,965 Series1980......................................................... 8,450 Parldng System Revenue Bonds: Series1983......................................................... 12.770 General Obligation Bonds: ' Firefighting, Series 1984.............................................. 1,220 Housing, Series 1984................................................ 16,626 Storm Sewer Improvement, Series 1984................................. 2,490 Street and Highway, Series 1984....................................... 6,170 Police Headquarters Improvements, Series 1985 .......................... 2,855 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 a �r s B-31 -t t' City_of Miami, Florida Notes to Financial Statements S. FVND ROU"Y The Ml &MAO schedule lists the equity Components of all City proprietary funds as of September 30, 1990 (in thousands): :. _ MrtalCttad Earning (t>�fisit) '` E N fund for Debtontributi4 SCitarprlie PuCwir: Atatiraant Unresirwd T6w (be Off -Street Perking ......... . ..... . ..... $2,230 $ 6.668 $ 8,898 S $ 8,898 G&O EntaMrise Fund .................. — (1,302) (1.302) 2,226 924 Marine Stadium ....................... — (350) (360) 699 349 Miami Stadium ....................... — (948) (948) 1.664 706 Orange Bowl Stadium .................. — 629 629 4.662 6 J81 Convention Center .................... 2.440 (30.608) (28.068) 46,248 18.180 Marinas ............................. --- 2.722 2.722 2.787 6.609 Exhibition Center ...... . ............... -- (2,631) (2.631) 10.929 8.298 Golf Courses ......................... — -- — 391 391 Warehouse Property ................ — 213 213 22 235 Parking Garage ....................... 8 14.901) (4,893) 634 (4,259) Binding and Zoning .......... .. .... — (624) (524) 267 (267) Solid Waste .. ... .......... ....... — (6.775) (5.776) 2.734 (3.041) Property and Lease Management ........ — (399) (399) 2.287 1,888 Manuel Artime Center ................ — (5) (5) ._ 5) $4�678 S 37.111) S 32,433) 57 $42,9 internal SsMas Funds: Fleet Management .................... S — $ (1.460) $ (1.460) $ 7.114 S 5.664 Property Maintenance .. .......... — (105) (105) 273 168 Print Shop ..::......... ... .. , .... — Procurement Management ............ — (639) 154 (639) 164 178 23 (461) 177 Communications Services .............. — (29) _(29) 2.858 2.829 S— S (2.069) S (2,969) S10.446 $ 8,377 See Note 11 for selected financial information regarding the enterprise funds. 1 j t City- of Miami, Florida Notes 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' comporAdtion. Charges to participating operating departments are based upon amounts deterrnined by management to be riecesgely to rMat the required annual payouts during the fiscal year. The estimated liability for Insurance claims Includes estimated future 4 liability on a case -by case basis W all pending claims and an actuarially determined amount for claims Incurred but not report. ad. The long-term portion of the total estimated liability, which is expected to be funded from future "rations, is reflected in the General Long -Term Debt account group and amounted to approximately $60,092,000 as of September 30. 1090 as, follcw& (in thousands): Estimated Claim A. Workers Compensation All workam 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. S17,324 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 V 00.000 deductible, for all property loss exposure, except as related to parks and recreation facilities, which are included In the City's self - Insurance program. As the casualty claims are reported, they are investigated by the claims personnel and an estimate of liability is established on a case -by -case basis. 33.423 C. Group 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 rernainder of the funds necessary are contributed by the City based upon the number of participants in the plan. As of September 30, 1990, the, plan covered approximately 1,264 active employees, 1,077 retirees and 1.297 dependent units. Costs of the plan for the year then ended were approximately $8. 9 million. 1.845 Total Less: current portion, which represents Payments made by the City in October and November 52*592 1990 on claims incurred on or before September 30, 1990. 2@ 600 Long-term claims payable .$50,092 B-33 IM, City Of Miami, Florida Notes t0 Financial Statements 11. 890MENT INFORMATION --ENTERPRISE FUNDS I oao � trw� 9rilMart calf !•«4iw �,, . H W M MOM 1', i tt.rtw 1Meritin tt.nw 6erress o v am Ar- 201 ! 721 S9 I $ 341 >t 4 8 5 ! 392 ! 265 ! 3.164 ! 166 ! ! 111.441 M 17 CUOW 112131OU ..... 2.389 644 1,001 314 1.098 239 407 162 $00 6,443 248 69 16,771 Nat *Otidtt{) capital . , . S 3.457 ! 16431 ! 0.18! ! (1951 811.0011S 102 S 1383) S 230 ! 13141 S (5,259) 8 (53) ! (III S (5.330) aas�aiaede s�rwsses aaie�eis r aaur+� aaa,rrr R aeons famomis wwwwwa wwwwonaaa rswaknoga 1lasbict6d auto, .... ! 3.172 W.022 ! 4.117 S - S .-, $- S 438 ! -- S ! - 4- 8 20,740 Como from raati o matt 943 - 17 2.944 339 44 - 312 •-- -- - 4,59f1 _..,,� .�.. .,�. ...._w- ._.._-...... ... Not reitrlctod assets' ! 2.220 ! �- 813.005 S 1.173 S (3301 ! (44)$- S 126 S- S - ! �-- S-- S "16,150 aroa�Yiss aeana saw aeaa= a iereu� aeaoae 41 d and 4M. plaom ....... . gtrpmont •$22.675 $1.567 S10,603 $ 80.190 $18.816 $10.154 6 774 ! 1.324 .! 57 ! 2.218 ! 1.941 ! 6 . $196.333 onomms aftbowassaa+ae asasa� to■tom rare®roe awe s Total assets ........ 532,610 $1.768 524,389 ! 85.211 818,830 $10.495 ! 798 ! 8.632 ! 342 6 5.402 $ 2.136S 64 St90.877 Bonds pay". long. teen debt 0*0 .... S20.380 S- $16.000 $ 63.713 $11.886 8 1,914 S- S12.417 6- S - 3 - S- $128.310 taa�a mon s sst®s $ e l,%- o a aaaaking aeae nacknaaa �- �- Contributed caphal , , . ! - $2.226 8 6.927 $ 46.248 S 2.787 $10.929 ! 391 S 634 S 267 S 2,734 32.287 S $ 75,430 Total retained awnkVs (defidt) .. , , .. , . , , 8.898 (1.302) (456) 128.0681 2.722 (2.631) - 14.8931 (5241 (5.775) (3991 (51 '(12.4331 Total fiend WeN (defidt) .......... S 8.898 S 924 S 8A71 $18.180 ! 5.509 8 8,298 8 391 $14.259) S (257) 3 13,041) 91,688 S (5) $ 42.997 ram mom,== aassx Inonrm zngkk�S �*---- OparatGtp revenues ... S 9.986 S 803 S 4.918 S 4.161 S 2.518 S 684 81.353 S 925 S5.589 ! 18.106 ! 955 S 98 S 48.094 oasts 9=22m a azz000m 2� ass Doprodation arpanse S 1.820 S 290 8 585 S 1.747 8 119 S 159 S 47 6 158 S 18 S 137 ! 85 S 1 ! 6.144 Operaft ktoonrw►aflo�us) rwwwws (expenas) 1.457 (5161 1.538 (938) 947 (1) 37 38 289 113,374) 176 (521) (10.972) (Nanaptntir�9 revenues kmtest income .... 