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HomeMy WebLinkAboutR-80-0509RESOLUTION NO. S 0- 5 0 9 A RESOLUTION URGING THE DADE COUNTY COMMISSION TO DEFER ACTION ON A PROPOSED ORDINANCE WHICH IS TO SUPERSIDE AND RESCIND ALL MUNICIPAL ORDINANCES PERTAINING TO THE REGULATION OF PASSENGER MOTOR CARRIERS; SAID DEFERRAL TO LAST FOR NINETY (90) DAYS OR UNTIL SUCH PERIOD OF TIME AS THE CITY OF MIAMI HAS HAD TIME TO EVALUATE THE CONSEQUENCES OF THE COUNTY ORDINANCE AND FURTHER REQUESTING THAT A JOINT CONFERENCE BE HELD BETWEEN REPRE- SENTATIVES OF THE CITY AND THE COUNTY PRIOR TO THE PASSAGE OF ANY COUNTY ORDINANCE CONCERNING THE SUBJECT MATTER. WHEREAS, during the 1980 Regular Session of the State Legislature, State authority for the regulation of passenger motor carriers (F.S. Chapter 323) was allowed to expire, ef- fective July 1, 1980; and WHEREAS, the Dade County Commission is scheduled to consider at its meeting of July 1, 1980, a proposed ordinance eliminating all municipal control over the regulation of pas- senger motor carriers; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Dade County Commission is hereby urged to defer action on a proposed ordinance which is to super- sede and rescind all municipal ordinances pertaining to the regulation of passenger motor carriers; said deferral to last for ninety (90) days or until such period of time as the City of Miami has had time to evaluate the consequences of the county ordinance. Section 2. It is hereby requested that a joint conference be held between representatives of the City of Miami and Dade County prior to the passage of any county ordinance concerning the above subject matter. PASSED AND ADOPTED THIS 30th day of June, 1980. MAURICE A. FERRE M A Y 0 R T RvALPH G. ONGIE City Clerk .,00CUMENr I TEM Np /INDEX CITY COMMISSION MEETING OF J U N i 0 1980 awww w8 0.- 5, 0 9 w...........�............. PREPARED AND APPROVED BY: KELE CARTER ASSISTANT CITY ATTORNEY APPRWED AS TO F GEORG F. KNOX, JR. CITY TORNEY CORRECTNESS: "SUPPORT!!'= DOCUMENTS FOLLOW) -2- rvr Enclosed herewith please find copy of Resolution No. 80-509 passed and adopted by the City of Miami Com- mission at its meeting held on June 30, 1980 which is self-explanatory. Very truly yours, RALPH G. ONGIE CITY CLERK BY: Sylvia en oza Deputy City Clerk RGO:smm Enclosure NOTE: The above letter was sent to the Mayor and each of the Dade County Board of Commission. t 1O Mayor and Members of the City Commission FIIOM Joseph R. Grassie City Manager CITY OF MIAMI, FLORIDA INTCR-OFFICt MCMORANOUM DATE June 25, 1980 FILE ""A" Conference Convention Center Special Meeting REFERENCES ENCLOSURES We discussed at the Commission meeting of June 19th the need to establish a special Commission meeting for the sale of the $60M in Revenue Bonds for the Conference Convention Center. We left the discussion with the possible alternatives of the 27th and 30th of June or the 3rd of July. The Underwriters would prefer the July 3rd date, however have reconciled themselves to June 30th as the date most acceptable to everyone. The following Agenda is at the request of the City's bond counsel. With the exception of Item 8, Mr. Guandolo is preparing each of the required resolutions. The resolutions are not available at this time but will be available for Monday's meeting. The Agenda for the 30th is as follows: 1. Adoption of resolution approving and authorizing the issuance of $60,000,000 principal amount of Convention Center and Parking Garage Revenue Bonds and the execution and delivery of the Trust Indenture, and designating the Trustee thereunder. 2. Adoption of resolution approving and authorizing the execution and delivery of the final Official Statement pertaining to such bonds. 3. Adoption of resolution approving and authorizing the execution and delivery of the First Supplement to Lease and Agreement for Development between the City and Miami Center Associates, Ltd. 4. Adoption of resolution confirming and ratifying the execution and delivery of the Lease Agreement between the City and Dade Savings and Loan Association. 5. Adoption of resolution confirming and ratifying the execution and delivery of the Turnkey Contract for Design and Development of the parking garage. 6. Adoption of resolution confirming and ratifying the negotiated sale of the bonds. 0 -2- lJ 7. Adoption of resolution approving the Purchase Contract submitted by Smith Barney, Harris Upham i Co., Incorporated for itself and other underwriters and awarding bonds to such underwriters, designating the principal underwriter and the paying agents and directing the authentication and delivery of the bonds. S. Adoption of an ordinance authorizing the provision by the City of a capital contribution for the Convention Center - Garage. 9. Adoption of resolution authorizing the City Manager and other officers of the City to take such action as may be necessary to perform and carry out the functions and responsibilities of the City respecting the issuance of the bonds and the execution and delivery of the legal instruments as approved by the Commission through the adoption of the resolutions at its special meeting of June 30, 1980. 10. Adoption of resolution authorizing City officers to effec- tuate the delivery of the Convention Center and Parking Garage Revenue Bonds upon payment therefor and to take other action to facilitate the bond closing. You will note that some of the items have already been acted upon by the City Commission. These are reaffirming the previous actions of the City Commission to eliminate the possibility of any legal loose ends. Attached are the following documents: 1. First supplement to the Lease and Agreement for Development,' dated June 6, 1980. 2. Copy of the Lease Agreement for development of the Air -Rights over the World Trade Center. 3. Copy of the Turnkey Contract for design and development of the Parking Garage. 4. Copy of the Purchase Contract between the City and Smith Barney, Harris Upham & Co., Inc. 5. Copy of the Preliminary Official Statement, dated June 23, 1980. You will note that this P. 0. S. still is subject to modification, particularly filling in information that can only be calculated after the interest rate is determined. Also, there are questions of dates yet to be decided. The paragraph in the middle of Page 4 which begins "Upon delivery of the bonds . . ." also requires modification. This paragraph should state "That the City will make a $1,876,588 deposit in the Supplemental I -3- a Reserve Fund and $10870,000 deposit in the Construction Fund. This paragraph will be modified to reflect that in the final draft. In essence, however, the Preliminary official Statement is in final form as far as context. We also anticipate delivering to you at the end of this week the latest copy of the Trust Indenture. Mr. Guandolo feels that he can complete this document in time to have it mailed to us by Friday. $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds PURCHASE CONTRACT New York, N.Y., June 30, 1980 THE CITY OF MIAMI, FLORIDA Miami, Florida Gentlemen: Smith Barney, Harris Upham & Co. Incorporated (the "Manager") , acting on behalf of ourselves and on behalf of the other Underwriters named in the list attached hereto as Schedule 1, as said list may from time to time prior to the Closing (as hereinafter defined) be changed by us (we and such other underwriters as finally determined being herein collectively called the "Underwriters"), offer to enter into this Purchase Contract with you, The City of Miami, Florida (herein sometimes referred to as the "City"), which, upon your acceptance of this offer, will become binding upon you and upon the Underwriters. This offer is made subject to your acceptance by due adoption of a resolution and execution of this Purchase Contract and its delivery to us on or before 4:00 P.M., New York time, on June 30, 1980. 