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HomeMy WebLinkAboutO-10487J-88-906 9/30/88 ORDINANCE NO. 10487 AN EMERGENCY ORDINANCE OF THE CITY OF MIAMI, FLORIDA, FIXING CERTAIN DETAILS CONCERNING THE ISSUANCE OF THE CITY'S $3,900,000 STREET AND HIGHWAY IMPROVEMENT BONDS, $1,500,000 POLICE HEADQUARTERS AND CRIME PREVENTION FACILITIES BONDS, $5,000,000 SANITARY SEWER SYSTEM BONDS, $5,000,000 STORM SEWER IMPROVEMENT 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 PUBLICA- TION OF THE NOTICE OF 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; AMENDING ORDINANCE NO. 9296; CONFORMING THE TERMS OF CERTAIN OTHER ORDINANCES AND RESOLUTIONS, INCLUDING SPECIFI- CALLY RESOLUTION NOS. 84-628, 85-289,.85-312 and 81-1020, TO THE TERMS HEREOF; AUTHORIZING ACTIONS AND EXECUTION OF DOCUMENTS BY OFFI- CIALS OF THE CITY; APPROVING THE USE OF BOND INSURANCE IF REQUESTED BY THE PURCHASER OR DETERMINED BY THE ISSUER TO BE DESIRABLE; DE- CLARING AN EMERGENCY TO EXIST; PROVIDING AN EFFECTIVE DATE; AND MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1. Authority. This Ordinance 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. 9129, enacted on July 10, 1980, as amended by Ordinance No. 9131, also enacted on July 10, 1980, Ordinance No. 10093, enacted on April 10, 1986, and Ordinance No. 10291, enacted on July 9, 1987, and as supplemented by Resolution No. 80-740, adopted on October 9, 1980, Resolution No. 80-774, adopted on October 30, 1980, Resolution No. 86-174, adopted on March 18, 1986, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Street Bond Ordinances and Resolutions"), the City Commission (the "Commission") of the City of Miami, Florida (the "Issuer") authorized the issuance of $30,000,000 Street and Highway Improvement Bonds (the "Street Bonds") of the Issuer, which issuance was approved by the citizens of the Issuer through a referendum held on October 7, 1980. B. Pursuant to Ordinance No. 9787, enacted on January 26, 1984, as suplemented by Ordinance No. 9788, enacted on January 26, 1984, as amended by Ordinance No. 9904, enacted on October 10, 1984, and Ordinance No. 10291, enacted on July 9, 1987, and as supplemented by Resolution No. 84-318, 10487 and Ordinance No. 10291, enacted on July 9, 1987, and as supplemented by Resolution No. 84-318, adopted on March 29, 1984, Resolution No. 85-312, adopted on March 21, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively; the "Police Bond Ordinances and Resolutions"), the Issuer authorized the issuance of its $20,000,000 Police Headquarters and Crime Prevention Facilities Bonds (the "Police Bonds"), which issuance was ap- proved by the citizens of the Issuer through a ref- erendum held on March 13, 1984. C. Pursuant to Ordinance No. 9128, enacted on July 10, 1980, and Ordinance No. 10094, enacted on April 10, 1986, as supplemented by Ordinance No. 9130, enacted on July 10, 1980, as supplemented and amended by Ordinance No. 9977, enacted on April 11, 1985, and Ordinance No..10291, enacted on July 9, 1987, 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, Resolution No. 85-353, adopted on March 28, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Sanitary Sewer Bond Ordinances and Resolutions"), the Issuer authorized issuance of its $45,000,000 Sanitary Sewer Improvement Bonds (the "Sanitary Sewer Bonds"), which issuance was approved by the citizens of the Issuer through --a referendum held on October 7, 1980. D. Pursuant to Ordinance No. 9781, enacted on January 26, 1984, as supplemented by Ordinance No. 9782, enacted on Janaury 26, 1984, and as sup- plemented and amended by :. Ordinance No. 9905, enacted on March 21, 1985, Ordinance No. 9977, enacted on April 11, 1985, and Ordinance No. 10291, enacted_ on July z; 1987, and as supplemented by Resolution No. 84-319, adopted on March 29, 1984, Resolution 'No 85-289, adopted on March 21,.1986, Resolution No. 84-628, adopted on June 14, 1984, Resolution No. 85-353, adopted on.March 28, 1985, and Resolution No. 86-437, adopted on June 12, 1986 (collectively, the "Storm Sewer Bond Ordinances and Resolutions"), the Issuer authorized the issuance of its $30,000,000 Storm Sewer Improvement Bond (the "Storm Sewer Bonds"), which issuance was ap- proved by the citizens of the Issuer through a ref- erendum held on March 13, 1984. E. Pursuant to Ordinance No. 9296, enacted on July 23,1981"' as supplemented'by Ordinance No. 9295, enacted on July 23, 1981, as amended by Ordinance No. 9406, enacted on April 1, 1982, and as supplemented by Resolution No. 81-1020, adopted on December 10, 1981, Resolution No. 81-766, adopted on September 10, 1981, Resolution No. 81-923, adopted on November 11, 1981, and Resolution No. 82-304, adopted on April 1, 1982 (collectively, the ".Fire Facilities Bond.Ordinances and Resolutions"), the Issuer authorized the is- suance of its $21,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (the "Fire Facilities Bonds"), which issuance was approved by the citizens of the Issuer through a referendum held on November 3,1981. F. It is in the best interest of the Issuer and its citizens and residents that there shall be issued and sold at this time $3,900,000 in princi- pal amount of the Issuer's Street Bonds, $1,500,000 K IL0487 in principal amount of its Police Bonds, $5,000,000 in principal amount of its Storm Sewer Bonds, $5,000,000 in principal amount of its Sanitary Sewer Bonds, and $3,000,000 Fire Facilities 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. G. The proceeds of the Bonds will be used to pay the cost of issuance of the portion of the Police Bonds, the Street Bonds, the Sanitary Sewer Bonds, the Storm Sewer Bonds and the Fire Facilities Bonds authorized to be issued hereunder (collectively, the "Bonds"), and to pay the cost of certain capital improvements in accordance with the terms of the Street Bond Ordinances and Resolutions, the Police Bond Ordinances and Resolutions, the Sanitary Sewer Bond Ordinances and Resolutions, the Storm Sewer Bond Ordinances and Resolutions and the Fire Facilities Bonds Ordinances and Resolutions and as detailed in Ordinance No. 10347, enacted on November 19, 1987, and other ordinances making capital appropriations for the following fiscal year (the "Master Appropriations Ordinance"), including, but not lim- ited to those projects described on Exhibit "A" hereto. H. This Ordinance is hereby declared to -be an emergency measure on the grounds of urgent pub- lic need for the preservation of peace, health, safety and the property of the Issuer. I. An emergency exists with respect to the adoption of this Ordinance in that, in order to take advantage of existing market conditions, it is necessary that the Issuer have the authority to market. the Bonds as soon as possible. Immediate enactment of this Ordinance is necessary to accom- plish such marketing. The Commission, by adoption of this Ordinance by at least a four -fifths vote, hereby waives all notice requirements for the regu- lar enactment of municipal ordinances, including, but not limited to, the requirement of reading this Ordinance on two separate days. SECTION 3. Authorization of Issuance and Sale of Street Bonds. There shall be issued and sold at this time Street Bonds in the aggregate principal amount of $3,900,000. Said Street Bonds shall be dated as of the first day of November,'1988, and'shall mature, subject to redemption as hereinafter provided, on the first day of November of the following years and in the following amounts: Year of Principal Year of Principal Maturity Amount Maturity Amount 1991 $ 115,000 2000 210,000 1992 125,000 2001 225,000 1993 130,000 2002 240,000 1994 140,000 2003 255,000 1995 150,000 2004 275,000 1996 160,000 2005 295,000 1997 170,000 2006 320,000 1998 180,000 2007 345,000 1999 195,000 2008 370,000 3 'A SECTION 4. Authorization of Issuance of Police Bonds. There shall be issued and sold at this time Police Bonds in the aggregate principal amount of $1,500,000. Said Police Bonds shall be dated as of the first day of November, 1988. Such Police Bonds shall mature, subject to redemption as hereinafter described, on the first day of November in the following years and in the following amounts: Year of Principal Year of Principal Maturity Amount Maturity Amount 1990 $ 40,000 1999 70,000 1991 45,000 2000 80,000 1992 45,000 2001 85,000 1993 50,000 2002 90,000 1994 50,000 2003 95,000 1995 55,000 2004 105,000 1996 60,000 2005 110,000 1997 65,000 2006 120,000 1998 65,000 2007 130,000 2008 140,000 SECTION 5. Authorization of Issuance and Sale of Sanitary Sewer Bonds. There shall be issued and sold at this time Sanitary Sewer Bonds in the aggregate principal amount of $5,000,000. Said Sanitary Sewer Bonds shall be dated as of the first day of November, 1986, and shall mature, subject to redemption as hereinafter provided, on the first day of November of the following years and -in the following amounts: Year of Principal Year of Principal Maturity Amount Maturity Amount 1991 $150,000 2000 265,000 1992 155,000 2001 285,000 1993 165,000 2002 310,000 1994 180,000 2003 330,000 1995 190,000 2004 355,000 1996 205,000 2005 380,000 1997 220,000 2006 410,000 1998 235,000 2007 440,000 1999 250,000 2008 475,000 SECTION 6. Authorization of Issuance and Sale of Storm Sewer Bonds. There shall be issued and sold at this time Storm Sewer Bonds in the aggregate principal amount of $5,000,000. Said Storm Sewer Bonds shall be dated as of the first day of November, 1988, and shall mature, subject to redemption as hereinafter provided, on the first day of November of the 'following years 'and in the following amounts: Year of Principal Year of Principal Maturity Amount Maturity Amount 1990 $ 85,000 2002 190,000 1991 90,000 2003 205,000 1992 95,000 2004 220,000 1993 105,000 2005 235,000 1994 110,000 2006 250,000 1995 115,000 2007 270,000 1996* 125,000 2008 290,000 1997 135,000 2009 315,000 1998 145,000 2010 340,000 1999 155,000 2011 365,000 2000 165,000 2012 395,000 2001 175,000 2013 425,000 4 10487 SECTION 7. Authorization of Issuance and Sale of Fire Facilities Bonds. There shall be issued and sold at this time Fire Facilities Bonds in the aggregate principal amount of $3,000,000. Said Fire Facilities Bonds should be dated as of the first day of November, 1988, and shall mature, subject to redemption as hereinafter provided, on the first day of November of the following years and in the following amounts: Year of Principal Year of Principal Maturity Amount Maturity Amount 1991 $ 90,000 2000 160,000 1992 95,000 2001 170,000 1993 100,000 2002 185,000 1994 105,000 2003 200,000 1995 115,000 2004 215,000 1996 120,000 2005. 230,000 1997 130,000 2006 245,000 1998 140,000 2007 265,000 1999 150,000 2008 285,000 SECTION 8. Details of Bonds. A. Notwithstanding anything to the contrary in the Police Bond Ordinances and Resolutions, the Street Bond Ordinances and Resolutions, the Storm Sewer Bond Ordinances and Resolutions, the Sanitary Sewer Bond Ordinances and Resolutions and the Fire Facilities Bond Ordinances and Resolutions (collectively, the "Previous Ordinances and Resolutions"), with respect to each of the issues of Bonds to be issued and sold hereunder, a separate bond form for each such issue shall not be required, and the Issuer is hereby authorized to consolidate into one bond form, solely for the purpose of printing such bonds, the Police Bonds, the Street Bonds, the Sanitary Sewer Bonds, the Storm Sewer Bonds and the Fire Facilities Bonds hereby authorized to be issued and_sold, such bond form to be as hereinafter set forth. B. The Bonds shall be numbered consecutively from 1 upward preceded by the letter "R" prefixed to the number. The principal of and redemption premium, if any, on the Bonds shall be payable upon presentation and surrender, at the office of Barnett Banks Trust Company, N.A., or its suc- cessors or assigns, as Bond Registrar and Paying Agent (the "Bond Registrar and Paying Agent") in the City of Jacksonville, Florida. Interest on the Bonds shall be paid by check or draft drawn upon the Bond Registrar and Paying Agent and mailed to the registered owners of the Bonds at the addresses as they appear on the registration books main- tained by the Bond"Registrar and Paying Agent at the close of business on the 15th day (whether or not a business day) of the month next preceding the interest payment date (the "Record Date"), irrespective of any transfer or exchange of such Bonds subsequent to such Record Date and prior to such interest payment date, unless the Issuer shall be in default in payment of interest due on such interest payment date. In the event of any such default, such defaulted interest shall be payable to the.persons in whose names such Bonds are registered at the close of business on a special record date (which date shall also be the date for the payment of such defaulted interest) as established by notice deposited in the U.S. mails, postage prepaid, by the Issuer to the registered owners of the Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names the Bonds are regis- tered at the close of business on the fifth day (whether or not a business day) preceding the date of mailing. The reg- istration of any Bond may be transferred upon the registra- tion books upon delivery thereof to the principal office of 5 10487 the Bond Registrar and Paying Agent accompanied by a written instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Bond Registrar and Paying Agent, duly executed by the registered owner of the Bond or his attorney -in -fact or legal representative, con- taining written instructions as to the details of the trans- fer of such 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 and Paying Agent shall at the earliest practical time in accord- ance with the terms hereof enter the transfer of ownership in the registration books and shall deliver in the name of the new transferee or transferees a new fully registered Bond or Bonds of the same maturity and of authorized denomi- nation or denominations, for the same aggregate principal amount and payable from the same source of funds. The Issuer and the Bond Registrar and Paying Agent may charge the registered owner of the Bond for the registration of ev- ery transfer or exchange of a Bond an amount sufficient to reimburse them for any tax, fee or any other governmental charge required (other than by the Issuer) to be paid with respect to the registration of such transfer, and may require that such amounts be paid before any such new Bond shall be delivered. The Issuer and the Bond Registrar and Paying Agent may deem and treat the registered owner of any Bond as of the applicable Record Date as the absolute owner of such Bond for the purpose of receiving payment of the principal thereof and the interest and premiums, if any, thereon. Bonds may be exchanged at the 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 maturity. C. As set forth above, the Bonds shall be dated November 1, 1988, shall bear interest from the date thereof, payable semiannually on the first day of. -May and the first day of November of each year, commencing on May 1, 1989, and shall mature as set forth in Sections 3, 4, 5, 6 and 7 hereof. D. The Bonds shall be executed in the name of the Issuer by the Mayor or Vice Mayor of the Issuer and the seal of the Issuer shall be imprinted, reproduced or lithographed on the Bonds and attested to and countersigned by the Clerk or any Deputy Clerk of the Issuer. In addition, the City Attorney shall sign the Bonds, showing approval of the form and correctness thereof, and the Mayor or Vice Mayor shall sign the validation certificate with respect to the Bonds. The signatures of the Mayor, Vice Mayor, Clerk, Deputy Clerk and the City Attorney on the Bonds may be by facsimile. If any officer whose'signature appear's on the Bonds ceases to hold office before the delivery of the Bonds, his signature shall nevertheless be valid and sufficient for all purposes. In addition, any Bond may bear the signature of, or may be signed by, such persons as at the actual time of execution of such Bond shall be the proper officers to sign such Bond although at the date of such Bond or the date of delivery thereof such persons may not have been such officers. Only such of the Bonds as shall have endorsed thereon a certificate of authentication substantially in the form hereinafter set forth in Section 7.K hereof, duly exe- cuted by the Bond Registrar and Paying Agent, shall be en- titled to any right or benefit under this Ordinance. No Bond shall be valid or obligatory for any purpose unless and until such certificate of authentication shall have been duly executed by the Bond Registrar and Paying Agent, and such certificate of the Bond Registrar and Paying Agent upon any such Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this 6 tz Ordinance. The Bond Registrar and Paying Agent's certifi- cate of authentication on any Bond shall be deemed to have been duly executed if signed by an authorized officer of the Bond Registrar and Paying Agent, but it shall not be neces- sary that the same officer sign the certificate of authenti- cation on all of the Bonds that may be issued hereunder at any one time. E. 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 cancelled 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 ow- nership of any destroyed, stolen or lost Bond; post satis- factory 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 origi- nal 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 November 1, 1999, or thereafter, shall be subject to redemption at the option of the Issuer prior to their maturity on or after November 1, 1998, in whole at any time or in 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 November 1, 1998 to October 31, 1999 102% November 1, 1999 to October 31, 2000 101% November 1, 2000 and thereafter 100% Notice of redemption shall be given by deposit in the U.S. mails 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 7 10487 or Bonds in a principal amount equal to the unredeemed por- tion 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 redemp- tion price shall meet the requirements set forth in (i), (ii) and (iii) below; provided however, that, notwithstand- ing any other provision of this Ordinance to the contrary, failure of such notice or payment to comply with the terms of this paragraph shall not in any manner defeat the effec- tiveness of a call for redemption if notice thereof is given as otherwise prescribed above in this Section B.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 busi- ness 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, Pennsyl- vania) and to one or more national infor- mation 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 publica- tion 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 obli- gations similar to the Bonds, such publi- cation to be made at -least thirty (30) days prior to the date fixed for redemption. (iii) Upon the payment of the redemp- tion 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 mat- urity, the Bonds being redeemed with the proceeds of such check or other transfer. The Bond Registrar and Paying Agent shall not be required to transfer or exchange any Bond after the publica- tion and mailing 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 un- der the conditions hereinabove provided, the Bonds or por- tions of Bonds so called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption for such Bonds or portions of Bonds on such date. On the date so designated for redemption, moneys for payment of the redemption price being held in separate accounts by the Bond 8 10487 Registrar and Paying Agent in trust for the registered ow- ners of the Bonds or portions thereof to be redeemed, all as provided in this Ordinance, interest on the Bonds or por- tions of Bonds so called for redemption shall cease to ac- crue, such Bonds and portions of Bonds shall cease to be en- titled to any lien, benefit or security under this Ordinance, and the registered owners of such Bonds or por- tions 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. H. In case part but not all of an outstanding fully registered Bond shall be selected for redemption, the registered owners thereof shall present and surrender such Bond to the Issuer or the Bond Registrar and Paying Agent for payment of the principal amount thereof so called for redemption, and the Issuer shall execute and deliver to or upon the order of such registered owner, without charge therefor, for the unredeemed balance of the pricipal amount of the Bonds so surrendered, a Bond or Bonds fully regis- tered as to principal and interest in an authorized denomination. I. 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 redemp- tion 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 th receipt of the Issuer's funds (an "Authorized Depositary") or the Bond Registrar and Paying Agent in trust for the registered owners thereof, as provided in this Ordinance, shall not be deemed to be outstanding under the provisions of this Ordinance and shall cease to be entitled to any lien, benefit or security under this Ordinance, ex- cept to receive the payment of the redemption price on or after the designated date of redemption from moneys depo- sited 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 assign- ment for such Bonds, the authentication certificate and the validation certificate to be endorsed thereon, shall be sub- stantially in the following form, with such omissions, in- sertions and variations as may be necessary or desirable and authorized by this Ordinance or by any subsequent resolution or ordinance adopted prior to the issuance thereof, or as may be approved and made by the officers of the Issuer exe- cuting 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: g I.®487 [Form of Bond] No. R- $ UNITED STATES OF AMERICA STATE OF FLORIDA THE CITY OF MIAMI GENERAL OBLIGATION BONDS consisting of Police Headquarters and Crime Prevention Facilities Bonds Storm Sewer Improvement Bonds Sanitary Sewer System Bonds Street and Highway Improvement Bonds Fire Fighting, Fire Prevention and Rescue Facilities Bonds Interest Maturity Date: Original Dated CUSIP NO: Rate: Date: November 1, November 1, 1988 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS 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 representatives, on the Maturity Date identified above (or earlier as hereinafter provided), the Principal Amount identified above, upon presentation and surrender hereof, at the office of 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 Interest Rate per annum identified above, until payment of the principal sum, or until provision for the payment thereof has been duly provided for, such interest being payable semiannually on the first day of May and the first day of November of each year, commencing on May 1, 1989. Interest will be paid by check or draft mailed to the Registered Owner hereof at his address as it appears 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 day) of the month next preceding the interest payment date (the "Record Date"), ir- respective of any transfer or exchange of such Bond subse- quent to such Record Date and prior to such interest payment date, unless the Issuer shall be in default in payment of interest due on such interest payment date. In the event of any such default, such defaulted interest shall be payable to the person in whose name such Bond is registered at the close of business on a special record date (which date shall also be the date for the payment of such defaulted interest) as established by notice by deposit in the U. S. mails, postage prepaid, by the Issuer to the Registered Owners of Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names the Bonds are registered at the close of busi- ness on the fifth (5th) day (whether or not a business day) preceding the date of mailing. This Bond is one of an authorized issue of bonds in the initial aggregate principal amount of $18,400,000 of like date, tenor and effect, except as to number, maturity (unless all bonds mature on the same date) and interest rate, issued to provide for certain capital improvements of the Issuer, pursuant to the authority of and in full com- pliance with the Constitution and laws of the State of 10 10487 Florida, including particularly Article VII, Section 2 of the Constitution; Chapter 166, Florida Statutes; Ordinance No. duly enacted by the Issuer on October , 1988, as supplemented by Resolution No. , adopted by t—he Issuer on , 1988, and certain other ordinances and resolutions of the Issuer (collectively, the "Ordinance"), and other applicable provisions of law. This Bond is sub- ject to all the terms and conditions of the Ordinance. For the prompt payment of the principal of, redemp- tion premium, if any, and interest on this Bond as the same shall become due, the full faith, credit and taxing power of the Issuer are hereby irrevocably pledged. The Bonds of this series scheduled to mature on November 1, 1999, or thereafter, shall be subject to redemp- tion prior to their maturity at the option of the Issuer on or after November 1, 1998 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 date: Redemption Periods Redemption (Both Dates Inclusive) Prices November 1, 1998 to October 31, 1999 102% November 1, 1999 to October 31, 2000 101% November 1, 2000 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 to the date fixed for redemption to the reg- istered 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 provi- sions, among others, relating to the terms, lien and security for the Bonds, the custody and application of the proceeds of the Bonds, the rights and remedies of the hol- ders 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 for any purpose or be entitled under the Ordinance until the endorsed hereon shall have Registrar. be valid or become obligatory to any security or benefit Certificate of Authentication been signed by the Bond REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE SIDE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF FULLY SET FORTH IN THIS PLACE. IN WITNESS WHEREOF, The City of Miami, Florida, has issued this Bond and has caused the same to be signed by its Mayor either manually or with his facsimile signature, and attested and countersigned by the manual or facsimile signa- ture of its City Clerk, and a facsimile of its seal to be 11 reproduced hereon, all as of the first day of November, 1988. THE CITY OF MIAMI, FLORIDA (SEAL) ATTESTED AND COUNTERSIGNED: By City Clerk By Mayor r1,IaUZ i ue -"u By City Attorney CERTIFICATE OF AUTHENTICATION This ,Bond is one of the Bonds designated in and executed under the provisions of the within mentioned Ordinance. BARNETT BANKS TRUST COMPANY, N.A., as Bond Registrar By Authorized Officer Date of Authentication: [To be printed on the reverse side of Registered Bonds] FURTHER BOND PROVISIONS 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 registra- tion books and shall deliver in the name of the new trans- feree or transferees a new fully registered Bond or Bonds of the same maturity and of authorized denomination or denomi- nations, for the same aggregate principal amount and payable from the same source of funds. The Issuer and the Bond Registrar may charge the owner of such Bond for the regis- tration of every transfer or exchange of a Bond an amount sufficient to reimburse them for any tax, fee or any other governmental charge required (other than by the Issuer) to be paid with respect to the registration of such transfer, and may require that such amounts be paid before any such new Bond shall be delivered. 12 10487 If the date for payment of the principal of, pre- mium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the corporate trust office of the Bond Registrar is located are authorized by law or executive or- der to close, then the date for such payment shall be the next succeeding day which is nota 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. It is hereby certified and recited that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of Florida, that all acts, conditions and things required to exist, to happen, and to be performed precedent to the is- suance of this Bond exist, have happened and have been per- formed in regular and due form and time as required by the laws and Constitution of the State of Florida applicable hereto, and that the issuance of the Bonds of this issue does not violate any constitutional or statutory limitation or provision. [Form of Abbreviations for Bonds] The following abbreviations, when used in the in- scription on the face of the within Bond, shall be construed as though they were written out in full according to the ap- plicable laws or regulations. TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with the right of sur- vivorship and not as tenants in common r UNIFORM GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. [Form of Validation Certificate] VALIDATION CERTIFICATE This Bond is one of a series of bonds that were validated and confirmed by judgments of the Eleventh Judicial Circuit Court in and for Dade County, Florida, rendered on January 11, 1982, July 11, 1984, July 20, 1984 and July 13, 1982. Mayor 13 L1 J n.r (the unto [Form of Assignment for Bonds] ASSIGNMENT FOR VALUE RECEIVED, the undersigned "Transferor"), hereby sells, assigns and transfers (the "Transferee") PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within Bond and all rights thereunder, and hereby ir- revocably constitutes and appoints as attorney to register the transfer of the within Bond on the books kept for registration and -registration of transfer thereof, with full power of substitution in the premises. Date: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a member firm of any other recognized national securities exchange or a commercial bank or a trust company. NOTICE: No transfer will be re- gistered and no new Bond will be issued in the name of the Transferee, unless the signa- ture(s) to this Assignment correspond(s) with the name as it appears upon the face of the within Bond in every particu- lar, without alteration or enlargement or any change whatever and the Social Security or Federal Employer Identification Number of the Transferee is supplied. [End of Form of Bond] SECTION 9. Application of Bond Proceeds. The proceeds of the Bonds shall be used to pay the costs of is- suance 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 subaccounts 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 10. 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 ir- 14 10481 revocably 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 11. 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 neces- sary 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 the Bonds, and from any other legally available funds, at the times required pur- suant to Section 148(f) of the Code, the excess of the amount earned on all nonpurpose 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 per- taining to and to be responsible for making or causing to be made all determinations and calcula- tions 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 Bonds in a manner that would cause the Bonds or any of them, to be classified as private activity bonds under Section 141(a) of the Code; and (4) to refrain from taking any action that would cause the Bonds, or any of them, to become arbitrage bonds under Section 103(b) and Section 148 of the Code. The Issuer understands that the foregoing covenants 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 12. Bond Registrar and Paying Agent. The Issuer hereby appoints Barnett Banks Trust Company, N.A., Jacksonville, Florida, as the Bond Registrar and Paying Agent in connection with the Bonds. SECTION 13. 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, 15 IL048 7 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 "B". The form on which all bids are requested to be made shall be substantially in the form set forth in said Notice of Sale attached hereto as Exhibit "B." Said Notice of Sale shall require that all bids shall be received by 10:00 a.m. Miami, Florida time on November 3, 1988. SECTION 14. 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 15. 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 9 of Resolution No. 84-628, Section 3 of Resolution No. 85-289, Section 3 of Resolution No. 85-312 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 16. Amendment of Ordinance -No. 9296. The second paragraph of Section 1 of Ordinance No. 9296, enacted on July 23, 1981, is hereby deleted in its entirety and the following is inserted in lieu thereof: Such bonds shall be in the denomination of $5,OOO each and shall bear interest at a rate or rates, not to exceed the rate provided for in the statutes of the State of Florida, as shall be. determined at the time of sale thereof, such interest being payable semi-annually, and both the principal of and the interest on such bonds shall be payable at a bank or trust company in the Borough of Manhattan, City and State of New York, or at the option of the holder or registered owner, at a bank or trust company in The City of Miami, Florida, or at such other bank or trust company as may be designated by subsequent or- dinance or resolution of the Commission of the City of Miami. SECTION 17. 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 applica- ble law. SECTION 18. 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 "C," subject to such changes 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 16 10487 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 19. Authorizations. The Mayor, the City Manager, the City Clerk and the Director of Finance of the Issuer and their designees are each designated as agents of the Issuer in connection with the sale, issuance and deliv- ery of the Bonds and are authorized and empowered, collec- tively or individually, to take all actions and steps and to execute all instruments, documents and contracts on behalf of the Issuer that are necessary or desirable in connection with the sale, execution, issuance and delivery of the Bonds and which are not inconsistent with the terms and provisions of this Ordinance. SECTION 20. Modification or Amendment. This Ordinance 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 Ordinance or of any resolution or ordinance amendatory hereof or sup- plemental hereto materially adverse to the holders of the Bonds may be made without the consent in writing of the ow- ners 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 con- sent 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 in- directly, shall not be counted. SECTION 21. Defeasance 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 Ordinance, 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 sche- duled by the Issuer, or any combination thereof, (b) the full amount of the principal, premium, if any, and the in- terest so�-due and payable upon all of such Bonds then out- standing, 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 17 10487 become void; otherwise, this Ordinance shall be, continue and remain in full force and effect. Notwithstanding any- thing in this Section 21 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 22. Severability. If any one or more of the covenants, agreements or provisions of this Ordinance 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 separate from the remaining covenants, agreements or provisions of this Ordinance or of the Bonds issued hereunder. SECTION 23. No Third Party Beneficiaries. Except as herein otherwise expressly provided, nothing in this Ordinance expressed or implied is intended or shall be con- strued to confer upon any person, firm or corporation other than the parties hereto and the owners and holders of the Bonds issued under and secured by this Ordinance, any right, remedy or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the parties hereto and -the ow- ners and holders from time to time of the Bonds issued hereunder. SECTION 24. Controlling Law; Members of Commission and Officials of Issuer Not Liable. All covenants, stipula- tions, obligations and agreements of the Issuer contained in this Ordinance shall be deemed to be covenants, stipula- tions, obligations and agreements of the Issuer to the full extent authorized and provided by the Constitution and laws of the State of Florida. No covenant, stipulation, obliga- tion or agreement contained herein shall be deemed to be a covenant, stipulation, obligation or,agreement of any pre- sent 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 Ordinance or shall be subject to any personal liability or accountability by reason of the issuance or the execution by the Commission or such members thereof. SECTION 25-*. Effective Date. This Ordinance shall be effective immediately upon its enactment. 18 i OZLA'7 PASSED AND ADOPTED this 6th day Of October, 1988. (SEAL) ATTE By tty Hirai, City Clerk AS TO ,jorcle L. qij-r—n City Attorney THE4 CITY OF IAMI, RIDA *""' I By. OF L. Su rez, Mayor AND CORRECTNESS: PREPARED AND APPROVED BY. I' Matte cleric 'f the certif le City of A. D. 19 oll I AIMI d-) F1 rid, hip, Irliv and r ofI co J)'i, Of tj Doilda h, for sz)(ral t,ttlle ti pltcc Pt and 11.3 t' 'id to Ci j'\, v of-- ity c,"j-1c 273870015ord:113 19 EXHIBIT A Tentative List of Projects to be Financed With Proceeds of 1988 General Obligation Bond Sale Sanitary Sewer Bonds NW 36th Street Sanitary Sewer Improvements North Flagler Sanitary Sewers South Flagler Sanitary Sewers SE Overtown/Parkwest Sanitary Sewer South Grove Sanitary Sewer Storm Sewer Bonds Coconut Grove Storm Sewers Wagner Creek Storm Sewers Lawrence Pump & Dredge Tamiami Storm Sewers Local Drainage Streets and Highway Bonds Downtown Street Improvements East Little Havana Hwy. Improvements Buena Vista Hwy. Improvements Citywide Street Improvements Lawrence Highway Improvements SE Overtown/Parkwest Streets Fire Fighting Bonds Fire Rescue New Apparatus Acquisition Expansion of Fire Station #12 Expansion of Fire Station #10 Police Bonds Mobil Digital Terminals Central Police Facility Expansion 273870015ExA:113 CITY OF MIAMI, FLORIDA INTEROFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Cesar H. Odi City Manager RECOMMENDATION: DATE: S E P 2 8 988 FILE: Emergency Ordinance for SUBJECT: Approval of Documents Re: $18.9 Million General Obligation REFERENCES:Bonds, Series, 1988 ENCLOSURES: It is respectfully recommended that the attached emergency ordinance setting certain terms and conditions and approving the Preliminary Official Statement, -the Bid Form and the Notice of Sale, in conjunction. with the competitive sale of $18,900,000 City of Miami General Obligation Bonds, Series 1988, be approved. BACKGROUND: The City follows the policy of conducting a competitive general obligation bond sale on an annual basis to provide funding for the coming twelve month period for those projects appropriate by the City Commission in the Capital Improvement Budget. Attached is a list of projects intended to be funded with the proceeds of this bond sale. Other projects in the Capital Budget are being funded with other sources or proceeds from previous general obligation bond sales. The General Obligation Bond Sale will be held on . Thursday , November 3, 1988 at 10:00 a.m., necessitating the paL,.-age of the attached ordinance on an emergency basis. The sale will be awarded on the. basis of competitive bids resulting in the lowest true interest cost to the City cc: Law Department 1048'7 TO: FROW c 11'i Or MIAMI. r1_OR1UA it t"i T rr-�?r FIrE MEMORANDUM Honorable Mayor and October 5, 198$ Members of City Commission ""'�' F"`E City Commission Meeting i/ SI.IF3JFc:1 of October 6, 1988 Agenda Item 45 C e , f rio City Manager F?ErFnr.Nr•F.-;: FNCLOrMnFry Please find attached a typeset version of the preliminary official statement and notice of sale to be approved as part of agenda. item 45 of tomorrow's City Commission meeting. The preliminary official statement and notice of sale in your possession distributed as part of last week's package were word processing reproductions. There are no substantial changes between best week's version and the attached. CEG:mm c.� ! '''� Rio dj /4�'G�✓`� G4' �'• :.. IL048 71 t- NOTICE OF SALE $18,400,000 THE CITY OF MIAMI, FLORIDA General Obligation Bonds 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 November 3, 1988, 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 $18,400,000, consisting of $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds, $5,000,000 Storm Sewer Improvement Bonds, $5,000,000 Sanitary Sewer System Bonds, $3,900,000 Street and Highway Improvement Bonds and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds, dated November 1, 1988 (hereinafter collectively referred to as the "Bonds"). Bond Details 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 month preceding 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 November 1, 1988, payable semiannually on May 1 and November 1 in each year, at the rate or rates specified in such proposal as may be accepted, the first interest payment being due on May 1, 1989. The Bonds will mature as follows: MATURITY SCHEDULE Police Headquarters and Crime Sanitary Fire Fighting Maturity Prevention Storm Sewer Sewer Street Fire Prevention Total Date Facilities Improvement System Highway and Rescue Principal November 1 Bonds Bonds Bonds Improvement Facilities Bonds Amount 1990....... $ 40,000 $ 85,000 $ 125,000 1991 ....... 45,000 90,000 $150,000 $115,000 $ 90,000 490,000 1992....... 45,000 95,000 155,000 125,000 95,000 515,000 1993....... 50,000 105,000 165,000 130,000 100,000 550,000 1994....... 50,000 110,000 180,000 140,000 105,000 585,000 1995....... 55,000 115,000 190,000 150,000 115,000 625,000 1996....... 60,000 125,000 205,000 160,000 120,000 670,000 1997....... 65,000 135,000 220,000 170,000 130,000 720,000 1998....... 65,000 145,000 235,000 180,000 140,000 765,000 1999....... 70,000 155,000 250,000 195,000 150,000 820,000 2000....... 80,000 165,000 265,000 210,000 160,000 880,000 2001....... 85,000 175,000 285,000 225,000 170,000 940,000 2002....... 90,000 190,000 310,000 240,000 195,000 1,015,000 2003....... 95,000 205,000 330,000 255,000 200,000 1,085,000 2004....... 105,000 220,000 355,000 275,000 215,000 1,170,000 2005....... 110,000 235,000 380,000 295,000 230,000 1,9M,000 2006....... 120,000 250,000 410,000 320,000 245,000 1,345,000 2007....... 130,000 270,000 440,000 345,000 265,000 1,450,000 2008....... 140,000 290,000 475,000 370,000 285,000 1,560,000 2009 ....... 315,000 315,000 2010 ....... 340,000 340,000 2011 ....... 365,000 365,000 2012 ....... 395,000 395,000 2013 ....... 425,000 425,000 10487, Principal of, and premium, if any, on the Bonds will be payable upon presentation and surrender thereof, at the office of Barnett Banks Trust Company, N.A., the Bond Registrar and Paying Agent, in Jacksonville, Florida. Optional Redemption The Bonds maturing on or after November 1, 1999, are subject to redemption, at the option of the City, on and after November 1, 1998, in whole 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 redemption: Redemption Period (date inclusive) Redemption Price (percentage of principal amount) November 1, 1998 to October 31, 1999.................... 