HomeMy WebLinkAboutR-88-0903J 0%
J-88-898
9/26/88
RESOLUTION N0. 948-"903
A RESOLUTION AUTHORIZING THE CITY
MANAGER TO SUBMIT A LOAN APPLICATION TO
THE CITY OF GULF BREEZE, FLORIDA, IN AN
AMOUNT NOT TO EXCEED $10,000,000 FOR THE
PURPOSE OF FUNDING CAPITAL PROJECTS, TO
BE REPAID OVER 20 YEARS FROM PLEDGED
FINES AND FORFEITURES REVENUES FROM DADE
COUNTY COURTS.
WHEREAS, the City of Gulf Breeze, Florida, issued a pool of
municipal bonds, prior to the Tax Reform October of 19869 with
the primary purpose of loaning such funds to governmental units;
and
WHEREAS, such loans from the City of Gulf Breeze Bond Pool
are attractive because of their competitive rate, low closing
costs, and unrestricted investment yield for a three-year period;
and
WHEREAS, the City of Miami has planned certain capital
projects for which financing in an amount not to exceed
$6,500,000 is needed;
NOW?THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to submit
a loan application to the City of Gulf Breeze, Florida in an
amount not to exceed $10.000,000 for the purpose of funding
capital projects.
Section 2. This loan will be repaid in 20 years, with
pledged fines and forfeitures revenues from Dade County Courts.
CITY COMMSION
MEETING OF
OCT 4 on
USUIMN 0*8 3-
PASSED AND ADOPTED this 6th day of October 01988.
ATTEST
r
MATT
Y HIRAI, CITY CLERK
FINANCIAL REVIEW AND APPROVAL:
(Ve4�
, DIRECTOR
FINAN PDEPARTMENT
BUDGETARY REVIEW & APPROVAL:
DIRECTOR.4w %�O,
BUDGET DEPAR ENT
PLANNING REVIEW & APPROVAL:
K.IV iV iVVL(1, L
PLANN PARTMENT
PREPARED AND APPROVED BY:
CHIEF DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
CIT ATTORNE
C%ktt..,
XAVIER L. OVAREZt MAYOR
r
-2-
CITY OF MIAMI. rLORIOA
25
INTEROFFICE MEMORANDUM
Honorable Mayor and Members
To of the City Commission DATE - 2 7
PROM Cesar. Odio
City Manager
RECOMMENDATION:
City Commission Agenda
"BJeCT October 60 1988
REFERENCES
ENCLOSURES:
It is respectfully recommended that this attached resolution
'authorizing the City Manager to submit a loan application to the
City of Gulf Breeze, Florida, in an amount not to exceed
$6,500,000 for the purpose of funding capital projects, to be
repaid over 20 years with pledged fines and forfeitures revenues
from Dade County Courts, be approved.
BACKGROUND:
The Finance Department recommends borrowing funds from the City
of Gulf Breeze, Florida bond pool as a cost effective tool for
financing the following capital projects:
Marine Stadium:
Concrete Pillar Repairs
Roof Improvements
Barge Replacement
Coconut Grove Exhibition Center:
RenovatA n and Expansion
Roofing and Air Conditioners
Roll -up doors
Miamarina:
Pier Five Facility
Renovation Phase II
Total
$3509000
250,000
�2,75 000a,
$2,000,000
290,000
4�0.'00�0:
=01000
$1 P 320 p 000
1 88S.000
a�
W,
City Commission Agenda
October 13, 1988
Page 2.
The City of Gulf Breeze, Florida, issued a bond pool, prior to
the Tax Reform Act of 1986, with the purpose of loaning such
fund to other overnmental units. Burrowing these funds would
be advantageous �o the City due to the following:
Market competitive rates
Very low closing costs and fees, .8% of principal amount.
(Normally closing costs approximate 2% of principal).
Availability of variable or fixed interest rates.
Unrestricted investment yield for three-year period.
The enterprise fund projects being financed by this loan have not
had a track record as profit making operations, therefore, a
stronger revenue pledge must be made in order to borrow funds
from this, or any other source. It is anticipated that in future
years these enterprise funds will generate enough funds to pay
debt service. At this time it is suggested that a portion of the
fines and forfeitures revenues collected from Dade County Courts
be pledged for the repayment of this loan.
It is estimated that annual debt service cost on a fixed mode
will approximate $650,000. Debt service coverage, which will be
negotiated with the lenders, will be at least 125% of debt
service requiring a pledge of $812,500. Total revenues from
Dade County Courts approximate $2.5 million annually. The pledge
to be made will be limited to the debt service coverage required
by lender.