422 25 35 723 47 42 7 131 56 33 63 - 1.604 krcerest and fiscal dwpos ...... (1,687) - (206) (4.9981 (7261 - - (832) - - - - . (8,249) Ottw .....,...... 73 306 - 1 149 - NI 71 (1) 14 `'' 609 otal non-op�l rainnws s) (1.2651 96 - 135 (4.275) (6781 191 7 (5011 52 104 82 14 (6,036)Not tnndws ' ttw tunds� ,... , 11.937) 1.330 _ 1.696 - - 554 (4851 10.000 (1.700) 602 16.059 ktcorrta Ibss) bMon _ .. ; etanordinary itsm 192 (4201 (2641 (3,883) 1.984 190 44 89 (144) (3,270) (1,442) (51 (6,949) Extraorfrney itern-bss on debt rebig - - - - - - - 11.2901 - - - - (1.2801 Net income post) .... S 192 S (420) S (2641 !' (3,883) S 1.964 S 190 9 44 S (1.191) S (1441 S (3.270) S(1,442) s (5) S (8.2291 Additions to net .......,.. - S 468. S 388 S 1.163 S 492 ! 2.144 S 123 S 1 ! - S 28 S 624 l S 7 ! r, plant and �. -t `.. •5.475 s Addtww d contributed capital. 6 ......... S- S 150 S 76 S- 5- S- S S S S_ 426 S S t "652j' z~-� me t=a aesae rs�sss seta v6kko= Inman (decreass) in worfortp copkal ...... S 2,157 ` S 1360) S 123 S 3.253 S (320) S 184 ! 111 S (1901 S (1471 ! (3.331) !(1.3781 _ (111 S : ' H5 ss� knnno,asses mmmu= eats s, ms�a (1) indudes operations of the Orange Bowe Warehouse Property, the Miami Stadium, the Merin& Stadium and the Orange Bowl Stadium. z B-34 - F; y: € tyf it �¢ .e: r r 1 D � i g 1-- 44 rr ^C v 4 r.. City of Miami, Florida Notes to Finanalsl Statements 19. PENSION PLANS A. Pish l"atiptlon The City sponsors two separate defined benefit contributory pension plans under the administration and management of separate boards of trustees: The City of Miami Fire Fighters' and Polito Offices' Retirement Trust ("FIPO") and the City of Miami General Employees and Sanitation Employees' Re- tirament Trust ("GESE"), The plans cover substantially all City employees who contribute a percentage of their base salary or wage on a bi-weekly basis. The payroll for employ- ees covered by FIPO and GESE for the year ended Septem- ber 30, 1990 was $71.1 minion and $62.6 million, respec- tively; the City's total payroll was $ 167.0 million. At October 1, 1900, the date of the most recent actuarial valuation, membership in the FIPO and GESE consisted of the following: FIPO GESE Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them ............ 1,008 1,625 Current employees: Vested ....................... 772 716 Nonvested.................... 974 1.228 Totals............ ....... . 2,754 3,569 Retirement benefits are based upon a percentage (2.5%for FIPO, 2% for GESE) for each service year of the average compensation earned over the highest two years of mem- bership service. Provision for additional benefits for longevi- ty are available. Early retirement after twenty years of ser- vice 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 FIPO 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. 1986 - ("the Gates Settlement"). The major terms of the Gates Settlement are as follows: • Each of the two Boards of Trustees (Boards), in its discretion, may have its own employees, administra- tor, attorneys, accountants, money managers, and other professionals. • The City's total annual contributions to FIPO and GESE beginning vwith fiscal year 1984/86 are re= quired to consist of: • • Non -investment expenses • • Actuarial contributions for notmi cost using the entry age method; a mechanism has boon agreed upon to resolve possible disagreement on annual contributions by a third parry, • • Annual unfunded liability i lontributions based on a schedule that requires $6.000,000 for FIPO and $6.400.000 to GESE. respectively, for-1984/85, _ increasing thereafter by appwxirrrately 5% per year. The total unfunded liability, including the of - fact of certain plan improvements, was calculated to be approximately S 104,600.000 for FIPO as January 1. 1983 and S109,000,000 for GESE as of October 1, 1982, establishing 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 FIPO and by the year 2007 for GESE. • Any increase in the unfunded liability of either FIPO or GESE arising 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 snow- _ toed 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 adesignated amount of savings.gener- ated by the tax qualification of FIPO and GESE'repre- senting employee contributions of 2% of salary. B. Funding Status and Progress The amounts shown below as the "Pension,beneftt obliga- tion" representing the standardized disclosure measure of the present value of pension benefits, adjusted for the ef- fects of projected salary increases and, step-rete ,benefits, estimated to be payable in the, future as`a result of srnploy- ee service to date..The measure is intended to help users assess the funding status of FIPO and-GESE on a"going. concern basis, assess progress made in accumulating suffi- , cient assets to pay benefits when due, and make compari sons among employers, yl B-3i5 4. i* 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 data"Ine contributions to FlP0 and GESE. -a The passion benefit obligation and the estimated actuarially determined employer contribution provided by the City were cal- culated by consulting actuaries based on actuarial valuations for FIPO and GESE. The more significant assumptions underlying the actuarial valuations are as follows: PIPO �F Assumed rate of return on investments ................. 7.6% per annum compounded annually Salary Scale .... c ... . ... . ....... . .................. Projected salary increases of 4.5% compounded annually, _ attributable to Inflation and additional projected salary, Increase up to 4,8% per year attributable to seniority] merit. Retirement ...................... • ............. , ... Probabilities of retiring ranging from 1% at age 40. 3.5% at age 46. 60% at age 60, to 100% at age 55. GESE i• Assumed rate of return on investments ................. 7.6% per annum, compounded annually Salary Scale Annual Rate of Age Salary Increase 20 .100 25 .090 ` 30 .085 35 .080 40 .075 50 .075 60 .076 64 .075 Retirement Annual Rate of Age Retirement 55 .200 60 .100 65 .200 70 1.000 Following as the calculation of the unfunded pension benefit obligations fin thousands): FIPO GESE Total Valuation Date .......................... ........' . ....... Oct. 1, 1990 Oct. 1, '1990 Pension benefit obligation: Retirees receiving benefits and terminated members ........... $164.800 $136,700 $301,500 '. Current employees: Accumulated member contributions ...................... 58,600 42,800 10104M ' Employer -financed vested ............................ 