102'% November 1, 1999 to October 31, 2000.................... 101% November 1, 2000 and thereafter ........................ 100% Purpose; Validation The Police Headquarters and Crime Prevention Facilities Bonds were athorized by Ordinance v No. 9787, as supplemented and amended, for the purpose of paying the cost of (i) construction of additions to the police headquarters building, (ii) the acquisition and installation of electronic communications and computer equipment, (iii) facilities for training, property unit and other police purposes, and (iv) the acquisition of land and other equipment needed for police purposes. The Storm Sewer Improvement Bonds were authorized by Ordinance No. 9781, as supplemented and amended, for the purpose of paying the cost of the construction of permanent drainage facilities within the City. The Sanitary Sewer System Bonds were authorized by Ordinance No. 9128, as supplemented and amended, for the purpose of paying the cost of improvements and extensions to the City's sanitary sewer system. The Street and Highway Improvement Bonds were authorized by Ordinance No. 9129, as supplemented and amended, for the purpose of paying the cost of street and highway improvements within the City. 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 preventation and rescue facilities, including, but not limited to, fire stations, equipment, vehicles and communication systems. All of the Bonds have been validated by judgments of the Circuit Court of Dade County and no appeal was taken therefrom. Security for and Source of Payment for the Bonds 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 occupied housing and certain persons who are aged, disabled or otherwise qualified therefor, as required by applicable law). Interest Rates and Bidding Details Each proposal must be in the form of the Official Bid Form and enclosed in a sealed envelope marked "Bid for $18,900,000 City of 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 2 10487. 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 'A or'/20 of 1%. Each bid must specify the Interest rate for the Bonds of each maturity, and all Bonds maturing on the tame date must bear interest at the same rate. Any number of interest rates may be named, but the highest interest rate named may not exceed the lowest interest rate named by more than two percent (2%). No Bond shall bear more than one rate of interest, which rate shall be uniform for the life of the Bond, and no zero or blank rate or split rate will be permitted. No bid for less than all of the Bonds offered or for less than par and,accrued interest will be entertained. Premiums may be specified. Bond Insurance The successful bidder for the Bonds may, in its discretion and at its sole expense, obtain a policy of municipal bond insurance from a reputable and nationally recognized bond insurer to secure the Bonds, and the City will cooperate with the successful bidder, upon request, to qualify the Bonds for the issuance of such bond 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. The right is reserved to reject all bids or any bid not conforming to this Notice of Sale -or not in the form of the Official Bid Form. The right is also reserved to waive, if permitted by law, any irregularity or informality in any proposal. Good Faith Each bid must be accompanied by a certified or bank cashier's or treasures s check drawn upon an incorporated bank or trust company, in the amount of $184,000, which check, on which no interest will be allowed, must be payable unconditionally to the order of The City of Miami, Florida. Award or rejection of bids will be made on the date above stated for receipt of bids and the checks of unsuccessful bidders will be returned immediately. The check of the successful bidder will be cashed and the proceeds, on which no interest will be allowed, will be held as security for the performance of the bid, and, in the event such successful bidder shall fail to comply with the terms of his bid, the proceeds will be retained by the City. The retention of such check will constitute full liquidated damages. If it shall be found impossible to issue and deliver the Bonds, the City will deliver to the successful bidder a certified or bank cashier's or treasurer's check drawn upon a bank or trust company in the City of Miami, Florida, payable unconditionally to the order of such bidder, in the amount of the check deposited by such bidder with its bid. Upon delivery of the 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 the CUSIP Service Bureau charge for the assignment of such numbers will be paid by the City. 1+ Delivery of Bonds Delivery of the Bonds In definitive form will be made on or about November 17, 1988, 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 Holland & Knight, Miami, Florida, and of McGhee & McGhee, Miami, Florida, will be furnished without cost to the purchasers of the Bonds. 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. 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 therein, in the light of the circumstances under which they were made, not misleading. The successful bidder shall have the right, at its option, to cancel its obligation to purchase the Bonds if the City shall fail to tender the Bonds for delivery 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. Disclosure Obligations of the Purchaser Section 218.38 (1) (b) (1), Florida Statutes, requires that the City file, within 120 days after delivery of the Bonds, an information statement with the Division of Bond Finance of the State of Florida (the "Division") containing the following information: (a) the name and address of the managing underwriter, if any, associated with the issuance of the 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 (e) above. Section 218.38(1) (b)2, Florida Statutes, requires that the managing underwriter or the financial consultant, within 90 days after delivery of the Bonds, provide the City with a statement containing the information mentioned in (c) above. 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 Advisor, Raymond James & Associates, Inc., 1110 Brickell Avenue, Suite 201, Miami, Florida 33131, and Howard Gary & Company, 3050 Biscayne Boulevard, Suite 603, Miami, Florida 33137, telephone number (305) 381-8829. Dated October 20, 1988. Carlos I. Garcia, CPA Director of Finance The City of Miami, Florida 1048'7' L OFFICIAL BID FORM Proposal For the Purchase of $18,4002000 The City of Miami, Florida General Obligation Bonds November 3, 1988 Commission of The City of Miami, Florida City Hall 35M Pan American Drive Miami, Florida 33133 Dear Commissioners: On behalf of an underwriting syndicate which we have formed, headed by the undersigned and consisting of the firms listed on a separate sheet attached hereto, and in accordance with the terms and conditions of the attached Notice of Sale dated October 20, 1988 (the "Notice of Sale"), which is hereby made a part of this proposal, we offer to purchase all of the $18,400,000 The City of Miami, Florida General Obligation Bonds consisting of $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds, $5,000,000 Storm Sewer Improvement Bonds, $5,000,000 Sanitary Sewer System Bonds, $3,900,000 Street and Highway Improvement Bonds and $3,000,000 Fire Fighting, Fire Preven- tion and Rescue Facilities Bonds (hereinafter collectively referred to as the "Bonds"), to be dated November 1,1988. We will pay for the Bonds at the time of delivery, in immediately available Federal Reserve Funds, Eighteen Million Four Hundred Thousand Dollars ($18,400,000), plus accrued interest, if any, from November 1,1988 to the date of delivery, and a cash premium of $ for all of the Bonds, which $18,400,000 constitutes the total for the separate bids of par for each series of the Bonds as specified above. Such premium, if any, is to be allocated to each series of Bonds as provided in the Notice of Sale. SCHEDULE OF MATURITIES AND INTEREST RATES The Bonds shall bear interest at the rates set forth in the following schedule: Maturity Maturity Date Principal Interest Date Principal November 1 Amount Rate Price November 1 Amount 19W ... $ 125,000 % $ 2002 ... $1,015,000 1991 ... 490,000 2003 ... 1,085,000 1992 ... 515,000 2004 ... 1,170,000 1993 ... 550,000 2005 ... 1,250,000 1994 ... 585,000 2006 ... 1,345,000 1995 ... 625,000 2007 ... 1,450,000 1996 ... 670,000 2008 ... 1,560,000 1997 ... 720,000 2009 ... 315,000 1998 ... 765,000 2010 ... 340,000 1999 ... 820,000 2011 ... 365,000 2000 ... 880,000 2012 ... 395,000 2001 ... 940,000 2013 ... 425,000 Interest Rate Price We enclose herewith a certified or bank cashier's or treasurer's check, drawn on an incorporated bank or trust company, in the amount of $164,000, payable to the order of The City of Miami, Florida, which check is to be applied or returned in accordance with the Notice of Sale. IL048'71 L u The closing documents referred to in the Notice of Sale are to include certificates, dated as of the date of the delivery of the Bonds, with reference to the Official Statement, as provided therein, and stating that there is no litigation pending or, to the knowledge of the signer of such certificate, threatened materially adversely affecting the validity of the Bonds. We hereby agree to provide to the City, at or prior to closing, such information regarding the initial prices at which a substantial amount of each maturity of the Bonds were sold to the public as the City shall reasonably request. Respectfully Submitted, Bidder By Title (No addition or alteration except as provided above, is to be made to this bid form, and it must not be detached from the Notice of Sale.) • • • a The following is provided for information only and is not a part of this bid: The total amount of interest payable on the Bonds during the life of the issue under this proposal,. without deducting the premium bid, if any, is $ The true interest cost for the Bonds, calculated as described in the Notice of Sale, is °Xo. The above mentioned check has been returned and receipt thereof is duly acknowledged. By Title Bidder 10487 L PRELIMINAnf OFFICIAL STATEMENT DATED OCTUBER 20, 1988 In the opinion of Bond Counsel and Co -Bond Counsel, rendered in reliance and conditioned upon compliance with certain arbitrage rebate and other tax requirements referred to herein, under existing law, interest on the Bonds is excluded from ,gross income for federal income tax purposes, and, under existing law, the Bonds are exempt from all present intangible personal property taxes imposed by the State of Fl rida. Under existing law, Interest on the Bonds will not be treated as an item of tax preference in computing the alternative minimum tax for individuals and corporations. Interest on the Bonds will, however, be taken into account in computing an ad1'u�stment made in determining a corporation's alternative minimum tax. Holders of the Bonds oould be subject to the consequences of other provisions of the Internal Revenue Code of 1986, as amended, as further described herein. See "Tax Exemption; Income Tax Effects" herein. NEW ISSUE $1 %400,000 Credit Ratings: Moody's: Standard & Poor's. THE CITY OF MiAMI, FLORIDA GENERAL OBLIGATION BONDS $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds $5,000,000 Storm Sewer Improvement Bonds $5,000,000 Sanitary Sewer System Bonds $3,900,000 Street and Highway Improvement Bonds $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds Dated: November 1, 1988 Due: November 1, as shown below Interest on the Bonds is payable semi-annually on May 1 and November 1 in each year, commencing May 1, 1989. The Bonds are issuable as fully registered bonds in the denomination of $5,000 or integral multiples thereof. Interest on the Bonds will be payable to the registered owners shown on the registration books of The City of Miami, Florida (the "City") on the fifteenth day of the month preceding an interest payment date, by check or draft mailed to such registered owners by the Bond Registrar and Paying Agent. The principal of, and premium, if any, on the Bonds are payable upon presentation and surrender of the Bonds, at the option of the registered owner, at the office of Barnett Banks Trust Company, N.A., or its successors or assigns, as Bond Registrar and Paying Agent (the "Bond Registrar and Paying Agent"), in the City of Jacksonville, Florida. The Bonds maturing on or after November 1, 1999, are subject to redemption at the option of the Cit}-, on or after November 1, 1998, in whole on any date, or in part in the inverse order of their maturities (by lot within any maturity) on any interest payment date, at redemption prices ranging from 102% to 100% plus accrued interest. See '"THE BONDS -- Optional Redemption" herein. The 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 levied on all taxable property in the City (excluding homestead exemptions, as required by applicable law). MATURITIES, AMOUNTS, RATES AND YIELDS OR PRICES (Accrued interest to be added) Yield Yield Maturity Date Principal or Maturity Date Principal or November t Amount Rate Price November 1 Amount Rate Price 1990 125,000 2002 11015,000 1991 490,000 2003 1,085,000 1992 515,000 2004 1,170,000 1993 550,000 2005 1,250,000 1994 585,000 2006 1,345,000 1995 625,000 2007 1.450,000 1996 670,000 2008 1,5601000 1997 720,000 2009 315,000 1998 765,000 2010 340,000 1999 820,000 2011 365,000 2000 880,000 2012 395,000 2001 940,000 2013 425,000 The Bonds are offered when, as and if issued and received by the Underwriters, subject to the unqualified approval of legality by Holland & Knight, Miami, Florida, Bond Counsel, and McGhee & McGhee, Miami, Co Counsel, form Florida, -Bond and to certain other conditions. It is expected that the Bonds in definitive will be available for delivery in New York, New York, on or about November 17, 1988. Sealed proposals will be received by the Commission of 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 November 3, 1988. Please refer to the Official Bid Form and Notice of Sale, which outline the terms and conditions for the submission of offers to purchase the Bonds. • La This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized by the City to give any information or snake any representation, other than those contained herein, in connection with the offering of these Bonds and, if given or made, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any We made hereunder shall, under any circumstances, create any implication that there will be no change in the affairs of the City from the date hereof to the date of the delivery of the Bonds, but see the paragraph headed "Closing Certificate" herein. TABLE OF CONTENTS Description of the Issue ................ Introduction .......................... TheBonds ............................ General............................ Interest Payment Dates .............. Maturity Schedule ................... Optional Redemption ................ Notice of Redemption .. ........ . Registration and Transfer of Ownership ........................ Security, Authorization and Validation ................ Application of Proceeds .. .............. . Tax Exemption; Income Tax Effects...... Credit Ratings ......................... Litigation .............................. Auditors ........ .................... . Approval of Legal Proceedings .......... Closing Certificate ..................... Description of the City ................ Geography............................ Climate............................... Population............................ Government of the Cityy ............... . Mayor and City Commissioners ......... Administration of the City .............. Scope of Services and Agency Functions. ................. Regional Government Services .......... Debt Summary . ... . Payment of Bonds and Bond Election Requirement........................ Legal Debt Limitation ................. Selected Debt Data ...... ..... . Debt Statistics and Various Debt Ratios . . General Obligation Bonds Authorized But Not Issued . . , , , . . Proposed Issues of Debt Securities ...... Capital Improvement Plan ....... , Leases and Other Commitments......... Additional Financial Information Relating to the City of Miami . ...... . General Description of Financial Practices............................ Description of Revenues ............... General Fund ..................... Special Revenue Funds ............. FW ?M6C 1 Debt Service Funds ................ 26 1 Enterprise Funds .................. 26 1 Internal Service Funds ............. 27 1 Procedure for Tax Levy and Tax 1 Collection .......................... 27 2 Tax Schedules and Tables .............. 28 2 Labor Relations ....................... 30 2 Pension Trust Funds ................... 30 Self Insurance ......................... 30 3 Economic and Demographic Data ....... 32 4 Introduction and Recent 4 Developments ....................... 32 5 Bayside............................... 32 6 Bayfront Park ......................... 32 7 Southeast Oavertown/Park West 7 Miami 332 3 7 Corporate Expansion ................... 33 7 Financial Institutions .................. 34 8 Tourism .............................. 34 8 Medical Facilities ...................... 35 8 Recreational Facilities .................. 35 8 Cultural Facilities and Affairs ........... 35 8 Educational Institutions ................ 35 9 Film Industry ......................... 36 9 Agriculture ........................... 36 Export. ........ .............. 36 10 Miami International Airport ............ 37 10 Port of Miami ......................... 37 12 Demographic Data ..................... 38 RetailSales ........................... 38 12 Employment .......................... 39 12 housing ................ ........... 39 12 Building Permits ....................... 40 18 Approval of Official Statement .......... 42 19 Appendix 19 A. Financial Section of Comprehensive 20 Annual Financial Report 20 ("FINANCIAL STATEMENTS") ..... A-1 Report of Independent Certified Public Accountants...................... A-3 22 General Purpose Financial Statements A-4 Notes to Financial Statements ........ A-12 22 Supplemental Combining and 24 Individual Fund Statements ......... A-34 24 B. Form of Opinion of Bond Counsel.... B-1 25 C. Letter of City Attorney ............. C-1 10487 f THE CITY OF MIAMI, FLORIDA Members of Board of City Commissioners XAVIER L. SUAREZ, Mayor MILLER J. DAWKINS ROSARIO A. KENNEDY VICTOR H. DeYURRE J. L. PLUMMER, JR. CITY OFFICIALS City Manager .............. CESAR H. ODIO Director of Finance..... CARLOS E. GARCIA City Attorneyy ....... JORGE L. FERNANDEZ City Clerk ................... MATI'Y HIRAI Bond Counsel HOLLAND & )MIGHT Miami, Florida Co -Bond Counsel McCHEE & McGHEE Miami, Florida Financial Advisors RAYMOND JAMES & ASSOCIATES, INC. HOWARD CARY & COMPANY Miami, Florida Independent Certified Public Accountants COOPERS do LYBRAND Miami, Florida 1.04874 OFFICIAL STATF.AiENT $1 %400,000 THE CITY OF MIAMI, FLORIDA General Obligation Bonds Consisting of $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds $5,000,000 Storm Sewer Improvement Bonds $5,000,000 Sanitary Sewer System Bonds $3,900,000 Street and Highway Improvement Bonds $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds DESCRIPTION OF THE ISSUE INTRODUCTION 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 $18,400,000 (the '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. THE BONDS General The Bonds are being issued in the aggregate principal amount of $16,400,000, are dated November 1, 1966, and are issuable as fully registered bonds in the denomination of $5,000 or integral multiples thereof. Interest on the Bonds will be payable to the registered owners shown on the registration books of the City on the fifteenth 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 Bonds subsequent to such 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 payable to the person in whose name such Bond is registered at the close of business on a special record date established by notice mailed by the City to the registered owners of the Bonds not less than 15 days preceding such special record date. Such notice shall be mailed to the person in whose name the Bonds are registered at the close of business on the fifth day (whether or not a business day) preceding the date of mailing of such notice. The principal of, and premium, if any, on the Bonds are payable upon presentation and surrender of the Bonds, at the office of Barnett Banks Trust Company, N.A., or its successors or assigns, as Bond Registrar and Paying Agent (the 'Bond Registrar and Paying Agent"), in the City of Jacksonville, Florida. Interest Payment Dates The Bonds bear interest at the rates per annum set forth on the cover page of this Official 1 ## 10487 Statement, payable semi-annually on May 1 and November 1 of each year, commencing May 1, 1989, and mature on November 1 in the years and principal amounts set forth on the cover page of this Official Statement and as follows: MATURITY SCHEDULE police Head urrtcrs aad rime Sanitary Fire Fighting Maturity prevention Storm Sewer Sewer Street Fire Prevention Total iasec Facilities [mprovemcot System Highway and Rescue Principal November l bonds Bonds Bonds Improvement Facilities Bonds Amount 1990....... : 40,000 i 85,000 s -0- $ -o- $ -o- s 125,000 1991....... 45.000 90,000 150,000 115,000 90,000 490,000 1992....... 45,000 95,000 155,000 125,000 95,000 515,000 1993....... 50,000 105,000 165,000 130,000 100,000 550,000 1994....... 50,000 110,000 180,000 140.000 105,000 585,000 1995....... 55,000 115,000 190,000 150,000 115,000 625,000 1996....... 60,000 125,000 205,000 160,000 120,000 670,000 1997 ....... 65,000 135,000 220,000 17 0,000 130,000 720,000 1998....... 65,000 145,000 235,000 180,000 140,000 765,000 1999....... 70,000 155,000 250,000 195,000 150,000 820,000 2000....... 60,000 165,000 265,000 210,000 160,000 860,000 2001....... 65.000 175,000 285,000 225,000 170,000 940,000 2002....... 90,000 190,000 310,000 240,000 185,000 1,015,0()0 2003....... 95,000 205,000 330,000 255,000 200,000 1,085,000 2004....... 1015,000 220,000 355,000 275,000 215,000 1,170,000 2005....... 110,000 235,000 380,000 295,000 230,000 1,250,000 2006....... 120,000 250,000 410,000 320,000 245,000 1,345,000 2007....... 130,000 270,000 440,000 345,000 265,000 1,450,000 2008....... 140,000 290,000 475,000 370,000 285,000 1,560,000 2009....... 315,000 315,000 2010....... 340,000 340,000 2011 ....... 365,000 365,000 2012 ....... 395,000 395,000 2013 ....... 425,000 425,000 Optional Redemption The Bonds maturing on or after November 1, 1999, are subject to redemption, at the option of the City, on and after November 1, 1998, in whole 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 redemption: Redemption Period Redemption Price (percentage (date inclusive) principal amount) November 1, 1998 to October 31, 19W.................... 102% November 1, 1999 to October 31, 2000.................... 101% November 1, 2000 and thereafter ........................ 100% Notice of Redemption Notice of the call for any redemption as described above identifying the Bonds to be redeemed must be given by mailing a copy of the redemption notice by registered or certified mail at least thirty (30) days but not more than sixty (60) days prior to the redemption date to the registered owner of 2 104871. each such Bond to be redeemed at the address shown on the registration books held by the Bond Registrar and Paying Agent; provided, however, that failure to give such notice by mailing, or any defect therein, shall not affect the validity of any proceedings for the redemption of any Bond for 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. Notice of call for redemption of any Bond 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 Bonds 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. The Ordinance (as hereinafter defined) also requires all notices of redemption to be sent to all registered securities depositories holding substantial amounts of obligations similar in type to the 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 effectiveness of a call for redemption otherwise in conformance with the Ordinance. Registration and Transfer of Ownership The Bond Registrar and Paying Agent shall keep a register for registration of a transfer of any Bond. Bonds may be transferred only on the registration books kept by the Bond Registrar and Paying Agent. No transfer of any Bond shall be permitted except upon presentation and surrender of such Bond at the office 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 Registrar and Paying Agent, duly executed by the owner of such Bond in person or by his attorney -in -fact or legal representative, containing written instructions as to the details of transfer of such Bond, 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 deem and treat the registered owner of any Bond as the absolute owner of such Bond for the purpose of receiving payment of the principal thereof and the interest thereon. Upon surrender for registration of transfer of any Bond at the principal corporate trust office of the Bond Registrar and Paying Agent, the City shall execute and deliver to the transferee or transferees a new bond or bonds for a like aggregate principal amount and maturity. 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 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 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 Bond after the mailing of notice calling such Bond for redemption has been made, nor during the period of fifteen days next preceding mailing of a notice of redemption of any Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the City may, in its discretion (i) deliver a duplicate replacement Bond, or (ii) pay a Bond that has matured or is about to mature. The registered owner of such Bond must surrender any mutilated bond for cancellation and must furnish the City or its agent proof of ownership of any destroyed, stolen or lost Bond, post 3 10487 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. Security, Authorization and Validation The Bonds are 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 levied on all taxable Property in the City (excluding homestead exemptions as required by applicable law). The City has covenanted in the Ordinance 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 said taxes, or impair or adversely affect in any manner the pledge made therein on the rights of the holders of the Bonds. The Bonds shall be issued under and pursuant to the Constitution and other laws of the State of Florida, the Charier of the City and ordinances and resolutions of the City, Including, but not limited to, Ordinance No. enacted by the City on October 6, 1988, as supplemented by Resolution No. adopted on November 3, 1968 (collectively, the "Ordinance"). The Bonds have been authorized under the provisions of certain ordinances and resolutions adopted by the Commission of the City. The Bonds have been approved by the electors and validated as follows: The Police Headquarters and Crime Prevention Facilities Bonds were authorized by Ordi- nance No. 9787 enacted by the City on January 26, 1984, as supplemented and amended, were approved by the electors on March 13,1984 and were validated by judgement of the Circuit Court of Dade County on July 20, 1984. No appeal was taken. The Storm Sewer Improvement Bonds were authorized by Ordinance No. 9761 enacted by the City on January 26, 1984, as supplemented and amended, were approved by the electors on March 13, 1984, and were validated by judgement of the Circuit Court of Dade County on July 11, 1984. No appeal was taken. The Sanitary Sewer System Bonds were authorized by Ordinance No. 9128 enacted by the City on July 10, 1980, as supplemented and amended, were approved by the electors on October 7, 1980, and were validated by judgement of the Circuit Court of Dade County on January 11, 1982. No appeal was taken. The Street and Highway Improvement Bonds were authorized by Ordinance No. 9129 enacted by the City on July 10, 1980, as supplemented and amended, were approved by the electors on October 7,1960 and were validated by judgement 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 Ordi- nance 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. Application of Proceeds 01,500,000 Police Headquarters and Crime Prevention Facilities Bonds Ordinance No. 9787, as supplemented and amended, authorized the issuance of $20,000,000 Police Headquarters and Crime Prevention Facilities Bonds for the purpose of paying the cost of construction of additions to the City's Police Headquarters building, the acquisition and installation of electronic communications and computer equipment, and facilities for training, property unit and other police purposes, and the acquisition of any necessary land and other equipment. $18,500,000 principal amount of such bonds has been issued, and the final installment of $1,500,000 of such bonds is being offered hereunder. 4 10487' $5,000,000 Storm Sewer Improvement Bonds Ordinance No. 9761, as supplemented and amended, authorized the issuance of $30,000,000 Storm Sewer Improvement Bonds for the purpose of paying the cost of construction of storm sewers, pumping stations, and outlets, culverts over or enclosing streams, wells, other types of local drainage facilities, the resurfacing of any damaged streets or sidewalks, and the acquisition of any necessary land. $15,000,000 principal amount of such bonds has been issued and an additional installment of $5,000,000 is being offered hereunder. 05,000,000 Sanitary Sewer System Bonds Ordinance No. 9128, as supplemented and amended, authorized the issuance of $45,000,000 Sanitary Sewer System Bohds for the purpose of paying the cost of improvements and extensions to the sanitary sewer systems of the City, $10,500,000 principal amount of such bonds has been issued and an additional installment of $5,000,000 is being offered hereunder. 13,900,000 Street and Highway Improvement Bonds Ordinance No. 9129, as supplemented and amended, authorized the issuance of $30,000,000 Street and Highway Improvement Bonds for the purpose of paying the cost of street and highway improvements in the City, $26,100,000 principal amount of such bonds has been issued and the final installment of $3,900,000 of such bonds is being offered hereunder. $3,000.000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds Ordinance No. 9296, as supplemented and amended, authorized the issuance of $21,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds for the purpose of paying the cost of fire fighting, fire prevention, rescue facilities, including, but not limited to, fire stations, equipment, vehicles and communication systems. $15,000,000 principal amount of such bonds has been issued and an additional installment of $3,000,000 is being offered hereunder. TAX EXEMPTION; INCOME TAX EFFECTS In the opinion of Holland & Knight, Miami, Florida, Bond Counsel, and McGhee & McGhee, Miami, Florida, Co -Bond Counsel, under existing law, the Bonds are exempt from present Florida intangible personal property taxes. Also, in the opinion of Bond Counsel and Co -Bond Counsel, under existing law, interest on the Bonds is excluded from gross income for federal income tax purposes. The opinion of Bond Counsel and Co -Bond Counsel is conditioned upon compliance by the City with covenants in the Ordinance to comply with certain arbitrage rebate and other tax requirements contained in 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. If the City fails to comply with such covenants, interest on the Bonds could become includable in the gross income of the owners thereof for federal income tax purposes retroactive to the date of issuance. Reference is made to a proposed form of the Bond Counsel and Co -Bond Counsel opinion attached hereto as Appendix B for the complete text thereof. Other potential federal income tax consequences to holders of the Bonds include the following; 1. Alternative Minimum Tax. An alternative minimum tax is imposed by the Code on corporations at a twenty percent (20%) rate and on taxpayers other than corporations at a twenty- one percent (21%) rate in taxable years beginning after December 31,1986. Interest on the Bonds will not be treated as an item of tax preference for purposes of the alternative minimum tax. Interest in an individual Bondholder's alternative minimum taxable income. Interest on the Bonds received by a Corporate Bondholder will, however, be included in such Bondholder's adjusted net book income and in such Bondholder's adjusted current earnings. In taxable years beginning in 5 IL0 48 7- 1987,1968 and 1989, a corporations' alternative minimum taxable income will be increased by one- half of the corporation's adjusted net book income not otherwise included in its alternative minimum taxable income. For taxable years beginning after December 31, 1989, a corporation's alternative minimum taxable income will be increased by seventy-five percent (75%) of the corporation's adjusted current earnings not otherwise included in its alternative minimum taxable income. Interest on the Bonds received by a corporate Bondholder will be included in such Bondholder's adjusted current earnings for taxable years beginning after December 31, 1989. Q Environrrnental Super fund Tax. Section 59A of the Code imposes for taxable years begin- ning after December 31, 1986, and before January 1, 1992, an additional tax on corporations at a rate of .12 percent on the excess over $2,000,000 of a corporation's "modified alternative minimum taxable income." Interest on the Bonds received by a corporation will be included in the determination of such Bondholder's "modified alternative minimum taxable income." 3. Financial Institutions and Property and Casualty Insurance Companies. Section 265 of the Code provides that, for taxable years ending after December 31, 1986, a financial institution holding Bonds will be denied any deduction for its interest expense allocable to such Bonds. Under Section 832(b) (5) (B) of the Code, property and casualty insurance companies will be required for taxable years beginning after December 31, 1986, to reduce the amount of their deductible underwriting losses by 15% of the amount of tax-exempt interest received from investments made after August 7, 1986, including investments in the Bonds. 9. Social Security and Railroad Retirement Benefits. Under Section 86 of the Code, recipients of certain social security benefits and railroad retirement benefits may be required to include a portion of such benefits within gross income by reason of receipt of interest on the Bonds. S. S Corporations. Section 1375 of the Code imposes a tax on the income of an S corporation having Subchapter C earnings and profits at the close of a taxable year, if greater than twenty-five percent (25%) of the gross receipts of such S corporation is passive investment income. Interest on the Bonds will be included in an S corporation's passive investment income. 6. Foreign Corporation Branch Offices Tax. For taxable years beginning after December 31, 1986, Section 684 of the Code imposes a branch profits tax on foreign corporations equal to 30 percent of the "dividend equivalent amount" for the taxable year. Interest on the Bonds would be taken into account in determining a foreign corporation's "dividend equivalent amount" to the extent such interest is effectively connected (or treated as effectively connected) with the foreign corporation's conduct of a trade or business within the United States. Other provisions of the Code may give rise to adverse federal income tax consequences to particular Bondholders. Owners of the Bonds should consult their tax advisors with respect to the tax consequences of owning Bonds. CREDIT RATINGS The Bonds have received the credit ratings of from Standard & Poor's Corporation and from Moody's Investors Service, Inc. Certain information and materials not included in this Official Statement were furnished to the rating agencies. Generally, rating agencies base their ratings on the information and materials so furnished and on investigations, studies and assumptions by the rating agencies. Such credit ratings reflect only the views of such credit rating agencies, and an explanation of the significance of such credit ratings may be obtained from the credit rating agencies furnishing the same. There is no assurance that such credit ratings will continue for any given period of time or that they will not be revised or withdrawn entirely by either or both of such credit rating agencies, if in their respective judgments, circumstances so warrant. A revision or withdrawal of any such credit rating may have an adverse effect on the market price of the Bonds. 6 10487 L LITIGATION Pending litigation involving claims against the City is discussed in the City Attorney's letter attached hereto as Appendix C, which will be updated by the City Attorney in a letter to be submitted as a closing document. There is not now pending any litigation restraining or enjoining the issuance or delivery of the Bonds or the levy or collection of taxes to pay the principal of or the interest on the Bonds, or questioning the proceedings or authorization under which the Bonds are to be issued, or affecting the validity of the Bonds. AUDITORS The financial statements of the City set forth in this Official Statement have been examined by Coopers be Lybrand, independent certified public accountants, for the fiscal year ended September 30, 1987, as stated in their report to the City Commission dated March 1, 1988, and are an integral part of this Official Statement. See Appendix A, Financial Section of the Comprehensive Annual Financial Report ("FINANCIAL STATEMENTS"). APPROVAL OF LEGAL PROCEEDINGS Certain legal matters incident to the authorization and issuance of the Bonds are subject to the approval of Holland & Knight, Bond Counsel, and McGhee & McGhee, Co -Bond Counsel, whose legal opinion will be available to the underwriters, at no cost to them, at the time of the delivery of the Bonds and will be printed on the Bonds. CLOSING CERTIFICATE Concurrently with the delivery of the Bonds, the City Manager and the Director of Finance or other appropriate officials of the City 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 Bonds, did not and does not contain and, 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. 1.048'71 L DESCRIPTION OF THE CITY OF WAAH Geography The City, situated at the mouth of the Miami River on the western shore of Biscayne Bay, is a main port of entry in Florida and the county scat of Metropolitan Dade County (the "County") which encompasses 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. 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'F. Summer temperatures average 81.4'F and winter temperatures average 69.1'F. Rainfall comes most frequently between the months of May and September, with June the heaviest, averaging nine inches. Population The U.S. Bureau of Census estimated the population of the City at 346,865 as of April 1, 1980. The 1968 population of the City has been estimated to be 369,007 by the State of Florida Division of Population Studies, Bureau of Business and Economic Research, University of Florida. During 1980, the City population increased by 50,000 to approximately 400,000, due to a large influx of Cuban and Haitian refugees. Some of these people have subsequently relocated to other jurisdictions. The 1988 population of 369,007 provided by the State of Florida is being challenged by the Cty. According to City estimates, the 1988 population is approximately 380,000 and will increase to 400,000 by the year 2000. Government of the City The City has operated under the Commission -City Manager form of government since 1921. The City Commission consists of five elected citizens, who are qualified voters in the City, one of whom serves as Mayor. The Commission acts as the governing body of the City with powers to enact ordinances, adopt resolutions and appoint a chief administrative officer known as the City Manager. The City Clerk and City Attorney, as well as members of the Planning Advisory Board, the Zoning Board, the City of Miami Health Facilities Authority and the Miami Sports and Exhibition Authority are also appointed by the City Commission. Members of the Off -Street Parking Board and the Downtown Development Authority are appointed by the respective Boards and ratified by the City Commission. City elections are held in November every two years on a non -partisan basis. In 1988 City voters approved extending the term of Mayor from two (2) to four (4) years. Candidates for Mayor must run as such and not for the City Commission in general. At each election two members of the City Commission are elected for four year terms. Thus, the City Commissioners' 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' annual budget and initiation of investiga- tive procedures. In addition, the City Manager takes appropriate action on all administrative matters. 1048'7' L Mayor and City Commissioners Xavier L Suarez was elected Mayor in November,1985, and re-elected in 1967 for two year terms. 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 Tew, Jorden, Shulte do Beasley. Mayor Suarez has actively served the Miami community for a number of years through participation on numerous advisory boards and committees. Rosario A. Kennedy was elected Commissioner in November,1985 for a four year term becoming the first Hispanic woman ever elected to the City Commission. She was elected Vice Mayor by the City Commission in November, 1987, for a one-year term. Vice Mayor Kennedy is a Vice President of Terremark, Inc., a Miami real estate development and investment firm. Vice Mayor Kennedy .has served on numerous business, civic and community boards, in leadership and membership capacities, in the Miami area. J.L Plummer, Jr. was appointed a Commissioner in October, 1970 and was elected Commissioner in November, 1971, and re-elected in 1975, 1979 and 1983 for 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 Board of Ahern -Plummer Funeral Homes, Miami, Florida. Miller J. Dawkins was elected Commissioner in November, 1981 and re-elected in 1995 for four year terms. Commissioner Dawkins is a graduate of Florida Memorial College and holds a Master of Science degree from the University of Northern Colorado. Commissioner Dawkins has been employed for over 17 years at Miami Dade Community College. Victor H. DeYurre was elected Commissioner in November, 1987, for a four-year term. Commis- sioner DeYurre 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 Law degree in Taxation from the School of Law of the University of Miami. Commissioner DeYurre has his own legal practice and has served on numerous advisory boards and committees in the Miami area. Administration of the City Cesar H. Odio was appointed City Manager, effective December 16,1985. Prior to his appointment to the top administrative position in the City, Mr. Odio served as Assistant City Manager for the City since January 1980. 