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HomeMy WebLinkAboutR-84-1326J-84-1149 rr/092/DB RESOLUTION NO. 84--1326 A RESOLUTION AUTHORIZINr, THE CITY MANAGER TO SECURE COMPETITIVE QUOTES FROM INTERESTED FINANCIAL INSTITUTIONS FOR THE PURPOSE OF BORROWING $12.4 MILLION TO BE SECURED BY NOTES ISSUED BY THE CITY, SAID FUNDS TO BE USED TO INITIATE CONSTRUCTION OF STORM DRAIN PROJECTS AND POLICE FACILITIES; FURTHER PROVIDING THAT SAID NOTES WILL MATURE IN APPROXIMATELY EIGHT MONTHS AND WILL BE REPAID FROM THE PROCEEDS OF THE SALE OF AUTHORIZED GENERAL OBLIGATION BONDS ANTICIPATED TO BE SOLD IN THE SPRING OF 1985. WHEREAS, on March 13, 19849 the voters of the City of Miami approved a bond referendum in the amount of $30 million for the construction of storm drain facilities; and WHEREAS, on March 13, 1984 the voters of the City of Miami approved a bond referendum in the amount of $20 million for police facilities; and WHEREAS, the above said referendum questions have now been validated as required in the State Statutes; and WHEREAS, the projects to be funded either in whole or in part from the above referendum questions are considered necessary and vital to the health an welfare of the City; and WHEREAS, consistent with City policy, the bonds authorized by the above referendums are not anticipated to be sold until Spring of 1985; and WHEREAS, the City Charter specifically authorizes the City Commission to issue Notes in anticipation of future bond sales; and WHEREAS, the financial advisor to the City has concurred that the issuance of short term Notes is appropriate as an interim funding measure; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: CITY COMMISSION MEETING OF N 0 V Q15A 1984 RESOLUT10iV iju.84i11 REMf-RKS JI' Section 1. The City Manager is hereby authorized to secure competitive quotes from interested financial institutions for the purpose of borrowing $12 million to be secured by Notes issued by the City, with said funds being used to initiate construction of storm drain projects and police facilities; further providinq that said Notes will mature in approximately eight months and will. be repaid from the proceeds of the sale of authorized general obligation bonds anticipated to be sold in the Spring of 1985. Section 2. After receipt, analysis and evaluation of said quotes, the City Manager shall recommend to the City Commission the name of the financial institution(s) which submit the lowest net interest cost to the City. Section 3. After receipt of the recommendation of the City Manager, the City Commission shall authorize the City Attorney and the City Manager to execute the appropriate documents necessary to secure $12 million in short term financing as an interim fundinq measure. PASSED AND ADOPTED this 15th day of November , 1984. Maurice A. Ferre M A Y O R ST: 'i 4 ALPH G. ONGIE, CITY CLER PREPARED AND APPROVED BY: ROBERT F. CLARK DEPUTY CITY ATTORNEY APPROy'fDA,9" TO FibRM AND CORRECTNESS: CITY ATTORNEY 0 84-1326 CITY OF MIAMI. FLORIDA 35 INTER -OFFICE MEMORANDUM TO Honorable Mayor and DATE FILE Members of the City Commission SUBJECT Bond Anticipation Notes FROM Howard V . Gary REFERENCES City Manager ENCLOSURES. It is recommended that the City Manager be authorized to secure competitive quotes from interested financial institutions for the - purpose of borrowing $12.4 million to be secured by notes issued by the City. Funds are to be used to initiate construction of storm drain projects and police facilities. _ These Notes will mature in approximately eight months and will be repaid from the proceeds of the sale of authorized General Obligation Bonds anticipated to be sold in the Spring of 1985. In March, 1984, the voters approved ballot questions authorizing $30 million for storm drains and $20 million for police facilities to be paid for by the sale of General Obligation Bonds. It is planned that these bonds will'be sold in the Spring of 1985 since to sell bonds it is necessary to provide current, audited financial statements. Statements for the fiscal year ending September 30, 1984, will not be available until probably February or March of 1985. Having these statements available is very important. These new statements will continue to reflect the strong fiscal position of the City and may contribute to a more favorable interest rate. Additionally, in an effort to improve the City's position in the bond market, we should continue to follow the practice of selling General Obligation Bonds in the Spring of each year. Projects to be funded by the March, 1984 referendum issues cannot be initiated until actual dollars are available. Since the bonds should not be sold until next Spring and it is important that these projects be initiated now, it is recommended that the City be authorized to borrow $12 million utilizing Charter authority to issue short term notes. The notes to be issued will provide the funds needed for these projects for approximately eight months. By that time, the City will have sold the General Obligation Bonds and the proceeds from that sale will be used to retire all notes issued. Page 1 of 2 84--1326 Honorable Mayor and Members of the City Commisson -2- Issuing Bond Anticipation Notes is an accepted practice in the industry and has been discussed with the City bond advisor, J .L. Lowrey and Co., and they concur with this approach. Additionally, when the Charter of the City was adopted, the need for short term funding was anticipation and Section 58 A of the Charter provides for this situation. Section 58A of the City Charter states: "The commission of the City of Miami shall have power, at any time and from time to time after the issuance of bonds of the city shall have been authorized, whether such bonds be general, special, revenue or other obligations of the city, and, if the approval of such bonds at an election is required, after the holding of such election, to borrow money for the purposes for which suc.h bonds are to be issued within the anticipation of the receipt of the proceeds of the sale of such bonds and within the authorized maximum amount of such bond issue." $6.3 million of these funds will be utilized for work on the following storm drain projects: W. Flagler Storm Sewer Mod.; Western Drainage E-54; Shenandoah; Southern Drainage E-55; Manor; Silver Bluff; Flagami; Wagner Creek Renov.; Lawrence Pucnp Station; Orange Bowl Pump Station; Lejeune Storm Sewer; Lejeune Pump Station; Highway Projects associated with storm drain work. $1 million will be available to used to initiate work on the Liberty City and Little Havana police sub -stations. Approximately $1.1 million will be utilized for the police communication network and $4 million will be utilized to meet the City's commitment for roads and storm drains related to the Bayside project.