1. Upon the terms and conditions and upon the basis of the representations and warranties hereinafter set forth or referred to, we and the other Underwriters, jointly and severally, hereby agree to purchase from you for offering to the public, and you hereby agree to sell to the Underwriters for such purpose, all (but not less than all) of $60,000,000 aggregate principal amount of The City of Miami, Florida, Convention Center and Parking Garage Revenue Bonds, (hereinafter called the "Bonds"), having the maturities and bearing interest at the rates set forth in the Official Statement (as herein- after defined), at the purchase price of $6* %62,c.60 plus interest accrued on the Bonds from July 1, 1980 to the date of the Closing (hereinafter defined). 0 • 2. The Bonds shall be as described in, and shall be issued pursuant to the Trust Indenture, by and between the City and , as Trustee, dated as of July 1, 1980 (the "Trust Indenture"), which Trust Indenture _hall be in substantially the form heretofore delivered to us, with only such changes therein as shall be mutually agreed upon by you and the Manager. 3. The Underwriters agree to make a bona fide public offering of all the Bonds at not in excess of the initial public offering prices (which may be expressed in terms of yields) set forth on the cover page of the Official Statement. The Bonds may be offered and sold to certain dealers (including the Underwriters and other dealers depositing such Bonds into investment trusts) at prices lower than such public offering prices. 4. Delivered to you herewith is a certified or bank cashier's check payable to the order of the City of Miami, Florida in New York Clearing House funds in the amount of $600,000. You agree to hold this check uncashed until the Closing as security for the performance by the Underwriters of their obligation to accept and pay for the Bonds at the Closing, and, in the event of their compliance with such obligation, such check shall be returned to us at the Closing (as hereinafter defined). In the event you do not accept this offer, such check shall be immediately returned to us. In the event of your failure to deliver the Bonds at the Closing, or if you shall be unable to satisfy the conditions to the obligations of the Underwriters contained herein, or if the obligations of the Underwriters shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate and neither the Underwriters nor you shall be under further obligation hereunder, except that the check referred to in this Paragraph 4 shall immedi- ately be returned to us by you and the respective obligations of you and the Underwriters for the payment of expenses, as provided in Paragraph 9 hereof, shall continue in full force and effect. In the event that the Underwriters fail (other than for a reason permitted hereunder) to accept and pay for the Bonds at the Closing as herein provided, such check shall be retained by you as and for liquidated damages for such failure and for any defaults hereunder on the part of the Underwriters, and the cashing of such check or checks shall constitute a full release and discharge of all claims and damages for such failure and for any and all such defaults. 5. At the time on or before your acceptance hereof, you shall deliver to us together with such reasonable number of copies thereof as we may request: (a) An executed copy of the Official Statement of the City dated June 30, 1980, relating to the Bonds (which, together with the cover page, and all exhibits, appendices, reports and statements included therein as attached thereto, is called herein the -2- 0 • "Official Statement"), executed on behalf of the City by its Mayor and by its City Clerk and executed by Laventhol & Horwath as to its report appearing as Appendix A thereto (b) A letter from the Director of Finance of the City, dated as of the date hereof, covering the period from September 30, 1979, to a date not earlier than five days prior to the date hereof, to the effect that, based on a reading of the interim unaudited financial statements of revenues and expenses of the City for the seven months, 1980 months ended April, 1980 included in the Official Statement and a reading of the minutes of meetings of the City Commission and inquiries of and discussion with certain officials of the City having responsibilities for accounting and financial matters, nothing has come to his attention which has caused him to believe that (a) said state- ments of revenues and expenses for the seven months ended April, 1980 included in the Official Statement were not presented on a basis substantially consistent with the audited financial statements included there- in; or (b) as of the date not earlier than five days prior hereto, there was any change in the long-term debt of the City, other than as occasioned by repay- ments of such indebtedness, except as disclosed in the Official Statement, or any decrease in the aggregate of the fund balances of the several funds, as computed from the aggregate of the amounts shown in the audited balance sheet as of September 30, 1979, included in the Official Statement. (c) The approval in writing of Laventhol & Horwath to use the Appendix to the Official Statement to be used in connection with the: public offering and sale of the Bonds; and (d) The letters of representation and indemnifi- cation attached hereto as Appendices G and H , executed by Miami Center Associates, Ltd. and Dade Savings and Loan Association, respectively. You consent to the use by the Underwriters of the Official Statement, to be used in connection with the public offering and sale of the Bonds. You consent to the use by us prior to the date hereof of the Preliminary Official Statement dated June 23, 1980 (which, together with the cover page, and all exhibits, appendices, reports and statements included therein as attached thereto, is herein called the "Preliminary Official Statement") in connection with the public offering of the Bonds. -3- 0 9 6. (a) You represent and warrant to each of the Underwriters that (1) the Preliminary Official Statement was, as of its date, other than as modified in the Official Statement, and the Official Statement is, and at all times subsequent hereto up to and including the date of the Closing will be, true and correct in all material respects, contains and will at all such times contain no misstatement of any material fact and did not and will not at any such time omit any statement or information that is necessary to make the statements and information contained therein not misleading in any material respect; (ii) the City is a municipal corporation duly organized and validly existing under the laws of the State of Florida; (III) the City has good right and lawful authority: to con- struct, operate and maintain the Convention Center - Garage (as defined in the Trust Indenture); to operate, and establish and col- lect rates and other charges in respect thereto and collect revenues therefrom as provided in the Trust Indenture, and to perform all its obligations under the Trust Indenture in those respects including the establishment with the Trustee of certain reserve funds to be held under the Trust Indenture, paying a portion of the cost of the Convention Center - Garage, paying expenses incurred in connection with the issuance of the Bonds, paying a portion