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 appointed to the President's Task Force on Refugee Affairs. Mr. Odio has a Bachelor of Science degree in Public Administration from Florida Memorial College, Miami, Florida and majored in Business Administration at the University of Santo Tomas de Villanueva, Havana, Cuba. Carlos E. Garcia, Director of Finance since June 1980, 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 CPA's and of the Government Finance Officers' Association of the United States and Canada. Jorge L Fernandez, the City Attorney for the City of Miami, Florida, has been a member of the City Attorney's Office since 1982. Mr. Fernandez graduated from Calvin College with a degree in History and Education and received a Masters Degree in Administration and Supervision from Florida Intemational University. He received his J.D. degree from Wayne State University School of Law and is active in several professional and community organizations including the Florida Bar Local Government Law Section, the American Bar Associations's Urban, State and Local Government Law 9 1048 7' Section, the Natonal 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 college courses at Pasadena City College, University of California at Los Angeles, and Hunter College, New York. She attended specialized courses at Syracuse University and obtained the three-year Certified Municipal Clerk Certificate extended by that University. 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. Those services include public safety (police and fire), parks and recreational facilities, trash and garbage collection, street mainte- nance, 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, has a uniformed force of 1,035 and a full-time, permanent civilian component of 316. The Fire Department is rated as Class I and provides a full range of fire protection and emergency services as well as providing a full range of medical and rescue services. The City proAdes garbage and trash pickup 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 Public Facilities maintains and operates all City owned parks and administers various recreational and cultural programs associated with these facilities. Regional Government Services The following information and data concerning the County describes the regional government services the County provides for residents of the County, including residents of the City. The County is, in effect, a municipality with governmental powers effective upon the 27 cities in, and the unincorporated area of, the County. The County does not displace or replace the cities but supplements them. 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 County -wide police services which complement municipal police services within the municipalities, with direct access to the National Crime Information Center in Washington, D.C. and the Florida Crime Information Center; 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; a consolidated two-tier court system pursuant to the revision of Article V of the Florida Constitution which became effective on January 1, 1973; the development and operation of a County- wide water and sewer system; the coordination of the various surface transportation programs, including a consolidated public transportation system and a unified rapid transit system; operation of a central traffic control computer system; a combining of the public library system of the County and eighteen municipalities, which together operate the main library, seventeen branches and six mobile units servicing forty-four County -wide locations; centralization of the property appraiser and tax collector functions; the 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; 10 1.0487 the collection by the County Tax collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies, and the development of minimum acceptable standards adopted by the County Commissioners and enforceable throughout the County in such areas as environmental resources management, building and zoning, consumer protection, health, housing and welfare, 11 M .. • l- DEBT SUMMARY The information under this heading is subject in all respects to the more detailed financial information contained in the audited financial statements of the City. See Appendix A, "Financial Section of the Comprehensive Annual Financial Report (Financial Statements"). Payment of Bonds and Bond Election Requirement The Florida Constitution does not provide a limit on the amount of ad valorem taxes the City may Levy for the payment of voted bonds. however, pursuant to Article VII, Section 9 of the Florida Constitution, the City is limited to a maximum tax levy of 10 mills per $1.00 ($10 per $1,000) of the assessed value of real estate and tangible personal property for municipal purposes, other than for the payment of voted bonds. Ad valorem taxes levied for periods not exceeding two years and authorized by a vote of the electorate are excluded from such 10 mill limitation, Article VII, Section 12 of the Florida Constitution requires the approval of electors prior to the issuance of bonds payable from ad valorem taxes and maturing more than twelve months after issuance. The provision in Article 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 constitution providing for ad valorem taxation has been held valid and remains operative. Legal Debt Limitation 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 Cite 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, 1988 was $1,471,022,776, based on the net assessed valuation of $9,806,618,522. Outstanding general obligation debt applicable to the City's debt limitation as of September 30, 1988 totaled $187,350,000; which is approximately 1.9% of the net assessed valuation. Selected Debt Data The following several tables provide details of the City's principal and interest requirements of general obligation bonds, principal and interest requirements of revenue and special obligation bonds and overlapping Dade County debt. General Obligation Bonds Outstanding on September 30, 1988 Final Issue Maturity Amount Amount Gewnl Obligation Issue Date Year Issued Outstanding Refunding Sewage Disposal Bonds ............... 01-01-62 1990 14,565,000 1,180,000 Convention Center ............................. 05-01-69 1989 4,500,000 235,000 Fire Fighting Facilities .......................... 10-01-70 1990 1,000,000 100,000 Police Headquarters ............................ 10-01-70 1990 1,500,000 150,000 Pollution Control Facilities ...................... 10-01-70 1990 3,000,000 310,000 Sanitary Sewer ................................. 10-01-70 1990 7,000,000 290,000 Storm Sewer Improvement ................. I .... 02-01-71 1991 1,500,000 240,D00 Highway Improvement .......................... 09-01-71 1991 2,000,000 300,000 Sanitary Sewer ................................. 09-01-71 1991 5,DD0,000 330,000 12 10487 L Final IMUC Maturity Amount Amount General Obligation luuc Date Year Issued Outstanding Fire Fighting .................................. 06-01-72 1992 1,100,000 240,000 Sanitary Sewer ................................. 06-01-72 1992 5,000,000 320,000 Police Headquarters ............................ 06-01-72 1992 1,500,000 300,000 Storm Sewer Improvement ...................... W01-72 1992 3,000,000 620,000 Street and Highway improvement ................ 06-01-72 1992 2,000,000 190,000 Public Park and Recreational Facilities ........... 10-01-72 1997 28,350,000 10,595,000 Storm Sewer Improvement ...................... 09-01-73 1993 2,000,000 545,000 Police Headquarters ............................ 09-01-73 1993 4,000,000 1,100,000 Storm Sewer Improvement ...................... 03-01-75 1995 3,000,000 1,085,000 Police Headquarters ............................ 03-01-75 1995 6,000,000 2,905,000 Sanitay Sewer Bonds ........................... 10-01-75 1995 5,000,000 1,130,000 Pohce Headquarters ............................ 10-01-75 1995 2,000,000 735,000 Sanitary Sewer ................................. 05-01-77 1997 13,000,000 5,680,000 Fire Fighting .................................. 05-01-77 1997 5,000,000 2,350,000 Police Headquarters ............................ 05-01-77 1997 3,000,000 1,470,000 Storm Sewer Improvement ...................... 05-01-77 1997 2,000,000 950,000 Fire Fighting .................................. 12-01-77 1998 1,000,000 550,000 Public Park and Recreation Facilities ............. 12-01-77 2003 11,540,000 7,200,000 Housing ........................................ 12-01-77 2008 1,500,000 1,280,000 Street and Highway Improvement ................ 12-01-78 1998 51000,000 2,640,000 Sanitary Sewer ........................ ........ 12-01-78 1998 6,000,000 3,420,000 Fire Fighting, Prevention and Rescue Facilities .... 12-01-78 1998 2,250,000 1,290,000 Storm Sewer Improvement ...................... 12-01-78 1998 5,000,000 3,535,000 Fire Fighting, Prevention and Rescue Facilities.... 08-01-81 2001 1,750,000 1,185,000 Storm Sewer Improvement ...................... 08-01-81 2001 3,000,000 2,380,000 Housing ....................................... 08-01-81 2011 4,400,000 3,965,000 Fire Fighting, Prevention and Rescue Facilities.... 05-01-83 2003 8,000,000 6,820,000 Storm Sewer Improvement ...................... 05-01-83 2003 4,000,000 3,480,000 Sanitary Sewer ................................. 05-01-83 2003 6,000,000 4,700,000 Street and Highway Improvement ................ 05-01-83 2003 6,000,000 5,435,000 Housing ....................................... 05-01-83 2013 11000,000 940,000 Fire Fighting .................................. 04-01-65 2005 5,000,000 4,885,000 Sanitary Sewer ................................. 04-01-85 2005 8.000,000 7,530,000 Storm Sewer ................................... 04-01-85 2010 91000,000 8,770,000 Highway Improvement .......................... 04-01-85 2005 6,000,000 5,825,000 Police Headquarters ............................ 04-01-85 2005 5,000,000 4,785,000 Police Headquarters ............................ 06-01-86 2006 12,000,000 11,690,000 Storm Sewer ................................... MO1-86 2011 5,000,000 4,915,000 Sanitary Sewer ................................. W01-86 2006 3,000,000 3,000,000 Street and Highway ............................ 06-01-86 2006 2,000,000 2,000,000 General Obligation Refunding 1986 08-01-86 2014 38,355,000 35,755,000 Pollution Control Facilities ...................... 10-01-86 2006 4,000,000 3,790,000 Street and Highway Improvement ................ 10-01-86 2006 2,375,000 2,235,000 Police Headquarters ............................ 08-01.87 2007 1,50Q000 1,500,000 Sanitary Sewer ................................. 08-01-87 2007 2,500,000 2,500,000 Street and Highway Improvement ................ 08-01.87 2007 5,000,000 51000,000 Storm Sewer ................................... 08-01-87 2012 11000,000 11000,000 TOTAL......... ........................... $304,185,000 $18 7,350,000 13 IL048'71 Ceneral Obligation Bonded Indebtedness Principal and Interest Requirements as of September 30, 1988 Fiscal Year Ending ScVtcmbcr 30 1989............................................ 1990............................................ 1991............................................ 1992............................................ 1993............................................ 1994............................................ 1995............................................ 1996............................................ 1997............................................ 1996............................................ 1999... ,........................................ 2000............................................ 2001............................................ 2002............................................ 2003............................................ 2004............................................ 2005............................................ 2006............................................ 2007............................................ 2008............................................ 2009............................................ 2010............................................ 2011............................................ 2012) ............................................ 2013............................................ 2014............................................ 14 Requirements Princil2i Interest TotW $ 9,055,000 11,302,212 20,357,212 11,710,000 12,639,426 24,349,426 10,725,000 11,854,043 29;,043 11,285,000 11,050,913 22,335,913 10,585,000 10,246,708 20,831,708 10,475,000 9,453,136 19,926,136 10,750,000 8.757,552 19,507,552 10,590,000 8,075,332 18,665,332 10,635,000 7,379,780 18,014,780 9,785,000 6,660,710 16,445,710 8,945,000 5,977,177 14,922,177 8,235,000 5,311,547 13,546,547 8,765,000 4,630,153 13,395,153 8,820,000 3,956,514 12,776,514 9,290,000 3,246,639 12,536,639 7,510,000 2,511,192 10,021,192 7,010,000 1,902,649 8,912,649 5,230,000 1,440,595 6,670,595 3,740,000 1,110,300 4,850,300 2,680,000 842,265 3,522,265 2,620,000 668,115 31288,115 2,725,000 490,018 3,215,018 2,055,000 350,055 2,405,055 1,370,000 251,488 1,621,468 1,400,000 167,550 1,56 7,550 1,360.000 81,600 1,441,600 $187,350,000 $130.357,669 $317.707,669 104871 L Revenue and Special Obligation Bonds Outstanding on September 30, 1988 Final Special Obliption and Date of Maturity Amount Amount Revenue good Issue Imuc Your I"ucd _ Outstanding Warehouse Property Revenue Bonds(l) .......................... 12-20-74 1989 225,000 43,000 Special Revenue Refunding Bonds, Series 1987(2) ............. 02-19-88 2015 65271,325 65,271,325 Special Obligation Bonds(3) ................... 07-01-85 2008 13,720,000 13,365,000 Miami Sports and Exhibition Authority Floating/ Fixed Rate Special Obligation Bond Series 1985(4) ......... ........ ............... 12-26-85 2015 38,000,000 38,000,000 Miami Sports and Exhibition Authority Subordinate Obligation Note(5) .............. 12-26-85 1995 10,000,000 8,750,000 Parking System Revenue Bonds Series 1986(6) ........................ 07-01-86 2009 16,275,000 15,870,000 Housing Special Obligation Bonds(7) ........... 10-01-86 2006 4,290,000 4,085,000 Parking System Subordinate Revenue Bonds(8) .. Various 2006 515001000 5,500,000 Sunshine State Governmental Financing Commission Loans(9) ....................... Various 2015 27,630,900 27,243,900 Total ................................ $180,912,225 $178.128,225 (1) Rental income from the lease of the warehouse facilities provides debt service on the bonds. (2) Debt service is provided by net revenues of the Convention Center -Garage, a pledge of certain public service tax revenues, and by a covenant of the City to provide, to the extent necessary, revenues of the City, other than ad valorem property tax revenues, sufficient to make up any deficiency in the required sinking fund. See Note 8 in Appendix A, "Financial Statements." (3) These Special Obligation Bonds are payable from the net revenues of the Government Center Parking Carage and certain non ad valorem revenues of the City. See Note 8 in Appendix A, "Financial Statements." (4) The Floating/Fixed Rate Bonds are limited obligations of the Miami Sports and Exhibition Authority payable solely from and secured by a pledge of (i) one -thud of the net tax revenues from the convention development tax levied and collected in the County; (ii) investment earnings on certain monies deposited in certain trust funds, and (iii) from the date of the original issuance of such bonds through December 30,1990 (except upon the earlier occurrence of certain events), funds drawn under a letter of credit, in an amount equal to principal plus 55 days interest at 12% per annum. See Note 8 in Appendix A, "Financial Statements." (5) Simultaneously with the issuance of the Miami Sports and Exhibition Authority Floating/Fixed Rate Bonds, a Note Purchase Agreement was entered into for a $10,000,000 Subordinated Obligation Note, Series 1985, secured by a subordinate pledge of the one-third of the net tax revenues from the convention development tax. See Note 8 in Appendix A, "Financial Statements." (6) Secured by a pledge of the net revenues of the off-street parking facilities and the on -street parking meters of the City. See Note 8 in Appendix A, "Financial Statements." (7) These Special Obligation Bonds are payable from a portion of the franchise fee collected from Southern BeU Telephone & Telegraph Company in relation to the construction, operation and maintenance of telephone and telegraph lines within the City. See Note 8 in .Appendix A, "Financial Statements." (8) These Bonds are secured by subordinate pledges of the net revenues of the off-street parking facilities and the on street meters of the City. (9) The proceeds from these loans are intended to finance parks and marina improvements, and the renovation of the Gusman Cultural Center/Olympia Building. The City has pledged certain revenues and made a covenant to budget and appropriate from non -ad valorem revenues to pay debt service. See Note 8 in Appendix A, "Financial Statements." 15 104®i- Revenue Bonds and Special Obligation Bonds Principal and Interest Requirements (1) As of September 30, 1988 >PWW eve so t4evesro nnal Warebews 11GUA 095treet M. IL& MAXA. Year Bo.dsa heperly specW S hc.,Aj, M. Sy. SpeeW %bordinase � Endia� Serleo Oblisatbe Reveve obll�Ilor Pk. Sys. Revenue Ob ijflos dbhpiloo Slate Wm(2) TeW T*W IMereM Sept 3� 198T dons Bonds Bondi Nev. Beads Bands Bandsi!L Note(!L Prtnr 19....... O 41- i 2M.000 1 21.000 $ 130.000 1 -0- 1 336.000 { -0• $1.250.000 1 405,000 1 1,011,000 $ 10,836.50 $ 1990...... 1,570,009 285.000 22.000 135,000 3,500.000 345,000 4 1,250,000 449,000 71536.000 10,552,M 1991...... 2.080,000 310,000 140.000 370,000 WOOD 1,250,000 434,000 5,184,173 10.164,130 1992...... 2.480,000 335.000 MAN 385.000 645,000 1,250.000 611.900 5,836,999 91844,184 1993...... 1,990.000 360,000 160,000 415,000 690,000 1,250.000 051.000 6.506.000 9,49tew 1904...... 3,100.000 390.000 170,000 440.000 735.000 1,250,000 M.000 G.M7,000 9,00t,787 1995...... 3.358.000 425,000 180,000 465.000 795,000 1.250.000 729.000 7,189.162 8,642,327 19"...... 070.000 465,000 190,000 500,000 845,000 773,000 4,343.000 5.168.2% 1997...... 3.805.000 510,000 200,000 535.000 900,000 820,000 6.T70,000 7,731.9" 1998...... 4,065.000 560.000 215.000 575,000 965,000 969.009 7.249.000 7354.292 1999...... 4.345.000 610.000 230,000 620.0()0 1,030,000 994,000 7.759.000 6,734.M 2000...... 4,Bwow 665,000 250.000 66,5.000 1,105,000 918,000 8,323,000 6,172,150 2001.... , , 4,755,000 270.000 715.000 1.180.000 1.034,000 7.954.000 5,6G3,076 2002...... 5.110,000 290.000 775.000 1,265,000 1,096,000 8,538,000 3,026.433 2003...... 5.490,000 310.000 83s).Wo 1,355,000 1,165,000 9.155,000 4.407.553 2004...... 1.8111064 31355.000 330.000 895,000 1,450,000 1.235,000 9.W6,064 7.901,056 2005...... 1.653,629 355.000 970,000 1,R50,000 10308,000 5.936.829 7,631,224 2006...... 1,520,311 380,000 2,000,000 1,040,OW 1,fi55,000 1,390,000 7.985.371 7.509,021 2001...... 1,396,353 1,115,000 1,775.000 1,410,000 5.750,35.7 7.190.689 2008...... 1,290,099 4,830,000 1,200,000 1,900.000 1.50,000 10.rM'099 6.810,912 2009...... 1,150,358 1,290.000 2.030,000 1,652,000 6,122,358 6,423.177 2010...... 1,063,229 1,390,000 2,175,000 1,751,000 6,379.220 6,183,227 2011...... 963.410 2,325.000 1,859,000 5.167.410 6,020.858 2012.1.... 10.615 2,485,000 1,966,000 5.316.815 5.614,M 2013...... 801,230 2,660,000 445.000 3.906,230 5.417.307 2014...... 731.160 2,850,000 475,000 4.056,160 5,228,376 201.1.1.... 629,407 3,045.000 500,000 4,174.407 4,148,243 Total ... $01,271.325 $13,365 0000 to 43.000 $4,085,000 $5.500,000 $15,870,000 $38,000,000 $8,7%.000 $27.243.900 $178.128,225 $196,4.70,008 t (1) Amounts presented are on a budgetary basis, in that payments due on October 1 are included in prior fiscal year requirement. (2) The variable interest rate with respect to this obligation has been assumed at the rate of 6% per annum. L Net Direct and Overlapping Debt as of September 30, 1987(1) (Amounts rounded to nearest thousands) General srl Obligation Obligation Combined Debt (Net) Debt (Not) (1) Debt City of Miami ....................................... $195,578,000 $129,592,000 $325,170,000 Dade County(3) (4) (5) ............................... 102,597,000 59,220,000 161,817,000 Totals ...................................... $298,175,000 $188,812,000 $486,987,000 (1) September 30, 1987 information provided since September 30, 1988 Dade County figures on overlapping debt not available. (2) Special obligation debt is payable from revenue sources other than ad valorem taxes and includes special obligation bonds and revenue bonds. (3) Excludes $86,600,000 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. (4) As of September 30, 1987, Dade County's total General Obligation Debt was $541,887,000, its total Special Obligation Debt was $311,685,000, and its total Combined Debt was $853,572,000. Figures shown are the City's share of Dade County's Debt based on assessed valuation, which is 19% of the County total. (5) The issuance of $980,000,000 of general obligation bonds by the School Board of Dade County was approved by referendum on March 8, 1986. None of such bonds have as yet been issued. 0 17 10487, Debt Statistics and Various Debt Ratios The following tables detail the City's debt statistics and significant comparative ratios of debt to population and to the City's tax base. Debt Ratios of the City of Miami September 30, 1987 (1) Factors: Net Assessed Value(2)................................................... $10,420,611,000 Net Taxable Assessed Valuation for Operating Purposes ..................... $ 9,487,611,000 City of Miami Debt, Net of Reserve Funds General Obligation ....................................... $195,578,000 Special Obligation (3)..................................... 129,592,000 Combined Direct Debt ................................. $ 325,170,000 Overlapping Debt, Net of Reserve Funds(4) General Obligation ....................................... $102,597,000 Special Obligation ........................................ 59,220.000 Combined Net Overlapping Debt ............................ $ 161,817,000 Total Net Direct and Net Overlapping Debt .................. $ 486,987,000 Population of Miami(5)..................................... 368,210 Assessed Valuation Per Capita ............................... $ 28,300 Net Taxable Assessed Valuation Per Capita ................... $ 25,766 Debt Ratios: Net Direct General Obligation Debt as a Percent of Taxable Assessed Valuation ......................................... 2.067% Combined Net Direct and Overlapping General Obligation Debt as Percent of Taxable Assessed Valuation ................... 3.1% Net Direct General Obligation Debt Per Capita ............... $ 531.15 Combined Net Direct General and Special Obligation Debt per Capita..................... ............................ $ 883.11 Combined Net Direct and Overlapping General Obligation Debt perCapita ............................................... $ 809.79 Combined Net Direct and Overlapping General and Special Obligation Debt Per Capita ............................... $ 1,322.57 (1) September 30, 1987 information provided since September 30, 1988 Dade County information is not available. (2) Assessed valuation as of the final tax roU, using 100% of assessed values as mandated by Florida law, excluding exempt governmental properties. (3) Special obligation debt includes special obligation bonds as well as revenue bonds payable from revenue sources other than ad valorem taxes. (4) Based upon the City's share of Dade County's Real and personal property, which is 19% of the County total. (5) The 1987 estimate was provided by the State of Florida, Division of Population, Bureau of Business and Economic Research, University of Florida. 18 1048`7' L Ratio of Net General Bonded Debt to Net Assessed Value and Net General Obligation Bonded Debt Per Capita ($ in thousands) Ratio of Net General Net General Obligation Obligation Net Not Bonded Debt Bonded Auened Homestead Assessed General to Net Assessed Debt Per Sept 30, hfulation Value Etemption Value Obligation Value Capita 1987..... 368,2100) $10,420,611 $933,000 $9,487,611 $195,578 2.06% $531.15 1986 ..... 371,9750) 10,184,933 953,516 9,231,417 190,697 L07 512.66 1985..... 380,4460) 9,696,610 952,430 8,744,180 170,087 1.95 447.07 1964 ..... 383,0270) 9,346,033 954,979 8,391,054 146,102 1.74 381.44 1983..... 382,726(2) 8,659,281 920,895 7,738,386 124,955 1.61 326.49 1982..... 382,726(2) 7,962,129 750,665 7,211,464 109,398 1.52 285.84 1981..... 399,995(3) 6,622,365 564,238 6,058,127 118,038 1.95 295.09 1980..... 346,865(3) 4,565,780 197,311 4,368,469 123,020 2.82 354.66 1979..... 345.000(4) 4,227,175 196,708 4,030,467 134,786 3.34 390.68 1976 ..... 345,000(4) 4,023,897 195,664 3,828,183 128,089 3.35 371.27 (1) Based on population estimates 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, 1982 population estimate used by the Office of Revenue Sharing of the Federal Government. (3) The City was involved in litigation with the Federal Census Bureau challenging the 346,865 population count of 1980; as a result, during 1981 the population count was adjusted upward to 399,995 for Federal Revenue Sharing purposes. (4) Estimated by the City on the basis of added electric and water connections and new dwelling units constructed. General Obligation Bonds Authorized But Not Issued The following table outlines the date, type and amounts of general obligation bonds authorized but not issued as of September 30, 1968. Date of Previously Current Balance Voters approval Type of Debt Authorized Issued Iasuc Unissued October 7, 1980 ...... Sanitary Sewers $ 45,000,000 $10,500,000 $ 5,000,000 $29,500,000 October 7, 1980 ...... Streets & Highways 30,000,000 26,100,000 3,900,000 -0- November 3, 1981 .... Fire Fighting 21,000,000 15,000,000 3,000,000 3,000,000 March 13, 1984 ....... Storm Sewers 30,000,000 15,000,000 5,000,000 10,000,000 March 13, 1984 ....... Police Facilities 201000,000 18,500,000 1,500,000 -0- Totals ........... $146,000,000 $85,100,000 $18,400,000 $42,500,000 Proposed Issues of Debt Securities The City Commission has authorized the issuance of taxable revenue bonds in an amount not to exceed $30,000,000 to finance the acquisition, construction and development of an office building to be owned by the City and leased to the United States General Services Administration. Bonds are expected to be sold in 1989. Bond elections have been authorized by the City Commission to be held on October 4, 1988, with respect to the issuance of not to exceed $80,000,000 General Obligation Bonds for the purpose of purchasing or constructing a major league baseball stadium and related facilities, and on November 8, 19 10487- 1988, with respect to the issuance of $35,000,000 Street and Highway Improvement Bonds and $10,000,000 Waterfront Improvement Bonds. Capital Improvement Plan The City's Capital Improvement Ordinance has identified ongoing and future projects totaling $231,698,000. Major emphasis is placed on maintaining and expanding the City's infrastructure. The Sreater number of projects are directed to street and sewer improvements, park facilities and police and fire support. The community redevelopment projects are designed to assist in neighborhood revitalization and 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 -Street Parking and the Miami Sports and Exhibition Authority: nmetio" Category Amount Housing Programs .......................................... $ 15,398,000 Street Improvements ........................................ 38,612,000 Parks Facilities ............................................. 35,752,000 Storm Sewers .. .......................................... 11,299,000 Community Redevelopment ................................. 25,824,000 Sanitary Sewers ............................................ 28,617,000 Police..................................................... 15,583,000 Fire....................................................... 13,553,000 Marinas................................................... 17,024,000 Solid Waste ................................................ 1,824,000 Auditorium ................................................ 930,000 Stadiums .................................................. 3,047,000 Economic Development ..................................... 7,842,000 General Government ....................................... 16,375.000 Total Capital Improvement Programs ................. $231,698.000 Proposed Sources of Funding: City: General Obligation Bonds ................................. $134,151,000 Revenue and Special Obligation Bonds ..................... 25,722,000 Interest earnings and other ................................ 35,048,000 194,921,000 Non -City: Federal Grants ........................................... 31,453,000 StateGrants ............................................. 2,512,000 Private Developer Contribution ............................ 2,812,000 Total Funding ...................................... $231,698,000 Leases and Other Commitments The City has entered into several agreements running until 1989 for the lease -purchase of various copying, word processing and data processing equipment with total future payments amounting to approximately $1.6 million, the majority of which is payable within one year. The City maintains a Self -Insurance Expendable Trust Fund to administer 'insurance activities relating to certain property and liability risks, group accident and health and workers' compensation. Charges to participating operating departments are based upon amounts determined by management to be necessary to meet the required annual payouts during the fiscal year. The estimated liability for insurance claims include the estimated future liability on a case -by -case basis for all pending claims 20 10487 L and an actuarially 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 -Term Debt account group and amounted to approximately $31,593,000 as of September 30, 1987. In 1986, the City issued $16,175,000 Certificates of Participation to finance the acquisition of police vehicles, Beet vehicles and heavy equipment through August 1, 1989, of which $11,740,000 were outstanding as of September 30, 1968, maturing as follows: Principal Dstc of Maturity Amount September 1,1989 ............................... $2,250,000 September 1, 1990 ............................... 11915,000 September 1,1991 ............................... 2,335,000 September 1,1992 ............................... 5,240,000 21 IL0487 ADDITIONAL FINANCIAL INFORMATION RELATING TO THE CITY OF MIAhiI General Description of Financial Practices The City Charter requires the City Manager to submit a budget estimate not 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. 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. The financial statements of the City are audited annually by a firm of independent certified public accountants, presently Coopers & Lybrand. The opinion of the independent certified public accountants is included in Appendix A, "Comprehensive Annual Financial Report (Financial Statements)". The following table presents certain financial information of the City. See Appendix A, "Compre- hensive Annual Financial Report (Financial Statements)" for audited financial statements of the City for the fiscal year ended September 30, 1987. The City is at this time in the process of closing its accounting records for the year ended September 30, 1988, therefore, results of operations for that year are not yet available. 22 10487 Summary of Revenues, Expenditures and Year -End Fund Balances General Fund (Budgetary Basis) and General Obligation Debt Service Fund Fiscal Years Ended September 30 sAct 1ct987 (1) sumet l Actuid(2) General Fund: Revenues and Other FLancin` Sources ......... 6188,852,359 $178,121,348 Expenditures and Other Uses IK352,359 184,621,348 8acess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Uses ..................... 0 (3,S00,000)(1) $ (6AW.000)(1) Year -End Fund Balance ...... General Obligation Debt Service Fund Revenues ................. i 26,094,419 Expenditures and Other Uses ................... 16,094,419 Excess (Deficiency) of Revenues Over Expenditures and Other Uses ................... i -a Year -End Fund Balance ...... $ 24,380,181 26,380.181 1184,262,000 186,371,000 Actual Actual Actual 1189,103,349 $186,880,355 $167,965,786 169,80,504 181,467,001 167,556,050 i (2,109,000) to (743,155) i 5,413,354 i 409,736 0 10,226,000 (3) (4) $ 12,143,011 (5) i 12,538,787 (6) i 7,378,6 79 (7 ) i 25,910,000 i 23,215.358 8 21,52,813 $ 17,048,598 25,816.000 24,090,2.M 22,567,544 17,565,047 8 (2,000,000)(1) 3 94,000 i (874,898) i (994,731) i (516,449) 1 3,772,000 (4) $ 3,678,478 i 4.553,376 i 5,548,107 (1) State statutes require that budget be balanced. Budgeted deficits are covered by appropriate fund balances. (2) The Solid Waste and Building & Zoning Departments became enterprise funds in 1987, therefore, their related revenues and expenditures are reflected in the appropriate funds. In 1987, the General Fund subsidized the Solid Waste operations by $16,031,000 and the Building and Zoning operations by $782,000. Budgeted subsidies for 1986 and 1989 amount to $11,409,000 and $14,054,000, respectively, for the Solid Waste Department and $1,189,000 and $700,000, respectively, for the Building and Zoning Department. (3) Adjustments for net equity transfers from other funds increased fund balance by $192,000. (4) Figures rounded to the nearest thousand. (5) Adjustments for net equity transfers from other funds increased fund balance by $347,379. (6) Adjustments for net equity transfers to other funds decreased fund balance by $253,246. (7) Adjustments for net equity transfers to other funds and accumulated compensated absences decreased fund balance by $1,285,692. 23 JL04N7 L- Description of Revenues The following is a description of the City's revenue structure. General Fund Prop" Taxes — Article VII, 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 $1.00 ($10 per $1,000) of assessed valuation upon real estate and tangible personal property having a sites within the taxing city, when the tax is being imposed to generate monies for municipal purposes. Both Dade County and the City tax real and tangible personal properties within the City. Dade County and 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 Tares - These taxes are deposited in the Milities Service Tax Debt Service Fund, as explained in page 14of this Official Statement. Substantial excess monies available after the payment of various debt service requirements are transferred to 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 lit Light Company for a 30-year period, with an estimated revenue of $11.5 million in fiscal year 1988. Local Option Gas Tax - This is a tax levied on the sale of gasoline. The funds generated are to be used for street and highway maintenance. This tax was originated in 1984 and was recorded in 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, which are collected only by the Dade County Tax Collector. There is a set contractors' fee for all contractors within the County. After collection, Dade County returns to the cities its pro rata share of revenue collected. The pro rata share due each city depends on the number of contractors doing business within each city's limits. Federal Revenue Sharing - The revenues derived from the Federal government were appropriated by the Commission to support general fund operations, including a limited number of social service programs. The Federal government discontinued this program in 1986. State Revenue Sharing —The revenues distributed to the municipalities by the State of Florida under the State's revenue sharing program are derived from a percentage of its collection of the State cigarette tax, the State motor fuel tax and the State road tax. Saks Taxes — The State of Florida levies a 6 percent sales tax. A portion of this tax, one half of one percent of the 6 percent levied, is shared by municipalities based on their population. Solid Waste Fee —Since 1980, the City has levied a solid waste fee which was recorded in the General Fund through 1986. The rate of such fee may increase by action of the City Commission. There are no legal restrictions on the amount of increase. The present rate is $160 per year for residential units and a graduated rate structure for non-residential units. Effective in 1987, Solid Waste fees are accounted for in a separate enterprise fund. The City's General Fund receives revenues from a variety of sources. The following table lists the revenues received by the City from these sources for the past five fiscal years. Certain financing sources presented as "Operating Transfers In" in Appendix A, "Comprehensive Annual Financial Report (Financial Statements)" are reclassified in this table according to their sources of origin. 24 104W General Fund Revenues and Other Financing Sources ($ in thousands) Taxes: Property Taxes .......................... Utihties Service Taxes ................... Franchise Taxes ......................... Licenses and Permits: Occupational Licenses ................... Permits................................ Intergovernmental: Federal Revenue Sharing ................ StateRevenue Sharing ................... SalesTaxes ............................. OtherGrants ........................... Intergovernmental ......................... Charges for Services: SolidWaste Fees ........................ Other Fees ........................... 1967 1986 Im 19&1 1993 = 90,886 $ 88,138 $ 84,209 $ 78,966 $ 67,619 23,756 17,917 17,563 22,301 21,648 17,066 18,593 16,073 4,885 5,703 131,708 124,648 117,845 106,154 94,970 4,277 4,097 3,954 3,982 3,874 1,805 1,919 2,087 1,871 1,414 6,082 6,016 6,041 5,853 5488 -0- 0) 7,149 8,921 9,987 9,267 11,466 11,099 11,962 11,715 12,298 12,957 10,994 11,355 10,634 9,478 3,442 3,153 5,952 3,178 4,242 27,865 32,395 38,190 35,514 35,285 5.152 3,013 2,799 2.687 2,483 -0- (2) 13,747 12,994 7,735 7,867 1,974 4,663 4,640 4,412 3,627 1,974 18,410 17,634 * 12.147 11,494 Other Revenues and Financing Sources ................................ 11,481(3) 4.621 4,371 5,611 4.446 Total ............................. $184,262 $189103 $166.680 $167,966 $153,966 (1) Federal Revenue Program was discontinued by the Federal Government in 1966. (2) Revenues for Solid Waste and Building & Zoning Departments are now recorded in respective enterprise funds. (3) Includes non -recurring transfers from other funds amounting to approximately $7.9 million. Special Revenue Funds Downtoum Development Authority - This Authority assesses a separate millage rate to property in the Central Business District. Rescue Services - This fund accounts for a portion of the telephone franchise tax especially designated by the electorate to provide additional rescue services. Community Development and Grant Funds - Community Development Block Grants and other grants are designated for specific purposes approved by the applicable Federal agency. Cable T.V. -This fund accounts for revenues from the Cable T.V. license and its specific uses. Miami Sports 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. 25 i048 7 I Law Enforcement Fund —Accounts for confiscated moneys awarded to the City under State statutes to be used for law enforcement related expenses. Debt Service Funds Property Taxes — The City Charter authorizes a separate levy of ad valorem taxes to pay interest and principal on general obligation bonds. State statutes empower municipalities to levy ad valorem taxes as necessary to fund general obligation debt service. Utilities Service Taxes —The City imposes Public Service Taxes of 10% on each purchase of electricity, metered gas, bottled gas and water and 7% on telecommunications services. Revenue funds annual debt service of approximately $160,000 on Utilities Service Tax Bonds. In addition, this revenue source is partially pledged as an additional resource for debt service requirements for the Special Revenue Refunding Bonds, Series 1967 and the Special Obligation Bonds, Series 1985. These pledges amounted to approximately $14.9 million in 1987. Excess monies available after the payment of debt service requirements revert to the general fund. Convention Development Tax — The City's portion of the 3% Convention Development Tax is used primarily to provide funding for debt service for the outstanding $38,000,000 M.S.E.A. Floating/Fixed Rate Bonds and the $10,000,000 M.S.E.A. Subordinate Obligation Note. Assessment Lien Collections — Property owners abutting certain capital project improvements are assessed a portion of the cost of such improvements. These collections are pledged to general obligations bonds debt service, since general obligation bond proceeds were originally used to finance these improvements. Housing Special Obligation Bonds - A portion of the collection of telephone franchise taxes are transferred from the General Fund as pledged for the repayment of the outstanding $4,085,000 Housing Special Obligation Bonds, Enterprise Funds Revenues for these funds are primarily generated by user fees and charges. Certain facilities are subsidized by the City's general fund and other discretionary funds. Enterprise facilities include: Orange Bou;I Stadium - Primarily used for football games, the stadium has served as the home to the University of Miami Hurricanes. Miami Stadium -This baseball stadium is used for training by the Baltimore Orioles. 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, currently undergoing expansion and renovation. Warehoum Property - This property has a lease with the Orange Bowl Committee and is used to build Boats and other festival -related equipment. Golf Courses —The two City -owned and operated golf courses are used year round by local residents and tourists. Auditorium - The Coconut Grove Exhibition Center is a favorite of local exhibitors and hosts conventions jointly with the City's Convention Center. 26 10,48'i t 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 stop the garage. Department of Off -Street Parking — The Department runs five parking garages in the City as well as on -street meters and off-street lots, with a total of over 18,900 parking spaces. Pnaperty and Lean Management — This fund accounts for the rent and lease of city -owned property by private entities. Governmental Center Parking Garage — This 1,100 car garage serves the Government Center, and in particular the Cultural Center complex. C60 Enterprise Fund — The operations of the Cussman Center for the Performing Arts and the Olympia Building are accounted for in this fund. Building and Zoning — This department provides zoning and building permit services, and ensures that the South Florida building code is enforced. Solid Waste — The collection and disposal of solid waste are accounted for in this fund. 