83,000 110,100 193;]00� Employer=financed non -vested ...'..................... 102,900 21;700 124,600. .......... ..... .. ..... ...... Total. .. .. .......... 409,300 311,300 720,600 Net assetsavailable for benefits, at cast (market value is $364 700 for FIPO, $200.400 for GESE) ................ 375;600 201,200 576,800 ,,_�4 . Unfunded pension benefit obligation . . .... .. . pe 9 • , . • ... .... $ 33,700 $110.100 ' $143,800 'y fi City of Miami, Florida Notes to Financial Statements C. Actuarially Determined Contribution Requirements and Contributions Made The funding policy for FIFO and GESE provides for periodic employer contributions at actuarially daterninad rates that, expressed as percentages of annual covered payroll. are sufficient to maintain the actuarial soundness of the plans and to accumulate sufficient 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 described in B hbove. FIPO Contributions are determined using the entry age nominal cost method with frozen unfunded actuarial accrued liability. Contributions toward the unfunded actuarial acmmd liability are based on a level percentage amortization approach. with increasing scheduled. payments through the year 2011. For the year ended September 30, 1990 the recommend- ed contribution rate was 23.1 % of participating payroll. or $16.140,675 (14.6% or $9.579.771 employer and 8.5%, exclusive of 2% contribution to the COLA Account, or D. Trend infonnation - Fiscal Yew Ended September 30 FIPO 1990 1989 1988 $6.66004 estimated for employees), based_upo_ __ an es- tuarial valuation performed as of October 1, i 888� Thu con- tribution requirernent consists of $9,118.355 for the nor- mal cost and $6.022.320 for the arrwrtitatlon of the unfunded actuarial accrued liability. Contributions (exclud- ing contributions to the COLA Account) made to FIPO per- taining to the year ended September 30. 1990 were ap- proximately $15.883.000. GESE 1 GESE contributions are determined using the entry age nor- mal frozen actuarial accrued liability. Contributions toward the unfunded actuarial accrued liability are based on a series of increasing scheduled amortization payments through the year 2007. For the year ended September 30, 1990. contributions to- taling $17,820.030 ($12,611,052--employer and 56.208,978-employee) were accrued in accordance with actuarially determined contribution requirements, based on an actuarial valuation performed as of October 1, 1988. These contributions consisted of $8.922.764 for the normal cost and $8.897.266 for the amortization of the unfunded actuarial accrued liability. Contributions repro- rented 29.8% of the covered payroll (employer--21.28%; employees 8%, exclusive of 2% for COLA). AAssets ve " for tj) (3) Benefits. at Pemion . Percentage Cost (Excludes Bandit Funded COLA Accounts ObOostim 1 / 2 $375.6 S409.3 339.4. 385.9 304.4 .357.9 GESE 1990 $201.2 $311.3 1989 188.0 302.2 1988 172.5 302.6 Due to the long-standing litigation discussed Lin 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 prospective basis. Se- lected 10 year historical financial information is provided in the separately issued financial statements for FIPO and GESE. Unfunded Pension Benefit °�sssa °" Erwkrjw cowlMlons Unfunded Panol" (5) Percentage as a Benefit Annual of Covered Perceatape Obppation Covered Payroll! d Covered (21-(71 Payroll ! ti P KaN 92% S 33.7 $71.1 47% 13.6% 88% 46.6 71.6 65% 15.5% 85% 53.5 65.4 82% 16.8% 65% S110.1 $62.5 176% 21.3% 62% 114.2 59.9 190% 18.5% 57% 130.1 59.3 219% 21;2% , ; ^0� R City of Miami, Florida Notes to Financial Statements 9, Department of Off -Street Parking The bapertrnent 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, 1989. the Department's pension benefit obligation totaled approximately 51,452,927. The net assets available for plan benefits totaled approodmatelr $1.560,000 as of Sep- tember 30. 1990. For the year ended September 30, 1089, 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. Speciai Benefit Plans In addition to the deferred compensation plan described in Note 2(N), 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 carrying 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 be 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 fol- lowing information relates to the City of Miami participation in this plan (in thousands): Total current year payroll for all employees ...... S 158,995 Current year payroll for employees covered in the plan .................................. 2.887 Current year employer contribution at an 8% rate 213 In addition to coverage under the FIPO Pension Plan, City of Miami fire fighters an4 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 Trustees. 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 B-38 from the State of Florida and remitted to the plant web ep- proximately $6,166,000 for the year ended September 30, 1990. Benefits ere allocated to the participants based upon their service during the year and the fever of funding re• calved during said year. Participants are fully vatted after nine years of service. On termination of service, a pbrtfoi- pant may elect one of three options: to raeolva is lu" sum payment, or No substantially equal payments or not less than 10% the first year and the remainder anyway over the next four years. The total must be paid out within No years: G. Post -Employment Health Care Benefits In addition to providing pension benefits, the City offers to Its retirees comprehensive medical coverage and life bona fits through the City's self insured plan. Substantially all of the City's general employees and firefighters may become eligible for those benefits when they reach norms( retire- ment age while working for the City. As indicated In Note 10(C), 1.077 of the 3,638 participants are retirees. Cost of the plan for active employees, dependents and retirees for fiscal year 1990 approximated $8.9 million. 13. CO,MMiTMENTS AND CONTINGENCiiES Cspital Improvement Program The City's capital improvement ordinance identified ongoing and future projects totaling $297 million. Major emphasis is placed on maintaining and expanding the City's infrastruc- ture. The greater effort is directed to public facilities, street improvement, park facilities, storm sewers, and sanitary sewers. The community redevelopment projects are de- signed to assist in neighborhood revitalization and the ex- pansion of the City's -economic base. A functional distribu- tion of the capital improvement ordinance and funding sources, excluding projects financed by DOSP and MSEA follows (in thousands): Funadonal Cat Amain Parks . ..... ..................... S 42,079 . General Government .................... 