of the interest on the Bonds accruing during the construction period of the Convention Center - Garage, pledging the Net Revenues of the Convention -Center Garage and the Pledged Telephone and Telegraph Excise Tax Revenues and covenanting to make up any deficiencies in the amounts required by the Trust Indenture from lawfully available revenues of the City other than ad valorem taxes on real or tangible personal property; to execute and deliver the Trust Indenture and no other authorization for the Trust Indenture is required; to execute and deliver this Purchase Contract, the Lease and Agreement for Development, by and between the City and Miami Center Associates, Ltd., dated as of September 13, 1979, as amended (the "Hotel Agreement"), the Lease Agreement, by and between the City and Dade Savings and Loan Association dated as of July, 1980 (the "TC Agreement"), the Agreement by and between the City and the University of Miami, dated as of April 1, 1977 (the "University Agreement") and the Turnkey Design and Development Contract, by and between the City and Miami Center Associates, Inc. dated May 20, 1980 (the "Turnkey Contract"); to issue, sell and deliver the Bonds; and to carry out and consummate the transactions contemplated by the Trust Indenture, this Purchase Contract, the Hotel Agreement, the TC Agreement, the University Agreement the Turnkey Contract and the Official Statement; (iv) the UDAG Grant Agreement for the Parking Garage (as defined in the Trust Indenture), as modified by a letter from the Department of Housing and Urban Development, is in full force and effect and the City is in compliance with the terms thereof; (v) all consents, approvals, per- mits or other actions by or filings with any governmental authority required for the execution hereof, and delivery by the City of this Purchase Contract, the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement, the Turnkey Contract, the UDAG Grant Agreement and, except as otherwise set forth in the Official -4- 0 • Statement, for the performance by the City of the transactions contemplated thereby, have been duly obtained or made and are in full force and effect; (vi) from the time of your acceptance hereof through the date of the Closing, except as contemplated by the Official Statement, the City will not have incurred any material liabilities, direct or contingent, or entered into any material transaction and there shall not have been any material adverse change in the condition, financial or physical, of the City other than changes in the ordinary course of business or in the normal operation of the facilities operated by the City or in the course of construc- tion contemplated by the Official Statement; and (vii) the execution and delivery of this Purchase Contract, the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement, the Bonds, the Turnkey Contract and the UDAG Grant Agreement, the compli- ance with the provisions of this Purchase Contract, the Hotel Agreement, the TC Agreement, the University Agreement, the UDAG Grant Agreement, the Turnkey Contract and the Bonds, and the carrying out and consummation of the transactions contemplated by such documents and instruments and by the Official Statement will not conflict with or constitute a breach of or a default under any law, administrative regulation, court decree, instrument or agreement to which the City is subject or by which the City or any of its properties is bound. (b) If between the date of this Purchase Contract and the date of the Closing any event shall occur which, in the opinion of the City, would cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements there- in, in the light of the circumstances under which they were made, not misleading, you shall notify the Manager, and if in the opinion of the City and the Manager such event requires the preparation and pub- lication of a supplement or amendment to the Official Statement, you will at your expense supplement or amend the Official Statement in a form and in a manner approved by the Manager. 7. At 10:00 A.M., New York time, on August 5, 1980, or at such other time or on such earlier or later business day as shall have been mutually agreed upon by you and us, you will deliver to us the Bonds in definitive form, bearing CUSIP numbers, duly executed, together with the other documents hereinafter mentioned; and we will accept such delivery and pay the purchase price of the Bonds as set forth in Paragraph 1 hereof by certified or bank cashier's check or checks payable in New York Clearing House funds to the order of the City of Miami, Florida. Delivery and payment as aforesaid shall be made at the offices of Brown, Wood, Ivey, Mitchell & Petty, in New York, New York. This delivery and payment is herein called the "Closing". The Bonds will be delivered as coupon bonds or as regis- tered bonds in authorized denominations and registered in such names as the Underwriters shall have requested at least five business days prior to the Closing. The Bonds will be made avai_able for checking and packaging in New York City at least one business day prior to the -5- Closing. The Underwriters agree to furnish to the City prior to the delivery of the Bonds the initial offering prices of the Bonds to the public and such additional information as may be reasonably necessary to enable the City to determine the "purchase price" of the Bonds as defined in .Section 1.103-13(d) of the regulations of the United States Treasury Department pursuant to Section 103(c) of the Internal Revenue Code. 8. The obligations of the Underwriters hereunder are subject to (i) the accuracy in all material respects, as of the date hereof and the date of the Closing, of the representations and war- ranties of the City contained herein, and (ii) the following addi- tional conditions: (a) At the time of the Closing, (1) the Trust Indenture shall be in full force and effect and you shall have duly adopted and there shall be in full force and effect such additional ordinances, resolu- tions or agreements as shall, in the opinion of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel to the City, be necessary in connection with the transactions contemplated hereby; (2) the City shall perform or have performed all of its obligations required under or specified in this Purchase Contract and the Trust Indenture to be performed at, simultaneously with, or prior to, the Closing; (3) Miami Center Associates, Ltd., Dade Savings and Loan Association and the University of Miami shall perform or have performed all of their respective obligations specified herein, respectively, to be performed at, simultaneously with, or prior to, the Closing; and (4) except as set forth in the Official Statement, the Hotel Agreement, the TC Agreement, the University Agreement and the UDAG Grant Agreement shall be in full force and effect; (b) At the time of the Closing there shall have been no material adverse change in the status of per- mits and licenses for the construction, acquisition and operation of the Convention. Center - Garage as described in the Official Statement; (c) The City will cooperate with the Underwriters, at the Underwriters' sole cost and expense except as otherwise provided in Paragraph 9, in arranging for the qualification of the Bonds for sale, for application for exemption from such qualifi- cation and for the determination of their eligibility for investment under the laws o. such jurisdictions as the Underwriters designate and will continue such qualifications or exemptions in effect so long as required for the distribution of the Bonds, provided -6- 0 • that the City shall not be required to register as a dealer or broker in any jurisdiction or to comply with any other requirements reasonably deemed by it to be unduly bur .ensome or which would subject it to general service of process where it is not now subject; (d) The Underwriters shall have the right to cancel their obligations to purchase the Bonds if between the date hereof and the date of Closing, (i) legislation not yet introduced in Congress shall be enacted or be actively considered for enactment by the Congress, or recommended to the Congress for passage by the President of the United States, or favorably reported for passage to either House of the Congress by any committee of such House to which such legisla- tion has been referred for consideration, a decision by a Federal court of the United States or the United States Tax Court shall be rendered, or a ruling, regu- lation or official statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency having such authority shall be made or proposed to be made with respect to Federal taxation upon revenues or other income to be derived by the City from the Convention Center -Garage, upon interest on the Bonds, or other action or events shall have transpired which have the purpose or effect, directly or indirectly, of materially adversely affecting the Federal income tax consequences of any of the transactions contemplated in connection herewith, and in the reasonable opinion of the Manager, materially adversely affects the market for the Bonds or the sale by the Purchasers of the Bonds, or (ii) legislation shall be enacted, or actively considered for enactment with an effective date being prior to the date of the issuance of the Bonds, or a decision by a court of the United States shall be rendered, or a ruling, regulation by the Securities and Excnange Commission or other governmen- ts- agency having jurisdiction of the subject matter shall be made, the effect of which is that the Bonds are not exempt from the registration or qualification of the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as the in effect, or that the Trust Indenture is not exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended and as then in effect, or (III) a stop order, ruling, regula- tion by the Securities and Exchange Commission shall be issued or mad- the effect of which is that the issuance, offering or sale of the Bonds as contemplated hereby or by the final Official -7- 0 • Statement, is in violation of any provision of the Securities Act of 1933, as amended and as then in effect, or of the Securities Exchange Act of 1934, as amended and as then in effect, or that the Trust Indenture is not exempt from qualification pursuant to the Trust Indenture of 1939, as amended and as then in effect; or (iv) there shall exist any event which in the reasonable judgment of the Manager either (A) makes untrue or incorrect in any material respect any statement or information contained in the Official Statement or (B) is not reflected in the Official Statement but should be reflected therein in order to make the statements and information contained therein not misleading in any material respect and, in either such event, the City refuses to permit the Official Statement"to be supplemented or amended to correct or supply such statement or information, or the statement or information as supplemented or amended is such as in the reasonable judgment of the Manager would mate- rially adversely affect the market for the Bonds or the sale by the Underwriters of the Bonds, or (v) there shall have occurred any new outbreak of hostili- ties or any national or international calamity or crisis or a financial crisis the effect of which on the financial markets of the United States being such as, in the reasonable judgment of the Manager, would materially adversely affect the market for the Bonds, or the sale by the Underwriters of the Bonds, or (vi) there shall be in force a general suspension of trad- ing on the New York Stock Exchange, the effect of which on the financial markets of the United States is such as, in the reasonable judgment of the Manager, would materially adversely affect the market for the Bonds or the sale by the Underwriters of the Bonds, or (vii) a general banking moratorium shall have been declared by Federal, Florida or New York authorities, the effect of which on the financial markets of the United States is such as, in the reasonable judgment of the Manager, would materially adversely affect the market for the Bonds or the sale by the Underwriters of the Bonds, or (viii) there shall have occurred since September 30, 1979, any material adverse change in the affairs of the City from that reflected in the audited financial statements of the City contained in the Official Statement and the Official Statement. (e) At or prior to the Closing, we shall receive the following documents: (1) The unqualified approving opinion of Brown, Wood, Ivey, Mitchell & Petty, Bond -8- Counsel, as to the Bonds, dated the date of the Closing, in the form attached as Appendix C to the Official Statement, and a letter of such Bond Counsel, dated the date of the Closing and addressed to the Manager on behalf of the Underwriters, to the effect that the foregoing opinion addressed to the City may be relied upon by the Underwriters to the -same extent as if such opinion were addressed to them; (2) A supplemental opinion of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel, dated the date of the Closing and addressed to the Manager on behalf of the Underwriters, to the effect that (A) the Bonds are not subject to the regis- tration requirements of the Securities Act of 1933, as amended, and the Trust Indenture is exempt from qualification as a Trust Indenture pursuant to the Trust Indenture Act of 1939, as amended; (B) the statements contained in the Official Statement under the captions "Purpose of Issue", "Security for the Bonds", "Rate Covenant", "Additional Bonds", "Description of the Bonds", "Validation of the Bonds" and "Tax Exemption" are correct in all material respects and nothing has come to their attention which would lead them to believe that the information under such headings of the Official Statement contains an untrue statement of a material fact or that such sections taken collectively omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being under- stood that in rendering such opinion, Bond Counsel shall not be required to express an opinion with respect to other sections of the Official Statement and financial statements and other financial data excluded in the Official Statement; (C) the statements contained in the Official Statement under the captions "Summary of the Trust Indenture", "Summary of the Hotel Agreement", "Summary of the TC Agreement" and "Summary of the University Agreement" are true, accurate and correct statements in all material respects; (D) this Purchase Contract, the Trust Indenture, the Hotel Agreement, the TC Agreement and the University Agreement have been duly authorized, executed and delivered by the City and constitute valid and binding agreements between the parties thereto, enforceable in -9- 0 0 accordance with their terms, subject, as to enforcement, to applicable bankruptcy, moratori- um, or other similar laws relating to the enforcement of creditors' rights; and (E) the Trust indenture, the Bonds, the Hotel Agreement, the TC Agreement and the University Agreement conform in all material respects with the terms and provisions thereof as set out in the Official Statement; (3) The documents, certificates and