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: City Garage Fund — For purchases and maintenance of all heavy equipment used by the City. Communication Services Fund — For the maintenance of communications and data processing equipment. Motor Pool Fund — For purchases and maintenance of the automobile Beet. Print Shop Fund — For all of the City's 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 Real and personal property valuations are determined each year as of January 1 by the Dade County Assessor of Property at 100% of market value. A notice is mailed to each property owner indicating the property valuation. The property owner has the right to file an appeal with the Dade County Clerk of the Board of Tax Adjustment if such property valuation as determined by the property appraiser is inconsistent with that as determined by the property owner. All appeals of such valuation determinations are heard by the Dade County Board of Equalization. The Board certifies the assessment roll upon completion of the hearing of all appeals so filed. AU taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roU is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rate of four percent if paid in the month of November, three percent if paid in the month of December, two percent if paid in the month of January and one percent if paid in the month of February. Taxes paid during the month of March are without discount. Taxpayers also have the option of paying their taxes in equal quarterly payments based on the prior years' tax assessment with a six percent discount with the June 30th payment, four percent discount with the September 30th payment, two percent discount plus one-half of any adjustments required to bring tax payments to current year's tax assessments, discounted at three percent with the December 31 payment and no discount plus one-half of any such adjustments with the March 31st payment. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the 27 1 • i City of Miami by Dade 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 Schedules and Tables The following tables present detailed information pertaining to the City's assessed property valuations, tax levies and collections and the City's ten largest tax assessments. The assessed value of taxable property in the City together with real property value assessed, personal property assessed value, and homestead exemptions in the current and each of the last ten completed fiscal years is detailed below. Assessed Value of All Taxable Property Fiscal Year Ended September 30 Fiscal Rc,J Pcrso" Gross Homestead Net Year Proms Property Total Exemptions Total 1967............ $9210,476,000 $1210,435,000 $10,420,911,000 $933,300,000 $9,487,611,000 1966............ 8,979,226,000 1,205,707,000 10,184,933,000 953,516,000 9,231,417,000 1985............ 8,536,398,000 1,158212,000 9,696,610,000 952,430,000 8,744,180,000 1964............ 8,..30,309,000 1,115,724,000 9,346,033,000 954,979,000 8,391,054,000 1983............ 7,616,829,000 1,042,452,000 8,659,281,000 920,895,000 7,738,386,000 1982............ 6,976,847,000 985A2,000 7,962,129,000 750,665,000 7,211,464,000 1981 ............ 5,748,550,0000) 873,815,000 6,622,365,000 564,238,000 6,058,127,000 1980............ 3,743,051,244 822,728,511 4,565,779,755 197,310,871 4,368,468,884 1979............ 3,420,381,422 806,793,605 42227,175,027 196,708,033 4,030,466,994 1978............ 3279,667,236 744,179,862 4,023,847,098 195,664,076 3,828,183,022 (1) The increase in assessed value of real property in fiscal year 1981 is largely due to a change in Florida law requiring that property be assessed at 100% of actual value. The following table lists the ten largest tax assessments in the City of Miami. Ten Largest Property Tax Assessments in the City of Miami 1987 Assessed Values 1. Southern Bell Telephone & Telegraph 2. City National Bank 3. Equitable Insurance Company 4. Southeast Bank 5. Florida Power do Light Co, 6. Chopin Associates 7. Xnight Ridder Newspapers 8. Mayfair 9. Brickell Associates 10. One Biscayne Tower Source: Dade County Property Appraiser. 28 Utility Office Building Office Building Bank/Office Building Utility Office Building Newspaper/ Publishing Hotel/Shopping Center Office Building Office Building $250,832,000 246,265,000 225,076,000 142,216,000 131,704,000 106,091,000 85,350,000 74,331,000 68,406,000 62,687,000 IL04 7 L The City has levied certified millages of 11.8219 mills for fiscal year 1987-1988 beginning October 1, 1987, consisting of 9.6995 mills general government and 2.2224 mills for debt service. and of 11.9376 mills for fiscal year 1988-89 beginning October 1.1988, consisting of 9.1 mills for general government and 2.3,381 mills for debt service. The following table shows lice tax levies and collections of the City for eacl the last ten completed fiscal years. Ta: Levies and Collections Fiscal Years Ended September 30 Tad TOW De+ti at 'fax CAlsocttowr of Cone i ereeat of Gllectioa cAleetloae of To'-d 0Percent Osbiaaiiat Taxes As Fe c eat f' Mii Find hour Year All Fe (t) years Taxes l.ery Collected Deliogrcat Tax of Current TUC% Collecoom ^lx.L� Ddi Tun t of Current lR+ry (.+Nral Fund r- se1- t3 1987.. $116,612,000 $111,740,000 95.82% 41,606,000 f 1 t2,346,000 97.20% $2,894,000 2.48% 9.8400% 2. _ 1986 .. 109,9 38,000 105,457,000 95.92 944,000 106.401.000 96.83 3,318,000 3.01 9.8571 21 1985.. 104,135,000 100,976,000 96.97 722,000(3) 101,698,000 97.66 3,970,000 3.81 9.8571 2 i 1984.. 93,340,000 88,982,000 95.33 3,036,000 92,018.000 98.58 3,367,000 3.61 9.5.514 L 1983.. 83.025,000 78,815,000 96.38 1,209,000 80,024,000 96.93 2,925,000 3.52 9.0610 1: 1982.. 76,903,000 74,040.000 96.28 1,067,000 75,107,000 97.66 2,489,000 3.24 8.9470 V- 1981 .. 72,619,000 70,288,000 96.79 437,000 70,725,000 97.39 2,027,000 2.79 9.0360 2 1980.. 60,983,826 58,789,796 96.40 307,659 59,097,455 96.91 1,939,430 2.23 10.0000 3.' 1979.. 58.399,375 57.325.287 98.18 430,947 57,756,234 98.92 1,559,360 2.67 10.0000 4.- 1978.. 50,532,016 49,095,263 97.16 523,373 49,618,636 98.19 3,195,919 6.49 10.0000 3.` (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's delinquent tax collections are included with collection of current year's taxes. For years pri• 1985, collection of delinquent taxes included both current year and prior year's delinquent tax collections. Labor Relations The City Manager's Office has it professional labor relations staff dedicated solely to labor negotiations and labor contract administration. The City has entered into new contracts with the International Association of Firefighters (I.A.F.F.) Local 587, the Sanitation Employees Association (S.E.A.) and the Fraternal Order of Police (F.O.P.) Lodge 20 and the American Federation of the State, County and Municipal Employees (A.F.S.C.M.E.) Local 1907. The contracts with the S.E.A. and the F.O.P. expire on September 30,1989, and the contracts with the I.A.F.F. and the A.F.S.C.M.E. expire on September 30, 1990. Pension Trust Funds The City has two separate pension funds, The City of Miami Fire Fighters' and Police Officers' Retirement Trust ("FIPO"), and The City of Miami General Employees' and Sanitation Employees Retirement Trust ("GESE"). The actuary for GESE is Compensation & Capital, Inc., Chicago, Illinois. For FIPO, the actuary is Stanley, Holcombe and Associates, Inc. Both firms were selected indepen- dently by the Boards of Trustees. Additionally, the actuarial firm of Edward H. Friend be Co., a Division of Johnson and Higgins of Washington, D.C., assists the City in pension related issues. In 1965, the City approved the Gates Settlement which settled litigation with the Pension Boards of Trustees for FIFO and GESE. The Gates Settlement, among other things, provides for annual unfunded liability contributions by the City to FIPO and GESE, on a schedule that called for payments with respect to FIFO of $5,000,000 and with respect to GESE of $6,400,000 for Fiscal Year 1984/1985, 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, 1963 and $108,954,000 for GESE as of October 1, 1982, establishing the basis for the contributions schedule. The currently existing unfunded liability balances are currently scheduled to be eliminated by the year 2010 for FIPO and by the year 2008 for GESE. A detailed discussion of the pension trusts, including the Gates Settlement and the principal actuarial assumptions with respect to GESE and FIPO is contained in Appendix A, Note 15 to the "FINANCIAL STATEMENTS." The dispute between the City and the FIPO Board of Trustees related to the 1987 City contribution, explained in Note 15 of the "FINANCIAL STATEMENTS" is now resolved. Self Insurance A Charter Amendment was approved by the electorate in 1971, 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 a Self -Insurance Committee, appointed by the City Manager to administer the Plan. The City is self -insured for most casualty exposures with the 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 exposures at the Miami Convention Center, Dinner Key Marina, and fidelity bonds on all 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 768.28, which waives sovereign immunity in torts claims to the extent of such amounts. See Appendix A "Financial Statements," Note 13 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 30 10487 I groups. The City also offers these groups of employees the choice between the indemnity group benefit and a 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. 31 10487 L b11, %P w1ww11 f,MJ. W1.11� ,R wlVu\.w 1M/ JJV•{VMI I I � ECONOMIC AND DEMOGRAPHIC DATA Introduction and Recent Developments Miami's diversified economic base is comprised of light manufacturing, trade, commerce, whole - ale and retail trade, and tourism. While the City's share of Florida's tourist trade remains an important economic force, the great gains Miami has made in the areas of banking, international business, real estate and transhipment have fortified the economic base. Major capital improvements have allowed the area to accommodate and foster this 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 1961. 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 a $1.0 billion expansion program. A seven story 2,300 space parking structure, directly across from the main terminal, was completed in 1984. An elevated pedestrian sky bridge, opened in early 1965, connects the parking structure to the main terminal. Other projects include the construction of a direct connector road to the airport expressway, a cargo tunnel and the Cargo Clearance Center which centralizes all cargo related federal agencies. Expansion and modernization of passenger gate areas continues to accommodate the increase in domestic and international passenger traffic, Downtown Miami continued to grow during 1987 with estimated development costs of approxi- mately $335 million. Included among these projects are new office buildings and retail stores that will provide approximately 1.56 million square feet of additional Downtown space. 1987 Downtown Construction Office Space ................................ 1,323,000 sq. ft. Retail Space ................................ 257,000 sq. ft. 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 -owned property along the waterfront in Downtown Miami. The project currently features 235,000 sq. ft, of new retail space, Total project cost is $12b million, with City participation limited to a $4 million investment in infrastructure improvements. The Bayside Parking Garage, located adjacent to the specialty center, contains 1,200 parking spaces and a surface lot. Bayfront Park Bayfront Park, adjacent to the Bayside project area, is currently being redeveloped at a total project cost in excess of $20 million, More than fifty percent of the project financing has been secured by the City through a variety of Federal, state and private funding sources. Southeast Overtown/Park West The Southeast Overtown/Park West Redevelopment Program entails the redevelopment of 200 acres of prime real estate, adjacent to the central business district, for new residential and 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 of Miami has been delegated Whited redevelopment powers for the implementation of the redevelopment plan, Public sector involvement will focus on land acquisition, resident relocation, demolition, project marketing, infra- 32 10487 structure improvements and construction and, in some instances, the provision of "gap" financing. It is estimated that over $1 billion in private investment will occur during the next 20 years. Phase I development is underway with 1,052 units anticipated to be under construction by the end of 1988. Public infrastructure work, including utilities, street Improvements and pedestrian amenities, is nearing completion. Total public investment in Phase I Redevelopment is over $45 million. New Private construction in the amount of $180 million is programmed to occur over the next six years for a total of 1,900 residental units and 250,000 square feet of commercial space. Miami Arena Dade County levies a 3% Convention Development Tax on hotel rooms, of which The City of Miami receives one-third. This tax is received by The City of Miami Sports and Exhibition Authority to Snance its operations and debt service cost. The most significant project financed by the Authority is the Miami Arena located within the Southeast Overtown/Park West redevelopment area, home to the Miami Heat and the University of Miami Hurricanes. This 300,000 square feet multi -purpose facility completed in 1968 at a total cost of $52 million accommodates up to 16,500 spectators. Corporate Expansion 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 set up hemispheric operations. Among them are such corporations as Dow Chemical, Gulf Oil Corporation, Owens-Corning Fiberglass Corporation, American Hospital Supply, Coca-Cola Interamerican Corporation, Ocean Chemicals, Inc., a subsidiary of Rohm & Haas Company, Rowye Trading, A. G. Mayr Brothers International and Abtron Corp. Other national firms which 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 building space. Manufacturing concerns account for nearly half of the occupied space with storage companies occupying an additional 35 percent 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 Dade 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 made up of numerous small firms rather than a few large operations. Roughly 30,000 jobs are provided by nearly 5W manufacturers. Florida apparel firms, most of which are centered in the Miami area, shipped $849 million in merchandise in 1980, a 56 percent increase over 1970 figures. South Florida is one of the fastest growing interior design centers in the nation. Over 190 design - related businesses provide 5,600 ancillary jobs and generate $350 million into the local economy. More than $20 million in new construction has taken place in the past five years at the Miami Design Plaza, located on 38 acres within a 14-block area in midtown Miami. It is anticipated that approximately $5 million more will be invested in the district in the immediate future. IL0 48 7 Financial Institutions Dade County is growing as an international financial center with 42 foreign banks and 8 representative offices operating in the community. Additionally, there are 30 Edge Act Banks that have moved to the Miami area. These include: Bank of Boston International South, Bankers Trust International, Banco de Santander international, Chase Bank International, Citibank International, Irving Trust, Chemical Bank International, Manufacturers Hanover International, and Morgan Guar- anty International. The Federal Reserve Edge Act Amendment, adopted in 1979, permitted banks to open international banking subsidiaries outside their home states. The Federal Reserve System has located a branch once in Dade County to assist the Atlanta office with financial transactions in the South Florida area. There are 73 local banks in Dade County which together have a total of $23.8 billion in deposits. A ten year summary is presented below: Bank Deposits (1) Number of Yew Banks Total Deposits 1987 ......................... 73 $23,042,378,000 1986 ......................... 75 21,615,733,000 1985 ......................... 76 21,77000,000 1984 ......................... 73 19,456,581,000 1963 ......................... 70 16,158,326,000 1982 ......................... 65 13,486,248,000 1981 ......................... 65 9,234,540,000 1980 ......................... 63 9,341,691,000 1979 ......................... 71 7,982,108,000 1978 ......................... 73 7,015,276,000 Source: U.S. Comptroller of the Currency. (1) The information presented is for Metropolitan Dade County as a whole which includes the City of Miami. The figures include national and state chartered banks that are F.D.I.C. insured; state chartered non-insured banks are not included. Tourism Greater Miami always has been a very attractive city for domestic and international tourists. Its climate and beaches draw many thousands of visitors throughout the year. Local government and private interests have cooperated in developing outstanding attractions and events which include power boat races at Miami Marine Stadium, the Orange Bowl Classic, the Seaquarium, Planet Ocean, 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, Banyan Festival, Miami Book Fair Festival, Calle Ocho Open House, Carnaval Miami, Coconut Grove Art Festival, Goombay Festival, Hispanic Heritage Week, Little River Oktoberfest and the Orange Bowl festival events. There are two major auto racing events held annually in Miami. The Miami Grand Prix auto race has been run annually in downtown Miami since 1963. Can and drivers from around the world competed for more than $240,000 in prize money in 1988. The Tamiami CART Grand Prix has been at the Florida International University campus since 1985. During 1987, approximately 6.6 million out-of-state visitors stayed in over 54,000 hotel and motel rooms in Greater Miami. Many of these visitors participated in international trade activities such as 34 - 0487 L conventions and conferences. Tourists and visitors expended approximately five billion in Greater Miami in 1987, according to Dade County estimates. Medical Facilities The 40 hospitals located in Greater Miami offer virtually all general and highly specialized medical services. This progressive and growing health care delivery system provides educational opportunity for the health care professional and places Miami in the forefront of communities with comprehensive national and international medical capabilities. Recreational Facilities The Greater Miami area is famous for Its sailing, deep sea fishing and boat races. There are 35 yacht clubs and marinas, with 685 berthing facilities provided by City -owned marinas. Athletics for spectator sports fans are held at the City -owned Miami Arena, Orange Bowl Stadium, Miami Baseball Stadium, the Marine Stadium and the Miami Convention Center. Sports competition includes professional and college football, baseball, basketball 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 a 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. These facilities include but are not limited to: public swimming pools, tennis courts, handball courts, boat ramps, vita courses, picnic areas, lakes for swimming and boating, equestrian trails, and baseball and softball fields. The 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 Dade County at a cost of $26.6 million opened in downtown Miami in 1984. The complex, designed by Philip Johnson, is composed of a library, fine arts center, and a historical museum. Symphonic and pop concerts are performed regularly. Five theatres 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. Educational Institutions Dade County public schools provide educational facilities on primary and secondary levels. I Public school enrollment, including both primary and secondary levels, since 1980 is as follows: School Enrollment Public School System Diedc County Yav Miami Total 1968 ..................................... 6,521 262,213 1987 ..................................... 36,994 244,734 1986 ..................................... 38,345 236,127 1985 ..................................... 37,093 227,906 1984 ..................................... 36,992 223,884 1983 ..................................... 35,394 223,948 1982 ..................................... 35,662 226,324 1981 ..................................... 36,430 233,886 1980 ..................................... 35,093 226,576 Source: Dade County School Board. Over 70,000 students are enrolled in the following colleges and universities located within the area: Barry University Florida International University Florida Memorial College International Fine Arts College Miami Christian College Miami -Dade Community College St. Thomas University University of Miami Film Industry Film production in South Florida is third in national ranking (behind New York and Los Angeles), according to figures released by the State's Department of Commerce, Motion Picture and Television Bureau. State and local officials estimate that between 50 to 60 percent of Florida's film business is conducted in South Florida (Dade and Broward Counties). The 1986 film production totals for Florida were $215 million of which $100 million was spent in South Florida. Agriculture The land area of Greater Miami includes large agricultural expanses on which limes, avocadoes, mangoes, tomatoes, and pole beans are grown for the fresh produce market. During the sunny and warm winter months, the mild climate enables these crops to be grown and harvested. Many of the vegetables are shipped to the northern United States during the winter. Exotic tropical fruits such as plantains, lychee fruit, papaya, sugar apples and persian limes grow in the area and cannot be grown anywhere else in this country. Export More than fifty-five percent of Florida's foreign trade, which according to the U.S. Commerce Department's 1967 figures totalled in excess of $23,7 billion, flows through the ports of Miami. Further stimulation in the investment climate has resulted from the implementation of the 12 year Caribbean Basin Initiative program, designed to boost the economies of 27 countries of Central America and the Caribbean islands. The new law, which grants duty-free entry into the U.S. of 36 14487 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 whirs conducted by the 37 foreign consulates located in the Miami area. These trade offices include those established by Belgium, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, Jamaica, Korea, Panama, Spain and the Philippines. Miami International Airport Metropolitan Dade County is the owner of five separate airports within its boundaries. The responsibilities for their operation are assigned to the Dade County Aviation Department. Miami International Airport ranks 8th in the nation and llth in the world in the number of passengers using its facilities. It ranks 4th in the nation and 7th in the world in the movement of domestic and international air cargo. The Airport's facilities include three runways, a 7,5W car parking complex, approximately two million square feet of warehouse and office space, and maintenance shops. Approximately 33,000 individuals are employed at the airport. In 1987 the Airport served 23.8 million passengers and handled 1.4 billion pounds of cargo. Previous years statistics are presented below: Year 1987 ............................... 1986 ............................... 1985 ............................... 1984 ............................... 1983 ............................... 1982 ............................... 1981 ............................... 1980 ............................... 1979 ............................... 1976 ............................... Source: Dade County Aviation Department. Port of Miami Passengers ego Ibs.) (OOO's) (OOo's 23,801 1,374,380 21,357 1,200,270 19,653 1,031,700 19,328 1,130,184 19,322 1,184,526 19,388 1,246,700 19,849 1,170,009 20,507 1,130,800 19,628 1,066,313 16,501 1,026,593 The Port of Miami is owned by Metropolitan Dade County and is operated by the Dade County Seaport Department. From 1978 to 1987, the number of passengers sailing from the Port increased from 982,275 to 2,633,041, an increase of 168%. This increased growth highlights the Fort's emergence as the world's leading cruise ship port. The Port of Miami specializes in unitized trailer and container cargo handling concepts. The most effective use of equipment and the Port's convenient location combine to make the Port the nation's Leading export port to the Western Hemisphere. From 1978 to 1987 the total cargo handled increased from over 1.9 mil lion tons to over 2.43 million tons, an increase of 28%. 37 10487 In 1987 the Port served 2.6 million passengers and handled 2.43 million tons of cargo. A summary of the growth in revenues, passengers and cargo for previous years is presented below: Year IRMTOUM Passengers Cwp (Tonnage) 1987............. $19,933,197 2,633,041 2,425,937 1986............. 17,973,522 2,520,511 2,406,084 1985............. 17,135,048 2,326,685 2,333,026 1984............. 15,943,548 2,217,065 2,287,281 1983 ............. 14,201,008 2,002,654 2,305,645 1982............. 12,949,687 1,760,255 2,665,921 1981 ............. 12,468,522 1,567,709 2,757,374 1980............. 12,056,896 1,459,144 2,485,791 1979 ............. 8,110,840 1,350,332 2,291,382 1978 ............. 6,236,385 982,275 1,922,864 Source: Dade County Seaport Department. Demographic Data The following table indicates the distribution by age groups among the population of both Miami and Dade County residents. Age Group as a Percentage of Total Population 1980 c Croup 0-5....................................... 6-19....................................... 20-34....................................... 35-59....................................... 60-75....................................... 75...................................... Minim Dade Number . Percentage Number Percentage 23,459 7% 113,544 7 % 61,826 17 330,738 20 75,919 22 374,276 23 106,569 31 471,351 29 55,924 16 230,136 14 23,168 7 105,736 7 346,865 100% 1,625,781 100% Source: 1960 U.S. Census of Population and Housing. Retail Sales Although Miami contains 20 percent of the population of Dade County, almost half of the dollar value of sales transactions for the County are reported in the City. The following table presents five years of taxable sales information for Miami and Dade County. Taxable Sales ($ in thousands) W 1286 im 19" im Miami ......................... $ 6,686,603 $ 6,400,652 $ 5,900,000 $ 5,438,000 $ 5,214,000 Dade County ................... 15,860,503 14,556,903 13,500,000 12,223,000 11,664,000 Miami/Dade ................... 43% 44% 45% 45% 45% Source: Department of Revenue; State of Florida 38 1- Employment The tables below indicate the scope of employment throughout Miami and Dade County, Employed Persons by Industry Type 1980 Miami Agriculture, Forestry, Fishing, Mining ........ 1,590 Construction ............................... 11,150 Manufacturing .............................. 27,070 Transportation, Communication, Public Utilities... ............................ 12,740 Wholesale Trade ........................... 91550 Retail Trade ............................... 27,070 Finance, insurance, Real Estate .............. 11,140 Business and Repair Services ................. 9,550 Personal Entertainment and Services ......... 15,920 Health Services ............................. 12,740 Educational Services ........................ 7,960 Other Professional Services .................. 6,370 Public Administration ....................... 6,360 Total .................................. 159,210 Source: 1980 Census of the Population and Housing. Percentape Ewe County Pcroca c 1% 14,850 2% 7 44,560 6 17 103,970 14 8 81,690 11 6 44,560 6 17 133,670 18 7 59,410 8 6 37,130 5 10 51,960 7 8 59,410 8 5 44,560 6 4 37,130 5 4 29,710 4 100% 742,630 100% Unemployment Rrtes Annurt Avemp 1987 is" . 1985 1984 1993 Miami ............................................... 7.2% 8.2% 9.2% 9.45t 12.0% Dade County ......................................... 5.8 6.7 7.5 7.7 9.8 U.S.................................................. 6.2 7.0 7.2 7.5 9.6 Source: United States Department of Labor, Bureau of Labor Statistics. Housing The U.S. Census figures for 1980 show that the median value of 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. 39 1'0487 L The following tables detail the characteristic of housing by units in the City of Miami and Dade County. j Values of Owner Occupied, Non -Condominium Housing Units 1980 Miami pamotago Duk Percentage Less than :25,000 .............................. $ 3,690 11% $14,156 6% 25,000-39,999 ........................... SA83 25 43,732 18 40,000-49,999 ........................... 6,326 19 39,978 17 50,000-79,999 ........................... 11,012 33 81,130 35 80,000-991999 ........................... 1,684 5 21,211 9 100,000 and over ......................... 2,462 7 34,658 15 Total ................................. 33,457 100% 234,865 100% Median Value ................................. $47,517 $57,200 Source: 1980 U.S. Census of the Population and Housing. Occupied Housing by Tenure 1970 Pementage 1980 Percentage Owner Occupied .............. 43,158 36% 45,738 34% Renter Occupied .............. 77,235 64 88,308 66 Total ..................... 120,393 100% 134,046 100% Source: 1970 and 1960 U.S. Census of the Population and Housing. Building Permits The dollar value of building permits issued in the City and Unincorporated Dade County since 1976 is as follows: Building Permits Issued ($ in thousands) City of Unincorporated Year Miami Dade County 1987 ........................... $238,513 $1,190,493 1986 ........................... 192,418 1,023,858 1985 ........................... 322,785 864,862 1984 ........................... 345,262 953,055 1983 ........................... 299,941 903,706 1962 ........................... 358,676 659,160 1981 ........................... 532,205 901,676 1980 ........................... 350,054 1,020,840 1979 ........................... 201,667 963,144 1978 ........................... 105,064 651,482 Source: City of Miami Department of Building and Zoning and Dade County Department of Building Zoning. 40 IL0487 0 New residential construction in the City since 1978 has been estimated as follows: Number of Year valts 1987............................................ 1,425 1986 $01 ............................................ 1965 603 ............................................ 1984............................................ 1,018 1963 661 ............................................ 1982............................................ 1,753 1981............................................ 3,164 1980............................................ 2,188 1979............................................ 1,995 1978............................................ 1,319 Source: City of Miami Department of Building and Zoning. 41 10487 L APPROVAL OF OFFICIAL STATEMENT The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 1988 Bonds, the security for the payment of the Series 1968 Bonds and the rights ..rid 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 the Financial Advisor, Raymond James & Associates, Inc. and Howard Gary do Company, Miami, Florida, 33131, telephone number (305) 381-6829. 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 Advisor or the Underwriters. Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. The execution of this Official Statement has been duly authorized by the Commission of the City of Miami. The City of Miami, Florida /s/ Mayor 42 1U487 ' I APPENDIX A 10487 0 CITY OF MIAMI, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended. September 30, 1987 TABLE OF CONTENTS Exhibit! Schedule pINANCIAL SECTION Report of Indiependent CerOfied Public Acemritants..................................... Owwml Purpaae rkwo al Statements Combined Balance Sheet —All Funds Types and Account Groups ............................................................ I Combined Statement of Revenues, Expenditures and Changes in Fund Sa►arices—All Govemrnental Fund Types and Expendable Trust Funds ................................................ 11 Combined Statement of Revenues, Expenditures _ and Changes in Fund Balances —Budget ano Actual -General Fund, Special Revenue Funds and Debt Service Funds......................................................... III Combined Statement of Revenues, Expenses and Changes in Fund Egwy—AJI Proprietary Fund Types snd Pension Trust Funds......................................................... IV Ccmdred Statement of Changes in Finance) Position —All Proprietary Fund Types and Pension Trust Funds ........................................................ V Notes to Finarrow Statements ...................................................... . A-1 10487 m FINANCIAL SECTION (continued) Exhibit/ Schedule supplemental Combtnitt9 and Individual Fund Statements and Schedules Generai Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance —Budget (Non-GAAP Budgetary Basis) and Actual ....................... A-1 Special Revenue Funds: Combining Batanoe Sheet ..................................................... B•1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................... B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances —Budget (GAAP Basis) and Actual—Miam Sports and Exhibition Authority, Downtown Development Authortiy, Rescue Services, Community Development and Cable T.V. Special Revenue Funds ..................... B-3 Debt Service Funds: Combining Balance Sheet .................. . .... .... . ............... . .... . .... C.1 - Combining Statement of Revenues, Expenditures and Changes in Funo Balances ..................... .........................,. C-2 Combining Statement of Revenues. Expenditures and Changes in Fund Balances —Budget (GAAP Basis) and Actual —General Obligation Bonds, Utilities Service Tax Bonds and Housing Special Obligation Bonds Dew Service Funds ................. .... ... ........ ............... C-3 t apnal Projects Funcls. Combining Balance Sheet ...................................................... 0.1 Combining Statement of Revenues, Expenditures and Changes in Funo Balances ........................... ....................... 0-2 Enterprise Funds. Combining Balance Sheet ............. ........................................ E•t Combining Statement of Revenues, Expenses and Changes in Fund Equity ........................ ............................. E•2 Combining Statement of Changes in Financial Position ........... ................... E-3 Internal Sen Ace Funds: Combining Balance Sheet ...................................................... F-1 Combining Statement of Revenues. Expenses and Changes in Fund Equity ...................................................... F-2 Combining Statement of Changes in Financial Position ......................... . ..... F-3 Trust and Agency Funds. Combining Balance Sheet ..................... ... . G.1 Combining r►g Statement of Revenues, Expenditures and Changes in Fund Belanc es —Expendable Trust Funds .......................... G-2 Comlxning Statement of Revenues, Expenses and Changes in Fund Balances —Pension Trust Funds ...... . ................ G.3 Combining Statement of Changes in Financial Position —Pension Trust Funds ................................................. G-4 Combining Statement of Changes in Assets and LWbibbes—Agency Funds ................................................. Other Supplemental Information: G.g Enterprise Funds Schedule of Opwabons—Buoget and Actual ..... , ... Internal Service Funds Schedule of Operations —Budget and Actual .................... . H-1 H 2 Revenue and Special Obl,gaton Bonds Principal ano Interest Requirements ............. . General Obligation Bondeo Indebtedness PrincipalH-3 and Interest Requirements .. , ....... H-4 A-2 10487 Coopers Uybrand The Honorable Maya and City Commissioners City of Miami, Florida e"A W public wimunternts [DRAFT] We have examined the general purpose financial vAlements of the City of Miami, Florida as of and for the year ended September 30, 1967. as lWed in the foregoing Table of Contents. Our examination was made to accordznce with generally accepted auditing standards and. accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances In our opinion, the general purpose financial statements referred to above present fairly the manual position of the City of Miami. Florida at September 30. 1987 and the results of its operations and the changes in financial position of its proprietary funs tyres and pension trust funds for the year -then ended. in conformity with generally accepted accounting principles appied on a bass Consistent win thst of the preceding year. Our examinavon was made for the purpose of forming an opinion on the general purpose financial statements taken as a wnole. The combining and individual fund statements and schedules and other &i pplemental data listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Miami. Flonda The information in the combining and individual fund statements and schedules and A-3 other supplemental data has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated to all material respects in relation to line general purpose financial statements taken as a whole, Certain 1966 data included in the general purpose financial statements and the accompanying supplemental combining and individual fund statements and schedules were contained in the C;ty's Ccenprehensive Annual Financial report for the year ended September 30. 1986, and are included for comparative purposes only Miami, Florida March 1, 1988 r 104871 L CITY OF WAUT, FLOPIDA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30,1067 (kt Omu"ndfa) ;f ffl M -- ao"mfferttsf Find Types Fund Typ T aatwrol D~81 To4b mmamum On ry) spum Dabcoottal womal Trw and Fbod Term 19" as" t isnloe $or*$ Agetwi Assets bt 1987 AUM fgwty in Pocto+d cash and uwmrents (Notes 2(61 and 4) ......... ........ 81 I AM 84.4% S 7.417 $ 05,116 S 892 8 735 3 7,753 S - S - 8 118.013 S 121,728 Cash and CM squvalena (Nqe 4) - .. - 688 - - 3,010 - - - - 4,598 4.768 Pw oo oath and iftsowts, indudmp aaaWd r+tarost (Nod 2M, 4 and 17) .. _ - _ _ _ - 459,184 _ - 459,184 368,851 PaW abim not of aroww tar daAw a000una of 52.743,000 Talm .... .................... 1,136 - V21 - - - _ _ - 4,2s7 2,742 Aw"a ............. . . ....... 459 338 - 36 2,506 - 1,769 - - 51098 4,225 Anownent bens, net (Not 2(C)) ... - - 277 - - .- - _ - 277 406 Proceeds bw Secures sold ...... - - - - _ - 2 458 - - 2,458. 323 Parrion membars =Inbunons - - - - - - 505 - - 505 481 Due from other lungs (Note 5) 3,336 11 - 11023 616 - 4,674 - - 9.660 4,797 Due hom other 0ovemments (Noce 6) ....... . 1.485 2,786 - 4.245 - 8.516 8,181 Now rw&vsde ... ........... .. - 17 ktren ones (Nox 2(Gll - - - - 69 609 - - - 677 761 oftf assets .. . .... ........... 97 16 - - 1,645 2 - - - 1,760 1.623 AM = 8sse3 (Nose 6). Car and m1wrem w,0, sacal spent vidudu,0 acmued rarest - - 15.989 23,346 15227 7,394 - - - 61,956 77,829 Property, ;am and egtsprnam. w (Now 2K and 7) ............ - - - - 133,033 16,505 - 376.530 - 526.068 472,t28 Sono asuanoe costs. net (►dote 2(J)) ... .... .. - _ - - 2,238 414 - - - 2,652 2,299 2 00ww mmpenssaon pier, soft (Notes 10 and 15) .. ..... 11,372 - - 11,372 7,434 Amown avatabb for deft serwce 3.772 3.772 3.678 Specs 009de°n bO= • • • • • - - - - - - - 14,840 14,840 12,761 S.,bw*nM Obhpnon We .. .... t,311 1,311 - Amount awlade in Sag moance Fu"d for ow, p yaw - - - - - - - 2.817 2,817 3,286 Amoml to to Proaoso ►or m,w,w;t of Qewwiw lovwm debt cwwal obhgoon bonos .. ..... - - _ -- - - _ - 196,578 195,578 190,697 &=alMignon conas 48,320 48,320 25,539 S1t wdr" Obbga Note and other payafaNe ............. - - - - _ - _ _. 17.131 17,131 6,673 Crmbcm of pwwpnw ......... - - _ _ - u Aoaued aanponsadd obwicas .... - - _ - _ _ _ _ _ _ _ 14,439 _ 14,439 16,'175 14,844 t3orm payable .................. - - - - - - - 31,593 31.593 26.049 Total ate>,a .................. 518.118 $8,324 f26,804 S113,766 it60.147 525.65R 5487 7t5 5376,530 SM-801 $1.546,863 $1.378,295 A-4 r1�• EXHIBIT 1 Fund AacofxM Groups j Oomimotal Fund Types Types Gemara! Gomel Total* jspecial Oub( Capitol P kdorrral Trust and Fixed Lor*-rwm (Memorandum Only) 19" Oorwal Mnu ves Service Etllerou Servloo Assets OW 1517 UAMILMIN VajOhn end socoonts dyable • • • • • • • S 1,396 S 930 S - S 4,372 S 3,734 S 1,476 $ 890 S - S - S 12,798 S 9,616 Psyaw for eetxtrrbes "craw ...... , . - - - - - 4,681 - - 4,681 1,00b Adrlued ar<penus (Note 2(h)) ......... • 3,179 184 4 1,250 S29 - 14,439 19,585 18,898 Due b cow hxbs (Note 5) ..... , .... , . - 18 2,864 725 1,379 - 4,674 - - 9,660 4,797 Delomed ww vs ...... ........... 1,887 - -- - 448 - - - 2,335 2,464 010060 � � 61 ns p�l( ond w 8 a13).... , . • . Ctera - - - 1,545 - 34,410 35,955 890 30,8 M&VW bonds And raw peyebfe (Note 8) .. I .......... - - 4,009 - - 106 - - - 4,115 4,215 Pqaw from restricted atA Con contracct .. . ........ - - - - 6 - - - - 6 416 Ac: nM misest - - - - 2.219 Z219 1,876 Cdawm PO ba d bonds pay" .... - - - - 315 - - - - 315 90 FtsOWOA to payadp--rwt or 0menf ponon (Notes 8 and 17) .... - - - - 75.687 - - - - 75,687 74,107 Genets) ObNaaor. bonds pay=* 1 99 1 99 1 94,375 &Axrr(uwe Obt+peaon Note (Note 8) _ _ _ _ - - _ - 0,000 0,000 10,000 Sp cLv obtgabon bonds poyatm (Note 8) ... .... - - - - 13,257 - - - 63,160 76,417 51,643 Cer Ac&tes of parodapsoon (Nora 8) ... - - - - - 14,060 - - - 14,060 16,175 Delerrec comowaton Dion kaoroes (Notes 10 end 15). ...... . - - _ _ - - 11,372 - - 11,372 7,434 Orw payacIft (NOW 8) ....... .... - - 8 - 10 - - 8,442 8.460 6.882 Too i< bmw . ... .. 6.965 1.577 6.881 5,101 99,194 16.171 24.664 329,801 490,354 437,744 P1,J11O EOtRT1' Contrb Aw cum . .. ........... - - - - 64.503 9.269 - - - 73.772 68 707 krvaerwn ,n general bloc &MIS ..... - - - - - - 376.630 - 376.530 331,108 Ftmwv earnings (dots) Fleserved (Note 9) ........ ...... - - - - 12.687 - - - - 12,687 12,096 Um,ewvwbiarv= . . ...... ... .. - - - - (16,237) 218 - - - (16,019) (737) Fund Jiwerved for Emprcyse retwont plan benefits .. - _ _ - - - 459,734 - - 459,734 369,256 Erwro►aices .. .. 925 - - 13,509 - - - - - 14,434 21,041 Debt asr4ce and corru000n .. .. - - 16.151 23.346 - - - - - 39,497 41,052 EQv omens ourmses .... ...... - - - - - - - - - - 12,268 Suborores Obignon Note (Nme 8)..... ............. Urvsservoc - - - - - - - - - - 102 Doetpnaw to Ixxncans im .. - _ - - - - 500 - - 500 500 Dsogrd o for ponson rolowid exproturea 121 ' Deapnr d for daims poyment .... - - - - - - 2,817 - - 2,817 3286 Doopnated for eutx ecuent year's expendarec and aAp W W . . 6,500 SW 2.000 71.810 _ - - 80,860 72,603 ................. 3.728 8.197 1,772 -'-- _ _ 11,697 9,148 ToW morn✓ amngs (deion Am t:>rlarm . , ...... 