HomeMy WebLinkAboutR-83-0502J-83-460
rr RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO ENTER INTO NEGOTIATIONS WITH
UNDERWRITERS TO REFINANCE THE GOVERNMENT
CENTER PARKING GARAGE REVENUE BONDS,
SERIES 1981, THROUGH ISSUAMCE AND SALE OF
ADVANCED REFUNDING BONDS.
WHEREAS, the City of Miami sold $10,400,000 of Parking
Garage Revenue Bonds (Additionally Secured by Non Ad Valorem
Revenues), Series 1981, of February 11, 1982, at an interest
rate of 13.1631%; and
WHEREAS, the municipal bond market has experienced a
large decrease in interest rates since July, 1982; and
WHEREAS, it will now be financially benefical to
refinance the above bon:ls as an advanced refunding issue;
NOW, THEREFORE, RE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
enter into negotiations with underwriters to refinance the
Government Center Parking Garage Revenue Bonds, Series 1981,
through issuance and sale of advanced refunding bonds.
PASSED AND ADOPTED this 9th day of June , 1983.
TTEST:
RAL H G. ONGIE, CITY CL K
Maurice A. Ferre
MAURICE A. FERRE
M A Y O R
CITY COMMISSION
MEETING OF
i U N 9 1983
t%jI1j14 ;%C" 83--5021
II-"AAi'k,s �
11
PREPARED AND APPROVED BY:
ROBERT F. CLARK
DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
JOSE R. GARCIA-PEDROSA
CITY ATTORNEY
-2-
®3-502
57 CITY OF MIAMI, FLORIDA
INTEROFFICE MEMORANDUM
TO Howard V. Gary
City Manager
FROM Randolph B. Rosencrantz
Assistant City Manager
DATE May 24, 1983
FILE.
SUBJECt Government Center Parking
Garage Advanced Refunding
RECERENCES
ENCLOSURES
It is recommended that the enclosed reso-
lution authorizing the City Manager to
enter into negotiations with underwriters
for the refinancing of the Government
Center Parking Garage Revenue Bonds and
to engage legal counsel for developing
an ordince to that effect.
In February of 1982, the City sold $12.4M in 30 year revenue bonds
for the construction of the Government Center Parking Garage at an
interest rate of 13.16 percent. Although this rate was 67 points
below market, the general condition of the market at•the time was
high.
Over the last year, the overall level of interest rates has decreased
rather significantly and although there have been fluctuations, the
overall market is much better than one year ago. In view of this,
the Cit-'s Bond advisors, James J. Lowrey and Company, has been re-
quested to do an analysis of the feasibility of advanced refunding
the $10.4M issue. Their analysis indicates that by refinancing, the
City could save between $900,000 and $1,900,000 depending upon the
option that is selected.
Advanced refunding is a standard practice and usually occurs when
there has been a significant reduction in bond interest rates.
Essentially, refinancing allows the jurisdiction to issue new bonds
at a lower interest rate and to use the proceeds from that sale to
either place in escrow or pay off an old outstanding issued.
The attached resolution will authorize the City Manager to engage
bond counsel and to negotiate with underwriters an advance refunding
bond sale.
cc: City Attorney
N"
83--502