44.324 Sanitary Sewers ........................ 14,582 Street improvements .................... 17.249 Parking Facilities ........................ 21,757 Community Redevelopment ............. 21M Marinas... ......................... : . 18.440 Housing .... : ........... ..... .. ... .. • . 18.805 Storrs Sewers .....................:.... 31,348 :. Stadiums ...................... 11.602 ... Fire.................. ... ..... Police 18,309. .. ................... .. Exhibition Centers. .. 15,580 8.62ti .. ... ... Economic Development .................. 5.482 , , Solid Waste ................... 89. 3,7' .... Mass Transit ........................... 30808' ; Total Capital Improvement Program ...... $296,900 H �;r�► City of Miami, Florida Notes to Financial Statements mad. SouraN of furAn o Amoufft City General Obligation Bonds .............. S103.764 Revenue and Special Obligation Bonds ... 95,874 Interest Earnings and Other ............. 617.804 Non -City Federal Grants ... ........... S 30.747 Private and Daveioper Contributions ...... 6.169 State Grants . ... . ........ 6 ........... _ 2,662 3� 9 Total Funding ........................ $296.900 a During fiscal year 1990, the City's Department of Public Works was monitoring 129 construction projects in pro- gress. or awaiting final approval, with budgets totaling ap- proximately $ 165 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 $6.4 million loan proceeds from the Sunshine State Governmental Financing Commission, $3.5 million in City of Miami Guaran- teed Entitlement Bonds and other discretionary City funds. • Bayfront Park Redevelopment --A $20 million down- town waterfront park redevelopment project. Major funding sources include $6.6 million in federal grants, $3.1 million in Sunshine State Governmental Financing Commission loan proceeds. S3.1 million from the New Port Bridge land sale. S2.0 million in private sector contributions, and $1.3 million direct appropriations from the State of Florida. • Orange Bowl Renovations —A S12 million project to renovate the City's major stadium. includes various structural repairs, renovated and expanded restrooms, and installation of a new scoreboard and sound system. This project is being funded from Flori- da League of Cities Bond Pod Proceeds. Southeast Overtown/Park West The Southeast Ovenown/Park West redevelopment pro- gram entails the redevelopment of 200 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 minion square feet of commercial space. The City has been dele- gated limited redevelopment powers for the implementation B-39 of the redevelopment plan. Public sector Involvement will fo- cus on land acquisition, resident relocation, demolition, pro. ject marketing. infrastructure Improvements and construe- tion and, in some instances, the provision of "Cap" financing. It is estimated that private Investment VANexceed $1.0 billion during the next 20 years. Phase 1 development started in the fan of 1988 with an initial 1.140 units. Public Infrastructure, including utilities, is being constructed aimul taneously with private development, Total public investment In Phase i exceeds $68 minion of which approximately $21.1 million is included in the City's capital improvemaht ordinance. Now private constructioh in the amount of $200 million is planned over the next On years for a total of 1,900 residential units and 260,,000 square feet of com- mercial space. Miami Sports and Exhibition Authority Construction was completed in 1988 on the Miami Arena ("Arena"). a sports/exhibition facility seating approximately 15.600. Under the terns of the Miami Arena Construction Funding Agreement between MSEA and the private devel- oper ("Decome"), funding for the construction costs of ap. proximately S48,060.000 was provided by proceeds from the $38 million special obligation bonds issued by MSEA, an initial contribution of S4.7 minion 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 sale option of the City to renew, upon request of MSEA, for any increment of years up to 47 years, at an annual rental of $300.000 for the first 30'years. subject to market adjust- ment thereafter. Under the terms of the Miami Arena Con- tract (the "Contract"), the operations of the Arena shall be managed by Decoma, or designee ("Operator"), for a term of 32 years plus two ten-year renewal options. The contract calls for an allocation of net operating income and seat user charges ($.75 per ticket sales) as follows: Not Opwating IOParstar MSEA Up to S1,750,000... ...... 67.5% 42.5 $1,750.000 to S3.500.000 ....... 45.0 55.0 Over $3.500,000 ................ 40.0 60.0 Seat User Charge City of Miami, Florida Notes to Financial Statements each year, increased to $150,000 each fifth vest, as a con- tribution out of operating income to the replacement fund. Oecoma will incur liability for operating losses resulting from operating expenses more than 116% of approved budget for such year, MSEA will review annual Arena operating budgets and will review pro forma operating statements. As two spacifioally described in Exhibit 0 to the contract, In the avant of an operator default. MSEA is required to pay a tarrinination fee to the Operator equal to the greater of (a) the Operator's private capital contributed to the project or (b) an amount equal to 7.6 times the Operator's best in- come year, Subject to the limitations in Exhibit 0 of the con- tract, such termination fee may be reduced based upon ei- ther the timing of the termination by MSEA or the severity of the Operator default. MSEA's allocated portion of seat use revenues was approx- imately $268.600. The seat use revenues have been re- corded in the Miami Sports and Exhibition Authority 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 operations allocable to MSEA plus MSEA's allocated share of seat use revenues. No such reimbursements were re- quired for as of September 30, 1990. The Heat and the Operator are currently involved in litigation seeking declatory relief and interpretation of certain portions of the license agreement. As a result of this dispute, the Heat has refused to pay for certain staffing costs and ex- cess selected expenses billed to them. The litigation also in- volves a claim for damages