11.153 6.747 19.923 108.665 _ (3MW) 218 463.051 - - 606,207 54Q736 Too hMI sawRy .............. 11,153 8,747 19,923 108,665 60.963 9.467 463.051 376,530 - 1,056,509 840,551 (Nines 13.15. and 17) ... . Tod ieWAS and %M etluty ... S18.118 c W 804 5113.766 F60.147 525,658 5487,715 S376,S30 5329,801 51 3 51.378,245 Soo accompanying now to hrwlcw statement A-5 10487 THIS PAGE INTENTIONALLY LEFT BLANK A-6 1048 7' EXHIBIT II CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED SEPTEMBER 30, 1987 (In thouunds) GerenmeaW Fund Types Totals Ilpsclal Dsl» capital Ettpendable (Morro ettdum Only) 9eeetal Rewaus lerAn Pnlacts Truss 19a7 1986 (Restated) iievenues Taxes Mote 3) .................... ............... 5107,952 S 2,703 $55,212 S - S - $165,867 $154,995 Lroenses and permts . ............................ 6,062 - - - 6,082 3.810 woergovemmento.................................. 27 865 21,949 - 2,471 5,033 67.318 58.612 Irwagovernmental ........ ............... ........ 5,152 - - - 29,977 35.129 28,948 Cha►Qes brServices ............................. .. 1,974 - - - - 1.974 4,663 Contnbuoons from employees and retirees ............... - - - - 6.977 6,977 6,466 Asses row Yen ookcbtins. ... .................... - 2,468 - - 2,468 3,726 Interest ... .......................... .......... 1,709 655 2.260 &528 332 11,384 12.970 Other ... .. .......... ............ 1,b74 2.030 1 1.166 239 5,310 5.500 Total revenues .. .. . . . ...... . . ...... . t52,608 27.237 59.941 10.165 42,558 292,5t)a 279.692 Expem6tu►es. C,jrrent General government ... .... .. ... .. 19,338 - - - - 19,338 16,328 Public safety II1,884 2,488 - - - 114,372 106,279 Pudic improvernern . ....... 13,795 - - - - 13,795 17,496 Culture and ro;reatror, ... .... .. .. 9,867 -- - - - 9,867 8,439 Grants and related ez owitures . .. - 19,646 -- - - 19,646 14,328 Contnbuws to pennon funds (Note 15) ..... .. - - - - 29,593 29,593 28,563 Insurance .... ... .1 ...... ..... .. . - - - - 1,421 1,421 1,065 Economic deve+Opmenl . .... ........ . ... . • - 1,025 - - - 1.025 950 0.bm payments ...... ... .. .. .... . -- - -- - 9,609 9.609 9,677 Otner ................. 14,394 5.291 726 - 2,525 22,936 19,305 Debt service Pnncroat retirement (Note 8) . .......... - - 11,630 - - 11,630 10,950 Interest and fiscal MwgK (Note 8) .. - - 16,055 - - 16,055 15,030 C PIW ou<fay ..... ....... - - - 57.294 - 57.924 38,847 Total exoEro ures ... . . . .. .... .... 169.278 28.450 2SAI 1 57.924 43.148 327.211 287.257 Excess (de5uency) of revenues over expenditures (16,670) (1,213) 31,530 (47,759) (590) (34,702) (7,565) Other financing sources (uses) Operavn„ transfers in (Note 11) ............ 31,654 2,085 842 10,699 - 45,280 34,170 Operating trans;ers out (Note 11) . ...... .. . ..... (18,422) (100) (30,198) (11,728) - (60,448) (51,445) Proceeds from debt .ssuance (Note 8) ......... . . .. - - 10.000 44,334 - 54.334 113,913 Depos+ts for debt deteasance, (Note 8) ... .......... - - - - - - (35.551) Total other financing sources (uses) 13.232 1.985 (19,356) 43,305 - 39 166 61,067 Excess (dWkWVy) Of revenues and other kwang sources over expenddures and other tees ............. ................ (3,438) 772 12,174 (4,454) (590) 4,464 53,522 Fund Waives atbspnnmg of year ...................... 14,399 6,981 16,641 119,292 3.907 160,120 106,905 EW#ty var*Ws to other kinds (Note 11) .... ........... . . - (6) (8,792) (15.133) - (23,931) (8,955) Equq tranoWs'Torn other tunds (Note 11) .......... ..... 192 - - 6.960 - 9,152 8.648 Fund balances at end of year .............. ........... S 11,153 S 6,747 S 19,923 $108.665 $ 3,317 S149.805 $160.12o See accompanying sous to financial statements A-7 10487 0 CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 1987 (in thousands) Carmel Fund Eneumbrot"s Actual Vatiertee Ar:tuel inning End of (Budgetary Favorable/ (GAA' 4aaie) d Yesr Meer $"a)^ budget (Unfavorable) Revw•ues Toes (Fume 3) ...... ... .... $107,952 $ - S- S107.952 $109,459 $(1.507) Lioanaas and pwnvts .. . ...... I . .. ......... 6.082 - - 6.062 4.800 1.282 inarrgovwnrnentat .. . ...... 27.865 - - 27.865 26.705 1.160 WjsgovW-rWW .. ..... 5.162 - - 5.152 5.064 68 Cna►Qe3 for Bowes .. . ........ .. .... ... .. . 1,974 -. - 1,274 1.033 941 A>aeaaRltnt I*,% comcb" - lrMerest .... . Val - - 1.709 1.836 (129) on,er 1.874 - = 1.874 1805 69 Iow reverxns 152.6M - - _._.. 152 608 150 724 .1 M4 Emenotures t rwai governnw,1 19,338 197 120 12.261 21232 '.971 pUW safety 111AU 115 15 111.784 113.191 1,407 P ok morcw mants 13.795 327 103 13.571 14,550 979 C.m.re ana recreation 9.867 169 6 9.704 9.704 - Econor•+rc cevcoprr+en - - - - - ^ d'e+ 14.394 1."6 681 13.Wl 14.633 1.004 Deor swvrce Pnnopa rct-remenl- tnl nm a•+a I=& criarges - - - - - - Too, errDe :wrfs 169.278 2 254 925 167.949 173.310 5.361 Excm (oe`oer cy) o' revenues ova menctures (16 670) - (15 341) (22.586) 7 245 OTT finamwv $Weas (use's) Ooera)-g Ira-Ven in (Note 11) 31.654 - - 31.654 29.973 '.661 Ooelamg ,.mmsler ou1(Noe 11) (184221 - (18.422) (18 387) (35) 'low ott w hnamang swces (uses) 13.232 - - 13 232 11.586 646 E:au (oeftiency) or •everikm anc other hnanan4 sources ovw e><m",%ses a4 omr ses (3436) 52.254 3925 S (2.091 S (11 000) S 8 891 Funa o firms at be9+^ N o1 yar 14.399 Eo.4ty ?a,-,s rs from o74r funds (Note 1 1) 192 F%imo oaarces at WV of year S 11.153 (1) Does not induce funds for vmich bWge% have not been adopted. See Note 2(0)(1) Set accompanying notes to imandal statements A-8 1048`7' 1- EXHIBIT III IPWW RVOV1N 11) ow Skrvke (1) Vwwmw Warm pwim of IrM"MbW AeeW tiMa"Mbbl DXW A"s1 PMNMbN) S 1.322 S 1.297 S (25) S 48.968 S S 1.237 $ 2.269 18.070 16.157 87 .- - - -. — — 2.?W 2.468 oz — 403 403 1,025 1.096 71 25 792 767 1 1 • 9 417 20 649 1.232 52 743 54 802 2.059 1.728 1.849 (121) -- - - ` 34' 1.025 322 — — — 18 863 19 196 (333) 387 312 75 — — — 11.890 11630 260 — — — 13 787 13.835 (48) 21 938 22 070 V 32) 26 064 25 777 287 (252') (1 4211 100 25 379 29 025 2,346 808 921 1.3 300 300 - - — (26 979) 0,203) (2 224) 808 92, ".3 (26 679) (28.903) (2.224) S ;1 713) low- (500) $1 213 S — 122 S 122 2 676 3,733 S 2 176 a--- S 3.955 A-9 104r8'7' I EXHIBIT IV CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS YEAR ENDED SEPTEMBER 30, 1087 (in thousands) Nrepletary fund Types Totals (Memorandum Only) Memal Pension EMerprlse SwWco Taut 1sa7 1986 (Restated) Operues: �a,7�cervices , ..... S 38,633 $16,006 S - S 54,639 $ 47,002 s from employers (Note 15) . .............. - - 26,708 26,708 24,271 Contribubons from employees and retirees ............ - - 12,766 12,766 12,069 Net realized pain on sate of pension investments ....... - - 56,780 56,760 29.242 Merest and dividends ............................. 22,636 22,636 22,823 Total revenues ........................ ....... 38.633 16,366 118,890 173,529 135,407 Operating exoensec' Personal seances .......................... .... . 28,820 9,484 1,364 39,668 32,876 Contractual se►voces .............................. 6,352 1,685 - 8,037 7,022 Mater.als and supplies ........................... 510 3,084 - 3,594 3,519 Benefit payments ................................. - - 25,681 25,681 22,663 Refunds .......... ............................ - - 1,380 1,380 1,231 utilities ........................................ 1,203 1,823 - 3,026 2,958 Intragovernmentalcharges ......................... 41599 - - 4,599 2,707 Other ......................................... 10,585 28'. - 10,866 9,507 Total operating expenses ....................... 52,069 16.357 28,425 96,851 82,483 Operating income (loss) before depreciation expense .......... . ............. (13,436) (351) 90,465 76,678 52,924 Deprecation expense ................................. 4,115 3,093 7,208 6.389 Operating income (loss) ........................ 11 7,551) (3,444) 60.465 69.470 46.535 Nonolwabng revenues (expenses). !merest income... ............................... 1,712 1,051 - 2,763 2,609 Interest ano fiscal charges ......................... (7,607) (i,057) - (8,664) (7,875) Other .............................. ........1 1,479 182 13 1,674 126 Net nonoperating revenues (expenses) .... , ....... (4,616) 176 13 (4,427) (5,140) Income (loss) before operating transfers ........... (22,167) (3,268) 90.478 65,043 41,396 Operating transfers in (Note 11) ..... . . ...... I ......... 21,857 525 - 22,382 18,834 Operating transfers out (Note 11) ....................... (1.689) (5,525) - (7,214) (1,559) Net operating transfers . ....................... 20,168 (51000) -- 15,168 17,275 Net income (loss) before extraordinary item ........ (1,999) (8,268) 90,478 80,211 58,670 Extraordinary item -loss on debt rehnarong (Note 8) ............................ - - - (2.569) Net income (loss) ............. (I'M) (8,266) 90,478 80,211 56,101 Retained eanvngS (dehat)tfund balance at beginrwng of year . (675) 12,034 369,256 380,615 324,514 Equity transfers from other funds (Notes 11 and 12) ........ - 2,166 - 2,166 - Equity transfers to other funds (Notes 11 and 12) .......... (876) (5,714) - (6,590) - Retained earrings (deficity)func! balance at end of year ...... (3,550) 218 459,734 456,402 380,615 Contributed capital at tinning of year ............... . .. 59,705 9,001 - 68,706 67.647 Contnbuwns from other governments . . ................. 100 - - 100 749 Cowbutions from other funds (Note 11) ................. 4,698 1,574 - 6 272 310 Contnbutiorts to other funds (Note 11) ................... - ( 1,306) - 1.306 Contributed capital at end of year ....................... 64,503 9,269 - 73,772 2 68,706 Total fund equity .............................. S 60,953 S 9,487 $459,734 $530,174 $449,321 See accompanying notes tc financial statements A-10 IL0487 ti EXHIBIT V CITY OF MIAMI, FLORIDA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS YEAR ENDED SEPTEMBER 30, 1987 (in dummands)i 14opMWy Fund Types Totals Mttereaf Pension (Memorandum Only) snterpra. Service Trust1tiaT teas Woridng capital provided by. Operations. Income (lass) before extraordinary Item ............ S(1,999) S (8,268) S90,478 $80,211 $58,670 Moms no; requiring current outlays of working capital: Depreciation and amortization ................ 4,336 3,176 - 7,512 6,553 Loss on oisposrtions of property, plant and egwpment ..................... (3) - 36) (316} Total provided by operations before extraordinary rtem ............................... 2,301 (5,092) 9t),478 87,667 64,907 Extraordinary dean -loss on debt rehnar ang (Note 8) ............................. - - (2,569) Total provided by operations ............. 2,301 (5,092) 90,478 87,687 62,338 Other: Decrease (increase) in restricted accounts .......... (811) (7,394) - (8,205) (378) Contnbutions and equity transfers, net ............. 3,922 (3,260) - 642 1,059 Proceeds from long-term debt . I ......... I ....... 2,000 - - 2.000 16.275 Increase in other liabilities . ..................... 76 - - 76 6 Transfers Of Certficates of Participation - long -term portion ............................ 13,855 - 13,855 - Total ................................. 7,4e8 (1.911) 90,478 96,055 79.300 Wonting capita; applied. Additions of property, plant and equipment.. ... ..... I ......................... 9,696 5,967 - 15,663 4,621 Reduction of debt .......................... 218 2,115 - 2,333 13,652 Increase in bond discount .......................... 26 497 -= 523 310 Decrease in other liabilities ........................ - - - - 332 Increase in ottw assets, net ........................ 130 - 130 94 Total .... . ............... ....:....... 10.070 8,579 -- 18,649 19,009 Increase (decrease) in working capital ..... . .... . ..... $(�) S(10�,490) $$9.47788 $77.406 $60.291 Summary of increases (decreases) in working capital: �- Qmn and investments ............................ $ 923 $ (6,853) $ - $ (5,930) $ (2,203) Pennon investments ............................... - - 90,333 90,333 64,142 Accounts receivable. net ........................... 646 - 3,819 4,465 (1,909) Due from other funds .. ............................ (238) - -. (238) 581 Due from other governments ........................ 158 - - 158 257 Inventories ...................................... Prepaid expenses ................................ 17 709 (99) - - -- (82) 709 (159) Accounts payable and accrued expenses ............. (4.026) (1,218) (51) (5,295) 37) Due to other funds .................... (733) - 53 (680) (2,239) Deposits refundable ............................... (191) --- - (191) (361 ) Payable for secunbes purchased ..................... - ._ (3,676) (3, 2,207 Deferred revenue ................................. ...... ............ 153 - 153 153 37 Current portion of Certificates of Participation ........... - (2,320) �- 2,320) -- Increase (decrease) in working capital ................ $(2.582) S(10.490) $90,478 $77,406 $60.291 See accompanying notes to finarcal statements A-11 1048 L CITY OF MiAMi, FLORIDA NOTES TO FINANCIAL STATEMENTS 1. QENEnA1.6ESCRIPTION The City of Miami (Me City), in the County of Dade, was incorporated in 1M, and comprises approximately 34 square miles of rand and 20 square miles of water, The City operates under Vie Comrrass*N Aty Manager form of government and provides the 1011"ng services as authorized by its charter: pubic safety, public works. solid waste collection, parks and prxblic facilities. planning, zon ig and development. Dade County (the County) is a separate governmental entity and its financial statements are not included in this report. The Florida L"ature. in 1955. approved and ;ubmrtted to a gerwai electron, a constitutional amendment designed to give a new form of ,gover"ni to the County. The County is. in effect. a muncipauty with governmental powers effective upon twenty-seven cities and unincorporated areas, including the City of Miami. R 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 Commission, or (2) with the consent of the governing body of the City. Since its inception. L1e County has assumed responsibility on a awnN.wlde service basis for a number of functions, xnGuding countywide police services, complementing the mumopat police service, uniform system of fire protection. oompbmenting " municipal tire protection: consolidated two - tar court system: consolidation of water and sewer services: coordination of the various surface transportation programs: invaliation of a centrai traffic control computer system: merging ail public transportation systems into a county system. effecting a combined public library system, and centralizabon 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 pnncipies (GAAP) as applied to governmental units The Governmental Accounting Standards Board (GASS) is the standard•sening body for governmental accounting and financial reporting. The GASS, upon assuming the standard -setting role in June 1964. adopted the existing National Council on Governmental Accounting (NCGA) standards. The more significant of these accounting policies are described below. A. it wANCiAL REPORTING ENTiT1f For financial reporting purposes. the City includes those funds, account groups, agencies. boards, commissions and authoribes that are generally controlled by or Dependent on the City. Control by or dependence on the CAy is determined on the basis of such factors as budget adoption, taxing authority. outstanding debt secured by revenues or general obligations of the City, obligation of the City to finance any deficits that may occur or receipt A•12 of significant subsidies from the City. The following is a brief review of each of the potential component units addressed in defining the reporting entity for the City: (1) Included within the entity DOWNTOWN DEVELOPMENT AUTHORITY (DDA)— The DDA is governed by a board approved by the City Commission, The Commission must approve the millage levied on the special taxing district established to fund DDA. DDA has been included within the reporting entity as a special revenue fund since its inception. MIAMI SPORTS AND EXHIBITION AUTHORITY (MSEA)—The MSEA was created to promote the construction of sponslexhibitiont convention facilities using the City's portion of the 3% Convention Development Tax. The City Commission must approve the MSEA's board membership, the issuance of debt. contracts and operating budget. The various funds of the MSEA have been included in the reporting entity once its inception in 1983. DEPARTMENT OF OFF•STREET PARKING (DOSP)—The DOSP is an agency and instrumentality of the City, which owns and operates parking facilities 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 budget and to authorize the issuance of revenue bonds. The DOSP is included in the reporting entity as an enterprise fund. The City has a'so authorized the Otf-Street Parking Board to administer the operations of the Maunce Gusman Cultural Center and the Olympia Building, which are properties owned by the City. Such operations are separately accounted for under the trtte of the " G&O Enterprise Fund". In the event that operating revenues of the G80 Enterprise Fund are not sufficient to cover its operating expenses, the City will provide any necessary cash requirement. CiTY OF MIAMI FIRE FIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST (FIFO) AND CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST (GESE)—Both FIPO and GESE are essentially single employer retirement trusts under the administration and management of separate boards of trustees and are inducted in the reposing entity as pension trust funds. (2) Exduded from the entity MIAMi CAPITAL DEVELOPMENT, INC. (MCDI)-- Although the City provides funding for the MCDI's fending program, the City Commission has limited ability to influence operations. WEALTH r-ACIMES AIJTHOR-TY (HFA)—The NFA A an agency established by State Statute to issue revenue bonds Such debt is not on obligation of the City, The HFA has no significant operations other than the =uance of such debt. The City has determined that its degree of oversight ano financial responsibility over these agencies is so remote so as to exclude own from the City's reporting entity. IL IIASIS OF PRIIBSENTATION The financial transactions of the City are recorded in individual funds and account groups. Each is accounted for by Providing a separate set of self-belarxing accounts that cornpnse its assets, liabilities, fund equity, revenues and expenditures or expenses. The various funds and wcourw groups are reported by generic classification w*m the financial statements. The blowing fund types and account groups are used by the City. Govommontal Funds Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's expendable flnanCal resources and the related current liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is ucon determination of financial position and changes in financial position, rather than upon net income determination. The following are the Oty's governmental fund types. General Fund —The General Fund is the general operating fund of the City. It is used to account for an finarx7al resources except those required to be accounted for in another tuna. apeeiaf Roverwe 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 speo5w purposes. Oebt Sarvfce Funds —Debt Service Funds are used to account for the accumulation of resources for, and the peymend of, general long-term debt pnnctW interest and related costs. PIC* Frauds —Capital Projects Funds are used to account for financial resources to be used for the acqu ton or construction of major capital facilities (ottter than those financed by Pmpnetary Funds). Proprietary Funde Proprietary Funds we used to account for the City's organizations, and ac♦Jwoes which are similar to those often found in the private senor. This means Mat all assets, WIlities. owties, revenues, expenses and transfers Mated to Me Oty's business activities —where net income and capital maintenance are measured re accounted for through proprietary funds. The measurement focus is upon determination of not income, financial position, and changes in financial position. A-13 Enterpriw Funds —Enterprise funds are used to account for operations: • 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 services to the general public on a continuing basis be financed or recovered primarily through user charges; or • where the City has dooded that periodic determination 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 at a loss and have required operating subsidies from the General fund. If future operations are not sufficient to offset these deficits. the City will continue to support these activities from the General Fund or other discretionary funds (See Notes 9 and 16). During 1987, the City established separate enterprise funds to account for solid waste collection and building and zoning activity, formerly inducted in the General Fund. Both building and zoning inspection and solid waste operations are partially funded through user fees, and presentation as an enterprise fund provides a more appropriate basis for accountability and management control (See Note 12). Nt MMI Service Funds• —Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost- reimbursement basis. Fiduciary Funds Trust and Agency Funds —Trust and Agency Funds are used to account for assets held by the City in a Trustee capacity or as an agent for individuals, private organizations, other governments, and/or other tunas. These include expendable trust, pension trust, and agency funds. Pension trust funds are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. The City's expendable trust tunas (W-Insurance and Pension Administration) are accounted for in essentially the same manner as governmental tunas, The City's agency funds are custoacal in nature (assets equal liabilities) and used to account for deposits held under issuance of a Cable TV. license and assets held under three deferred compensation plans for certain employees. Account Groups Account Groups are used to establish accounting control and exountabili y for the City's general fixed assets and the unrnattxed principal of its general lore -term obligations. The two accounts are not funds. They do not reflect available financial resources and related Ibabilities—but are accounting records of the general fixed assets and general long-term obligations, General Fixed Assets —This account group is used to account for aH fixed assets of the City, other than those accounted for in the enterprise funds and internal service funds. 10487 Goneret Long•Torm Dobt—This account group is used to account for the long-term portion of claims payable, accrued compensated absences, lease purchase obbgaDons and outstanding principal balances of long-term debt, other than revenue and special obligation bonds payable and other long-term liabilities recoroed in the anterprrse funds. Totals (Memwandum Only) —Amounts in the "Totals (Memorandum Only)" columns in Me combined financial statements represent a summation of the combined flirancial statement line Items of me fund "m and account groups and are presented for andyticai purpotvs only. The summation includes fund types ano account groups that use diflorent bases of accounung, includes interfund transacoonrs that have not been eliminated and the caption "Jlrtaunts 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 available or total revenues and expenditureslexpensec of Me City. The 1986 Operating Statement totals have been roclass, where practicable, to reflect changes in fund classifications discussed in Note 12. C. BASIS OF AC=UNTING Bass of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the finenc,al statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. (1) ModMled Awn-, A! Governmental Funds and Expendable Trust Funds we accounted for using the modified accrual basis of accounting. Their revenues are recognized in the period in which they become susceptible to accrual i.e., when they become measurable and available to pay liabclibas of the current period. Ad Valorem taxes and charges for seances are susceptible to accrual when collected in the current year or within 60 days tubsegjem to September 30M. provided that amounts received pertained to billings through the fiscal year just ended Occupational licenses revenues collected in advance of periods to which they relate are recorded as deferred revenues. Utility service taxes, fines and forfatures, tranchme taxes, licenses and permits are susceptible to accrual when collected in the current year or within 30 days of year-end by the City, provided that revenues are generated prior to year-end. Investment @wrings are recorded as revenue when earned tints they are measurable and available. Where grants revenue is dependent upon sxpwxkures by the City, revenue is accrued as obloations are incurred. Special assessrnonts are considered susceptible to accrual when collected in the current year of within Go days subsequent to September 30th, provided that amounts received pertain to liens assessed prior to the end of the current fiscal year. The special assessment receivables at year-end of $7,764,358, of which approximately $150,000 are delinquent, are shown net of deferred revenues of $7,486,926 to more appropriately reflect current amounts available for debt service. Special assessments are recorded in the General Obligation Bonds Debt Service Fund since they represent only a partial reimbursement of costs Incurred In certain capital projects financed with general obligation bonds. The City does not issue special assessment bonds. Expenditures under the modified accrual basis of accounting are generally recognized when the relatea fund liability is incurred and expected to be liquidated with available resources. Exceptions to this general rule mdude principal and interest on general long-term debt which are recognized when due. The agency funds are custodial in nature and do not invotve measurement of results of operations. They are accounted for under the modified accrual basis of accounting. Assets and liabilities are recognized when they occur regardless of the timing of related cash flows. (2) Acenjal All Proprietary and Pension Trust Funds are accounted for all using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. D. BUDGETARY DATA (1) Budget PoUcy A-14 The City Commission annually adopts the budget ordinance for all governrnentai funds of the City, except for the following funds: • Law Enforcement Special Revenue Fund • Other Special Revenue Funds • Convention Development Tax Bonds Debt Service Fund (MSCA) • Subordinate Obligation Note Debt Service Fund (MSEA) Annual operating budgets for the General, Special Revenue and Debt Service Funds are adopted on a basis wbetantially consistent with generally accepted accounting principles (GAAP) except that budgetary comparisons for the General Fund include ar=morances as expenditures. Adjustments necessary to compare the results of operations in the Special Revenue and Debt Service Funds as presented in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances (Exhibit to to that presented in the Combined Statement of Revenues, Expenditures and Changes IL0487 in Fund Balance. --Budget ano AC,::a, (Exhibit III) are sa follows (in thousands) of OW orair Samoa ow Fund ae61alf". ipeofal 1Mv0ws Funds � on «rIN �i nsn 30, Actual —Exhibit It . .. S 772 3 6.74; Lou Funds, rat Budgsad. Law Entorcerrom ........ (79) (1,922) Othr Funds ............ (1,193) (2,649) Aft al--Exhbt II:.......... s (500) 9 2.176 Oabt Sarvios Funds Actuaf-Exrrbt ii .......... $ 12.174 519,923 Less Funds not Budgeted: Convention Dewbprtant Tax Bonds .... (2,051) (14.757) Subordirwe Obbpation Nate ................ (10,001) (1,311) Actual Exhibit III .......... i 122 S 3,855 .�--- While no budgets were legally adopted for the Convention Development Tax Bonds and Subordinate Obligation Note Debt Service Sublunds for fiscal year 1967, budgetary control is exercised over these subfunds by the funding requirements of the related Bond Indenture (see Note 8). In action, Capital Project Fends are budgeted on a total proved bans for which annual budgets are not available. The City also adopts non -appropriated operating budgets for the Proprietary Funds subsrarttiaNy on a GAAP basis, with several exceptions. Such exceptions include: • Debt pnrapal payments are budgeted as debt service, The portion of debt service representing principal payments reduces the related liability on a GAAP basis. • Depredation expense is budgeted; however, certain expenditures for capital outlays are also budgeted. These outlays are caprtalized into fixed assets on a GAAP basis. • Certain nwroperating revenues for capital outlay are not budgeted. (2) Budget Calendar The City Wows these procedures in establishing the budgetary data reflected in the financial statements: • Pnor to August 31st, the City Manager submits to the City Commission a proposed operating budget for the fiscal year commencing the following October 11A. The operating budget includes proposed axpenotures and the means of finanong them. Budgetary cOM01 is legally maintained at the fund level except for the General Fund, which is at the departmental level. • Public heanngs are conducted to obtain taxpayer oomments. • Prior to October 1st, the budget is legally enacted through passage of an ordinance. A-15 • Generally, the Commission and City Manager may transfer among departments any part of an unencumbered balance of an appropriation to a purpose or object for which an appropriation for the current year has proved insufficient. At the close of each fiscal year, the unencumbered balance of each appropriation reverts to the fund from which it was appropriated and shall be subject to future appropriations. Budgeted amounts in the accompanying financial statements are as originally adopted, or as amended by the City Commission and City Manager through the Year. (3) Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the General and Capital Projects.Funds. On a non-GAAP budgetary basis, encumbrances are recorded as expenditures of the current year. On a GAAP basis, encumbrances outstanding at year-end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. (4) Excess of Expendkures Over AeppropdoWns In Individual Funds The following subfunds incurred an excess of expenditures over appropriations for the fiscal year ended September 30, 1987: Spedat Revenue Funds: Miami Sports and Exhibition Authority ..... S 32.043 Rescue Services .................. . ... 120,351 Community Development ............... 793,695 . Debt Service Funds: Utility Service Tax 9onos ............... 5.608 E. POOLED CASH AND INVESTMENTS The City maintains an accounting system in which substantially all genera) city cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All such cash and investments, including accrued interest, are reflected as pooled cash and investments. Investments are stated at cost or amortized cost, which approximates market. 4 investments consist of U.S. Treasury and Agency obligations, time deposits with approved financial institutions, and commercial paper. Investment income is allocated based upon the approximate proportionate balances of each fund's equity in pooled casts and investments, No interest is charged to funds having deficit balances. The cash and investment pool is available for ail funds, except for the following: • Fund Miami Sports and Exhibition Authority Special Revenue • Downtown Development Authority Special Revenue Fund • M.S.E.A. Special Obligation Bonds Debt Service Fund 10487 • M.S C A. Subo!zlmate Obligation Note Debt Service Fund • Miami Arena Capital Project Fund (MSEA) • Exhibition Center Expansion Capital Project Fund (MSEA) • Off•S eet Forking EnterpNw Fund • G&O Enterprise Fund • FIPO Pension Trust Fund • GESE Pension Trust Fund The funds lisled above maintained separate cash and investment balances. In addition, certain other City funds maintain separate restricted cash and investment accounts in compliance with debt requrremarxs (See Notes 4 and 8). F. PENSION INVESTMENTS Pension investments are carried at cost. Debt securities are adjusted for amortization of premiums and discounts. Premiums and dwounts are amortized using the straight- line basis over the life of the investment. Approximate market values of investments are determined as follows: • Securities traded on a national securibes exchange are valued at the last reported sales prices on the last business day of the fiscal year; • Secunties traded in the over-Owoounter market and lamed secunties for wtWh no sale was reported on that date are valued at the last reported bid price; • Convnercial paper and money market funds are valued at cost winch approximates market; • Mortgages are valued based on current market yield; • 'Rental property is valued at the purchase option price. investment policy is determined by the Boards of Trustees and is rntpiernentod by outside investment advisors. investment advisors use the following guidelines: • Unbrr"Ied investments in bonds, notes or other obligations of the United States Government and its agencies and in bank certificates of depos4t. • Indwdual investments in the following cannot exceed 10% of the funds available for investments: •• Corporate common stock, preferred stock, convemble debentures (provided the aggregate investment does not exceed three percent of total outstanomg capital stock of any one corporation) •• Notes collateralized by first mongages on real Property or guaranteed by the Federal Housing Administration or the Veterans Adrian istrabon •• Corporate interest bearing obligaons, Purchases and sales of secunties are reflected on a trade - date basis. Gain or loss on Files of securities is based on average cost. ta. INVENTORIES lt% tones in the Proprietary Funds are valued at the lower of cost (first -in, first -out basis) or net realizable value, and oor" of expendable supplies held for consumption, A-16 H. ACCUMULATED UNPAID VACATION, SiCK PAY, AND OTHER EMPLOYEE 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 overtime hours can be accrued and earned forward as earned time off. Unused vacation time and sick leave is payable upon separation from service, subject to various limitations depending upon the employee's seniority and civil seance Class1ication. Accumulated unpaid compensated absences are accrued when earned in the Governmental end Proprietary Funds, with the long-term portion of Governmental Funds' liability being recorded in the General Long -Term Group of Accounts. 1. INTRAGOVERNMENTAL ALLOCATION OF ADMINISTRATIVE EXPENSES The General Fund incurs certain administrative expenses for other funds including accounting, legal, data processing, personnel administration, engineering and other services. A brief dmnpoon of the major components of such charges are as follows: • Project Management —The Public Works Department charges major capital improvement projects of the City for design, survey and inspection services. These charges are based on direct tabor charges plus an overhead factor for administrative expenses of the engineering division, and totaled approximately $2,802,000 for fiscal year 1987. • Indirect Cost Allocabon—The General Fund charges other funds for general and administrative expenses to allocate certain overhead costs as determined under a central services cost allocation plan. Such charges approximated $1,136,000 for fiscal year 1987. J. 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. Bona issuance costs are capitalized and amortized on a stra:gnt- line basis over the life of the bonds. K. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment used in Governmental Fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group. Punic domain ("Infrastructure") general fixed assets consistlng of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. Capital acquisition costs for Governmental Funds are segregated as capital outlay expenditure, with the exception of the General Fund, wherein capital outlay is included within departmental expenditures, Capital outtay in the General Fund during 1987 totaled approximately SU0,000. 10487 All prcoerty, Nant and equipment are valued at historical Cost or estimated ccst. Donated property, plant and equipment are valued at their estimated fair value on the date donated. Depreciation of all exhaustible fixed assets used by the Proprietary Funds is cnarged as expense against their operations. Accumulated deprecoabon is netted against related fixed asset amount on the Proprietary Fund balance sheets Depreciation has been prcvided over the estimated useful lives using the straigntdins method. The estimated useful lives are as follows: • Buidings and "rovemom .............. 30-50 years • Machinery and E4uip rom . ............... 4.20 years • improvements other than Builangs ......... 10-20 years Interest costs associated with Enterprise Fund borrowings (revenue bonds) used for construction projects are cap+talizeo during the current period as part of the cost of the assets, net of related interest earned on unexpended portions of such borrowings, No such interest costs were required to be capitalaed in 1987. L. IINTERFUND TRANSACTIONS Ouasi•external transactions are accounted for as fund revenues, expenditures or expenses as appropriate. All inteafund transactions except advances, quasi -external tramacbons and reimbursements are accounted for as transfers. Nonrecurring or nonroutine transfers of equity between funds are considered equity transfers. All other intertund transactions are treated as operating transfers. M. DEFERRED COMPENSATION Tim City offers its employees three deferred compensation plans under IRS Section 457 that permit the deferral of a portion of an employee's salary until future years. The deferred compensation is not available to employees until termination, retirament, death, or unforeseeable emergency. Membership in one plan is limited to key rnanagemerK personnel, while the others are open to all City employees. The plans are funded through employee payroll oed=tons. All contributions are paid to outside fiduciary agents. However. at amounts of compensation deferred under the plans. all property and rights purchased with those amounts, and all income attributable to those amounts, property, or nghts are (until paid or made available to the employee or other benefipary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the C ty's general creditors. Participants's rights under the pan are equal tc those of general creditors of the City in an amount equal to the Wr market value of the deferred account for each participant. Pursuant to the GASS Stafemsm 02 ftwidall Repor ft of Deterred Comtense*m Plant Adopted under the Proaviskm of IRC Soadw 457, the City aocourns for its deferred compensation within the agency funds (see Note 10). Deferred compensation plan assets are carried at market value. N. FUND EQUITY Reserves Reservations of retained awnings of the Proprietary Funds are created by increases in assets restricted for debt service, renewal and replacement, contractual obligations, and other capital project reserves, These increases result from eamings on restricted assets and other intrafund transfers to and from restricted accounts. Earnings on restricted assets are included in net income of the proprietary funds. The increase in restricted assets decreases unreserved retained earnings and increases reserved retained eamings. Aeserves of the Governmental Funds are limited to the portions of fund balance which are either not available for appropriation or are legally segregated for a specific use. Designations Fund balance designations are established to reflect management's plans for financial resource allocation in a future period, Such plans or intentions are subject to change. 3. PROPERTY TAXES Property taxes are levied on January 1 st and are payable on November 1 st, with discounts allowed of one to four percent if paid prior to March 1 st of the following calendar year. Taxpayers also have the option of paying their taxes in advance in equal quarterly payments based on the pnor year's tax assessment with quarterly discounts varying between 6% and 2%. 411 unpaid taxes on real and personal property become delinquent on Apnl 1st of the following year and bear interest at 18% until a tax sale certificate is said 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, 1986, upon which the 1986.87 levy was based, was approximately $9,487,611,000. The City is permitted by Article 7, Section 6 of the Florida Constitution to levy taxes up to $10 per $1,000 of assessed valuation for general governmental services 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 interest on general obligation long-term debt, subject to a limitation on the amount of debt outstanding. The tax rate to finance general governmental services (other than the payment of principal and interest on general obligation long-term debt) for the year ended September 30,1987, was $9,84 per $1,000, The debt service tax rate for the same penod was S2.4512 per $1,000, Property taxes receivable as of the end of the fiscal year, representing collections within 60 days subsequent to September 30, for billings through the fiscal year then ended amounted to approximately $1,136,000 and $164,000 for the General and Debt Service Funds, respectively. A-17 10487 m 4. E01,11TY IN POAL[D CASH AND INVESTMENTS, CASH WITH FISCAL AGENTS AND OTHER CASH AND INVESTMENTS At September 30. 1987. the Cirj's cash and investments, 00uChng those neld by the pension trusts, are presented on the combined balance sheet as follows (in thousands). Pooled cash and inftstments $118.013 Cash and cash equivalents 4 598 %nVCW cash and investments with Biagi agents ... , 61.956 Tatar . ... ... . slu.587 These balances are composed of the following elements (n ala4ands). Ca h and 11" CISPOS s with hanks ... . ............ 3 20,147 Aorfued interest .. 1,722 161,722 Total .................................... $184,567 The carrying amount of ttfe City's cash and tinge deposits was Approximately S20,147,000, whereas the bank balance was S20,537,000. All cash deposits and certificates of deposit are held in banking institutions approved by the State of Florida. State Treasurer to hold public tunas. Under the Fonda Statutes Chapter 260. "Florida Security for Public Deposits Act", the State Treasurer requires all qualified public depositones to deposit with tits Treasurer or another banking institt,fion e''gible collaiera, equai to from 50% to 110% of the average daily balance for each month of all public deposits in excess of any appi cable deposit insurance held. The percentage of eligible collateral (generally. U.S Government and agency securties, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. A-18 The City's investments as of September 30, 1987 are categorized below. (in thousands). Peoteell and ftstrleted: U.S Treasury and Agency Secunnes $118.326 S116 490 commercial Paper ..... 28,345 28,345 Short-term investment pool ...... ..... 