opin- ions listed in Section 208(a)-(dd) of the Trust Indenture; (4) A certificate of the Director of Finance of the City dated the date of the Closing to the same effect as required by para- graph 5(b) hereof; (5) The opinion of George Knox, Jr., Esq., Counsel to the City, dated the date of the Closing, substantially in the form attached hereto as Appendix A; (6) The opinion of Counsel to the University, dated the date of the Closing, sub- stantially in the form attached hereto as Appendix B; (7) The opinion of Fine Jacobson Block Klein Colan & Simon, P.A., Counsel to Miami Center Associates, Ltd., dated the date of the Closing, substantially in the form attached hereto as Appendix C; (8) The opinion of Counsel to Dade Savings and Loan Association, dated the date of the Closing, substantially in the form attached as Appendix D. (9) The opinion of Counsel to Miami Center Associates, Inc., dated the date of the Closing, substantially in the form attached hereto as Appendix E; (10) The opinion of Counsel to the Continental Illinois National Bank and Trust Company of Chicago, dated the date of the Closing, substantially in the form attached hereto as Appendix F; -10- 0 • (11) A Certificate, dated the date of Closing, by the City Manager and the Director of Finance of the City, to the effect that (i) the revenues derived from Pledged Telephone and Telegraph Excise Tax Revenues are not, as of the date of the Closing, pledged to the payment of any obligations of the City other than the Bonds or for any other purpose except as disclosed in the Official Statement, and ( i i ) the City has validly covenanted that it will not authorize or issue any bonds, other than bonds issued to refund the outstanding Utilities Service Tax Bonds, pursuant to provisions of Ordinance 7066 of the City so long as any bonds secured under the provisions of the Trust Indenture are out- standing= (12) A Certificate, dated the date of the Closing, by the Mayor and Director of Finance of the City, to the effect that the information contained in the Official Statement with respect to the City, including the Convention -Center Garage, is true and correct in all material respects and nothing has come to their attention which would lead them to believe that the Official Statement contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; (13) A Certificate, dated the date of the Closing by the Project Director of the Convention Center - Garage approved by the City Manager, to the effect that the information con- tained in the Official Statement relating to the Convention Center - Garage, the Hotel and the Trade Center is true and correct in all material respects and nothing has come to his attention which would lead him to believe that the Official Statement contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; -11- (14) A Certificate, dated the date of the Closing, by the President of the General Partner of Miami Center Associates, Ltd., to the effect that (A) other than as set forth in the Official Statement, no litigation is pending or to his knowledge threatened in any court or other tri- bunal of competent jurisdiction (State or Federal) (i) affecting the existence of Miami Center Associates, Ltd., or in any way adversely affecting the revenues of the Hotel, or contest- ing the powers of Miami Center Associates, Ltd. to carry out the transactions contemplated with respect to Miami Center Associates, Ltd. by the Official Statement and this Purchase Contract, M ) contesting or affecting the validity of the Hotel Agreement or contesting or affecting the power of Miami Center Associates, Ltd. to carry out the transactions contemplated by the Hotel Agreement, in each case where an adverse judg- ment would result in any material adverse change in the business, properties or assets or the condition, financial or -otherwise, of Miami Center Associates, Ltd., or (iii) against Miami Center Associates, Ltd. or involving any of the properties or assets under control of Miami Center Associates, Ltd. which involves the pos- sibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condi- tion, financial or otherwise, of Miami Center Associates, Ltd. other than routine litigation of the type which normally accompanies the development and operation of hotel facilities such as the Hotel, and (B) the statements con- tained in the Official Statement relating to Miami Center Associates, Ltd., the Hotel, the Hotel Agreement, the Development Agreement, the Construction Loan Agreement and the Tri-party Agreement are ture and correct in all material respects and nothing has come to its attention which would lead it to believe that such infor- mation contains an untrue statement of a mate- rial fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; (15) A Certificate, dated the date of the Closing, by an authorized officer of the -12- 0 4 University, to the effect that (A) other than as set forth in the Official Statement, no litiga- tion is pending or to his knowledge threatened in any court or other tribunal of competent jurisdiction (State or Federal) (I) affecting the existence of the University, or in any way contesting the powers of the University to carry out the transactions contemplated with respect to the University by the Official Statement and this Purchase Contract, (ii) contesting or affecting the validity of the University Agreement or contesting or affecting the power of the University to carry out the transactions contemplated by the University Agreement, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the condition, financial or otherwise, of the University, or (III) against the University or involving any of the properties or assets under control of the University which involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of the University other than routine litigation of the type which nor- mally accompanies the development and operation of a conference center such as the James L. Knight International Center, it being understood that as of July 1, 1976 the University estab- lished a self-insurance fund for medical mal- practice claims, and expects that the amount on deposit therein will be sufficient to cover any claims as they mature, and (B) the statements contained in the Official Statement relating to the conference center, the University and the University Agreement are true and correct in all material respects and nothing has come to his attention which would lead him to believe that such information contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; (16) A Certificate, dated the date of the Closing, by an authorized officer of Miami Center Associates, Inc., to the effect that (A) other than as set forth in the Official -13- 0 0 Statement, no litigation is pending or to its knowledge threatened in any court or other tri- bunal of competent jurisdiction (State or Federal) (i) affecting the existence of Miami Center Associates, Inc., or contesting the powers of Miami Center Associates, Inc. to carry out the transactions contemplated with respect to Miami Center Associates, Inc. by the Official Statement and this Purchase Contract, (ii) con- testing or affecting the validity of the Turnkey Contract or contesting or affecting the power of Miami Center Associates, Inc. to carry out the transactions contemplated by the Turnkey Contract, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the condi- tion, financial or otherwise, of Miami Center Associates, Inc., or (iii) against Miami Center Associates, Inc. or involving any of the proper- ties or assets under control of Miami Center Associates, Inc. which involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of Miami Center Associates, Inc. other than routine litigation of the type which normally accompanies the con- struction of parking facilities such as the Parking Garage, and (B) the statements contained in the Official Statement relating to Miami Center Associates, Inc., the Parking Garage and the Turnkey Contract are correct in all material respects and nothing has come to its attention which would lead it to believe that such infor- mation contains an untrue statement of a mate- rial fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; (17) A Certificate, dated the date of the Closing, by an authorized representative of Dade Savings and Loan Association, to the effect that (A), other than as set forth in the Official Statement, no litigation is pending or to his knowledge threatened in any court or other tri- bunal of competent jurisdiction (State or Federal) (i) affecting the existence of Dade Savings and Loan Association or contesting the -14- powers of Dade Savings and Loan Association to carry out the transactions contemplated with respect to Dade Savings and Loan Association by the Official Statement and this Purchase Contract, (it) contesting or affecting the validity of the TC Agreement or contesting or affecting the power of Dade Savings and Loan Association to carry out the transactions con- templated by the TC Agreement, in each case where an adverse judgment would result in any material adverse change in the business, proper- ties or assets or the condition, financial or otherwise, of Dade Savings and Loan Association, or (iii) against Dade Savings and Loan Association or involving any of the properties or assets under control of Dade Savings and Loan Association which involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of Dade Savings and Loan Association other than routine litigation of the type which normally accompanies the development and operation of office facilities such as the Trade Center, and (B) the statements contained in the Official Statement relating to Dade Savings and Loan Association, the TC Agreement and the Trade Center are correct in all material respects and nothing has come to his attention which would lead him to believe that such infor- mation contains an untrue statement of a mate- rial fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which Certificate shall be in form and substance acceptable to us; (18) Evidence of insurance required by the Trust Indenture, the Hotel Agreement and the TC Agreement to be in effect on the date of the Closing; (19) Construction Loan Agreement, by and between Miami Center Associates, Ltd. and Continental Illinois National Bank of Chicago and evidence that all the requirements thereof necessary for funds to be advanced pursuant to said Construction Loan Agreement have been satisfied; -15- (20) Tri-Party Agreement by and among Miami Center Associates, Ltd., Continental Illinois Bank of Chicago and Massachusetts Mutual Life Insurance Company or such other agreement or agreements achieving the same pur- pose thereof; (21) Letter of Credit issued on behalf of Miami Center Associates, Ltd. issued for the benefit of the City in the amount of $2,900,000; (22) Municipal Bond Insurance Association policy guaranteeing the payment of the principal of and interest on the Bonds; (23) Turnkey Design and Development Contract, by and between the City and Miami Center Associates, Inc.; (24) Letter from the Department of Housing and Urban Development as to satisfaction with the City's compliance with the terms of the UDAG Grant; (25) Development Agreement, by and between Miami Center Associates, Inc. and the Warsham Development Group; (26) Construction Contract by and between Frank J. Rooney, Inc. and the City; (27) Letter from Frank J. Rooney, Inc. to Continental Illinois National Bank and Trust Company relating to the expected date of comple- tion of the Convention Center Garage; (28) "Binding Letter of no impact" from the State Department of Administration in con- nection with the Convention Center - Garage; (29) Development Order by the South Florida Regional Planning Council in connection with the development of regional impact for the World Trade Center; (30) Resolution of Dade County in connec- tion with the construction of the Parking Garage; -16- s 0 (31) Certified copy of the resolution of the City revoking the pledge of certain revenues for the Watson Island Project= and (32) Such additional certificates, Instru- ments and other documents as we may reasonably deem necessary to evidence (A) the truth and accuracy as of the time of the Closing of your representations and warranties contained in subparagraph 6(a) hereof and the representations and warranties of Miami Center Associates, Ltd. the University and Dade Savings and Loan Association, and (B) the due performance or sat- isfaction at or prior to such time of all agree- ments then to be performed and all conditions then to be satisfied by you and the University, Dade Savings and Loan Association, and Miami Center Associates, Ltd. and Miami Center Associates, Inc. pursuant to this Purchase Contract. The opinions and certificates and other material referred to above shall be in form and substance satisfactory to the Manager. 9. The Underwriters shall be under no obligation to pay any expenses incident to the performance of your obligations hereun- der, including, but not limited to (a) the cost of printing or repro- ducing twenty (20) copies and preparation for printing or reproducing of the Trust Indenture, Hotel Agreement, TC Agreement and the University Agreement; (b) the cost of preparing the definitive Bonds; (c) the fees and disbursements of Brown, Wood, Ivey, Mitchell & Petty and any other experts or consultants retained by the City; (d) the fees of bond rating agencies in connection with the Bonds; and (e) the cost of obtaining insurance on the Bonds from the Municipal Bond Insurance Association. The Underwriters shall pay (a) the cost of preparation and printing copies of the preliminary and final Official Statement required for distribution and use in connection with the public offering of the Bonds, the cost of preparation or printing or reproducing this Purchase Contract and the Agreement Among Underwriters, and the cost of preparation and printing the Blue Sky and legal investment memoranda to be used by them; (b) all advertis- ing expenses in connection with the public offering of the Bonds; and (c) all other expenses incurred by them or any of them in connection with the public offering and distribution of the Bonds, including the fees and disbursements of Mudge Rose Guthrie & Alexander, Counsel to the Underwriters. -17- 10. (a) The City, to the extent permitted by law and only from lawfully available monies of the City, will indemnify and hold harmless each Underwriter and each person, if any, who controls an Underwriter within the meaning of the Securities Act of 1933, as amended, against any losses, claims, damages or liabilities, joint or several, (i) to which such Underwriter or such controlling person may become subject, under Federal laws or regulations or otherwise, inso- far as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact relating to the City as set forth in the Official Statement, including the Appendices, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of any statement or Information relating to the City which is necessary to make the statements therein not misleading in any material respect; provided, however, that with respect to any untrue statement or omission or alleged untrue