caused to the Arena's sound system as a consequence of the Heat's installation of the scoreboard. The litigation is at its initial discovery stage and there are presently settlement discussions occurring. Losses, if any, resulting from this litigation are not expected to significantly impact MSEA's allocated share of Arena op- erating income or losses. G & 0 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 depreci- ation for fiscal years 1990 and 1989 of $227.820 and $190.647, respectively. The City has in prior years funded the operating losses net of interest earnings. During recent years decreasing Olym- 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 enterprise fund, has advanced working capital to the G&O fund in an amount equal to the operating losses incurred by such fund during fiscal years 1990 and, 1989. In March 19911 the City agreed to reimburse such operating losses over the sfx Veer period ending September 30, 1996, if planned cost reduc- tions are not sufficient to allow G&O to make such mini- bursements from their operation. The City and the DOSP are working together to identify various alternatives to fro - prove the economic viability of G&O. Due to the contingent nature of funds to be provided no amounts will be recorded until actually paid. futigatiion There are a number of claims and lawsuits outstanding against the City, arising principally from personal injuries in- curred on City property, for which liability of $60.747.000, including an actuarially determined portion for claims in- curred but not reported. was recorded in General Long - Term Debt as of September 30, 1990. as described in Note 10. Miami Marine Exposition, Inc. filed suit in the United States District Court claiming unlawful rejection of it request for proposal relating to development of Watson Island and is requesting damages. The City has filed a motion to dismiss which is pending. The ultimate outcome of this claim can- not presently be determined. An environmental claim is presently being asserted by the United States of America involving an alleged disposal by the City of Miami Fire Department's service garage of 280 gallons of waste oil to Petroleum Products Corp. (PPC) in 1972. PPC allegedly disposed of sludges generated from the oil refining process in unlined pits at a processing site. The City has joined the group of Potentially Responsible Par- ties (PRPs) negotiating a good -faith offer of settlement with the EPA on the first phase of a three -phased approach to the cleanup of the site. The EPA considers the City a gener- ator of hazardous wastes at the site and, therefore, jointly and severally liable for the cleanup and recovery costs at the site. The City has not recorded a liability for this contingency since its ultimate outcome cannot presently be determined. 14. SUBSEQUENT EVENTS On October 4, 1990. the City issued $15.000,000 in Tax Anticipation Notes. Series 1990, to pay for appropriations made by the City for the fiscal year ending September 30, 1991, in anticipation of the receipts of ad valorem taxes to be collected during the fiscal year. The notes Were issued at the rate of 6.25%. General Fund ad valorem taxes are being transferred in the new fiscal year to a "Note Fund" until bal- ance of the "Note Fund" equals the principal and interest due on the Notes at Maturity on September 27, 1991. On November S. 1990, the City issued $11.500,000 Community Redevelopment Revenue Bonds, Series 1990. for the Southeast Ovenown/Park West Redevelopment B-40 _ 91 4 S" tk.t2 3 *01� fb City of Miami, Florida Notes to Financial Statements Area (the -Redevelopment Area"). the proceeds of the bonds are to be used mainly to refinance the $6.968-.400 Section 108 HUB Promissory Note, to reimburse the City for monlas advanced to the Redevelopment Area in an amount not to exceed $760,000. to finance the acquisition and clearing of certain real property, and the construction of infrastructure improvements in the Redevelopment Area. The bonds were issued at rates ranging from 7. 16% to 8.6%. with serial and term bonds maturing through 2015. Debt service is payable from the Tax increment Revenues of the Rodavolopment Arbe and a pledge of Guaranteed Enti- flament Revenues up to $300,000 annually. On February S. 1991, MSEA issued $38 million Special Obligation Refunding Bonds, Series 1991 to redeem in full the currently outstanding $38 million MSEA Special Obliga- tion Bonds, Series 1985. The Series 1991 bonds mature in annual Increments from $466.000 to $2,915,000 through 2020 carrying interest rates from 5,75% to 7.2%. Under terms of the Sadao 1991 bond indenture, the hmdft re• quirernent for the debt service reserve account and roply ment reserve fund have been released. In addition, file Se - Nos 1991 Bond Resolution provides for the twistat from the Trustee of the remaining Senior Bond reserve funds. The revised flow of funds provides W a tradmum of $660.000 annually (increasing 3% pat annum) in conven- tion development lax receipts to fund the Authority's opera► tions, and establishes a Capitol Reserve and Operating Doti- cit Account to meat certain obligations under the Miami Arens contract lase Note 9). Any.ew"rition development tax receipts in excess of the Serial 1991 Bond RoWution funding requirements shall be transferred by the Trustee an a monthly basis according to the written directions of the County. Due to the veriabile interest rates on the Sodas 1985 bonds, the net economic impact of the redemption cannot be calculated. B-41 THIS PAGE INTENTIONALLY LEFT BLANK APPENDIX C Proposed Form of Co -Bond Counsel opinion 1991 I The Commission of The City of Miami, Florida Miami, Florida y $10,0000000 THE CITY OF XZAMI ` FLORIDA GENERAL OBLIGATION BOND8, 88RIE8 1091 $7,000,000 storm Hager tmprovemebt Honda $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds Dear Commissioners: We have acted as co -bond counsel in connection with the issuance and sale by The City of Miami, Florida (the "City") of its ` • General Obligation Bonds, Series 1991, consisting of initially issued and delivered on this date (the "Series 1991' Bonds")` pursuant to the Constitution and laws of the State of 'Florida,' particularly the 'Municipal Home Rule Power Act (Chapter 166, Florida Statutes, as amended) and the Charter of the City (Chapter 10847, Special Laws of Florida, 1925, as amended) (collectively, the "Act") and Resolution No. duly adopted by the Commission of the City (the "Commission") on June 13, 1991 as supplemented'by' Resolution -No ; and Resolution No both duly adopted by `the ' City commission -on June 27, 1991'(collect vely, the "Resolution"). The Series:-'1991 Bonds are being issued to finance certain capital j improvements of the City. We have"examined the Act, the Resolution, certified copies of - " the•proceedings of the City`relating'to the `issuance�of the Series 1991 Bonds and such other documents' as we have deemed necessary to z s .. render this opinion. We also have examined one of the Sersie`'1991' fi Bonds as executed and authenticated' or a'facsimile thereof. As to questions of fact material to -'our opinion,'' we have relied -`upon" the `furnished representations of the City to us without undertaking to verify such representations by independent investigation. a Based on the foregoing, we are -of the -opinion that: � �E 1. The City is duly created and validly existing as a' municipal corporation of the State of Florida, with -the power to adopt the Resolution, to perform its obligations thereunder and to- issue and sell the Series 1991 Bonds. E 2. The Series 1991 Bonds are legal, valid and binding;; OFFICIAL. INS . 57 x » 91* general obligations of the City, for the payment of which and the interest thereon the full faith, credit and taxing power of the City have been pledged, and said Series 1991 Bonds are payable from taxes, without limitation as to rate or amount, on all taxable property within the corporate limits of the City (excluding homestead exemptions as required by applicable law). 3. Under existing statutes, regulations, rulings and court decisions, subject to the assumption stated below, interest on the Series 1991 Bonds is excluded from gross income for federal income tax purposes. Furthermore, interest on the Series 1991 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Series 1991 Bonds is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on corporations. We express no opinion regarding other federal tax consequences resulting from the ownership of, receipt or accrual of interest on, or the disposition of the Series 1991 Bonds. In rendering the opinion contained in this paragraph 4, we have assumed continuing compliance with the requirements of the Internal Revenue Code of 1986, as amended (the "Code") that 'must be met after the issuance of the Series 1991 Bonds in order that interest on the Series 1991 Bonds not be included in gross income for federal income tax purposes. The City's failure to meet these requirements may cause interest on the Series 1991 Bonds to be included in gross income for federal income tax purposes retroactive to their date of issuance. The City has covenanted in the Resolution to take the actions required by•the Code in order to maintain the exclusion from gross income for federal income tax purposes of interest on the Series 1991 Bonds. 4. The Series 1991 Bonds and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by chapter 220, Florida Statutes, as amended, on interest, income or profits on debt obligations owned AA by corporations, as defined in said Chapter 220, Florida Statutes, as amended. G" k It is to be understood that the rights of the holder of the Series 1991 Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium or other `similar laws affecting creditors' rights heretofore or hereinafter enacted and that their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity. x Respectfully submitted, OFFICIAL.INS 58 A (SO cr. Honorable mayor Xavier L. sdaret A Ul"AiftatIft of the City Commission all June lot 1991 Page 2 the total of the two exceeds the employee's average denied the City motion for t monthly wage-,, The Court and/or clarification and the opinion is rehearing final. of a potential of, approximately 100 "pension Offset" filed and are being a claims, approximately 60 have been To data, twenty-two (22) _ 4 defended on numerous grounds. have been adjudicated, none in favor of the City. cases All are present. appeal. Therefore, the -ly pending on be determined at this City's actual liability cannot The City's exposure could be significant, most time. likely resulting in increased funding to the City's such disability benefits are pension.Trustsr from which a prospective basis, as well as from paidy on reimbursing claimants for offsets taken in the past. T11 e- nZative O-f 2. i--nn- Bazem te more vsj_city of !k MkMi Circuit Court Case 90-51435 CA 05(WRB) Plaintifft Linn Bazemorer alleges that the City Of and Inspection Miami Department of Fire, Rescue, his wife's call who`at delayed responding to,,JL services ratory asthma attack th 'time w as suffering a resl iL a :,ultimately leading to ' cardiac arrest, resulting in a 'd is set for trial in'June of 11991- her eat h. The case 3. wiillam i3rickel:l. L V. V-Qf U.S.-Distri t Court Case No. 88-0230 at: al c 0 .-; CIV-HOEVELER (GMM) Plaintiffs, the Brickell family heirs have filed a certain, real suit to enjoin the C m. City froselling " ' including Brickell Par k. The suit seek9 property proper a violation o. f relief declara ory relief,. injunctive, relcondemnation: civil rights*, and' a count or nverse.. been appraised at a inimum value - m. has Theproperty $13,375,000. :The suit does not Spec ify the . amount , oi Brick 11 al so Plaintiffs, but the damages 'sought by Plaint- .a feetitle 'to-L.the r claim they have simple Thislawsuit has a pote ntial exposure toL JOSS-'exceedinci $600roo0-00. 6 k E, J" Honorable Mayor Xavier L. Suares and Members of the City Commission June 10, 1991 Page 3 , 4. r- Limited --atat , t-s_, _The_ City of._Mia_mi; Case No. 90-1109-CIV-DAVIS (LKX). Plaintiffs have alleged five (5) causes of action arising from the City's actions in awarding certain, development rights and the subsequent rescission of said rights to Circa/Barness/Sawyer as one of the developers of the Southeast Overtown/Park West Redevelopment Project. plaintiff's complaint alleges causes of action for: (1) deprivation of plaintiff's property interests in the development rights under the Fifth Amendment and 42 U.S.C. Section 1983, (2) deprivation of their property interest($) in a lease, (3) deprivation of their rights under the 14th Amendment of the United States Constitution and 42 U.S.C. Section 1983, (4) breach of contract for wrongful termination and (5) breach of contract. ' The City contends that not withstanding numerous extensions afforded to plaintiffs to commence construction of their