16.027 16,027 $162.696 $160.862 The City's investments are generally either held by a third party agent for or, in the name of the City or fully Wlateralized in a separate account in the name of the City. Such investments meet the criteria of category one credit risks as defined by GASB Statement No, 3. The City's policy with respect to its pooled investments is to not invest in repurchase agreements. Included within the short-term investment pool includes approximately M5.000 regaled to ODA, This investment is essentially unsecured from the City's position and Is, therefore, classified as a category three credit nsk under GASH Statement No. 3. Pension cash and investments as of September 30, 1987 are summarized as follows (in thousands): cost hUrxet U.S. Government Obligations ............ $123.765 $121.154 Corporate Stocks ....... .... 232.539 279.933 Corpwate Bondn ...................... 27.975 26,085 lnvwnwt pools and time deposits ....... 71.479 71.479 Accrued interest and other ..... . 3.426 3,344 $459.164 S501.995 Investment pol►oes for the GESE and FIPO pension trust funds are described in Note 2(F). See additional discussions in Note 17 concerning changes in market values subsequent to September 30, 1987. 10487 L. 5. CUE FROMITO OTHER FUNDS Due fromfto other funds are loans from one fund to another for specific purposes. At September 30, 1987, the balance in due trom/to other funds consisted of the following (in thousands). Oue from Due to FuTid 00w Funds Other Funds General .... ..... ............. ............. $3,336 S — Special Rovenue: Dowrnown Development AuVwty ......... . . . . 11 7 Ofher Finds ............................... — 11 Debt Seno ae: Utility Service Taxes .... . ................. . . — 2,864 Capaal Protects. 1 CultureTransportation ...................... 1173 - Pub6cUse ................................ — 725 E erpnee Funds: Dapartmertt of tOff•Shwt Parking .............. 484 — Gb0 Enlsrpnae Fund ....................... — 163 Orange P.owl .............................. 132 850 Martv Stadium ............................. — 132 Corwertbon Center. ............. I .... , .. — 142 Govt. Center Parking Garage .............. . .. — 92 Trust vtd Agency: Pension Admtnistrabon ... . .................. 1.956 2,719 GESE Pension Trust . ...................... — 11955 FIPO Pension Trust . ....... ............. 2.719 — Total ................................. $9,660 $9,660 6. OTHER RECEIVABLES Amounts due from other governments pimanly represents amounts relating to grant awarded by other governmental agencies, and caner receivables from state and Iota► governments As a part of its Community Development Block Grant program, the Ctty issues single and multi -family housing rehabilitation loans to qualified residents. All repayments of the !oans, which carry low interest rates, are to remain to the loan program. As collection of the loans is not assured, the loans are fully reserved. As of September 30, 1987, rehabilitation bans outstanding totaled approximately $14.4 million. 7. PROPERTY, PLANT AND EQUIPMENT The following is a summary of changes in general fixed assets for the year ending September 30, 1987 (in thousands): tasl m% Addntone OeWdone tieferrce, October 1, end end aepternbsr 30, Is" Transfers Trenefers 1ea7 Land .. .... ......... ........... ....... S 65,599 S 6.707 S 1,022 $ 71,284 &woing 3 Improvements ...... .... ........... 26,536 - 1,235 25.303 Machinery 6 Equipment . .. . ........... ...... .. 24,955 934 989 24,900 improvements Other than Bu>ongs . ..... .. ..... I .... 161,746 19.817 433 181.130 Conan ton in Progress ... ... ... ...... ............ 52.270 43,082 21,439 73,913 Total ... ..... ...... ... ........... .......... S331,108 $70,540 S25.118 S376,530 See Note 16 for a discussion of the construction projects currently in progress and Note 12 for an expianavon of general fixed assets transferred to the newly -created Solid Waste and Building & Zoning Enterpnse Funds. A summary of Proprietary Fund type property, plant and equipment at September 30, 1987, follows (in thousands): tnl Ml 11"Ov Wee Service Land ........................... S 14,579 S — Buildtngs and Improvements .... . , . 135,375 4,400 tit& unery and Equipment ......... 6,616 28,235 Construction in Progress ...... , .... 7,874 Total ....................... 164,444 32,635 Lees Accumulated Dewsoaaon .. , .. (31.411) (16,130) Not ............................ 5133.033 $16.505 A•19 1048`7' L •. LONG-TERM DEBT A. CHANGES IN LONG-TERM DEBT The to►►ow+ng is a summary of ctlanges In long-term debt of the City for the year ended September 30, 1987 (in thousands). bNarnal Errtaarprtw servlee f3eaaeref Loeeq•Term f)eb1 Fund Debt Fund oebt 1 n CWW ObM9aaaen aaa MMVAfa CArltof C AMM 00W f woor d" f:4atffleetM RaYenW ftaw at +Donal Nora Fwt09410" Pmuft Payablae Abwnew TMW Benda Pardelpati" Balance at October 1 1986 ... $194,375 S38.300 S 16,175 529,335 56,673 114,544 5299,702 S76.356 S13.720 S — New Bonds "and . 16.375 25,090 — — — — 41,465 — 2,000 — Suboranate Obrganon Now Proceeds released nom 10.000 — — -" 10.000 — — — 4scrow — — DrowdowrK on Section 108 MUD nofe — — — — 2.869 — 2.889 — — — t-We " in Lease PayaVes— - lr=aase n Long -Term Clam Lrabblies — -- — 5.075 — — 5,075 — — — Decrease in Long -Term Accurnulatea Unpaid Compensates Arn4nces — — — — — (405) (405) — — TrarWer of CafV481es of Paraacatior, to Internal Service Funds (Note 12) — — (16.'.75) — — — (16.175) — — 16.175 Debt RetireC (11.400) (230) — — (11.630) (108) (110) (2.115) Baaance at Sevemoer 30.1987 S199 350 S73160 S — Sad 410 S 8 442 $14 439 $329.801 S76.248 S15,610 $14 060 • B. SUMMARY OF ANNUAL DEBT SERVICE REOUIREMENT The annual requirements to amortize all bonds, certificates and, other payables outstanding as of September 30, 1987, including interest payments of approximately 5364,861,000, are as follows (in thousands). cerwWw r. oolpation ab►w f5bt5b Uon 0609 tram (1) Par1l Revwwa Fe (1) 1968 S 20.537 S 7,204 S 3,'69 S 6,778 $1.609 1989 24.671 7,942 2.974 6,777 3,672 1990 24.349 7,855 2.510 6,874 2.241 1991 22.579 0.370 2.815 7,079 2,102 1992 22.336 8,290 5,575 7,360 1993•1997 96,948 38.090 38,699 1998.2002 71.086 32,203 38,229 2003.2007 42,991 32,024 39,447 Thereafter 17.062 39,147 50.023 $342.559 9101.125 $17.043 �e----- W1.266 $9,624 (1) Includes debt serince on the MSEA Special Obligation Bonds, the Subordinate Obligation Note, and the Section 108 MUD Prornimory Note at an assumed rate of 7%. A-20 10487 C. INIUMQMARY OF MONO -TEAM DEBT Bonds payable at September 30, 1987 are comprised of the fogovAng issues. (000's) funeral and Specal Obligation Bonds (General Lorig.Term Debt). IW,500.000--Poboe Headquarters Improvement Monde. eight haeues. maturing through 2005, khtiar40 at raase ranging from 3% to 11%........ 3 26,090 1141,000.004-4torm Sew improvement Bonds; twelve issues, maturing through 2014; thereat at raft ranging horn 2.5% to 11% .............. 27,575 3",e40,00D—Putfc Pane " Recreation Foorbea Bonds. rive swim maturing through 2=1, irsorset at rang ranging from 3.5% to 7.5% 20,540 $70,500,000—Sanitary Sewer Improvement Bonds; eieren sum, raturing through 2013, inWW at fates ranging horn 3% to 11% ................ 31,510 3W.375,000—Street and Nphway Improvement Bonds: eight twos. mmunng through 2014, interest at rates ranging him 3% to 11%........ 25,085 $4.290.000 Houvmg Special Obligation Bonds; one issue maturing through 2006, interest at rates from 4.1% to 7.4% .... .................... 4,210 SM1.000.000 burn Sports and Exhibition Authority Speam Otwgabon Bonds, Senors 1985, matunng in various amounts tram 1991 through 2015; interest run vary weekly at 70% of pnrrhe rate subject to adjustment under Coun arcumstances. During 1967. the average rate was 4.52% ............ 38,000 510.000.000 Miami Sports and Exhbition Authonty Subordinate Obligation Note, maturing in quarterly rreitattments of S312,500 beginning January 1988 1hrougn December 1995, interest rates vary at 70% of prime rate subjeG to adlusvnsnts under Certain conditions payable quarterly Dunng 1987, the average rate on eta We vets 4.4% ........ 10.000 538355.000 General Obigation Refunding Bands. Series 1986. maturing tr.roA h 2014, interest races ranging trom 4,5% 10 7.7% ................. 38,355 $20.800.000 sunshine Stan Governmental Finanwng Comrmwon Loan, Serbs 19W. maturing Mrougn 2016, interest rate at 6% 20,800 $63.140.000 Other haves. matunng througn 2014, interest at rates ranging from 1% to 11.5% ...... 30.345 9272,510 Xc A•21 Revenue Bonds, and Special Obligation Bonds (Proprietary Funds): (000's)_ S60,000.000 Convention Center and Parking Garage Revenue Bonds, due in installments of S100,000 to $4,750,000 through 2015; interest at ruts ranging from 6.5% to 8.5% .. . ........... S 60,000 S16,275,000 Parking System Revenue Bonds, Series 1986, maturing through 2009 at varying rates of interest ranging from 4.25% to 7.75% ... 16.185 $2,000,000 Subordinated Parking System Revenue Bond, Series 1986, due on October 2006, interest at 6% through 1992, thereafter at 80% of Prime rain.......................I............. 21000 SM,000 Orange Bowl Warehouse Revenue Bonds, maturing through 1989; inie►est at 6.5% .. 63 $13,720.000 Government Center Parking Garage Sporn Obigatbn Bonds; maturing through 2008; koreat at rates ranging from 5.625% to 8.875%.. 13.610 91,858 Lena UnamorW*d Bond Discount ............ . . ' (2.399) S 89,459 =15►175,000 Carttticates of PartlIclpation--On August 29, 1986, the City issued $16,175,000 Certificates of Participation, Senes 1986 (tile Certificates) to finance the wMuisition through August 1, 1989 of equipment for use in providing essential City services and to reimburse the City for equipment acquired during the prior two years. The Certificates represent a limited and special obligat,on of the City and evidenca undivided proportionate interests in "basic rent payments" to be made by the City pursuant to a lease purchase agreement for the acquisition and financing of the equipment. Title to all equipment purchased rests in the City. Basic rent payments consist of an annual pnncipal 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 appropriated 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 taxa0on. See Note 12 for a discussion of the reclassification of all certificate of participation activity to the Motor Pool Intern) Service Fund during 1982. 104S i- Section IDS HUD Promissory Note —During 1987, the City drew down the remsirting portion of a $5,958,400 pmrTMssory note from the U.S. Department of Housing and r Urban Devalopment ("HUD') issued under Section 108 of the Housing and Community Development Act of 1974 to pa"ly fund the Southeast Overtown/Parkwest project (ace Note 16). Interest is to be paid annually on August 1 at a varable rate. Annual principal payments of 31,985,000 will begin on August 1, 1989. AN HUD grants and related program income are pledged as security for the note, 111120,111100,000 Sunshine Date Governmental Financing Com"deslon Loan—Dunng September, 1967, the Ctry obtained a $20,300,000 loan from the Sunshine State Governmental Financing Commission (the Commssion). The proceeds from this loan are to be used to fund parks and mannas improvements. The Commitmon was created in November, 1985, by the Obes of Orlando and TalWumsee, Florida, through an interfocal agreement, as a pooled financing "Nels to allow for a limited number of high quairry local governmental units (Cities and Counties) to Ion together to a variable rate financing program and thereby benefit from the inherent economies of scale. The City's obligation is a covenant to budget and appropriate (from nomad valorem revenues) to pay the debt seance on its 520,800,000 loan. The ban agreement does ro; provide for either a rate covenarn or an addmonal bonds test but requires a minimum dilution level be maintained to enable the City to issue senior tier. (non -ad valorem and port -proprietary obligations) without acquiring prior =%Sent 54,290,000 Housing Special Obtigatfon Bonds, Series 1980 A —in October, 1986 the City issued 54,290,000 in Special Obligabon Bonds, Series 1986 A, to provide financing for construction of owner occupied residences under the Scattered Site Program in the City's Community Development Target areas. The bonds have serial rebrements from 1987 through 19% to amounts from $80,000 to 5190,000 and a term payment of $2,830,000 in 2006. Debt service on the bonds are payable sdely from certain telephone and telegraph franchise fees. 0. SYNOPSIS OF BOND COVENANTS AND DEBT AGREEMENTS The various bond indentures and agreements contain agnGcant ttntitaoons and restncLons on annual debt service requtrsments, maintenance of and flow of monies through various restricted accounts, mirimum amounts to be maintained in varoA rkng funds, and nw%mum revenue bond coverages. A summary of major provisions and significant debt service requirements follows: General Obtigatfon Bonds —Debt service is provided for by a tax levy on raww rapt Property value and collections on assessment Wens from projects financed by proceeds of such bonds. The total general obligation debt outstanding is limited by the City Charter to fifteen percent Of ttma asSessed non-exempt property value. At September 30, 1987, the statutory kmitatieon for the City was approximately $1,423.142.000, providing a debt margin of approximately $1,227,564,000 after cons cierabon of the 5199,350.000 of gerwral obligation bonds outstanding at September 30, 1987, less approximately 53,772,000 available to the related debt service fund. General obligaton bonds authorized but unissued at September 30, 1987, totalled $60,900,000. $80,000,000 Convention Center and Parking Oarege Revenue Bonds —Debt service is provided by a pledge of net revenues of the Convention Center -Garage, a pledge of certain telephone and telegraph excise tax revenues, and by a covenant and agreement of the City to provide, to the extent necessary, revenues of the City, other than ad valorem property tax revenues, sufficient to make up any deficiency In certain of the required restricted funds rind accounts. Various funds and accounts held by the Trustee are required to be maintained under the terms of the Trust Indenture pursuant to which the bonds were issued. Those funds or accounts pertaining to these provisions include the Revenue Fund, Bond Service Account, the Redemption Accounts, the Reserve Account, the Construction Fund, the Supplemental Reserve Fund, the Renewal and Replacement 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 bass, all money remaining in the fund to excess of current expenses to the following accounts or funds in the following order: • to the Bond Service Account, an amount equal to the sum of @ an amount equal to one -sixth (V/6) of the interest payable on all the outstanding bonds on the next ensuing interest payment date; and (ii) commencing in January 1989, an amount equal to one -twelfth (�/ii) of Vie next maturing installment of principal of all serial bonds; • to the Redemption Account, commencing in January 2001, an amount equal to one -twelfth (Vu) of the pnnapal amount of the term bonds required to be retires on the next succeeding January 1st; • to the Reserve Account, such amount, a any, of any balance remaining alter making the deposits under the two proceeding provisions, as may be required to make OW amount then held for the credit of the Reserve Account equal to the maximum annual principal and interest requirements for the current or any succeeding fiscal year: • to the Renewal and Replacement Fund, one -twelfth (Vu) of $100,000 and one -twelfth (Viz) 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 $1,500,000; • to the Surplus Fund, the balance, if any, of the amount so withdrawn. At September 30, 1987, the City had on deposit with the A-22 Trustee for these bonds approximately $10,551,000 1048 including accrued interest receivable, in the required woo nCtad funds and accounts. See Note 17 for a discussion of the refunding of this bond issue subsequent to September 30, 1987. $16,275,000 Parking System Revenue Sonde (OOSPj—Debt service is payable solely from the revenues of the Off -Street Parking facilities. This issue ("Series 19W") corasts of sena) bonds payable in installments of $90,000 to S1,390,000 from 1987 through 2009. At September 30, 1987. the City had on deposit with the Trustee for these bonds approximately 32,803,000 including accrued interest receivable in various row" accounts, These accounts consists 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 Condemnabon Award Aocounls). The nature, purpose and funding requirements of these funds and account` are sirrtilar to those described above relative to the Convention Center. $13,720,000 Special Obllgetfon Bonds —Debt service is provided by a pledge of net revenues of the Government Center Parking Garage and utilities sbrvices taxes collected by the City from the sale of water and gas in an amount not to exceed the principal and interest requirements in the ensuing fiscal year. A reserve must be maintained equal to the maximum annual debt service requirement. Various funds and accounts held by the Trustee include the Revenue Fund, Bond Service Account, Redemption Account. Reserve Account and the General Reserve Fund. The nature, purpose and funding requirements of these funds and accounts are s,rrwlar to those described above relative to the Convention Center. At September 30, 1987, the City had on deposit with the Trustee for these bonds approximately $1,873,000 including accrued interest, in the restricted funds and accounts. tiM.000,000 M.S.E.A. Special Obligation Bonds, Series 19115—These Bonds are limited special obligations of the Miami Sports 3 Exhibibon Authority (MSEA) and are payable Wely from and secured by a pledge of 0 MSEA's allocated portion of the 3% Convention Development Tax levied and collected in Dade County, (N) investment eamings on certain reserve accounts required to be maintained with the Trustee, and Oil) from the Cate of original issuance of the Bonds through December 30, 1990 (except upon the earlier occurrence of certain events) from funds drawn under a bank letter of credit in a staged amount equal to the principal amount of the Bonds plus 55 days interest thereon at an interest rate of 12%. Concurrem with the asuancc of the bonds the MSEA entered into a remarketing agreement to effect the remarketing of any tendered bonds or any bonds held for the benefit of the Wet of credit provider as set forth in the Bond Resolution. The Special Obligelm Bonds were issued origsnaily as variable interest rate bonds, convertible at the option of the MSEA to a fixed interest rate as determined by the remarketing agent. Prior to the conversion to the fixed interest mode, bonds held may be tendered to the remarketing agent and held for the benefit of the letter of credit provider. The letter of credit agreement expires upon conversion to the fixed rate mode or on December 30, 1990. No funds were drawn on the Letter of Credit in 1987; M23 however, letter of credit fees of approximately $300,000 were paid in 1987. Upon issuance in December, 1985. the proceeds of these Bonds, net of original issue discount of $512,000, 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 Principal accounts, the Debt Service Reserve account, the Replacement Reserve fund, the Maintenance fund, the Capitalized Interest accoure and #* Expense aocounL The Indenture provides that, for the twenty-four (24) month period subsequent to the issuance date (the Capitalized Interest Period), all debt service payments are to be made from the Capitalized Interest account. Receipts of convention development tax proceeds are to be deposited in the Tax fund and distributed during the Capitalized Interest Period to the following funds or accounts as follows: • to the Debt Service Reserve account, deposits to bring balance to $3,375,000 (tuilly funded at bond closing); • to the Miami Sports and Exhibition Authority's operating fund, $30,000 per month up to $350,000 annually adjusted by the consumer price index; • to the Replacement Reserve fund, deposits to bring balance to $5,000,000; • to the Maintenance fund, deposits to bring balance to $3,000,000; • to the $10.000,000 Subordinate Obligation Note debt service account to provide funds sufficient to meet the quarterly debt service payments thereon; and. • to the Authority for any of its lawful corporate purposes, At September 30, 1987, these accounts and funds related to the bonds contained approximately $14,462,000 on deposit with the Trustee. $10,000,000 M.S.E.A. Subordinate Obligation Note— MSEA issued on December 27, 1985 a $10,000,000 Subordinate Obligation Note, Senes 1985 (the Note), to fund permanent or temporary exhibition facilities or any other lawful purpose of the Authority. The Note is secured by a pledge of MSEA's allocated portion of the 396 Convention Development Tax, but on a basis subordinate and junior to the pledge to the $38,000,000 FloaDnglFixed Rate Special Obligation Bonds Series 1985. The proceeds of the Note were held in escrow until February 1987 pending satisfaction of certain financial conditions to disbursement and final approval of the proposed exhibition facilities by the Note holder, also acting as Trustee. Upon breaking escrow, approximately $8.5 million in note proceeds plus accrued interest was transferred to the Capital Projects Fund to provide funding for the Coconut Grove Exhibition Center expansion and the Convention Center renovabon. The Note was self-liquidating with respect to interest payments while the proceeds were held in escrow. Debt service for the first 24 months after breaking escrow is provided from funds deposited at dosing in the Capitalized Interest Account; thereafter, debt service shail be provided from convention development tax proceeds, (after meeting the funding requirements of the Bonds,) and any additional pledged revenues of MSEA or the City. 10,487 E. DEFEASANCES OF LONG-TERM DEBT In Prior years, the City def"sed certain outstanding general obligation and revenue bonds by placing the proceeds of the ftfUr4rog bonds in irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust now nts and the deleased bonds are not included in the City's financial statements. At September 30. 1987, the following OuVam*ng bonds are considered defeased (in thousands). Parking Faciiies; Revenue Bonds Sees A .... ................ S No Series 9 . .. . .. . . ..... ............ . . 1.430 SeriesC ...... . .. ............................ 3.025 Sores 1980 ..... .. ... .. .. ..... I. - ........ 111,630 Parking System ft"rK* Bonds. Series 1933 . . . . . ........ ..... .. ...... 13,370 Parking Revenue Bonds. Sees 1981 .... ................ .......... 10120 General Obligation Bonds AmkPling, Serves 19U . ... ... .............. 1.800 HOUSIng. Sena I984 . .. ....... ................ 17.510 Storm Sewer improvement. Saves 1984 ........... 2,1120 SlnW and Higttway. Series 1984 .... ...... ...... 61890 9. FUND EGUITY The only City subtunas having clefic-1 fund equity at September 30, 1987 were among the proprietary fund types. The following SChedule lists the equity components of all City proprietary funds as of September 30, 1987 (in thousands): ftWned aw"k" (Deftit) Total MOSWV*d for FAMondi *rprfw F6T49 Mond ROW iiw Unreserved Contributed TOW Capital Fund Eguiry (Deft 1) 00-street Pawing S 1.838 S 7.326 S 9.164 S — S 9.164 G&O Enterprise Fund — (255) (255) 730 475 Marinie Vaourn — (245) (245) 699 454 Miarni SukjLrn — (515) (515) 1.654 1.139 Orange BOVA Stac-um — 2,228 2,228 4.471 6.699 Conv*mlon Center 9.260 (21,292) (12.032) 43.245 31.213 Mannas 5,026 5,026 2.787 7,813 Auchionorns (2.522) (2.522) 5,407 2.885 Golf (61) (61) 391 330 Waiehouw P?oDeny — 340 340 — 340 Parking Garage 1,589 (5.183) (3.594) 634 (2.960) Swelzong and Zoning — (126) (126) 265 139 5004 Waste (1,465) (1,465) 1,933 468 Property &no Lem Management 507 Sol 2,287 2.794 $12687 S06,237) S (3,550) ig; 5-03 SW 953 Wdemal somice Cary Garage $ — S 2.064 S 2.064 S 6.279 S 8.343 Motor Pool — (572) (572) 373 (199) Property Maintenance — 144 144 273 417 Prins Shop ISM) (538) 178 (360) Pr=rernent Management S4 S4 23 77 GornmWMcaticinis serwes .. .... . .... ....... (934) (934) 2.143 1209 3 218 S 218 5 9.269 some=== 111111111111M== S 9487 The clefiv, in the Parlang Garage Fund, resulting from the S2,468,039 extraordinary loss on debt refinanang in 1985, is expected to be eliminated by future transfers of Utility Service Tax revenues as needed. See Note 14 for selected financial information regarding the Enterprise Funds. A-24 10487, r- 10. CHANGES IN AGENCY FUNDS The City's Cable TV. Agency Fund is used to account for the $1,500,000 refundable deposit from the Cable TV licensee and interest thereon. which is payable to the licensee. The changes in the City's Cable TV Agency Fund are as follows (in thousands): Apow Payebk Deposits cash Balance at begnnung of year S723 $1,500 $2,223 Investrnsrtt earrings to be reTftted to I censee ... ...... 97 — 97 Refund to licensee ........ . .. . ...... . .. . . . . ......... (, 00) (00) ktrestment intwest paid to licensee ................. Balance at end of year ......... . ............ . .... . ... $229 S1,500 $$1.729 Or_ —+ As described in Note 2(M), the City sponsors three deferred compensation programs for its employees administered by ICMA, the Copeland Trust and the U.S. Conference of Mayors. In response to the issuance of GASB Statement #2, the Deferred Compensation Agency Fund was establishea to account for these programs. The changes in the program assets during 1987 were as follows (in thousands), Asses at beginning Of the year .. . .. . .. . . . .... . .... . . . .. S 7,434 COntriCubOns: Employer ....................................... 677 Employees .................. .................... 21086 wh,earwnt Interest . 1,"� Benef�ta paid and ternpnation refunds ...... . .... . ........ (283) . Assets at end of year .. ........................... S11,372 11. INTERFUND TRANSFERS A summary of nnterfund transfers and contrit>ubons by fund type and account group is as follows (in thousands): TrsrnaAn In OW le Co" Votorrowasr�srel LwWorel 11e • 8"W Proome [ntVWWO *WWOO 6►b4 Total Transfers that Operabrtp transfers t'w*rar .. .S — $1,122 $— S 690 S16,610 S — S — S18,422 Soea2lrevenue .. ... ... .............. — — — 100 — — 100 Debt servtoe ... . .. ...... .. ....... 24,256 — 542 453 4,947 — — 30,198 casts+ protacts .... ...... ...... 1,000 963 300 9,165 300 — — 11,728 Enterprise .. ....... 1.398 — — 291 — — — 1,689 Overnar service . ................... 5.000 -- — 525 — 5.525 53/ 654 52,085 s842 wr--- a-- a� 510,699 521,857 1 525 S — $67.662 Equity transiers and Contributions: Spec* revenue . . . .... .... ...... S 6 $ — s— $ — $ — S -- $ — $ 6 Debt service .. .... — — — 8,792 — — — 8,792 C.&C" protects . ...... ............ ... — — — 168 2,500 12.465 — 15,133 Ertterpnss .. .. ...... 186 — — — — 15 675 876 Interns Sennce.. .. .. ...... I........ — — — — — 3,472 16,175 19,647 Genera; 6xea aswis ... . ...... ..... — — — — 2.374 56 — 2.430 S 192 S - s- s B,960 S 4.874 $16.008 $16.850 S46,684 Certain amounts in the above table reconcile to the financial statements as follows: 5"ft Trana/e.s In Equity Tnwafm out Internal lnt*mol t A"Mriea eewlee S*Wve B"no" per Labe ................................................ $4,874 $16,008 S(19,647) Accumulated depreciaDon On assets transferred to ..... ............. . (176) - - Cace pWhzed asuenCOO and accrued interest in Certificates of Panicipation .... 359 Cervf4wes of Participation proceeds transferred m ......................... . . . . (12,268) 12,268 Balances per E,dbdtIV................................................... S4.696 S 3.740 S (7,020) These led)ustrnents are a result of the changes in fund classification discussed in Note 12. A-25 IL048 7 12. CHANGES IN FUND CLASSIFICATION Effective October 1, 1986. the City Commisttion authorized the transfer of the solid waste collection operations and building and zoning inspection from the General Fund to new separate enterprise subfunds. Management believes that accounting for such operations as enterprise funds will provide a more appropriate basis for future accountability and management control. The amounts trunsferred to the newy�reated enterprise subfunds include the following (n thousands): tflelld bdedtny wame WW Zoning Contributed capital. General Fixeo Asrts Account Group: duioting and equpment: Ongmalcosi ............................ $2,109 $265 Accumulated dweaaiion .................... (176) ToW ooniti to pitnl ........................ $1.933 S265 :— PAsned eam, inp (doc:Q. General Fund: Accrued oompwitated Winces ................. s 086) S— General Long -Term Debt A=jnt Group: Accrued compensated abt; mM ................. (675) — Nei interfund transfer ........................ T (661) SS— Also effective October 1, 1986. the accounting for the Certificate of Participation proceeds and debt service was reclassified from the Equipment Acquisition Capital Projects Fund and General Long -Term Debt Account Group to the Motor Pool Internal Service Fund. This change was made to reflect the City's decision to use tree remaining Certificate proceeds to purchase Motor Pool Internal Service Fund assets and to fund the Certificates' debt service in part from user charges generated by such assets. As a result, the Capital Acquisition Capital Projects sublund was closed. Retained earnings of the Motor Pod Intemal Service Fund was reduced by the net amount of this transfer since the capital outlay expenditures initially funded through the Equipment Acquisitions Capital Projects Fund in 1986 were originally intended to be financed by a transfer of accumulated earnings from the Motor Pool Internal Service Fund. Details of the transfer are as follows (n thousands): Equpmerit Acquisition CaPtW Projects Fund: Restricted cash. .. ..... ........................... ........ .. $12,268 General Long -Term Debt Account Grouo: Certificates of Participation outstanding Principal .............. (16.175) Adjustments to accrual basis Capitalized mauance costs ........................................... 497 Accrued interest payable ............................................. (139) Net reduction in retained earnings of Motor Pool internal Service Fund ....... $ (3,548) A-26 1048'7 i- 13. SELF-INSURANCE The City maintains a Sell -Insurance Expendable Trust Fund established by City Charter to account for insurance activities rotating to certain property and liability nsk, group accident and heavh and workers' compensation, The fund is under the administration Of a Self -Insurance and Insurance Committee appointed by the City Manager, Charges to participating operating departments are based upon amounts determined by management to be necessary to meet the required annual payouts during the fiscal year. The estimated liability for insurance claims includes estimated future liability On A cas&bycase basis for all pending claims and an actuarially determined amount for claims incurred but not reported. The WnHerrn portion of the total estimated liability, which is expected to be funded from future operations, is reflected in the General LwV.Torrr, Debt Account Group (GLTD) and amounted to approximately 534,410,0OO as of September 30, 1987, as follow. workem, eoeaF«mawn AI warfare compensation coeb are paid from the Sefhlnsumnoe Fund, with all departments of M City assessed a barge based upon animal cash requirements. As claims are reported, they are inva liptsd by ctanme personnal, and an estimate of liability on a cae-bycase basis is etsabirshed. The eatrnated Irabkbes are pemodicalty reviewed and revised AS claims develop. Most lability in this area wrY be payable over sawral years . ........................... General Cw4o mpe Departrwits of the City are assessed 'or property and casualty, including police professional fiabdrty, and public official's liability, coverage based upon the cash requirements of the Self- h3urance Fund and thar 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 K insured, suoiect to a $100.000 de lucMe, for all prooeny loan exposures except as related to parks and recremon faabbes which are included in the City's Saff•Insurance program As the casualty claims are reported, they are investigated by to claims personnel anti an estimate of lability on a caseeby-Ase bens is esablished...... . ................ . Group Aoddeed end Neelth Certa+n employees and retires of the City contribute through payroll deductions or deductions from pennon payments to the cost of group benefits. The remainder of the funds necessary are cot it; buted by the City based upon the number of participants in the plan. As of September 30. 1987 the plan covered approximately 900 active employees, 760 retirees and 800 family and dependent units. Costs of the plan for me year then ended were approximately $4.3 m*on. The City's plan does not Cover members of the police and firefighter unions, which have established separate group benefit plans. The amount of claims at Seotember 30, 1987 represents payments made by the C4ty in October and November, 1987 on claims incurred on or betas September 30, 1987 .................. . ................. . .............. . A-27 sw4nouranoe GL�TOrCbIrns ellelwr,iet )) bk ("on -Current) ltrpo'®) (OW's) S 135 St3,860 546 20.550 864 — 31,545 $34.410 10487 14. SEGMENT MOOPMATION•-ENTBPPAISE FUNDS The City maintains enterprise operations which provide various recreational, cultural convention and parking facilities. SNeged flnwrial information for the fiscal year ended September 30, 1887 is as follows (i11 thousands): !� E low P Owdk la Mann- Audito"um Cwren Osr� Waaea UNWOOMOM Total 001wo aaeraa ....... a 4.4w a 251 a an a (2.061) $2,475 a (tat) i (465) a e04 a 195 ! 1,687 s 790 s 8.473 Cwfant 485rmae ... t.362 300 11351 338 256 101 102 200 320 3.043 129 7.500 Not 41pf" •� �••� aiPw a as o a (2.4/9) �� a�a - ( a 404 ai 11,356 --= a bet a 973�=' Patbstsatt .... 12.403 a -- a - a 10.651 a - a - a - i 1.a73 a - a - a - a 15.227 Cur1w11 aaa406 OR"" "M NO&C ue seem • . 013 1.291 284 2.540 Nat Paotncled ttsaata ....... a I.A36 S- a �- a 9.290 a - a - a - 8 1,319 a - a - am a - a 12.587 P1"ar W. sane and men= am.Ps swiorr ►a ........ a20.024 r---- a 524 a>ar a 9,310 : a1.290 a5,594 a 3.167 a 807 a 7.799 a 271 a 1.824 a 2.133 M33.033 Total asses ....... a26.721 ar^ 6 77S ac a,0.046 a SI AN 0.00 a 2,966 a 43a10,7a1 S 467 a 3.511 ==a= 32.923 a04 bndt paym. (rat) ..... a17.Y30 6- a 63 Ammmim- 158.594 a - a - 8 - $13,2S7 a - a - Cdnsreh "d aptal ... a - s--- a 73p :� a 6.924 a 43.246 arc $2,787 s=z a 5,407 :gym s- _ a 391 a 04 3 265 S 1,933 - a 2.287 �n a 64.503 Tow ratarned as OW"OP (6001) aS 9_.164 mac) a 1.a08 a(12.032) $5.026 a(2,522) a (61) S(3.S94) a (129) S (1,465) a 507 a (3.550) TOW fqudy (defeat) .. a 9.184 8475 am_- a 6.632 a 31.213 $7.513 a 2.865 a 330 3 (2,950) 3 139 2 Ass a 2.744 S 60.953 Operseng nrsnues a 7.50 loaaaaa a 732 am= a &M a 3.710 sa-- at.405 asp R--- 6 5a9 r C=== a- 81.147 a 443 $3,587 3 14,002 I=== was Joe== a 2,246 a 35.633 Opa VWQ ifloen+t (bas) W!, nonYiparat�nq 09VINUPM (911Pauwa) a 1,496 Sl200) a (677) a MWA) 3 (61) a (176) a 13 a (52) a (995) $05.737) a 1,670 a (17.551) rsrsnuret la=o�+Pwr 0 to am wwoms .... Am 9 42 916 148 - ' 18 162 - 64 17 1.712 M+rrt4P1 and `iaCa1 Marg" .. (1,3281 - (5) (6,259) -- - .- (t,t99) (te) - - (7.807) CVW ........... 35 - 7 1.256 27 9 2 103 38 - 1,479 Tow nor,Cvoatng N"Ift a (OXPO1Pw4) (667) 9 44 (3.1a6) t7S 9 20 (1.037) 47 102 17 (4.616) No 0a oft from 00) char tundt ... . - 252 Am 3,354 (71) 40 9e8 782 16.031 (1,bt6) 20,1Se NO noon» tedas). a $41 a $1 3 (20C!) a ((1-565) s 43 a 027) 3 33 : (121) s 1126) 3 (504) $ 69 s (1.999) Oapraasom snow" a 1.161 5104 a 579 a 1.685 a 176 a 142 a 51 a 159 a 11 f 79 a 68 a 4.115 Advam td PODWY. Pura and ao wrwnt. Pool .............. a 3.143 a: a 145 Naar a e23 lo� a 2e4 mmms 83,109 a a a 61 a (541 a 292 a 1.203 2== i 12 a 9.596 (»amass (dtasats) in am--- oone+lO clad Pep" .. a - aaae� 8100 amp a (15) as a - a2,600 a - a - a - a 20S a 1,072 a - i 3,922 Y10Psat+a (dsersata) M a = ao� 1110 "Ill eapaal • .... S 47 mons�salsa i$120 a (A" 8 a MM a 1 a 23 a 111 a (132) a (1.36e) a=-- a 125 S (2,562) A-28 10487 15. PENSION PLANS A. PLAN DESCRIPTION The City sponso►s two (2) separate defined benefit Contnbutory pennon plans under the somini cation and management of separate Boards of Trustees: The City of Miami Fire Fighters' and Police Officers' Retirement Trust (FIPO) and the City of Miami General Employees and Sanitation Employees' Retirement Trust (GESE). The plans cover substantially all City Off ip►oyees who contribute a percentage of their base salaries or wages on a br-weekly bans. This percentage was 8.5% for FIPO and 8% for GESE. Contnbutions from employees are recorded in the period the City makes payroll deductions from participants The City is to contribute such amounts as are necessary on an actuarial bans to provide FIPO and GESE with assets sufficient to meet the benefits to be paid, GESE also receives contributions, through the City, from Metropolitan Dade County and the State of Flonda on behalf of certain plan participants. Such oontnbumns totalled approximately $623,000 in 1987. The City was involved in long-standing litigation. principally related to funding of the two plans, wnicn was settled under ar, agreement approved oy the City Commission on June 13, 1985 ("the Gates Semement" ). 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, administrator, attorneys, accountants, money managers, and other professionals. • Ttwe City's total annual contributions to FIPO and GESE beginning w:m fiscal year 1984/85 are required to consist of: •• Administrative expenses •• Actuarial contributions for normal cost using the entry age method; a mecnarnsm has been agreed upon to resolve po=ble disagreement on annual comrioutions by a third party. •• Annual unfunded liability contributions be on a schedule that estimates 55,000,000 for FIPO and $6,400,000 to GESE, respectively, for 1984185, increasing thereafter by approximately 5% per year. The total unfunded liability, including the effect of certain plan A-29 improvements, was calculated to be approximately 5104,500,000 for FIPO as of January 1, 1983 and 5108,954,000 for GESE as of October 1, 1982. establishing the basis for the contribution schedule. The respective unfunded liability balances were 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 2012 for FIPO and by the year 2008 for GESE, P Any increase in the unfunded liability of either FIPO or GESE arising from lawful increases in benefits provided 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 benefits resulting from collective bargaining shall be amortized in level annual installments over a period of 30 years from the beginning of the fiscal year in which the change occurred. * A Cost-d-Uving Adjustrnent Fund (COLA Fund) was created with a designated amount of savings generated by the tax qualification of FIPO and GESE being contributed by the employees, an additional 2% of base salaries. 9. ACTUARIAL INFORMATION The present value of vested benefits (benefits to which participants are entitled, regardless of future service with the City) and the estimated actuarially determined unfunded prior service cost were calculated by consulting actuaries as of October 1, 1985 for FIFO and GESE as a basis for determining the City's contnbution for the City's fiscal year ended September 30, 1987. The estimated actuarially determined unfunded prior service cost is calculated using the frozen entry age actuarial cost method. The more significant assumptions underlying the actuarial valuations as computed by the City are as follows: 10487 Assumed rate of return on Investments: Prior 10 retirement: After retirement: Active mortality bans Employee turnover Wary Seale Fl tirement Asset value Assumed rate of return on investments Active mortality basis Employes turnover Salary scale - R"remeni Asset value u GESE N 4% par annum, compounded annually 7% per annum, compounded annually 1971 Group Annuity Mortality Table, set back 6 years for lantales Rate of Witt Ch Wei Aga Vears of aarvlCe 1 i a. 20 .175 .t20 .060 30 .175 .120 .060 40 .175 .120 .040 so .173 .120 .020 Aga salary IhKcrsaw 20 .100 30 .095 40 .075 s0 .075 60 .075 AOe to+ a5 .300 60 .140 65 1.000 Lower of market value or Statement value MPO 7.5% per annum compounded annually 1971 Group Annuity Mortality Table producing the following specimen rates: Age Uwe Fan"" 20 .0603% .0260% 30 .0609 .0469 40 .%33 .0936 50 .5265 .2165 60 1.3119 .6649 In accordance with the folluNnng specimen rates: !r Ra% 20 8.0% 30 6.0 40 3.0 50 0.0 Plus 15% additional in first year of employment Seniority come, providing annual earnings increases ranging from 4.6% at age 20, 2.5% at age 30, 1.7% at age 40, 1.4% at age 50. to 0% at age 60. In addition, a 5% annual increase due to inflation is assumed. Probabilities of retiring ranging from 1% at age 40, 3.5% at age 45, 50% at age 50, to 100% at age 56. moving market value evem". A-30 10487 t- A summary of oertatn Infomfatlon In this most recent actuarlal valuatlona Is as follows: Ft►O ME To detemunt trie Oty contribution for year ending .. .. , . 9/30187 9/30/87 9/30/88 Valwbt n date .. 10101185 10/01185 10/01186 Actuarial valor of net asses ....... ........ . ................... S195,720,000 $112.353.000 $14054 .000 Acww* weearn value of accumulated pan benefits: Raorees remving benefits and terrrunated members ............. AecumuWad member con bunions ........................... Vested adore members ... ...... ........................ . Nor,#.Vemd active nerimbers .......................... ..... E=ornafad aCtuanally deterrttirtad unhoided SaMed liability ........... Number of ptrndpants at t3ctobar 1. ION: Acsv employees ....................................... Retired, Wablad and dMerred vested ......................... Total................................................ ACtuW%&Vydoterrvned employer Contnb ution for the year ended September 30. 1987 ................ ....... AM For 1lscai year ended . ... ............ Employer contnounon as % of Covw ed payroll ... ................ OESE For n" year arded ............... Employer contnOution as % of covered payroll .. ................ Due to the longstanding litlgation disrrussed in Section A of this footnote, there had been, in prior years, significant differences in actuarially -determined hab hes and NnOing requirements as calculated by V* City and the two Trusts Therefore, it would not be meaningful at this time to present histoncal trend infomtaoon regarding the pension trusts other than that presented above. The City is in the process of developing such infortnabon. Through 1987 the City has maintainer! a Pension Admmistrabon Trust Fund (expendable trust fund), wtgch charges each department of trie City and Mer govemmerU contributors their respective share of ittsbmaled pension plan contnbutions. Substantially all amounts charged were to the General Fund, and the remainder to varwus W*r tunas, principally Erlferprise and Internal Service The Pension Administration Trust Fund then disburses the actuarially determined required contiibubons to the pension trust funds. The City's cash c ontributtons paid to FIPO and GESE through September 30. 