statement or omission made in any such Official Statement, the indemnity agreement contained in this paragraph shall not inure to the benefit of the Underwriter from whom the person asserting any such losses, claims, damages or liabilities purchased the Bonds concerned (or to the benefit of any person controlling such Underwriter), to the extent that any such loss, claim, damage or liability of such Underwriter or controlling person results from the fact that a copy of the Official Statement, as then supplemented or amended, was not sent or given to such person at or prior to the written confirmation of the sale of such Bonds; and ( i i ) to the extent of the aggregate amount paid in settlement of any litigation commenced or threatened arising from a claim based upon any such untrue statement or alleged untrue statement or omission or alleged omission if such settlement is effected with the written consent of the City; and will reimburse any legal or other expenses reasonably incurred by such Underwriter or controlling person thereof in connec- tion with investigating or defending any such loss, claim, damage, liability or action. The City will assume the defense of any action against the Underwriters or such controlling person or any of them or any officer or employee of any Underwriter based upon allegations of any such loss, claim, damage, liability or action, including the retaining of counsel not unsatisfactory to the Underwriters and the payment of counsel fees and all other expenses relating to such defense, provided, however, that any Underwriter or any such control- ling person may retain separate counsel in any such action and may participate in the defense thereof at the sole expense of such Underwriter or such controlling person unless such retaining of sepa- rate counsel has been specifically authorized by the City. This indemnity agreement will be in addition to any liability which the City may otherwise have. (b) Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indem- nified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section, notify the indemni- fying party of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any idemnified party otherwise than under this Section. In case any such action is brought against any indemnified -18- M party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party (i) will assume the defense thereof If and as required under this Section, or (ii) if not required to assume the defense, will be entitled to participate in, and, to the extent that it may wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel sat- isfactory to such indemnified party. After notice from the indemni- fying party to such indemnified party of its assumption of the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. 11. Any notice or other communication to be given under this Purchase Contract may be given by delivering the same in writing to: the Underwriters under this Purchase Contract, by delivering the same in writing to Smith Barney, Harris Upham & Co. Incorporated, 1345 Avenue of the Americas, New York, New York 10105, Attention% Public Finance Division; and the City, by delivery the same in writ- ing to the City Manager, 3500 Pan American Drive, Miami, Florida 33133. 12. This Purchase Contract may be signed in various coun- terparts which shall together constitute one and the same Instrument. 13. This Purchase Contract shall be governed by and con- strued in accordance with the laws of the State of New York. 14. This Purchase Contract is made solely for the benefit of you and the Underwriters (including the successors or assigns of any Underwriter except for any person who claims to be such a succes- sor or assign solely by reason of the purchase of Bonds) and any person controlling any Underwriter, and no other person shall acquire or have any right hereunder or by virtue hereof. All your represen- tations, warranties and agreements in this Purchase Contract shall remain operative and in full force and effect, regardless of (a) any -19- investigation made by or on behalf of any of the Underwriters, (b) delivery of, and payment for, the Bonds hereunder and (c) any termi- nation of this Purchase Contract. CITY OF MIAMI, FLORIDA By mayor (SEAL) ,fittest: t By ty Clerk Very truly yours, SMITH BARNEY, HARRIS UPHAM i CO. INCORPORATED as represen- tative of the Underwriters By • -20- Appendix A (Opinion of George Knox, Jr., City Attorney] 1980 Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Gentlemen: I am counsel to The City of Miami, Florida (the "City") and have acted as such in connection with the sale and issuance by the City of $60,000,000 aggregate principal amount of Convention Center and Parking Garage Revenue Bonds, dated , 1980 (the "Bonds") as authorized by the Trust Indenture by and between the City and , as Trustee, dated as of , 1980 (the "Trust Indenture ). I have examined the following: (a) The Trust Indenture; (b) The Official Statement of the City with respect to the Bonds dated , 1980 (the "Official Statement"); (c) The Lease and Agreement for Development by and between the City and Miami Center Associates, Ltd., dated as of September 13, 1979, as amended (the "Hotel Agreement"); (d) The Lease Agreement by and between the City and Dade Savings and Loan Association dated as of • 1980 (the "TC Agreement"); (e) The Agreement by and between the City and the University of Miami (the "University"), dated as of April 1, 1977 (the "University Agreement"); (f) The Urban Development Action Grant Agreement between the City and the United States Department of a a Housing and Urban Development granting to the City $4,984,000 (the "UDAG Grant Agreement"); (g) The Purchase Contract for the Bonds, dated , 1980, by and between the City and Smith Barney, arr s Upham i Co. Incorporated, as Representatives of the Underwriters (the "Purchase Contract"); (h) The Construction Contract for the Convention Center, dated , 1980, by and between the City and Frank J. Rooney, Inc. (the "Convention Center Construction Contract")= (i) the turnkey contract for the design and construc- tion of the Parking Garage, dated , 1980, by and between the City and Miami Center Associates, Inc. (the "Turnkey Contract"); and (j) The proceedings of the City with respect to the foregoing. In addition, I have examined originals or copies, certified to my satisfaction, of all such other records, documents and instru- ments of officers and representatives of the City as I have deemed necessary. I am of the opinion that: (i) the UDAG Grant Agreement, the Convention Center Construction Contract, the Turnkey Contract and the Purchase Contract have been duly authorized, executed and delivered by the City and constitute valid and binding agreements between the parties thereto, enforceable in accordance with their terms, subject as to enforcement, to applicable bankruptcy, moratorium, or other similar laws relating to the enforcement of creditor's rights; ( i i ) other than as set forth in the Official Statement, no litigation is pending or, to my knowledge, threatened in any court or other tribunal of competent jurisdiction (State or Federal) (A) affecting the corporate existence of the City or the title to office of any officer of the City or seeking to restrain or enjoin the issuance or delivery of any of the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement, the UDAG Grant Agreement, the Convention Center Construction Contract, the Turnkey Contract or the Purchase Contract, or the collection of the Revenues (as defined in the Trust Indenture) or the pledge thereof or of the Pledged Telephone