project, plaintiffs failed to commence construction. due to plaintiffs inability to obtain financing as required under the agreement between the plaintiffs and the City, thereby, constituting a material default of said agreement. Further, pursuant to the agreement between the parties the City properly exercised its rights to terminate the agreement so as to avoid further injury, to the City. 5. Robert Case on behalf of himself- and all others similarly situated v. City of Miami. Howard V. Gary, Carlos Garcia, and_ Donald Dual"; Circuit Court Case No. 83-39724 (29) (ABS) This class action claim involves an increase in the amount paid by, retired employees of the City of Miami for group health insurance premiums. The increase was applied both prospectively and, for a period of five months, retrospectively. , The case also involves the statutory right of certain retirees to be allowed the option of continued participation in the group health insurance plan. The Complaint alleges breach of ; contracts breach of fiduciary duty, impairment of the obligation of the contract, unlawful reduction of pension benefits, and unlawful termination of insurance benefits. Plaintiff's Motion to Certify Class is i ••.' 1 s r r t Honorable Mayor Xavier L. Suarez June 10, 1991 and Members of the City Commission Page 4 outstandingas is the Cit ,s Motion for Summary Althou h the number of members of the cla Judgment. q that will participate in this lawsuit has not been y determined precisely, it appears to be approximately 600. 6. peter_- A. _ .Kamangsh _vF. . The. City of Miami.._. __a mr in+ i pal corocration---et al.:; Federal Court Case No. 87-509-CIi-HOE (CCM) This case involves a lawsuit filed by Captain Peter Kamenesh of the City of Miami Police Department, alleging deprivation of federal civil rights, claims and rights arising under Fla. Stat. Ch. 112 (Policemen's Bill of Rights), fraud, libel, slander, intentional interference with a contractual relationship, intentional infliction of emotional distress and negligence. Plaintiff seeks both monetary damages and equitable relief in the form of a promotion to the rank of colonel within the Police Department. The- City has alleged that plaintiff was not denied a property interest or a liberty interest under the Fourteenth Amendment to the U.S. Constitution. Setting of jury trial is pending. 7. McNew Marine Construction. Inc. v. City of Miami; Circuit Court Case No. 87-53275 (18) (CFK) Plaintiff, McNew Marine Construction, Inc., the contractor on the Miamarina Renovation Project, Job No. B-3213-B sued the City of Miami for breach of contract and contractual indemnification. In the interim the City has sued the, architect, Ronald E. Frazier & Associates, P.A. and Ronald E. Frazier, A.I.A., individually, for breach of contract. and ,negligence. The City has filed a counterclaim against McNew Marine Construction, -.Inc., for breach of contract and negligence as well. 8.; Miami Marine Exvosition. Inc. V. City of Miami; U.S. District Court Case No.::90-9,79-CIV-KEHOE (WRB) -. Plaintiff claims unlawful rejection of, its;; Request --:-far Proposal .(RFP),for the development.,of Watson .Island in - 1986 resulting in $40,000,000,in damages., Plaintiff -..•is' R proceeding under: Section 1983;and .state law contractual k. j i. ;Xr ESJ? - •. p Honorable Mayor Xavier L. Suarez June ld, 1991 and Members of the City Commission Page S theories. The City is denying that any development rights arose in favor of the plaintiff or any other party as the City Commission never accepted its RrP or that of anyone else. The City's Motion to Dismiss or for Summary Judgment was recently denied on the basis that the Court felt there was an issue of fact. 9. Case No.: 80-25165 CA 15 (CCM) Tammy W.imbley, age 17, was standing at a bus stop awaiting bus to transport her to a vocational school when she was accosted by her estranged boyfriend who assaulted her and threatened to kill her. Ms. Wimbley escaped and upon arriving at her school reported the crime to the school officials. The school officials, in turn, reported the crime and the threat upon Ms. Wimbley to various law enforcement authorities including the City of Miami Police Department. The City of Miami Police Department allegedly gave Ms. Wimbley inaccurate information on the procedures for reporting the crime, and did not respond to Ms. Wimbley's plea for assistance. A few days thereafter Ms.` Wimbley was stabbed to death by her estranged boyfriend. She is survived by a minor child and her parents. Ms. Wimbley's personal representative seeks damages for wrongful death. An adverse. jury verdict could be returned in the amount of $1,000,000. 10. Maritza_ Soto. etc.. et al. v. The City of Miami, et al.; Case No. 88-53801 (05) (CCM) Plaintiff's decendent .was allegedly killed by. several City of Miami police officers. on December _5,` 1998. Plaintiff has sued the police officers alleged to have committed the beating and the. City of Miami: Chief :of Police. The complaint also makes claims against -the City pursuant to 42 U.S.C. Section 1983 and the common' law of the State of Florida. Potential liability to the City is estimated to be $1,000,000.00. The City's Motion.to Dismiss is pending for hearing. w 11. Tarafa Construction Co.. v. City of Miami; Circuit Court Case No. 90-49590 (22) (CFK) Plaintiff has sued the City for breach of contract concerning modifications and renovations to Firestation/Firegarage No. 3, Project No. 9-3217. The present damage figure is $1,394,434.10. Plaintiff is alleging that the City delayed the contractor in the construction of this project causing damages for extended general conditions, extended home office overhead, increased cost of labor, extended warranty time, increased material costs, lost profits and other damages: The case is presently in the discovery stage and is now set for trial for the week -of September 23, 1991. 