1987 (S11,900,000 and $13,100,000, respectively) were be upon amounts speaifed in the Gates Settlement. The City has also recorded a current Lability within the Pension Adrninistration Trust Fund for the difference between actuarially determined contribution calcutated by the City's actuary and the total cash contributions as of ysar4nid, reaulting in a net liability to FIPO of apprommatey 3647,000 and a net mmrpaymant to GESE of approximatetir S593,000. These amounts are in addition to a net liability of approximately $710,000 A-31 $116,327,000 S e2,165.000 5102,812.000 30,940,000 26,954,000 30,903.000 59,564.000 75.837.000 90,525,000 19,972 = 7.756.000 10,562.000 $226,803.000 $194.712,000 $234.802,000 S 68� 207,000 $111,340.000 S112� 792,000 1.673 2,047 201 908 1,565 1,694 2.581 ams�a 3,612 11MN15MC2M=== 3,685 a S 12.547.000 S 12,507.000 9130/87 9/30/86 9130185 21 % 26% 26% 9130/87 9/30/86 9130/65 23% 22% 21 % pertaining to the prior year's contribution, which was settled and paid subsequent to September 30, 1987. The provisions of the Gates Settlement provide for specific procedures to resolve differences in the actuarial assumptions. For 1987. the actuary for FIPO has calculated a contnbubon requirement from the City of approximately $1,660,000 greater than that calculated by the City's actuary. This dispute pertains to the assumed rate of return on investments utilized in the actuarial valuations. The City's actuary used a rate of 7.5%, as compared to the 7% used by FlP0's actuary. The actuarial information presented above for FIPO was provided by the City's actuary. The difference between the two contribution calculations has been recorded as an other receivable in the FiPO Pension Trust fund pending an agreement between the City's and the FIPO'S actuaries. The change in the interest rate assumptions reduced the estimated actuarially determined unfunded liability as of the valuation date by approximately S24,900,000 and the actuarial present value of accumulated plan benefits by approximately $17,449,000. C. DEFINED CONTRIBUTION PLANS In addition to the deferred compensation plans described in Note 2(M) and Note (10), certain executive employees of the City are allowed to join the ICMA Retirement Trust's 401(a) plan. This defined oorttribtlbon deferred compertssaort plan, which covers govemmental employees throughout the country, is govemed by a Board of Directors responsible for 104N7 L carrying out the overall management of the orgaranon, including investment administration and regulatory compliance. Membership for City of Miami employees is limited by the City Charter to specific members of the City Clerk, City Manager, and City Attorney's offices; Department Directors, Assistant Directors; and "r executives. To participate in the plan a written bruit agreement must be executed, which requires the City to contribute eight (8) percent of the indiridual's e"Us compensation, and the empb;+so to contribute between five (5) percent to ten (10) percent of his or her salary. Participants may withdraw funds at retirement based on a variety of payout options. The following information relates to the City of Miami partiapabon in this plan: (000's) TOW current year payroll for d employees ... S140,394 arrant year payroll for employees covered in IM plan ................. ... S 1,704 Current year errip.oyer oontritwnon at an 8% we ........................ S 136 The City also makes contributions; through tfte Pension Adminsmon Trust Fund to the Police and Firemen's Relief and Pension Trust Funds, which are not under the junsdiction of the City, and therefore, not included heron as part of the reporting entity. Funding for such contributions, which totalled $4.409,443 for 1987, is solely from the State of Flonda Bureau of Municipal Police and Firefighters' Retirement Fund pursuantto 0-kepters 175 and 185 of the Florida Statutes. 15. CONSTRUCTION AND OTHER COMMITMENTS Capital bmrovernent Program The City's Capital Improvement Ordinance has identified ongoing and future projects totalling $231,698,000, Major emphasis is placed on maintaining and expanding the City's infrastructure. The greater number of projects are directed to houssing programs, street improvement, parts facilities, storm sewers, and transportatiort°related efforts. The community redevelopment projects are designed to assist in neighborhood revrlmization and the expansion of the City's economic base. Shown below is a functional breakdown of the Capital Improvement Ordinance ano proposed funding sources (in ihousancs)• Functional Category Amm"t Houang Programs .......................... S 15,398 Street improvements ......... I .............. 38.612 Parks Fw.Arbes ............................. 35,752 Storrs Sewers . , .... I ............... I ...... 11.299 Community Redrvvo rrom ................... 25.824 Sanitary Sewers ............................ 28,617 Pdres.... I ....... I ...................... 15.583 Fire ...................................... 13,553 manses .................................. 17,024 Solid waste ........................ .. . ... . 1,642 Auditonurns .................I ............. on 8tatsuris .. ................. . ........ . 3,047 EOonc w Dr4opirr►ent ...................... 7,842 General Governr►ent ........................ 16.375 ToW Caput Improvement Programs ........ 5231,698 A-32 Proposed sources of Funding A_^t city General Obligation Bonds ................ $134-151 Revenue and Special Obligation Bonds...... 25,722 Interest earnings and other .. . ............. 35,048 194,921 NonCtty 31,453 Federal Grams . ..................... State Grants ........................... 2,512 Private Developer Corwitwtion ............. 2.812 Tout Funding ...................... 3231 698 As of September 30, 1987, the City's Department of Public Works was monitoring 44 conWucbon projects in progress or awaiting final approval with budgets totaling approximately $60,328,000 in costs. Encumbrances related thereto in the Capital Projects Funds totaled approximately $13,509,000 at September 30, 1987. The most significant of these public works projects were: • Police Substations —two district substations are being funded by an appropriation of $10 million in.police facilities general obligation bonds. • Neighborhood Parks Renovation Program —over twenty parks are being renovated throughout the City at a total cost in excess of 59 million. Funding for the program is provided by $4.4 million loan proceeds from the Sunshine State Governmental Financing Commission and other discretionary City funds., • Dinner Key Marina Renovation —the existing 374 slip Dinner Key Marina is being renovated and expanded to 540 slips at a total cost of approximately $12.7 million. Funding of this renovation and expansion is through loan proceeds from the Sunshine State Governmental Financing Commission and funds available in the Marinas Enterprise Fund. • Bayfront Park Redevelopment —a $20 million Downtown Waterfront Park Redevelopment Project. Major funding sources include $6.8 million of Federal grants, S4.4 million in Sunshine State Governmental Financing Commission loan proceeds, and $1.8 million in private sector contributions. Miami Sports Arena During October 1986, the Miami Sports and Exhibition Authority (the Authority) entered into a development agreement with a private developer for the construction and operation of a 15.000 seat sports arena facility in downtown Miami. The arena, with an estimated cost of 361.7 m ion is to be funded from proceeds of the M.S.E.A. Special Obligation Bonds Series 1985 and contributions of $4.7 million from the Authority and $7.1 million from the private developer. The development agreement calls for an eighteen (18) month construction schedule. As of September 30, 1987, approximately $20.3 million in land acquisition and construction costs had been Incurred under the development agreement. If11tedge o1 Utility Service Tax Revenues As of September 30,1987, the City had pledged revenues from utility service taxes to provide funding for the following items: "VIV L C"wermtion Center In August 1980, the City issued S60,000,000 Convention Center and Parking Garage Revenue Bonds to finance construction of the City of M►amitUruversity of Miami James L. Knight International Center. As discussed in Note 8, the bonds are Ciollateralized under the trust indenture by a first lien on this pledge of the net revenues of the Convention Center -Garage, certain telecommunications utility White taxes and by a covenant and agreement of the City to provide, to the extent necessary, revenues of the City other than ad valorem tax revenues, sufficient to make up any deficiency with respect to the payment of operating expenses and debt service and the maintenance of the reserves required under the bond indenture. The ON has appropnated approximately S748,000 of utility service tax revenue for these purpotxs for the fiscal year ended September 30, 1968, 4 is anticipated that additional transfers of such revenues will be necessary thereafter on an annual basis through trscal 1989 to subsidize Convention Center deficits. 2. Government Center Parking Garage In July 1985, the City issued $13.720,000 of Special Obligation Bonds, series 1985, for the purpose of refinancing the $10 400.000 Parking Revenue Bonds issued in 1982 to finance construction of a 1,110 car parting garage adjacent to the Government Center. The facility opened to the public in 1983. The Series 1985 bonds are coliaterafized under the bond ordinance by net revenues from the parsing garage and the revenues of the City derived from water and gas utility sennce taxes in an amount not to exceed the maximum pnncipal and interest requirements in the ensuing fiscal year. The City has appropriated approximately S 1.058,000 c' utility senr►ce tax revenue for this purpose for the fiscal year ending September 30, 1988. 3. M.S.E,A. Subordinate Obligation Note In order to fulfill the requirements of the Note Purchase Agreement to break escrow on the $10 million Subordinate Obligation Note. the City has made a secondary pledge of water and gas utility service taxes to provide funding for oeot service on the Note should the proceeds of the convention development tax prove insufficient. This pledge is on a bass subordinate to that of the Utility Service Tax Special Obligation Bonds ($63,000 outstanding at September 30. 1987) and the Government Center Parking Garage Special Obligation Bonds. Nlarei cabhvision During September 1986. the City Commission approved certain revisions to the franchise agreement with the Gty's Cable Television Francn►see, Miami Cablevision. The revisions td the agreement are intended to resolve a dispute between the City and the franchisee with regard to prepayments Of franchoe fees in previous years. Under the terms of the new agreement, future franchise fees (consisting of 4% of the franchises gross revenues) are to be offset against the prepayments, plus a provision for the time value of the prepayments A-33 Solid Waste Enterprise Fund As described in Note 12. the City's solid waste operations are accounted for as an enterprise fund beginning in 1987. The solid waste enterprise operations are partially funded by fees billed on a semi-annual basis. In addition. the City has budgeted for a contribution of approximately 511.4 million from the General Fund in fiscal year 1988 to subsidize these operations. Litigation There ate a number of claims and lawsuits outstanding against the Oty, arising principally from personal injuries incurred on City property. for which a liability of $34,410.000 was recorded in General Long -Term Debt as of September 30, 1987, as descnbed in Note 13. 1T, SUBSEQUENT EVENTS Approximately 50% of the investments of the C►ty's two pension trusts were in equity securities as of September 30, 1967. During the month of October 1987, the U.S. equity markets suffered one of the most severe declines in their history. The following scneduie reflects a comparison of market values and cost of Pension Investments as of January 31, 1988 (in thousands). ma" con vaw FIPO investments ..... ............ S291.895 S294.389 GESE investments ... . ... .... . • 173.876 168 214 Total 5465,771 S462.603 The pension trusts have a long-term commitment to the equity markets and view investment performance with a long-range perspective. On March 1, 1988, the City sold $65.271,325 Special Revenue Refunding Bonds, Series 1987, with interest rates between 5.25% and 8% to advance refund the $60,000,000 Convention Center and Parking Garage Revenue Bonds, Series 1980, which carry interest rates between 6,5% and 8.5%. The proceeds from the Senes 1987 Bonds (net of approximately $1.9 million in issuance costs and original issue discount) were used to purchase U,S. government securities which were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the Series 1980 bonds. As a result, the Series 1980 bonds are considered to be defeased. Although the advance refunding results in the accounting recognition of an extraordinary loss in the Convertion Center enterprise fund of approximately $6,940,000 for the year ending September 30, 1988, the issuance of the refunding debt at interest rates lower than the Series 1980 bonds will cause aggregate debt service payments to be reduced by approximately S+2,490,000, with a net present value savings of approximately S2,387,000. The Series 1987 Bonds are collateralized by a pledge of net revenues of the Convention Center, certain public sery er tax revenues and certain other monies as set forth in this Trust {,denture, The Series 1987 bonds consist of "Current Interest Bonds", in an aggregate principal amount of S59,046,716, which bear interest semiannually and "Capital Appreciation Bonds" which accrete in value until maturity, in an original principal amount of S6,274,609. Total annual debt service on the Series 1987 Bonds varies from approximately S3,191,000 to $6,127,000 in years 1989 through 2015, IL048'7 rr t CITY Of MIAMI, FLORIDA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE--DUDGET (NON AAP BUDGETARY BASIS) AND ACTUAL YEAR ENDED SEPTEMBER 30, 19a7 wtth eompom the actual amounts for year ended September 30, 1088 (in Owueands) 1917 Varlame Fero We AmW Me Actual (IMttsv n6w) Im (Raatatad) Revenues Taxes woo" tax C 400*ris induchng penatoas and interest . . ..... . .................... . . . . S 92,722 S W0 886 $(1,836) S 88,138 Suoness and excise taxes .......I .. . ............. 16,737 17.066 329 18.593 109,459 107,952 (1507) 106.731 Licenses and permits. Business licenses and permds .. .. ..... . ..... 4,700 6.003 1.3D3 73.738 Construction permits . ..... . ........ .. .. 100 79 (21) 72 4,800 6.082 1,282 3.810 Intergovernmental State revenue snaring .. ...... 11,860 11,466 (414) 11.099 Sales taxes ... .... . . ........... 11,500 12,957 1,457 10,994 Court lines . . ... 1,520 2.509 689 2.223 t7ner 1,505 933 (572) 930 26 705 27 965 1.160 25.246 Intragovernmental Engmeenng services ....... 4.384 4.453 69 2.795 Other . . ... . . ...... ........ 700 699 (1) 218 5,084 5152 68 3.013 Charges for services PuMC safety 959 1.127 168 3.275 Recreaoon 56 284 228 269 Otr*r ............ ......... 18 563 545 1,119 1.033 1.974 941 4.663 Inlexest 1,838 1,709 (129) 2,481 Other revenues 1.805 1.874 69 356 Total revenues .... ..... . 150,724 t 52.608 1.884 146.300 A-34 10487 . t =MZDuLE A-1 1967 varuw F"OnbN Actual �.�. (Ilastaled) EmenlitWes Gene.-V Govwmwt. S 1.074 S 969 S 105 S 998 Maw and comassron . . • . ........ ... . ..... ...... • • 1.700 1.586 114 1,504 Oty manags< ...........I .............. .......................... 664 607 77 732 City a!erk ..... . .. ...... ..... 2,162 1,85D 312 1,610 Management and buogel .. . . ...... .. I . - ....... ......... 3,485 3.240 245 2.813 Finance ... ... ....... . .... .... .. . 2,783 2.782 t t,539 Legal 266 252 14 204 Civi svv4e 2,056 1,790 2% 1.743 Personne. management . 1,295 1.204 91 950 tnierrlat Audit 5,727 4.981 746 4.336 Camputer and commumc-atio^s 21,232 19,261 1.971 16.429 Pubic "rely 74,274 73.656 618 66,559 Poi cc Fire . . .... ..... 38.917 38128 789 37,396 113,191 111.784 1 407 103.955 Pubic mprovernerils 10.366 9,859 507 13.563 Pubic works 1,948 1,847 101 1,850 Development 897 690 207 760 Community devetoomeni 1.339 1,175 164 1 595 Planning and Zoning bbaros 14.550 13,571 979 17.768 Curture, and recreation 9.704 9 704 - 8 575 0-hoe Employee benefits 2,902 2.865 37 3.559 Some, programs .... .. . ..... .. 462 173 289 1.350 fntrsgove►nmenta charges 3.292 2.983 309 1.646 N.�sceuaneous 7 977 7,608 369 6 758 14 633 13.629 1.004 13 313 Total expendtures ..... . .. ..... 173,310 167 949 5 361 160 040 Excess (deI c oncy) of revenues over exmnwures .... .... ..... • .... • ..... (22,586) (15.341) 7.245 (13,740) Other 6nanang sources (uses) oowabng tr Wers to . . .. ... .. .. . . .......... .... .... . . 29,973 31.654 1.681 26.850 0peraung transfers oul ....... .. ... .... . . .. ... ..... . .. .... 118,387) (16.422) (35) (13.853) TOW ovw financing sources (uses) • ... . .... . .... . .. ... 11. 886 13 332 1.646 12,997 -_ Excess WOWI lcy) Of revenues end Other tMananp sources over expenditures and other uses . • . ... , .. S(11.000) (2,109) SS8_.891 (743) Fund belarlce at bVnting Of year . ........... ...... 12.143 12.539 Eawty t►ansters to other funds - (54) EWVY transsers from other funds 192 401 Fund balance at end of year . . ............... $ 10,226 S 12.143 A-35 IL04clt t- a SCHEDULE B-1 CITY OF MIAMI, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1287 with comparative totals for year ended September 30, 1988 (in thousands) wwmtWNbitlsPOow w Ito* DewmbAm Ileeove Coatanunity Law tnfor"111ent Otlw Totals AUETS AulhoNty Autl►ortgr :entees Dawbptnent Cable T,d. fund Funds 196T is" Eaoq (wla� m pooled cam we rvpW mu i— i— i269 i(1.716) $1.255 $1.978 S2,709 S4.495 S5.686 f Cam Aral t'w squvttws an 262 — — — — — 688 367 ACCwv ►e0ewaow — 130 it8 34 — — 46 328 75 Ore from ww tunas — — — — 11 12 Due hom other govern wets — — — 2.483 — — 603 2.786 3.001 6 46 2 Two asses 5426 5412 S387 S $02 S1.255 $1.978 S3.364 $8.824 S9 Sa3 LIAtMITIES AND FUND BALANCES voucr+sn and Aunts cayabte i 29 $109 S 10 S 454 S 16 S 56 S 256 S 930 S 812 ACcruea eiDenws (pnncwx 132 25 — — 26 164 75 0..e to Otmer tunas — 7 — — 11 '8 2.088 Deposits — — _ 23 422 445 187 ToW kablq,es 29 117 142 W2 !6 56 715 1.577 3.462 Funo twartaes Unrew"c Dmgwea for subsequent ym s enaenaitures — — — — 550 — — 550 1,655 Unongnatec 397 295 245 689 1922 2.649 6.197 4 326 Tow turd seta -cis 397 r. 295 245 — —• 1.239 1,922 2.649 6.747 5.981 'Cal huAtes anu tuna mantes $426 $412 $387 S 502 S' 255 S1 978 S3.364 $8,324 S9143 A-W i Aeve"ues ProoertY taxl3 . , . Iluemees ano axone Wes .. . 1r11erQpverr+rrrerMy ... trme+rsc O1ner Tow rev4mjn ..... . Exper+ um Pubc solely Gras AMC retatea exaer+citures Eco'1orre 0evew-lent 01^e• 'oW excenaitures Exem (oftener) of revenues peer exoenc tures O7pw "Nm"g sources (uses) OWAII V transfers to OAe•avg transfers out Tow c71r finaron9 w6mes (uses) Excess loefioe^ty) of evenues va am, hnarcmg W 1M ore' expe^atures anC a7W uses Funa tagece e; oegrvvny Of yea( Ewy traWers ,0 Ott'er tunas Funs tam^ces at ena c' rea• SCHEDULE B-2 CITY OF MIAMI, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1267 with ttlt mparathre totals for year ended September 30, 1986 (In 4housands) MIAMI =ports a Eah► ftn Downto+a++ Law Dovokv ent Neacw conanunity Enf 'col w+t other Funds Totole 19a^ 1966 Al ftMy Au"W" aervic" Development Cable T.V. .. Fund $1.297 i - i - S - S - $ - $1.297 $ 533 - - 1.406 - -. - - 1,406 1.480 .. - - 16.751 - 261 4,937 21.949 2'.802 f6 15 9 184 179 104 48 555 622 3 6 123 658 - 353 US - 2.030 1720 19 1.320 1.538 17.593 179 718 5.8 27.237 26.157 - - 1.849 - - 639 - 2.488 2.387 - - 17.593 - - 2.053 19.646 14.328 - 1.025 - - - - - 1.025 950 429 - 1.174 3.688 6.291 ' 487 429 1.025 1.849 ' 7 593 1 174 639 $ 741 28 450 19 ' S2 (410) 295 (311) - (995) 79 129 (1.213) 7.005 463 - 4m - - - 1,164 2.085 1 015 - _ _ - (100) (100) (7 9m) 463 - 458 - - - 1.064 1985 16 921) 53 295 147 - (995) 79 ' .193 772 64 344 - 98 - 2.234 1.843 1.462 5,981 10.619 - - (6) (6) (4.722) $397 S 295 S 245 S - S 1 239 Si 922 $2 649 S6 747 S5 981 axo e--- A-37 10487 L CITY OF MIAM1. FLORIDA MIAMI SPORTS AND EXHIBITION AUTHORITY, DOWNTOWN DEVELOPMENT AUTHORITY, RESCUE SERVICES, COMMUNITY DEVELOPMENT AND CABLE T.V. SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —BUDGET (GAAP BASIS) AND ACTUAL YEAR ENDED SEPTEMBER 30, 1987 with comparative actual amounts for year ended September 30, 1966 (In thousends) WPM Swa Mid EsMbff(on AuMorlly Downtown tlewelopffwd Autho" ftwue Services VOWS F onw* 11146 Favor"In$ t186 1$venues & et AftW 0ni w=b4.) Actual 6*0 Aetwif le) Actual Sudgei w AcIW (Untavaable) Actual pro9e^y was : — S — :— S — $1.322 $1.297 S(25) 11393 S — S — S — S — Ioness and won was — — — 220 — — — — 1.270 1.406 136 1261 Vogov -rwita .... — — — — — — — 303 — — — — Miteres: — 16 16 t t5 — 15 15 5 — 9 9 10 ORW . ..... . .. 3 3 — 25 8 (17) 4 123 123 3 Toy mvwwes — 19 19 335 1,347 1,320 t27) 005 1.270 1.SM_ 268 1.274 K ofrc sa'ey — — — — — — — — 1.728 1.649 (121) 1.855 E=rormc aevoo men: — — — — 1.347 t.025 322 950 — — — — Orr 398 429 (31) 352 — — — — — — — — Tow eximwortures 398 429 (31) 352 1 347 1.025 322 950 1.728 1.849 (121) 1.855 Ewes (dehoercy) of reywTues Owr axpe++atures ON) (410) 02) (17) — 295 295 01,w tnanong sources (uses) Ooerarg uartVers in 350 463 113 — — — — Cowa�ng lr"ers aut — — — — Tow other 4nam!.Q st wn*$ (Jes) 350 463 113 — — — — E,oess (dei:oency) a vverwes an: ww 1rdmrg foumn ovr esper'Olures anc 01rw uses S (48)(1) 53 $101 (17) S — FunO wances at oegn,N of yea, 3" 5.082 Eou.y tr"ars b wer turns — (4721) +— Fund o,ances al end of yea, S 397 S 344 (1) ESud(pt balanceo cy appropnatton of begtnnlnp fund valance A-M (245) (458) (311) 147 (581) — 458 458 — 560 458 458 — 560 295 S295 (245) S — 147 S +47 (21) — 245 96 119 S 295 S_ S 245 S 98 IL048 7: L N SCHEDULE B-3 co1rol +My om)c" oil. cwo T.V. Total y� Fevomwe 1"s amble Me bblle Im &AM Actual (il Amen bie) Aetwl t!!W Aftel Odds able) Actual WA9M A41W1 law") Actual : — s — s— s — s — s — s— S — $1.322 s 1297 s (25) S 393 16.900 15.751 (49) 10,912 — — — — 18.070 18.157 87 12.393 — — — — — — — — — — — 303 — 164 184 22 .- 172 179 269 — 403 403 421 25 792 767 767 16 800 17 593 793 11.694 •79 179 269 19.417 20,649 1.232 14,277 — — — — — — — — 1.728 1.649 (121) 1.853 ' — — — — — — — — 1.347 1.025 322 950 16 800 17 593 (793) 11 606 1 665 1.! 74 491 1.135 18.863 19,196 (333> 13 093 16 800 17 Sa3 (7931 11 606 1 665 1 ' 74 d9! 1.135 21.938 22 070 (132) 15.896 — — — 88 (1.665) (995) 670 (866) (2.52') (1.421) 1,100 (1.619) — — — — — — — 808 921 113 560 (88) — — s (679) — — — (767) — — (88) — — — (679) 808 921 113 (207) S — — S — — so 665) (995) $670 (1,545) $(1 7'3) (500) $1 213 (1.826) 2.234 3.779 2.676 9 224 — — (4 722) s— S -- $1 239 S 2 234 S 2 176 5 2 676 �— A-39 10487 M SCHEDULE C•1 CITY OF MIAMI, FLORIDA DEBT SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1987 vrlth comparative totsb for year ended September 30, 1986 (M ) M.S,E.A. M.S.E.A. Mousl Oanend UtllRtes suboedtnate _apecl0 specter Totab Ob1 Won Sonde Obllpatlon tgatlon Ob III Ion s+onds Tax sonde Note Bonds Bonds 1907 1986 ASSETS Equity (deficit,) in pooled cash and im+estments ................... $7,348 Cash with fiscal agents ................. - Recelvables. Taxes ....:....................... 164 m Assessent liens, net ............... 277 Other..... .......................... - Total assets .................... $7,789 LI"ILITIES AND FUND BALANCES Uabtities: Matured bonds and interest payable ...... ........... S4,009 Due to other funds .............. .. - Subordinate obligation note ........... - Other payables ... ... . ............ 8 Total liabilities ... .............. 4,017 Fund balances: Reserved: Debt Service . .... . ............ - Subordmate Note payable ................. - Unreserved. Dewgnated for subsequent year's expenditure ........ . .... 2,000 Unoes+gnated ...... , ... .. I ...... 1.772 Total tuna balances ...... , ..... 3.772 Total kablibes and fund balances ................ $7.789 $ 65 $ - S - S 4 S 7,417 S 7,276 216 1,311 14,462 - 15,989 22,792 2,662 - 295 - 3.121 504 - - - - 277 406 - - - - - 2 $2,943 $1,311 $14.757 S 4 $26,804• S30,980 $ - $- $ 4,009 S 4,215 2,864 - - - 2,864 15 - - - - - 10,000 - - - = 8 209 2.864 - - - 6.881 14,439 79 1,311 14,757 4 16,161 12,761 - - - - - 102 2,000 - - 1,772 3,678 79 1,311 14.757 4 19.923 16,541 S2,943 $1.311 S14.757 $ 4 S26,804 $30.980 A-40 • 0487 L SCHEDULE C-2 CrrY OF MIAMI, FLORIDA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1 987 artth comparative totals for year ended September 30, 1086 (in thousands) M.S,E.A. U.S.E.A. Moual General UtNItles tiubordinate Obligation Bervice Obligation SWIM Obligation = FanTotals Ob Igal Bonds You Bonds We Bonds Bonds 1987 1986 Revenues. Taxes ........................... 522,462 $28,775 $ - $ 3,975 S - $55,212 $46,251 Assessrnent lien Collections ..... , ..... 2,468 - - - - 2,468 3,726 Interest ........................... 980 114 84 11080 2 2,260 2,383 Other .... ....................... 1 - - 1 210 Total revenues ......... . .... . ... 25.910 28,890 84 -� 5.055 2 59.941 52.570 Expenditures. Debt Service: Principal rebremeni... ............ 11,400 150 - - 80 11,630- 10,950 interest and fiscal charges ........ 13,609 8 544 1,676 218 16,055 15,030 Other .......... ...... .. 307 5 3 411 - 726 748 Total expenditures ............... 25,316 163 547 2.087 298 28.411 26.728 Excess (deficiency) of revenues over expenditures ............. 594 28.727 (463) 2,968 (296) 31,530 25,842 Other financing sources (uses). Operating tranfers in ..... , .... , .. - - 542 - 300 842 - Operating transfers out ............ . . (500) (28,703) (78) (917) - (30,198) (26.704) Proceeds from debt issuance ......... - - 10,000 - - 10,000 46,836 Depos,its for debt retirement .......... - - - - - - (35,550) Total other financing sources (uses) ..... ....... . . (500) (26.703) 10A64 (917) 300 (19.356) (15,418) Excess (deficiency) of revenues and other financing sources over expenditures and other uses . ................ 94 24 10,001 2,051 4 12,174 10,424 Fund balances at beginning of year ....... 3.678 55 102 12,706 - 16,541 6,117 Equity transfers to other funds ........... - - (8,792) - - (8,792) - Fund balances at end of year ........... S 3.772 $ 79 S 1.311 $14,757 $ 4 $19,923 $16,541 A41 IF OF DA IBONDSIAND GENERAL OBLIGATION BONDS, UTILITIESCITV SERVICESTIAX MOUSING SPECIAL OBLIGATION BONDS DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —BUDGET (GAAP BAWS) AND ACTUAL YEAR ENDED SEPTEMBER 30, 1987 with oomparetNe totals for year ended September 30, 198a pn t wmrvde) General Obligation monde Utilities Service Tax bonds Variance variance Favorable 11116 Favorable 1906 BudW Actual favorable) Actual Budget Actual (Unfavorable) Actual Reverxres: Taxes. ............... ............. W,331 522,462 $131 $18,263 t26,637 $28,775 52,138 $24,760 Aesavrlentfen carscoons ............. 2,760 2,468 (282) 3,726 — — — — thtere6l .......... ......... ....... 1.025 980 (45) 1,016 - 114 114 240 Other............................... 210 1 1 Total revenues .................. 26.106 25.910 (166) 23.215 26.637 .r� 28,890 2,253 25.000 Exp"tures. DM ssrvrce Pnntaoal rebr"m 11,660 11,400 260 10,800 150 150 — 150 Interast ana fiscal onarges . 13.559 13,609 (50) 13,280 6 8 — 17 Ouvr . . .................. 387 307 80 10 — 5 (5) Total expenditures . . . 25,605 25.316 290 24,090 158 163 (5) 167 Excess (deficiency) of revenues overexDer6tures ....... 500 594 94 (875) 26.479 28,727 2.248 24,833 Other financing 11LK ow (uses): ODerafing transfers in . ........ .... — — — — — Op rabng transfers out . ..... . .. .... (500) (500) — — (26,479) (28.703) (2,224) (26,341) Proceeds from debt issuance . ....... -- — — 35,551 — Deoosrts for debt oefeasence — — — (35,551) — Total zMer financing sources (uses) (500) (500) — — (26 479) (26.703) (2.224) (26,341) Excess (defiaency) of revenues and other financing sources over eaperawres ara omen uses .. .... S — 94 S 94 (875) S — s� 24 S 24 Fund balances at begmrung of year ... 3,678 4.553 55 1,563 Fund balances at end of year ...... ... S 3.772 S 3,678 S 79 S 55 "r-PI 10487 I SCHEDULE C•3 HaWng Special 0002stlon OwWa Totals Mariana Vsrlsnce Favorable 19ab Favorable I$" axlpl Actual avoraWe) Actual wepel Actual (UnPsvmble) Actual 548,968 951.237 $2.269 54p,023 — — — — 2,750 2,468 (262) 3,726 — 2 2 — 1,025 1,096 71 1266 1 1 210 — 2 2 52.743 54.802 7059 48.215 80 80 — — 11,890 11.630 260 10,950 ' 220 218 2 — 13,787 13.635 (48) 13.297 — — — — 367 312 75 10 300 298 2 26.064 25 777 287 24.257 (300) (296) 4 — 26,679 29,025 2,346 23,958 300 300 — — 300 300 — - - — — — (26,979) (29,203) (2,224) (26,341) — — — — — — X551 — _ — — — (35,551) 300 30C — _-- (26.679) (28_903) (2,224) (26,341) 3 - 4 34 — S 122 s 122 (2,383) — — 3.733 6,116 3 4 s- S 3.655 s 3.733 A-43 JL0 487 u SCHEDULE 0-1 CITY OF MIAMI, FLORIDA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1987 with eornparstive totals for year ended September 30, 1966 (in thousands) IV" miens n w0ow a Equ"w mum Sports Exhib"I" Totals ASSETS II I ..r, MM the so m At"Whim a...�. AeMa Eamon log? INS Ew,y ,n Now car ffti90 nvewrems 514.060 $2.087 325.110 529.909 513.950 S - $ - S - 3 85.116 S 76,340 Da>a' wtp %ca Go" - - - - - - 14.655 6.691 23.346 40.976 Acn urn vwv&* 29 - - 7 - - - - 36 654 Due bom oe w taros ... 850 173 - - - - - - 1.023 173 Oue f►pm b7+er goft-m-ants 932 713 - 66 2.532 - - _ 4.245 4.544 Odra assets - - - - - 600 Tote assets $15 87, S2 973 925.110 529.984 $16 482 S - $1 a.655 $8 691 3113.766 $123.287 L"UT1ES AND FUND BALANCES LwiD*ues vfxjcr rs and abcaOts tsayab a S 1 486 31.378 S 590 S 3 S 915 S - S- S- S 4.372 S 3.906 Awuwy expenses - 1 3 - _ _ _ _ 4 3 Due to 07W f•.rds - - - 725 - _ 725 86 Tow vwjm + 486 1379 593 728 915 - - 6101 3.995 Fund bslu+ces Hasewe0 to+ encurno►a .ces 4 426 1.594 2.327 170 4.991 - - - 13,509 18.766 R*WvW to cDns:rL=on - - - - - _ 14,655 8.691 23.346 28.291 P40rvw for eq,opmeni wQ,,ases - - - - - - - - - 12.268 Urnsen.eo--oesip^atec for aoaovw W"n 9 959 - 22.190 29.086 10.576 - - - 71 810 59 947 Tow fund oaunces 14385 1 594 24 517 29.256 15 567 - 14 655 8.691 +08 665 119292 Tow ►ab oes arc hr+o ba I"m $15 871 S2 973 V-- 525.110 S29 964 $16 482 S - 'c- $14 655 S8 691 S413.766 5123 287 A-" '1049-11791 It SCHEDULE D-2 CITY OF MIAMI, FLORIDA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1987 with oornparsthre totals for year ended September 30, 1966 (In thousands) so" balmove. Quhes i kwmidpw Public warm am n e" Epoft 1xmwon Tobb "I Recreation flee u" semen A*$Wtlon Awls E[panslon 19i7 INS Rere��7 anlerparernrtlental ...... , , ... S 15 = 2,456 S - S- S- S- S- S- S 2,471 S 3,777 Iln m ........... . ........ 628 475 11532 as 1,144 - 1,374 467 6,528 7,071 Ora ....... ............. 19 797 350 1,166 2,869 Told twree.......... $62 2.931 1.532 M 1.941 - 1,724 487 10,165 13,717 Evenotures C40tw ovyay . ..... 9.2M 5.822 � 7.010 10.729 9,189 - 15,814 124 57,924 38.847 Exam (deiomcy) of . reveries Not e�erxytwtl ...... (6.574) (21891) (5,478) %841) (7.248) (14,090) 363 (47,759) (25,130) Ott* inarcrq wxm (ulls) OperaLnp aansters ;n . 2,931 1,946 680 4,688 - - 454 - 10,699 3,714 Operann0 aarmn out (4,233) (1,2%) on) (800) (4,139) - - (464) (11,728) (2,916) Oebtprooeeds ... 7375 - 5,500 27.959 3,500 - 44.334 70,165 Tm orrer firwanp aourm (uses) 6,073 680 5.354 31,847 (639) - 454 f464) 43.305 70,963 Exxu (00varry) of nroenues and "r f-wwg vourcas trier ttapenotues and orw uses (2,501) (2,211) (124) 22,006 (7,887) -. (13,636) (101) (4,454) 45,833 FunO batanoes as begntinp ot year .. .... 16,718 3,973 24,838 9,750 23,454 12.2W 28,291 - 119.292 69.391 Eoupty angers to Wmi hu+ds - (168) (197) (2,500) - (12268) - - (15,133) (4,179) EWty s mom from W*t hums . 168 - - - 8.792 8,960 8.247 Find bwvxo at end d reap $14 385 $1.694 $24.517 S29,256 _- $15,567 S - $14.655 38.691 $108,665 S119,292 A-4S 10487 9 n CITY OF NAM. FLORWDA ENTERPRISE FUNDS" COMBINING BALANCE SHEET SEPTEMRER 30, 1987, with comparative totals for Seplembw 30, 1966 (In thousands)to- 0100 r its E I www mom Bowl C 41r«Oa* Wardam ► Mrq OARM 8@1M =0 Tomb p Funs 8laatual sloftffl BtadWro cant« 11a1bw Awaork o Couns" ►►epees! - c..y. a:wan. �w tfn IN$ C10191t asean - Egw7 Ids4*4 in tao" cash and raaserlslts f- f- f (155) f (220) f 5w f (2 332) f 2.471 f (20J) f 1405) f 132 8 6W $190 f 379 8 3 f W f (520) Cash and Cash SWV$ alts 31C4 206 - - - - - - - - - - - 3 910 4 401 i Accounts terow" (ro). where appk4be of albwanoes for ulcola* an of $2.463.000 48 32 61 2 70 141 4 22 20 - - 5 1.308 lei 2.506 1,928 Due horn osier krids ... 484 - - - 132 - - - - - - - - - 616 609 Due hem oe+er gorermrMta - - - - - - - - - - - - - - 2" wlvantoraes ... .. 88 - - •• - - - - - - - •• N 52 Prepaid e.pwmg . 351 13 - - Ito - - - - - - 480 3W To1a1 Cunanl Brawls 4.662 251 _� ;21e) 110 (2061) 2 415 (1eQ -�) �3x 801 i95 1_6e7 190 e.173 7.068 ROW CW assa7ls Cash and wwesrnwts wah fiscal s0w uichrdnq accrued WW40 . . . 2.8W - - - - 10551 - - - - 1.873 - - - 15227 14,062 Noes recav&W. Iona Mm... 11 - - - - - - - - - - - -- - t 1 17 Progeny, Pt" and equpmert .. ... .... . 27.323 996 2.108 2.663 14.259 88,245 8.193 4.715 1.656 519 0,4w 282 2.086 2,329 164.144 155.000 less AccumWeddeplwwon ... (7.299) S!72) (1,553) (1.05T �) (6955) -3,199) �1.5 88) (769 (2/N ._8&88) A1) Rom ) (�-) 1,Itt) 81Q Ploparly, ptart and e4uwr/rart, net . , 20.024 524 555 160J 7 001 01,290 5.594 3.167 897 271 7,799 271 1_824 2.133 133 033 127.309 00W asset. Do"s and o0w assets ... 1.089 - - - - - - - - - 15 1 - - 1.165 52J Bond muarlce cods. nal 132 - - 1.676 - - - 430 - - 2,238 2.290 Taal assets f28.72, f115 -- f 467 f 1,385 f 7.191 f91,436 f 8.069 f 2.9w f 432 f 403 $10.781 1467 $3.511 $2.923 f160147 9151.351 (EprtuKrO I- y{ SCHEDULE E-1 CITY OF MAW. FLCOMDA (continued) ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEM BER 30, 1287 with comparallve totals for September 30, 1MMi p - (In thousands) ow to I*" low mantle WOW snarl ca�vMMa+ ads we.a.we ism" wAmme odw en/ lessee tN.r per" fwra �ladfrrrll sladturn slwlwn c.n1« tllarlrw AudNeAllre Ceuwoa Fr1p«1y�.. a_ a«rrM w.Ne w LIABROM AM FUND Eamy Currem Mb6m a� team curram aseels) Voudws end accounts payable f a34 f aS Accrued ampanaaa IDr�nclpsNy salerrn) . Due to a11er funds - 163 Delerred reverws 297 26 Deoo,As 421 46 total curlers rab%n (payable Mom aired esters) .. 1,352 300 - Cuneref kabades (payable hom reslncled assets) Conslrucbm Corltafts .... - - Accrued mNresl 650 - CiFfm portion of bonds payable ... 315 _ Taal current Msb4Ues (payable from restrrcied awwo ... 965 _ Lora Win Mbftes Revenue bonds payable -nit 17.230 - Speaal oblgaYon bonds payable- net- Olher payables .. 10 _ Taal wq wm koWhes 17.240 _ total mblbes 19.557 3w - Fund equey. Corettwed capelaf - 730 Relaa+ed earnings (de4w) Reserve for consauction and revenue bond rellremcrN 1.830 - Unreserved .. .. 7.326 J!55) Taal relanled awnings (dehal) .. .... 9.164 1255) Total held equrly 9 164 475 Taal habllroes and fund equly f28 721 f775 1 N .- V.-r 1-m f 5 f 78 f 131 f t66 f 205 f 38 f 62 f- E 100 f 38 f2 171 6 35 f 3 734 S 1450 - 2 44 30 39 12 30 - - 205 072 a 1.2w 629 _. - 132 050 142 - _ - _ 92 - - - 1379 5.15 3 2 57 - - 51 - - - - - 12 448 Gm 5 32 10 - 12 - 2 - 97 14 689 477 13 246 1,092 338 2% l0t 102 200 320 9_043 129 7.500 2911 - - - 6 - - - - - - - - a - - - - 1,285. - - - tar - - - 2.219 1.876 - - - - - 315 90 _ - - 1.291 - - 204 - - 2.540 1,966 - - - 58.594 - - - 63 - - - - 75.887 74107 - - - - - - 13.257 - - - 13.257 13.343 _ - - 50.594 - 63 13.257 - 82.154 87.450 13 246 1092 60 223 256 101 102 63 13.741 326 3.043 129 99.194 92.327 699 1.654 4,471 43,245 2.707 5,401 391 - 634 265 1.933 2.287 64.503 59.705 - - - 9.260 - •- - - 1.589 - - - 12,607 12096 (245) 1515) 2.228 (21.292) 5.026 (2 522) (61) 340 (5.183) 112" 11.46% Sol (16.237) 412 IN (215) (515) 2228 (12.032) 5.026 12.522) (61) 340 (3.591) 26 (I_46S) 507 (3550) 1675) 454 1,139 6 699 31.213 7.613 2.885 330 340 12.960) 139 468 2.794 60 953 59 030 $ 467 $ 1365 $ 7.791 $ 91.435 $6.069 5 2.966 $432 $403 $10 781 S 467 f3 511 52.923 MOM? S151357 a rhi CITY OF MIAMIr FLORIDA SCHEDULE. E•2 ; ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY YEAR ENDED SEPTEMBER 30, 1987 ' with comparativR totals for the year ended Ssplember 30, i,99 (In thousands) Om- tYrtal 1[itlw}r1N Sao "ad" faarM peps aorrl CawnNlen RMI Mehn�wlw ►OItoM� �1� d1a/ d se/ ToQsM Fund Eladlues ftaduxa 816ftm 11111111' Ar/11m1 m Courses property OEW- A Z waft M 1M7 190 _ _Confer _ r opers" raImm. . Charges to aarvbaa ..... f 1,5a8 $ ?32 f M f?m fxV606 f 3,710 $1,405 If 50 $1.147 824 5 443 83,Qa7 814,002 112,246 $ 38.833 :35,387 Oporwv aoerwr P«eonal services... .... 2,45,7 240 50 109 1.262 653 770 192 ISM — — 4,170 19.0" 180 29.100 23,1122 Comradual mvim ..... 1,674 349 23 46 295 2.950 176 84 96 _ 205 200 120 43 6.352 5.723 1 A4alende end supplw ... 137 4 13 95 7 30 7 95 30 111 1 510 52S U141es..... .......... 241 156 34 se 251 20 136 151 02 - - 15 44 2 1.203 1133 Inbagommrold dwgea - - 64 158 499 2 160 95 100 - - 103 3.3e9 3 4,599 2.701 j` a . , . 423 15 9 111 206 317 1B 104 17 51 53 8.952 279 10.595 9.100 TdsN • ........... 4,827 826 --_ 204 472 ?.606 3,959 I,290 823 1.0e3 -- 336 4,511 30.66o 500 52,069 43,11G OpurtWq kroaeN poser baba dope6eeon mo ms .... 2.659 Ioe) 88 (206) 12) (249) 115 (34) 64 24 lol (984) (16,658) 1,738 (13,4M (?,754) Depredation atperas . , ... 1,161 104 84 68 413 1,585 176 142 51 t4 /59 11 19 fie 4,115 3,991. Op *v 41=1 (4tbj..,........ 1,49e - 2�00) 2 -- _ 27.9 1115) (1,B3a) _ l) 1116) 13 10 (16,737) 1,670 (17,561) 11,6451 Nmopam*v rererrtres 144erelt inocrrta .... .. 436 9 34 e16 148 le 8 182 6/ fl 1,712 1,9113 InWest and Bed dwgee. (1.328) - - - - (5,259) - - - (5) (1119% 110 - - (1.807) (7,87!4 Otter ........ I....... 35 - 1 1,258 27 9 2 - 103 38 - 1,419 21.9 revererea(egmses).. (857) 9 - - 41 (3,155) 175 9 20 3 (11037) 81 102 17 (4,610) ktcarrre (lose) before operarrg rensias ... 641 p91) 2 (274) (374) (5.019) 114 (167) 33 13 (110" (90 (18,635) 1.661 (22.167) (17.147) Oper@*V bassists in ...... - 252 - 430 - 3,354 - 40 - - 96i9 782 16,031 - 21,551 (%,372) Operating reralers oul ..... - Net ocaortla ptrs>f betas e*aw*wy dams . 641 61 2 156 (374) (1,665) 43 (127) 33 13 (121) (12% p1a) 69 ENbaadtsary dorm --gain - - - (2.56'� (loos) on debt feflltVmckv - - - - - - - - - Nel him, s pose) .. , ... 64t 61 2 150 (3741 (1,665) 43 (121) 33 13 (121) (1261 1104) 09 (1.9) (3,029) flelained emmp (do" el begNt" of year ..... 9.523 (316) 1247) (611) 2.617 (t0,367) 4,983 (2,395) (94) 327 (3-473) - - 438 (675) 2.354 EquAy randers fo o1w Mxtds - - _ . - 0) 07 ReAkW ea r*V (do" a1 end d year ... , ...... 9.164 I J�45) (5151 2.228 (12,032) 5,026 (2,622) 61) 340 �3,b94) (120) _L 46� 507 (3,55q (675) c0(*& W capital at beginning of year ....... - 630 6" 1.654 4,411 43,245 287 6,407 391 - 634 - - 2,261 59,705 56,693 tr eoob* m from Dew gove mrents ........ .. - 100 - - - - - - - - _ _ - 100 748 CtxdtibuUom from Ogler funds..... , ...... - �._ T - - 2.500 - - 265 1,933 - 4.696 264 Conttiboed capital al end COyaw ........ .. - —9,164 730 699 1,654 4,471 43,245 2.787 5,407 391 _ _ 634 265 1.933 2,261 64,5m 59,705 Total land ogtify ... f f 415 i 451 f1,139 f6,699 f 31,213 f7,B13 f 2,885 S 330 f340 f(2,980) t 139 f 468 f2,794 f 60,953 f 59,0.f0 L :0 IL I -1 SCHEDULE E•3 CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED SEPTEM13ER 30, 1961 whit comparative totals for September 30, 1"S (In thousands) 0116 oft" !n� M Marine INrM p tart ceweew"e OW ward10000 P"" IMirls ftw and Lease Teals lam Fund ltadkm 9ledluw lledlum GMe+_ Marw" Audkwk tr coum" ► Ower & 2arte Mahe 1M7 less wor" OWN vM ( 1011. OpetaaM worm poaA bakes eetra• ... l 641 $ di S 2 A 956 S (314) S(9.E65) S 43 f(127) Sm $13 1(129 f(12l) 1 (001) Sell f (1.9D9) S 114" a wisp of wo," cavil+. . 1)ByrecWion and w watan ... . 1,218 104 64 66 113 1,705 176 142 51 94 203 it it M 1.33e 1,065. lt ) of wowv. egwpmem no .�.. _�) _ — . r. - _ _ - to ., Taal provided by 4*p ed exneadimay item .... 1.023 165 86 224 39 40 219 15 64 2? 82 (115) (625j 137 2.301 3.405 E x1 dad rryelirr%iq ~. ..... - - - _ - - - - - - - - Total proby opetadorra • • vided 1,823 165 '-'- ee 224 39 40 219 IS 84 — 27 — 12 J!%) M 137 2.301 1.035 Otter: (ktaeaNl decteese in restftW aocanM... .. , . (Ie3) - - - - (433) - - - - 65 - - - At1) (318) C Wansluala and egri Maro.. kre, net too - - (15) - 2.500 - - - - M 1.012 - 3.922 1.013 Waceede horn hVwm debt . 2.000 - - - - - - - - - - - - - 2.000 16.215 76 increase in o0w IialMies ..... 76 - - - - - - - - - - - - _ Told ................ ... 3.436 285 E6 — 224 24 _93 2,719 15 64 27 157 ISO547 137 7,488 11,8 WorW.m ceplall p opplied:plant end egripmerM, net ........ 3.143 145 4 524 295 261 3,109 6 61 - (54) 2e2 1,900 12 9,e96 3,935 WidPA*dss �dFSVWM yable ........ Mlcreaee d.;;e1 b 90 - - - - - - - - to 110 - - - 216 13,652 bond discard ............ 26 - - - -- - - - - - - - - - - - - 26 310 - 332 Dean• in olhet labiffliaas .... - - - - - - - - - - - Increase (decrease) in 130 - - - - - o#w assets .............. Tow ....... ...... ..... 3.389 145 4 624 295 264 3,109 0et Is 5e sex 1,900 12 - rd 10 ,070 t®rr9 ,3 kxwotkkp capital . , ........ = 17 $120 $82 %1 i 2711 = 6p?) U390) f 7 E23 — $ 9 — i 111 fi132) — !1. :125 s (431r �d aaadsaa (doaseeea) so S t29 $190 S 379 f(29) S 923 S (373) invesirro a........ $ (520) $30 Sig S (7�} S1.171 S Pit?) S (222) f 84 $50 1 5 1.308 249 646 273 Accowlereceivabla.net... ... Due Mom 12 (211 51 - 1,) 113 1578) 1303) (43) (401 (15) - - - - 20 - - - (238) !,tit otterds ........ fin Due hanAo aver Oaverrmertls ............. fill) - -� - - - 1125) 171 - - 112 - - - - - - - 158 257 17 (59) Inveraaiea . 1t - - - - - - - - Prepaid expensett end o0rer aseels . ...... 739 (35) - - - 4 - - - - - t - - Too (991 "000 rft W eXPibla atd ..... Due 10 (141) (24) 80 7 - (64) - 7l (e (236) (124) I20) 29 - - (26) (2) - V" 941) (3._0q CAI (4 1314 33 f odw ride • Depress telo dable. I ........ (36) 35 0 (32� 110 - (1) - - - - (81) - - (�) t1 � 63 Oelerted revenue ........... 6T 45 11) �1) 50 - - �11 ,_ _ .r Increase (decease) in waktngcapital . ......... S 41 $120 $82 S(300) f 271 S (657) ) S 7 $23 ; 9 f 111 i�13� 1,358) 3125 S(2.582) L (471) H2 6309 SchE•3 SCHEDULE F-1 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1987 with comparative totals for Septembor 30, 1986 (in tllottaanta) my Now f•ropwty pool tl*l "we Prw " 14oeunennt cotmltmfaations SWAM totals if{17 Ion AIMS .ewer Curmt no". EWty (dO") in Pooled cosh and wweWrwim ................. S (1,150) $1,970 $337 9(409) S 11 S (24) S 735 S 7,586 himnionas.................. ......... 127 70 192 18 82 119 608 709 Toot current assets ............. , (1.023) 2,040 529 (391) 93 95 1,343 8.295 Pmw cted assets. Cash and mveabnertts including eoaued inivest ...................... — 7.394 — — — — 7,394 — Property, plant and epuipment ... ......... 17,043 12,015 258 107 33 3.179 32.635 27.336 • Loss Accumulated deproaabon . .. ... .. (7,434) (6,576) (173) (56) (10) (1,881) (16,130) (13.706) Property, pient and oW ment, not. . 