12. .Kenneth Treister. Gerald Katcher and Howard Scharlin v. City of Miami, et al.; U.S. District Court Case No. 86-1117-CIV-SPE (JEM) Certain property owners filed an appeal of the City Commission's denial of their land -use applications on March 27,.1986,,regarding property located at 3471 Main Highway (A/K/A "Commodore Bay"). In separate related actions, they challenged the constitutionality of the present zoning and land -use designation, as applied -to their, property, claiming that the City's. action improperly denied them a, significantly higher, density commercial use of their property. The plaintiffs have requested $10 million.. in damages; however, the City's potential exposure is estimated at $4 million, which .is the .property's value at the time r of appraisal. The City prevailed in a decision by the Third District Court of Appeal ("3rd DCA-) regarding the direct and initial appeal of the City's actions, and that_decis- on assisted the City in the pending related actions, .,The City,.was granted Summary Judgment in the Circuit Court on„ July 20, 1989. That Order was affirmed by the 3rd DCA on. January 15, 1991, and Plaintiff's/Appellant's Motion for. rehearing has been denied. The federal District Court case was removed from the federal trial calendar, subsequent to the previously mentioned favorable Circuit Court appellate decision (affirmed by f 13� v t a .f F vwy;bai F r y �g { x `iv Honorable Mayor Xavier L. Suarez and Members of the City Commission June 10, 1991 Page 7 the 3rd DCA), to allow the City to prepare a Motion for Summary Judgment and fully brief that court on the status of state court proceedings. That action is still in abeyance. 13► Circuit Court Case No. 89-35393 (23) (LMF) Plaintiff is the mother of the deceased who was shot and killed by a City of Miami police officer while being arrested and after a brief chase. Plaintiff has alleged federal civil rights and state tort claims. The Court recently granted the Defendant, City of Miami's Motion to Dismiss Plaintiff's civil rights - Count and plaintiff is in the process of amending her ASSERTED complaint. CLAIMS An environmental claim is presently being asserted by the United States of America involving an alleged disposal by the City of Miami Fire Department's service garage of 280 gallons of waste oil to Petroleum Products Corp. (PPC) on November 25, 1972. PPC allegedly operated as a processor and broker ofwaste; oil at a site located in Hollywood, Florida and during `. its period of operation disposed of sludges -.generated s from the " oil ref ihing process in unlined .pits on. the site., Contamination assessment and initial remedial activities undertaken by the United States Environmental Protection Agency (EPA) and the State Department of Environmental Regulation (DER) during the past ten (10) years indicate that the soils and groundwater at the site are significantly contaminated by waste oil and other hazardous wastes. The ''City has joined the group of Potentially Responsible Parties (PRPs) negotiating a good -faith' offer of settlement with EPA on the first phase of a P „ three -phased approach to the cleanup of the site, generally known as Operable Units 1, 2 and 3. The remedial activities proposed under Operable Unit 1 (OU-1) consist primarily of efforts to contain the groundwater plume and impede the release of contaminants at the site. =y r; Y 1 off rr; r k xz 4 1 4 ¢#.c" .cs ... ,. .. t. : ._ .. .,:s....-_...::. .... ..'..:.-...,. ....,.w..,.',.._._,--._.;->n ,max-. xtiw+r•.,r-•' . e..,xw...+r-x Based on an invoice, allegedly documenting the City's__ involvement in this matter, the EPA has advised that it considers the City a generator of hazardous wastes at the site and, therefore, jointly and severally liable for the cleanup and recovery costs at the site. EPA's preliminary estimate for the collective costs of remedial activities at the site is approximately $26 million dollars. There are also various claims -and lawsuits against the City resulting principally from workers' compensation and casualty claims. Estimated liability for such claims, including certain - of the above listed lawsuits, was $50,747,000.001 as of September 30; 1990. See Self -Insurance Note 10 in Appendix A of "Financial Section of the Comprehensive Annual Financial Report of the City for the Fiscal Year ended September 30, 1990". Except as noted above, the total liability to the City has not changed significantly during the time that has elapsed since September 30, 1990, to the date of this letter, nor has there _ been any subsequent litigation during this time period that would - materially adversely impact the City's ability to pay. debt service with respect to the General Obligation Bonds, Series 1991 (the "Series 1991" Bonds). There is currently no pending or threatened litigation. restraining or enjoining the issuance or delivery of the Series - -1991 Bonds, or the levy or collection of the ad valorem taxes to pay the'principal of or the interest on the Series 1991 Bonds, or questioning the proceedings or authorization under which the Series 1991 Bonds are to be issued, or affecting the validity of x the Series 1991' Bonds . '< Sincerely, J rge L. Fernandez t C ty At orney AQJ/gfa/P678 s_ h �145 ZSx 30 -�, iy d T �L Y J mow. to: Honorable Mayor and Members bATE : FiLE of the ity Commission MAY Z SUBJECT City Commission Agenda � item r General Obligaatioti { FROM : REFERENCE fond Bale Cesar H. odio r City Manager ENCLOSURES: ti Q RECOMMENDATION It' is respectfully recommended that the attached resolution,, including Exhibits A, B and C, of the City of Miami, Florida, fixing certain details concerning the issuance of the City's $7,000,00o Sanitary Sewer System Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds; confirming that such bonds shall constitute general obligations of the City;' 'directing and -authorizing sale of the bonds by public bid and directing publication of the notice of the sale of said bonds and establishing the date and time for such sale; approving the form of a preliminary official statement pertaining to said bonds and authorizing the distribution thereof to prospective purchasers;.- authorizing actions and execution of documents by officials of the City; approving the use of bond insurance .if requested by the purchaser or determined by the issuer to. be desirable; declaring an emergency to exist; providing an effective date; making certain',.. other covenants and agreements in connection therewith; and providing severability and effective date be approved. BACKGROUND: Cash flow requirements for several of the projects included in the City's Capital. Improvement Program make necessary a general obligation sale at this time. Because of current low interest:_ rates market conditions are ideal to issue new bonds. At this time it is recommended that $7,000,000 in sanitary sewer; bonds and $3,000,000 in fire fighting bonds be sold to: fund the. following projects: t *irr,4h 5 it f�k+�j i r � r � f h 4 y F, �J[.N lfbr f