9,609 5,439 85 61 23 1,298 16,505 13,630 Bond mane costs ................... . — 414 — — — — 414 — Orw asset;. . .................... . 2 — — 2 1 Tow assets. ........ ......... S S.588 $15,287 S614 S(340) $116 $1,393 S25,658 921,926 L ANUT1ES AND RUND MUM (DEFICIT) Current ►abdmes Vourners and accounts payable ..... ... S 50 S 1218 S 54 $ 6 S 15 S 133 S 1,476 S 448 Accruad expenses (pnnctpaity sslanes) .... 195 102 143 14 24 51 529 443 Currant oomon of Certificates o1 Partapabon ... .. .... — 2.320 — — — — 2,320 Aovued interest . ...... ............. — 106 — -- — — 106 Total current trades .. ......... 245 3.746 197 20 39 184 4,431 891 Corp -term babhaes. Comficatas of Parwpabon . ......... .. — 11,74p — — — 11.740 — Total long-term luWibes ..... .. ... — 71,740 — -- — 11,740 r — Total tiabbbes ............ . ... 245 16.486 197 �— 20 39 184 16.171 891 Fund equity (oeficio. Contnbuted c omf .. 6.067 585 273 178 23 2,143 9,269 9,001 gatameo earrings (deficit) . .. .... .... 2.276 (784) 1" (538) 54 (934) 218 12.034 ToW 4r4 oQurty (doficn) .......... 8.343 (199) 417 (360) 77 1,209 9,487 2 01 35 Total kabihbes and turd etu,ty (deficit) .. ........ W 8_588 0 5.267 — ) u$116w_— 51,393 $25.656 $2ti.926 A-W JL048 L SCHEDULE F-2 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND EOUITY YEAR ENDED SEPTEMBER 30, 1987 with comparative total* for Year ended September 30, 1980 (In thousand*) city Now pm"ny Print ►roahrernatt CoatrWICEtloae TOWS Qwape Pool IlehMenm a MP Humpentent Services iq7 1aa6 Operating r"niums. Charges for serv+oes ...................... $4.531 S 3.514 $4,166 $486 $666 $2,643 516.0% $11,640 Operating expenses. Plarsot+al w0ces ....................... 2.941 2,188 2,722 329 424 880 9,484 6,205 Contraoist aervtces ...................... 583 195 864 160 50 33 11685 1,299 '. Mawws and suppws ................ . ... 1.105 1,134 306 75 198 66 3,084 2,993 Utitfpes................................ 105 42 20 6 19 1,631 1,823 1,825 Oftr........ ......................... 128 147 1 - 5 281 401 Total ............................. 4.862 3,706 3,913 570 696 2.610 16,357 14.723 Opwsting income (toss) before deprecna w expense ............. (331) (192) 253 (84) (30) 33 (351} (3,083) poorecLoon expense . ... .. ............. 1,422 1,322 11 10 7 321 3,093 2.498 Operating income (loss) .... (1,753) (1.514) 242 (94) (37) (288) (3,444) (5.581) Nortoperacng revenues (expenses), hnuest income . ..... . 136 674 15 - 8 18 1.051 701 Interest and fiscal charge ... . ......... - (1,057) - - - - (1,057) - OBrer .. ... .. 36 146 - w� -- - 182 261 Total norxiperating revenues (expenses) 172 (37) 15 - 8 18 176 962 Income (toss) Wore operating transfers . . ....... (1.581) (1.551) 257 (94) (29) (270) (3.268) (4.619) Operating transfers in ....... .. ........ 625 - - - - - 525 462 Operating transfers out ... ... .......... (3.000) 0.013) (675) - - (837) (5.525) (474) Net operating trans'ers ............. (2.475) (1.013) (675) -- -- (837) (5__000) (12) Not wrcome (loss) .. .. . ........ (4,056) (2,564) (418) (94) (29) (1.107) (8,268) (4,631) Flaw red eamngs �def w) at beginning of year . . ...... .......... 8.286 3,374 562 (444) 83 173 12.034 16,665 Ewq transtem from other lurros ....... . - 2.166 - -- - - 2,166 - EQurty transfers to oVw tUnds . . ..... . ..... (2.166) (3,548) - - - (5.714) Retained eamngs (oetic+t) at end of year ...... 2,064 (572) 144 (538) 54 (934) 218 12.034 Contnbutad captw at beginning of year ....... 4.555 1,829 273 178 23 2,143 9.001 8,955 Contn"ons from oVter funds . ....... ... 1,724 62 - -- - - 1,574 46 Contnbumns 1a other funds - - Corttnbuted t:aprtal at and of yew . • • • • . • ..... , 6.279 373 273 178 23 2,143 9,269 9.001 Togo fund equity (doftU .......... .. $5,343 S (199) S 417 S(360) $ 77 = $1,209 a $ 9,487 S21,035 A-51 IL048 7 I- 0 SCHEDULE F-3 CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED SEPTEMBER 30, 1987 with oomparefte totals for the year ended September 30, 1986 (In thousands) efty Illow ""Wtv P" Pree;M"m 00ttt m a+kab" Totab ►ooe NabrOa WIN a" baba mem Mwk" W 1"s Wor fang a9 VoYftd by (applied to): Opeationa Net means (lost) ....................... 1(4,056) S(21564) 3(418) S(94) 6(29) S(1,107) S (8,268) S(4,631) loins not requru+g cmem outlay: of wonong ceptal. Dep►ecution ...................... 1,422 1,405 11 10 7 321 3,176 2,497 LOU On dfapoerooms of prop". pW71 and egusprnent• net ........... — — — (326) TOW provK*d by (epWod to) operations .......... (2,634) (1,159,, (407) (84) (22) (786) (5.092) (2,460) Dec eme (increase) in res>neted amits ....... — (7,394) — — — — (1,394} — Tran ers of CeroACates of Parwpucin-- bnp•tenn portion ... ....... .......... — 13ASS — — — — 13,855 — Cono+butions and equity transfers. net......... (442) (2.839) — — (3,280) 46 Tow ............ . ............. (3,076) 2.464 (407) (84) (22) (786) (1,911) (2.414) Wor" CA" appl ea Reduction of Certificates of Partopaw Pmnopai ........... .. .... — 2,115 — — — — 2,115 — h erease in bond discount ... ..... .... .. — 497 — — — — 497 .— Addrbom of property. pAm and equpment..... 1.730 4,142 3 — — 92 5,967 626 Total ... . . ............ I ...... 1 1.730 754 3 _ 92 6,579 626 tmorease (decraw) in working capital ...... ... S(4.806) S(4,290) S(�) S(84) S(22) S (878) S(10,490) S(3.040) Summary of increases (decreeses) in working aorta! Casm and investments . . ....... . . S(4.761) S (625) S(486) S(92) S 8 S (897) S (6,853) S(3,279) krventones ...I............1....... Accounts payabb and acc�ued expanses ...... (64) (83) 34 (2) 9 (1,262) 42 10 (2) (28) 8 11 (99) (1 Shormerm portion of Certificates ,218) 39 3 39 of Paroapatron ...... ................. — (2,320) — — — — (2,320) _ tncrftw (0screase) in working capital ...... S 4 066) S(4,290) 5(410) Ste) S(22) �) S(10,490) S(3.040) Kslq 01 IL0487 L a, SCHEDULE G-1 CITY OF MIAMI, FLORIDA TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1587 with conlparattvs totals for year ended September 30, 1986 pn thousands) t andafM TmM Fut+ds Y finds P"W" TtW Funds low ►>ttslon CsbM Detsrted OBSE Pro Touts t110e BidnMbsMon • T.V.- Edon Trutt �Tn—►rt 1967 �1986 ASSETS Equity in pooW Corn and mvestmerm .. , .. $5,326 S 698 31,729 S — S — S — S 7,753 $ 8,498 Pans►on cash and Investments, — 173,411 285,773 459,184 368,851 rcwng acsed I�at ......... . . .. — — — p4oarvab►es Proceeds from wcunoes sold ........... — — — — 1,432 1,026 2,458 323 Pennon members' oomprbuoon .......... — — — —. 247 268 505 461 Other ................... r , . , ... , .. , 24 85 — — — 1,660 1,769 85 Due from other funds ................... — 1.955 — — — 2,719 4,674 2.072 Picard exbentes . 69 Deferred compensaoon plan assets — 11.372 — — 11,372 7,434 Total assets .. ... .. .. ...... 95.350 S2.738 51,729 E11,372 5175.090 5291,436 S48T,715 5367.813 UAQu1JT1l:" AND FUND MUCES Uab*nes vou"I's and aocaunt payable S 488 S 17 S 229 S — S 120 S 36 $ 890 S 1,082 Payab+e for secunoss purchased — — — — 2,694 1,987 4,681 1,005 Due to other funds ...... , . , . . _ — 2,719 — — 1,956 — 4,674 2,072 Deposits — 2 1,500 — — — 1,502 1,502 Clams payabW 1,50.5 - - - - 1.545 11556 Deferred compensaoon plan liabilities — 11.372 — 11.372 7.434 Total hatWities . .... . . . . .... . 2,033 2.738 1.729 11,372 4,769 2.023 24.664 14A50 Fund baiartce. Reserved for ampfoyes rsorement Wan benefits . .. .. — — — — 170,321 289,413 459,734 369,256 Unreserved Designated for hurricane loss Soo — — — — — Soo 500 Designated tot pensror+ rslatea axpomtures — — — — ... — 121 Deagnateo "or clam payments ....... 2,817 -- — — — — 2,817 3.286 Total 'und balances .... ... 3.317 170.321 289.413 463.051 373,163 Tout irabftes and tuna balances S5,350 S2.738 S1 729 511.372 r— 5176.090 11 — S291.436 - $487 715 S387.813 A-53 10487 L CITY OF MIAMI, FLORIDA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1987 with comparative totals for year ended September 30,1980 (in thousands) Pavenues inWQov*MW4njW .................................................. havo ContnWWns from ...... I ..... ......... trot" ... ...................................................... Omer... ....................................................... 'raw rovwiu . .......... ...................................... Expwx*uxes Pwwrw"rom .................................................. convictuai seryces .. ............................................ MSWWS and SUP01106 . ... .... ................................. Coirmbution to ratrarrient funds . .. ..... .. L .... .................. Inwanix. .... . ... . ....... . .... .......................... Claret ;*"Mts . . ..... . .. ....... .. ......... .............. 0vW.. . ................ I ...................... Tow expiandtures . . .... ................................ ... 00W fir& -Ong Sources Opernng transfers in ... ... ....................................... Deflooncy of revenues and M*r financing Sources Over G"F*411wres . � . ........... ........... ...... .. Fund bWwce at oeginning of year .... ................ .. .............. Fund batoince at end of yaw . ....... ..... I ....... ... ............ I A-M SCHEDULE 0-2 self Pension Totals kouranco Adminlatratlan 1047 1966 5 — 3 5433 S 6.033 S 4.699 6,244 24,733 29,977 25,935 8,977 — 61977 6,468 329 3 332 413 239 — 239 345 12,789 29.769 42,558 37,860 900 — 900 1,392 224 77 301 159 4 4 7 — 29.593 29,593 28,563 1,421 — 1,421 1.065 9,609 — 91609 9,677 1.100 —73.258 220 1,320 2,W8 29.890 43,148 42,951 — — — 2.591 (469) (121) (590) (2.500) 3.786 121 3.907 6.406 S 3,317 S — S 3.317 $ 3,908 JL0487 0 SCHEDULE 0-3 CITY OF MIAMI, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 1987 with comparative totals for year ended September 30, 1986 (In thousands) OESE FIPO Totals Trust Tntst 1987 INS OperabrQ ► 4nues. Combutrons hom ernpWtws............................................. S 12.507 S 14,201 S 26,708 S 24.271 Conmbuwu from smpw&n and rawees................................... 6,123 6,643 12,766 12,069 Not room gun on wwes rwu .......................................... 21,833 34.947 56,780 29.242 We W and dtvidsnds................................................. 7,739 14.097 22,636 22,823 Total............................................................. 48.202 70,688 118,890 88.405 among : lh norwserwces...................................................... 834 530 1,364 750 9ensfa payments............. ......................................... 12,817 12,864 25,681 22,562 Refunds.... ........................................................ 812 568 1,380 1231 Total ....................................................... 14.463 13,962 28,425 24.643 Operaonpincome ....... ................................... 33,739 56,726 90,465 63,762 Nonoperaonp revenues. ....... ........................... 9 4 13 - Net income .......... ............. .................... I...... 33,748 56.730 90,478 63.762 Fund valances at begnrunp of year .... I ............ 136,573 232,683 369,256 305,494 Fund bwanaes at end of year . . . ........... ................. ......... 5170,321 5289.113 $459,734 S369.256 s mr- A-55 101187 1- SCHEDULE 0-4 CITY OF MIAMI, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED SEPTEMBER 30, 1987 with comparative totals for year ended September 30, 1986 (In thousands) USE FIPO Totals Trust Trust 1987 1988 Worlan9 alptal oro►nWd by: Notircome.................................... ............. I.......... S33.748 $56,730 SW.478 S63.762 ftresasin VMdanp Cap+W....................................................... 0 748 556,730 590,478 S63.762 Surrrnary of inamoss (decreases) in woricinp capita. Psmon mwsvnents ........................ ............................... $35,639 $54,694 $W,333 565,550 Ptoosedsfrom secunbes add ................................................. 1,432 703 2,135 (1,975) Other scoounts reoavabte............................................. . ..... 8 1,676 1,664 (207) Due tram oewr funds ..... ..... ......................................... (594) 647 53 (1,822) voucl+srs and acm nn payable .................................... . .. _ .. (43) (8) (51) 8 Payab+e For woax m purchased .............................................. (2.694) (982) (3,676) 2,208 twassein worbng uota). ....... ............ ......................... 533.748 556.730 $90.478 S'63.762 A-56 IL0487 L 1 SCHEDULE 0-5 CITY OF MIAMI, FLORIDA AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED SEPTEMBER 30, 1967 with eoteperathre totals for year ended September 30, 1986 (in thousands) Cable off~ Total& T.V. Compensation 1987 im Poded Cats+ tu+0 intistbmwts............................................. $1,729 S — S 1,729 52,223 Deferred Compergation plan assets .................. . ......................... — 11,372 11,372 7,434 Tow wsq—and otyeer................................................ 51,729 M==-- i11,372 513,101 59,657 Total 5abiliEet—b&P►wnQ co year .... ......................................... 12,223 S 7.434 S 9,657 57,275 Add. CorunWWm Empbyer.................................................... — 677 677 153 Ern;)W s................................................... — 2.086 2.086 1,765 tmettmantrnterest .............................................. 97 1,458 1,555 916 Leal VPendrsarsls 6 termnabons .... , .... ........... ........ . .......... — (283) (283) (292) Payments to uce "a ...... . .. ............ . ...................... (591) — (591). (160) Total 1awbes•_-eno of Yw ............................. $1.729 $11,372 $13,101 $9,657 A•57 i0487 L i CITY OF MIAMI, FLORIDA ENTERPRISE FUNDS SCHEDULE OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1987 (in thou"ncls) oN•Suat hrltinp "o Enwp►ia Farad Itlarfee Staollum anc e� Ft Fat F or�ib e Aetwl (t)ttImmble) &Wpt Atstuel (Untavonbira) kodget Actual (Unfe" bN) laoera6nq rt*mue chwoo toe WN= S 7,554 S 7 586 S 32 $ 575 S 732 S 57 _._._ •..__ $= 1290 $0000) owwtq umses Puaorat servcn .... ... 2.390 2A U (62) 2" 246 31 66 So 18 Cwwwual Nrvcn ma+umnce. crap oftr operaunq expertsw 2.442 2.475 (33) 470 582 (112) 143 158 (15) To" ........ 4932 4.927 (95) 747 a28 (61) 211 208 3 Overaang rnoorrr boss) below oeprepwor+ a owu .. 2.722 Z659 (63) (72) (96) (24) 69 82 () Devmaoon expense 1 166 1 161 5 96 104 (8) 70 84 (14) Doeraenq :000me (loss) 1 556 1.496 (581 7 68) (200) 132) 19 (2) (21) Nwxmr&D.,V revenues (l:pe^sK1 "arw ,name 461 436 (25) 4 9 5 — — — Debt wvice (1.265) 0.328) (63) — — — — — — o;rw (55) 35 90 — — — — — Vaf non operarq vvo-xss (ewertsa) (859) (857) 2 4 9 5 - - - kwi (tossl Wore among na-wers 697 641 (56) (164) (1911 (27) •9 (2) (21) owawv ransters "i — — — — 252 252 — — — ooeraunq .waters out — — — No: nco-4 (ball txfue..— sattaa". rti-y 1 rs- 1 bwage'.arybm S 697 641 S (56) S(164) 61 $225 S 19 (2) $(21) Aacwx4u4oll to GAAP—pass CawAkzeo attpenp;tur" — _ 4 00 bong tr"er f,,no-q avw outlay _ Net imo . (1oss)before wnwovey rems- GAAP bass ... ..... . S 641 $ 61 S 2 A-58 1048 I- l SCHEDULE H-1 NWN fted(uM Ord fowl $tedium Comm"On comw W►Inu Vwmnco Variance Vartanoe Varlana fwaro ft favorable favorable favorable Actual Pftn " Owc4W Actual (Untwor W !!d"t Actual (Unhmn") 8lOW Actual (Unlavorabie) S 418 S M 8(152) S2 783 S2 606 50 77) $6.491 $3.710 5(2.78') S2.373 51.405 S(968) 193 106 85 1.176 1.262 (96) $77 653 (76) 692 770 (78) 304 364 (80) 1259 1.346 (87) 4.092 3,306 786 1.378 520 858 497 472 25 2 435 2.608 (113) 4.669 3.959 710 2.070 1.290 780 (79) (206) (127) 348 (2) (350) 1.822 (249) (2,071) 303 115 (188) 28 66 (40) 325 413 (88) '.530 1.585 (55) 158 176 (18) (1071 (2741 (167) 23 (415) (438) 292 (1.834) (2'26) 145 (61) (206) - - - - 34 34 617 816 199 - 148 148 — — — — — — (5.' 39) (5.259) (120) — — — w r 7 7 — 1 258 11258 — 27 27 — — — — 41 41 (4,522) (3.185) ' 337 — 175 175 ('07) 1274) (167) 23 (374) (397) (4230) (5.019) (7891 145 114 (31) 130 '30 — — — — 4.230 3354 (876) — — — (231 — 23 (231 — 23 — — (145) (71) 74 S(..") S — (374) SON S — (1.665) S(' 665) S — 43 S 43 300 S� $$ 374) S(1.665) S 43 A-59 (contnuec) 10487' t- a t' t CITY Or MIAMI, FLORIDA ENTERPRISE FUNDS SCHEDULE OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1887 (in thousands) Audllatum Gaff Couraee Warehouse Property four" Feevomble Veriance Favorable M M !eN (}o,°ri1le) AcW ttvomble) p - Budget Aetwl .—. (Unfworablel oien9 revenua3.. Cna►ge W eerrces S745 S 589 3(156) S1.299 111,147 S(152) $36 S 24 S(12) ODWUN exoerses— Peram, aervrces ... 172 182 (10) 829 683 146 — — — Cartwual Iran cw mewwartice. We other w"rq ercpanses 4" "1 36 563 400 163 .... 649 623 26 1.392 1.0B3 3" — — — ()Cwaunq Mk50rf+e 0m) beVe oewwwon exoem .. 96 (34) (130) (93) 64 157 36 24 02) Deprgatxm expense .. .... 136 142 (6) 36 51 (15) 13 14 (1) Opertsnp L.-Wrie Pass) (40) (176) (136) (129) 13 142 23 10 (13) Non0wAvr+c rrvw%ras (exoens") lmwest m-v v - - - 29 18 (11) - 8 B 09N service — — — — — — (23) (23) — C7+e• 9 9 — 2 2 — — Nei man non ooawq— reverkies (exaerses) — 9 9 29 20 (9) (23) (15) 8 krCome (Ml be'o•e omtwig Im ers (401 (167) ('27) (100) 33 133 — (5) (5) Operung dansrers 1- 40 40 — 100 — (100) -- — — OprarN 7a.4ws a: _:_ _ - — — Ne' ;' K=f ! (tcss) before extratxo"nary Whs— brogeury bans S— (127) $(127) $ — 33 S 33 S— (5) S (5) (aecomokmom vn GAAp—bass PnnocV •ewerre'+: on revenue boos — 18 Net rncora Pass) bercre exvWarary nr*s-GAAP basis $027) ��— S 33 44-- $13 A-60 1048 (continued) p'"bt9 00,990 WAWWq and Zonbtq lold Woos Prop" bid Lsw A4mWt Variana Va twe Varlana Variance F avorable kwr ACW ( kdww&W) DmI et AChW �vonble! PAW v°rable) Wrd Bic #A Mm") s "S 9 443 WM) S 2 607 $3,587 S 980 913 945 $14.002 S 57 $1616 S 2 246 S 630 — — — MA9 4170 (221) 18.294 18.064 230 156 /80 (24) 230 336 (106) 807 401 206 12.681 12.596 85 141 328 1187) 230 336 (106) 4.556 4571 (15) 30,975 30.660 315 297 508 (211) 418 107 (311) (1.949) (984) 965 (17.030) (16.658) 372 1319 1,738 419 175 159 16 — 11 (11) — 79 (79) — 68 (68) 243 (52) (295) (1.949) (995) 954 (17A30) (16.737) 293 1.319 1.670 351 — 162 162 — — — — 64 64 — 17 17 (1.288) (1 289) (•) — (t6) (16) — — — — — — — — w — 103 103 — 38 38 10 (10) 0.288) (1127) 161 — 87 87 — 102 102 10 17 7 (1.045) (1179) (134) 0.949) (908) 1.041 (17.030) (16.635) 395 1.329 1.687 358 '.045 968 (77) 1.949 782 (1,167) 17,030 16,031 (999) — - - — — — — — — o (1.329) (g.618) (289) S —_ (211) $(2•--) (126) Ste) S 90 S (121) S (126) 0 (604) S(604) S — S (604) A-61 69 S 69 S 69 I 10487 4 00e'son0 retinues tnor91 's, dwpes owaAnq e, W"s Perww aervices Conaamm wvttes am w*r Oman; e,.wses Total ...... Ooeraonp M+oc>n+e bite omyouron mew ... oKnosw euDtnse Ooe wg n+cpny wl NW=*rwN ,@vW%es (exDer-WS) Irwev lrcoT* DID: sorms Over 'raw nonoperaan0 revenues (exprus) b* me before ooeraling "nsfers Owabnq transfm In Oxrar,r,q va-Ve•s a: .. . Ne. owat ng vans+ers Net nMWne--NMelAry bass PWW-0-4uon to GAAP_Days hares: V, Cer.,ecates of Parpoman Net income—GAAP oars CITY OF MIAMI, FLORIDA INTERNAL SERVICE FUNDS SCHEDULE OF OPERATIONS —BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1987 (M thousands) cl CR>7 «arw moor Poo( Ftop" Mslrltenwe umo rove"" F �N Favo At1Wa1 (1Mfavortble) 9N Aet !l (th!"nnb4) Im" Actual (tinfombN) $ 3 816 $ 4.531 = 715 $ 3.595 $3.514 5 (61) $4 448 $4 166 S(282) .... 2,910 2.941 (31) 2.235 2,188 47 2.455 2.722 (267) 1.977 1.921 56 4.795 Isis 3.277 1.818 1.191 627 1.887 4.862 25 7.030 3.706 3.324 4,273 3.913 360 (1.0711 (331) 740 (3,435) (192) 3.243 175 253 78 824 1.422 (598) 871 1,322 (451) 11 11 — (1,895) (1753) 142 (4.306) (1,514) 2.792 164 242 98 +36 136 320 $74 WA — 15 +5 310 36 1274) 129 146 17 11 _ 111) 310 172 (138) u9 1020 571 11 15 4 (1585) (1.581) 4 (3857) _ (494) 3.363 175 257 82 761 525 (236) 3.943 -� (3.943) — _ — (6.066) (3,000) 3.D66 (1.013) (1013) — (6751 (6751 — (5.305) (2.475) 2.830 2.930 (+,013) (3.943) (675) (675) s(6 aw). (4,096) $2 834 S (927) (1.507) $. (560) S (500) (418) _ S 82 S(4 056) i(2.564) S (4 t g) A-62 104S7 SCHEDULE H•2 ...._.--*w Shop ant Ilwo"" vnt Cam oArow ttenst sovows V Vwiwm Fi olbw FevombN ♦ " AMhvoetb o iMNiQN AetuM O*kV*Mble fu MWI (UntWor") 5657 :tab SON 5758 um S(90) S3.093 S 2.543 S(� 318 329 (11) 3T1 424 (53) 884 no 4 308 241 87 388 V2 113 1 P6 1130 116 826 STO ..�.. 56 T56 696 60 2.T30 Z.610 120 31 (84) (115) _ (30) (3D) 363 33 t320) 9 10 (2) T (7) 217 321 (104) 23 (94) (1t7) .._ !37) (37) 136 IN)(424) 8 8 t9 18 23 (94) (117) — (29) (29) 136 (270) (406) 123) — 23 — w _ _ (837) (637) — (23) 23 (637) (637) (29) S(29) S (701) (t,107) S(406) S (W) � S (29) a S(+.107) A-W L CITY OF MIAMI REVENUE AND SPECIAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS As of September 30, 1987 Fiscal Year Convention Warehouse Ending Utilities Center Special Property Special Septernber Service Tax Revenue Obligation Revenue Obligation 30th Series A Bonds Bonds bonds Housing low $150,000 S 245,000 $20,000 S 125,000 i 1989 265,000 21,000 130,000 low S 100,000 285.000 22,000 135,000 1991 330,000 310,000 140,000 1992 640,000 335,000 150,000 1993 1,060,000 360,000 160,000 1994 11140,000 390,000 170,000 1995 1,225,000 425.000 1801000 1996 1,320.000 465,000 190,000 1997 1,425,000 510,000 200,000 1998 1.540,000 560,000 215,000 1999 1,665,000 610,000 230,000 2000 1,805,000 665,000 250.000 200, 1,720.000 270,000 2002 1,870,000 290,000 2003 2,035,000 310,000 2004 2,215,000 3,35S,000 330,000 2005 2,410,000 355,000 2006 2,620,000 360,000 2007 2,850,000 2008 3,095.000 4,830,000 2009 3,365,000 2010 3,660,000 2011 3,980,000 2012 4,050,000 2013 4,410,000 2014 4,720,000 2015 4,750,000 Totai $150.000 S60,000,000 $13,610,000 $63.000 S4.210,000 A-64 Subordin, Parking Rev. Bonds $2,000, 000 10487 SCHEDULE H-3 M.S.E.A. M.S.E.A. Total Parking Revenue Spacial Obligation Sunshine Subo►dinata Obligation Total Total Principal Bonds Bonds State Loan Note Principal _ Interest and Interest S 315,000 S 384,000 S 937,500 $ 2,489,000 S 12.131.005 S 14,620.005 330.000 402,000 1,250,000 2,398,000 12,290,223 14,688,223 345,000 426,000 1,250,000 2,563.000 12,134,205 14,697,205 370.000 S 600.000 451,000 1,250,000 3,451,000 11,965,881 15,416,681 385,000 645,000 478,000 1,250.000 3,883.000 11,753,624 15,636,624 415,000 690,000 507,000 1,250,000 4,442,000 11,488,216 15,930,216 440.000 735.000 538,000 1,250,000 4,663.000 11,179,225 15,842,225 465.000 785,000 570,000 1,250,000 4.900,000 10,849,397 15,749,397 500,00C 845,000 604,000 312,500 3.924,000 10,529,323 14,453,323 535.000 900.000 640.000 4,210,000 10,237.078 14,447,078 575,000 965.000 679,000 4,534,000 9,920,177 14,454,177 620.000 1.030,000 719.000 4,874,000 9.574,598 14,448,598 665.000 1.105.000 763,000 5,253,000 9,199,881 14,452,881 715,000 1,180.000 808,000 4.693,000 8,625.359 13,518,359 775.000 1,265.000 857,000 5.057,000 8,472,579 13,529,579 , 835,000 1,355.000 908.000 5,443,000 8,085,209 13,528,209 895,000 1.450.000 963.000 9,208,000 .7,519,039 16,727,039 970.000 1,550,000 1,021.000 6,306,000 6,921,673 13,227,673 1.040,000 1,655.000 1,082,000 6.777,000 6,439,482 13.216,482 1,115.000 1,775.000 1,147,000 8,887,000 5.780,625 14.667,625 1,200,000 1,900,000 1,216.000 12,241.000 5,037,036 17,278,036 1.290 C00 2.030,000 1,288,000 7,973,000 4,252,558 12,225,558 1.390.000 2,175.000 1,366,000 8,591,000 3,638,240 12,229,240 2.325.000 1,448.000 7,753.000 3,031.655 10,784,655 2,485,000 1,535,000 8,070,000 2,433,775 10,503,775 2,660,000 7,070,000 1.813,350 8,883,350 2,850.000 7,570.000 1,241,275 8,811,275 3.045.000 7.795.000 628,775 8,423,775 $16 185,000 S38 000.000 520.800.000 $10.000.000 $165.018.000 $217,373,463 $382.391,463 A-65 F_ 1 • RA L CITY OF MIAMI SCHEDULE H-4 GENERAL OBLIGATION BONDED INDEBTEDNESS PRINCIPAL AND INTEREST REOUIREMENTS As of September 30, 1987 FISCAL YEAR ENDING REOUIREMENTS SEPT.30 PRINCIPAL INTEREST TOTAL 1988 S 9,775,000 S 10,762,668 $ 20,537.668 1989 11,280,000 13,391,250 24,671,250 19W 11,710.000 12,639,426 24,349,426 1991 10,725,000 11,854,043 22,579,043 1992 11,285.000 11,050,913 22,335.913 1993 10.585,000 10,246,708 20431,708 1994 10,475,000 9,463,136 19,928,136 1995 10,750.000 8,757,652 19.507,652 19% 10,590.000 8.075,332 18.665,332 1997 10,635.000 7,379,780 18,014,780 1998 9,785,000 6.660,710 16,445,710 1999 8,945,000 5,977,177 14,922,177 2000 8.235.000 5,311,547 13,546,547 2001 8, 765, 000 4,630,163 13,395,153 2002 8,820,000 3,956,514 12,776.614 2003 9.290,000 3,246,639 12,536,639 2004 7,510,000 2,611,192 10,021,192 2005 7,010,000 1,902.649 8.912.649 2006 5,230,000 1,440,595 6,670,595 2007 3,740,000 1,110,300 4,650,300 2008 2,680,000 842,265 3,522,265 2009 2,620, 000 668,115 3.288,115 2010 2,725.000 490,018 3,215,016 2011 2,055,000 350,055 2,405,055 2012 1,370,000 251,488 1,621,488 2013 1,400,000 167,550 1,567,550 2014 1,360, 000 $1,600 1.441,600 $199.350,000 $143,209,375 S342.559.375 A=66 10487- 1- APPENDIX B 0 104,87. APPENDIX B [Form of Bond Counsel and Co -Bond Counsel Opinion] Miami, Florida 11988 City of Miami, Florida City Hall 35M Pan American Drive Miami, Florida 33131 Re: ri18,400,000 The City of Miami, Florida, General Obligation Bonds Gentlemen: We have acted as Bond Counsel in connection with the issuance and sale by The City of Miami, Florida (the "Issuer"), of The City of Miami, Florida, General Obligation Bonds, consisting of $1,500,000 Police Headquarters and Crime Prevention Facilities Bonds (the "Police Bonds"), $5,000,000 Storm Sewer Improvement Bonds (the "Storm Sewer Bonds"), $5,000,000 Sanitary Sewer System Bonds (the "Sanitary Sewer Bonds"), $3,900,000 Street and Highway Improvement Bonds (the "Street Bonds") and $3,000,000 Fire Fighting, Fire Prevention and Rescue Facilities Bonds (the "Fire Facilities Bonds"). (The Police Bonds, Storm Sewer Bonds, Sanitary Sewer Bonds, Street Bonds and Fire Facilities Bonds will be collectively referred to herein as the "Bonds"). All terms used herein in capitalized form and not otherwise defined herein shall have the same meaning as ascribed to them under Ordinance No. enacted by the Issuer on , 1988, as supplemented by Resolution No. adopted by the Issuer on , 1988 (collectively, the "Ordinance') . The Bonds are all dated 1, 1988, have been issued in the form of fully registered bonds and have been issued for the purpose of financing certain capital improvements of the Issuer. The Bonds are subject to redemption prior to maturity in the manner and upon the terms and conditions set forth in the Ordinance. The principal of, premium, if any, and all interest on the Bonds shall be payable from a levy of a direct annual tax on all the taxable property within the City of Miami, Florida (excluding homesteads to the extent provided under applicable law), and the full faith, credit and taxing power of the Issuer are pledged for the payment of the principal of, premium, if any, and interest on the Bonds. The description of the Bonds in this opinion and other statements concerning the terms and conditions of the issuance of the Bonds do not purport to set forth all of the terms and conditions of the Bonds or of any other document relating to the issuance of the Bonds, but are intended only to identify the Bonds and to describe briefly certain features thereof. This opinion shall not be deemed or treated as an offering circular, prospectus or official statement, and is not intended in any way to be a disclosure document used in connection with the sale or delivery of the Bonds. In rendering the opinions set forth below, we have examined certified copies of the Ordinance and are relying on the representations, covenants and agreements of the Issuer contained therein, including, without limitation, the covenant of the Issuer to comply with the applicable requirements contained in Section 103 and Part IV of Subchapter B of Chapter 1 of the Internal Revenue Code of 1986, as amended and the applicable regulations thereunder (the "Code") to the extent necessary to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes. We have also examined certified copies of the proceedings of the Issuer and other information submitted to us, in each case, relative to the issuance and sale by the Issuer of the Bonds, and, with respect to the validation of the Police Bonds, a final judgment entered by the Circuit Court of Dade County, Florida, on July 20, 1984, with respect to the validation of the Storm Sewer Bonds, a final JL048'7 I judgment entered by the Circuit Court of Dade County, Florida, on July 11, 1984, with respect to the validation of the Sanitary Sewer Bonds, a final judgment entered by the Circuit Court of Dade County, Florida, on January 11, 1982, with respect to the validation of the Street Bonds, a final judgment entered by the Circuit Court of Dade County, Florida, on January 11, 1982, and with respect to the validation of the Fire Facilities Bonds, a final judgment entered by the Circuit Court of Dade County, Florida on July 13, 1962. In addition to the foregoing, we have examined and relied upon the opinion of Jorge L Fernandez, City Attorney, and such other agreements, certificates, documents and opinions, including certificates and representations of public officials and other officers and representa- tives of the various parties participating in this transaction, as we have deemed relevant and necessary in connection with the opinions expressed below. We have not under taken an independent audit, examination, investigation or inspection of the matters described or contained in such agreements, documents, certificates, representations and opinions, and have relied solely on the facts, estimates and circumstances described and set forth therein. In our examination of the foregoing, we have assumed the genuineness of signatures on all documents and instruments, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. The opinions set forth below are expressly limited to, and we opine only with respect to, the laws of the State of Florida and the federal income tax laws of the United States of America. Based upon and subject to the foregoing, we are of the opinion that: (i) The Ordinance constitutes a valid and binding obligation of the Issuer, enforceable in accordance with its terms. (ii) The Bonds are valid and legally binding general obligations of the Issuer, for the payment of which the full faith, credit and taxing power of the Issuer are irrevocably pledged, and all the taxable property within the City of Miami, Florida (excluding homesteads to the extent provided under applicable law) is subject to the levy of an ad valorem tax for the payment of the principal of, interest on, and premium, if any, with respect to the Bonds. (iii) Under existing law, the interest on the Bonds (including any original issue discount properly allocable to the holder thereof) (i) is excluded from gross income for federal income tax purposes, and (ii) will not be treated as an item of tax preference for purposes of the federal alternative minimum tax imposed on individual and corporate bondholders; however, it should be noted that with respect to corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted net book income (adjusted current earnings for taxable years beginning after December 31, 1989) for the purpose of computing the alternative minimum tax imposed on such corporations. The opinion expressed in clause (i) of the first sentence of this paragraph is conditioned upon compliance by the Issuer with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with such requirements. Failure of the Issuer to comply with such requirements may cause the interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Other provisions of the Code may give rise to adverse federal income tax consequences to particular Bondholders. The scope of this opinion is limited to matters addressed above and no opinion is expressed hereby regarding other federal tax consequences that may arise due to ownership of the Bonds. (iv) Under existing law, the Bonds are exempt from all present intangible personal property taxes imposed by the State of Florida, Our opinions expressed herein are predicated upon present laws and interpretations thereof. We assume no affirmative obligation with respect to any change of circumstances or law that may adversely affect the exclusion of interest on the Bonds from gross income for federal tax purposes after the date hereof, B-2 1048 7 All opinions as to legal obligations of the Issuer set forth above are subject to and limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar law§, in each case relating to or affecting the enforcement of creditors' rights, and (b) applicable laws or equitable principles that may affect remedies or injunctive or other equitable relief. The scope of our engagement in relation to the issuance of the Bonds has been limited solely to the examination of facts and law incident to rendering the opinions expressed herein. We have not been engaged to confirm or verify and therefore express no opinion as to the accuracy, completeness, Fairness or sufficiency of the Official Statement or any exhibits or appendices thereto or any other offering material relating to the Bonds. In addition, we have not been engaged to and therefore express no opinion as to the compliance by the Issuer or the underwriters with any federal or state statute, regulation or ruling with respect to the We or distribution of the Bonds. Sincerely yours, HOLLAND & KNIGHT and McGHEE & McGHEE B-3 10487' ,4 APPENDIX C • Qllitv of �larltt "GE L FERNANDEZ City Attorney Honorable Mayor Xavier L. Suarez and Members of the City Commission City of Miami, Florida 3500 Pan American Drive Miami, FL 33133 Gentlemen: c�sv ox Irk 'SA " 11111P Hill@ • `ro- F. APPENDIX C l30Si 579.6700 Telecopier: 1305i 374.4730 September 30, 1988 As of September 30, 1988, the City of Miami is involved in the following major cases, which have a potential of exceeding $5W,000.00: 1. Rosemary Jecto U. City of Miami et al; Police chase resulting in shooting of plaintiff, who was a passenger in the vehicle being chased. Plaintiff claims City Police Department created an atmosphere (policy) in which the use of excessive force would be tolerated and condoned. 2. William Brickell, et al., v. City of Miami, et al.: U.S. District Court Case No. 88-0230-Civ-Hoevaler (JJC) Plainti&, the Brickell family heirs, have filed a suit to enjoin the Cty from selling certain real property including Brickell Park. The suit seeks injunctive relief, declaratory relief, a violation of civil rights, and a count for inverse condemnation. The property has been appraised at a minimum value of $13,515,000. The suit does not specify the amount of damages sought by Plaintiffs, but the Brickells also claim they have fee simple title to the Park property. 3. Mikele Carter v. City of Miami; U.S. District Court Case No. 84-1718 (LMF) Former Assistant City Attorney Mikele Carter sued the City of Miami for alleged age, sex and religious discrimination. The case was tried in February 1988 and the judge found for the Defendant City of Miami on the issues of sex and religious discrimination; however, the jury found for the Plaintiff on the issue of age discrimination. jury verdict was for approximately $450,000.OD (an exact amount cannot be presently calculated since the City will purchase an annuity to pay certain monetary benefits to Mrs. Carter, if the verdict is upheld on appeal). This case is on appeal in the 11th Circuit Court. 4. John Dees v. City of Miami, Clarence Dickson, Herbert Breslow, Robert Warshaw, William Fleming, Ernest Vivian and Ronald 11hardt, John Ross; Circuit Court Case No. 87-ISM-CIV-ARO (CCM) Former Police Officer, who voluntarily resigned pursuant to well known plans, sued the City and seven individual police personnel claiming false arrest for perjury for which he was charged following an investigation related to the "McDuffe Riot." The individual police officers are represented by outside counsel, limiting total representation fees at a reserve of $75,000, 144S7 5. Ira Dowdell, personal rnimratntative of the Estate of Iris Dowdell, deceased v. Angel Manuel Morales, Clarence Dickson v. Dade County; Circuit Court Case No. 87-39197 (10) (LMF) Plaintiff's decedent, an occupant of a parked automobile, WWI killed when she wits ejected from said automobile. A City police officer had initiated a vebitle pursuit of Angel Manuel Morales, whose vehicle collided with a MTA bus, which in turr, struck the vehicle in which plainuirs decedent was sitting. Plaintiff has sued Angel Manuel More;es, Metropolitan Dade County and the City of Miami. Plaintiff alleges the City negligently pursued Angel Manuel Morales. Plaintiff further alleges that due to such negligence he has su&.m--d damages, 6. Damian Garcia v. Lub Orlando Martinez and City of Miami, a n►unicipality: Circuit Court Case No. 57-40823 (17) (CCM) Plaintiff, Damien Garcia, was swimming at Virginia Ke'' Beach when he was run over by a motor boat- Plainti4� wwj severely injured as a result of sustaining multiple lacerations from the boat's propeller. IvUj ieal expenses to stabc are in excess of $50,000. Plaintiff is suing for negligent maintensnee and.%4%1x--r%i,sion of swinvning facility. 7. Peter A. Xameeri sh v. the City of Miamia et at. Lawsuit filed by Captain Peter Kamenesh of the Police Department alleging that he was deprived of federml civil rights, claims arising under Fla Stat. Ch. 112 (Policemen's Bill of Rights), fraud, libel and slander, intentional interference with a contractual relationship, intentional iniLction of emotional distress and negligence. Plaintiff seeks both monetary damages and equitable relief in die form of a promotion to the rank of colonel within the Police Department. S. Ada Lopez, individually as the wife of Adolfo Lopez and as personal representative for the Estate of Adolfo Loper as well as Jorge Lopez, and Adolfo Lopes, Jr. and Juana Martinez, individually as the u.Nfe of Pedro Martinez and as personal representative for the Estate of Pedro Martinez as well as Yvette Martinez, Alex Martine-, Faustino Martinez, and Pedro Martinez, Jr. v. City of Miami et at. The City of Miami, Chief of Police, City Manager and various former and/or suspended police officers were sued by the estate and family members of two (2) men who died during an incident that took place in July of 1985. The suit alleges violation of civil rights and various pendant state claims. The City, because of the criminality of the acts of the former employees, has denied any responsibility. The City, Chief of Police and City Manager also deny that any policy of the City of Miami caused the wrongful death of the plaintiffs' decendents. The case is in its initial pleading stages. 9. Kenneth Treister, Gerald Katcher and Howard Scharlin v. City of Miami, Xavier L. Suarez, Miller J. Dawkins, Joe Carollo, Rosario Kennedy and J.L. Plummer; U.S. District Court Case No. 86-1117-Civ-Spellman (JEM) Certain property owners have filed an appeal of the City Commission's denial of their zoning application on March 27, 1986 regarding property located at 3471 Main Highway. In a separate action, they have also challenged the constitutionality of the present zoning ordinance as applied to their property. In connection with said case, they are also seeking damages resulting from the City's denial of rezoning and land use change application which, if granted, would have permitted a significantly higher density commercial use. The plaintiffs have requested $10 million in damages; however, the City's exposure is estimated at $4 million based upon property owners offer to sell the property to the City for $6 million. Although the City has recently prevailed in a decision by the Appellate Division of the Circuit Court, this decision has been appealed to the Third District Court of Appeal. C-2 IL0487- L 10. Eufemio Verrier v. City of Miami, Alfred James Bryant; Clireult Court Case No. 874=8 (CCM) Plaintiff was shot by a City of Miami Police Officer, who mistakenly believed that Plaintiff was reaching for a pistol. Plaintiff was unarmed. Plaintiff now suffers from serious permanent disability and is unable to work. 11. Elizabeth Williams, Ow Personal Pmnv antative of idw Estate of Allen Peterson, Deceased v. Metropolitan Dade County, City of Miami, et. al.; Circuit Court Case No. 87-08298 (09) (CCM) Plaintiff was arrested and taken to Jackson Memorial Hospital for injuries. Plaintiffs personal representative states that plaintiff died as a result of the injuries received at the time of the arrest by police officers. Although Metro -Dade County is now a party defendant also, the City will pursue the defense of this case separately from the County. 12. Convention Center Litigation A complaint was filed on May 24, 1984 in the Circuit Court of the Eleventh Judicial Circuit (Case No. 84-18744). Centrust Savings Bank sued the City and Dade County alleging among other things that the City and County made erroneous determinations that the Parking Garage complied with the South Florida Building Code's requirements for fire resistivity. The City has settled the litigation with Centrust pursuant to a settlement agreement dated July 23, 1986 and certain Improvements have been made to the Parking Garage at the joint expense of the City and Centrust. The maximum liability to the City for expenses is capped at $350,000, pursuant to the settlement agreement. In addition, the City has filed a Third Party Complaint against MCA for the failure of the Parking Garage to comply with the Building Code. On July 29, 1988, Hyman filed an Amended Third Party Counterclaim against the City in the Circuit Court (Case No. 84-18744) alleging breach of express'contract; breach of contract to a third party beneficiary; estoppel, constructive trust and breach of fiduciary duty seeking $518,238.00 plus interest. The City filed a Motion to Dismiss and Strike Hyman's Counterclaim which was granted. The Order was signed on September 8,1988 and Hyman has thirty (30) days to appeal this order of dismissal. On August 23, 1988, MCA filed an Amended Answer to Hyman's Crossclaim and an Amended Counterclaim against the City alleging breach of express contract; indemnification; estoppel, constructive trust and breach of fiduciary duty seeking $971,000 plus interest. The City has filed its Answer to MCA's counterclaim on September 16, 1988 and filed a counterclaim against MCA for breach of contract. There are also various claims and lawsuits against the City resulting principally from workers' compensation and casualty claims. Estimated liability for such claims and for the above listed lawsuits was recorded in the amount of $35,090,544.00 as of September 30, 1988 in the City's Self Insurance expendable trust fund and General Long Term Debt Account Group. Except as noted above, the total liability to the City has not changed significantly during the time that has elapsed since September 30, 19M. or has there been any subsequent litigation during this time period that would materially impact upon the bonds. 71ere is currently no pending or threatened litigation restraining or enjoining the issuance or delivery of the bonds, or the levy or collection of the ad valorem taxes to pay the principal of or the interest of the bonds, or questioning the proceedings or authorization under which the bonds are to be issued, or affecting the validity of the bonds. Sincerely, Jorge B. Fernandez City Attorney C-3 1.U48'7`