and Telegraph Excise -2- a El Tax Revenues under the Trust Indenture, or contesting the powers of the City to carry out the transactions contem- plated by the Official Statement, the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement, the UDAG Grant Agreement, the Convention Center Construction Contract, the Turnkey Contract, the Purchase Contract or any authority for the issuance of the Bonds or the execution and delivery of the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement, the Convention Center Construction Contract, the Turnkey Contract or the UDAG Grant Agreement, (B) contest- ing or affecting the validity of any permits or licenses issued or to be issued by regulatory agencies (local, State or Federal) with respect to the construction or operation of any of the properties, facilities or improvements being financed in whole or in part by the proceeds of the issu- ance and sale of the Bonds, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the conditions financial or otherwise of the City, or (C) against the City or involving any of the property or assets under the control of the City that involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or the condition, financial or otherwise, of the City, other than routine litigation of the type which normally accompanies construction and operation of facilities such as the Convention Center - Garage; (III) nothing has come to my attention which would lead me to believe that the statements in the Official Statement relating to the City contain an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being understood that in rendering this opinion, no opinion is expressed with respect to other sections of the Official Statement and financial statements and other financial data included In the Official Statement; and (iv) the City has validly covenanted and pledged that no additional bonds payable from the utilities service taxes or pledged telephone and telegraph service tax reve- nues will be issued pursuant to the provisions of Ordinance No. 7066, adopted by the Commission of the City on November 21, 1962, except for the purpose of refunding the Utilities Services Tax Bonds presently outstanding. Very truly yours, -3- Appendix B (Opinion of Counsel to the University) , 1980 Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Gentlemen: I am general counsel to the University of Miami (the "University") and have acted as such in connection with the Agreement by and between the City of Miami, Florida (the "City") and the University, dated as of April 1, 1977 (the "University Agreement"). I have examined the following: (a) The University Agreement] (b) The Official Statement of the City, relating to Its $60,000,000 Convention Center and Parking Garage Revenue Bonds, dated , 1980 (the "Official Statement"); and (c) The Purchase Contract by and between the City and Smith Barney, Harris Upham & Co. Incorporated, as represen- tatives of the Underwriters named in the Purchase Contract, dated , 1980 (the "Purchase Contract"). In addition, I have examined originals or copies, certified to my satisfaction, of all such other records, documents and instru- ments of officers and representatives of the University as I have deemed necessary. I am of the opinion that: (i) other than as set forth in the Official Statement, to the best of my knowledge no litigation is pending or threatened in any court or other tribunal of competent jurisdiction (State or Federal) (A) affecting the existence of the University, or in any way contesting the powers of the University to carry out the transactions contemplated with respect to the University by the Official Statement and the Purchase Contract, (B) contesting or affecting the validity of the University Agreement or contesting or affecting the power of the University to carry out the transactions contemplated by the University Agreement, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the condition, financial or other- wise, it being understood that as of July 1, 1976 the University established a self-insurance fund for medical malpractice claims, and the amount on deposit and to be deposited therein will be sufficient to cover such medical malpractice claims, of the University, or (C) against the University or involving any of the properties or assets under control of the University which involves the possi- bility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of the University other than routine litigation of the type which normally accompanies the development and operation of a conference center such as the James L. Knight International Center; and (ii) the statements relating to the University con- tained in the Official Statement are true and correct in all material respects and nothing has come to my attention which would lead me to believe that such information con- tains an untrue statement of a material fact or omits to state a material fact required to be stated therein or nec- essary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being understood that in rendering such opinion, I express no opinion with respect to other sections of the Official Statement and the financial statements and other financial data included in the Official Statement. Very truly yours, -2- Appendix C (Opinion of Fine Jacobson Block Klein Colan & Simon, P.A. Counsel to Miami Center Associates, Ltd.] Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Gentlemen: 1980 We are counsel to Miami Center Associates, Ltd. and have acted as such in connection with the Lease and Agreement for Development by and between The City of Miami, Florida (the "City") and Miami Center Associates, Ltd., dated as of September 13, 1979, as amended (the "Hotel Agreement"). We have examined the following% (a) The Hotel Agreement; (b) The Official Statement of the City relating to its $60,000,000 Convention Center and Parking Garage Revenue Bonds (the "Bonds"), dated , 1980 (the "Official Statement"); (c) The Purchase Contract for the Bonds, dated , 1980, by and between the City and Smith Barney, Harms Upham & Co. Incorporated, as representatives of the Underwriters (the "Purchase Conract"); (d) The Development Agreement, dated May 26, 1978 by and between Miami Center Associates, Ltd. and the Warsham Development Group (the "Development Agreement"); (e) The Construction Loan Agreement, dated 1980, by and between Miami Center Associates, Ltd. and Continental Illinois Bank of Chicago (the "Construction Loan Agreement"); and A A (f) The Tri-party Agreement, dated , 1980, by and among Miami Center Associates, Lt ., ont nental Illinois National Bank and Trust Company of Chicago and Massachusetts Mutual Life Insurance Company or such other agreement or agreements achieving the same purpose thereof (the "Tri-party Agreement"). In addition, we have examined originals or copies, certi- fied to my satisfaction, of all such other records, documents and instruments of representatives of Miami Center Associates, Ltd. as we have deemed necessary. We are of the opinion that: (i) the Development Agreement, the Construction Loan Agreement and the Tri-party Agreement have been duly autho- rized, executed and delivered by Miami Center Associates., Ltd. and constitute valid and binding agreements between the parties thereto, enforceable in accordance with their terms, subject as to enforcement, to applicable bankruptcy, moratorium or other similar laws relating to the enforce- ment of creditor's rights; (11) Miami Center Associates, Ltd. is in full compli- ance with the terms and requirements of the Construction Loan Agreement and the Tri-party Agreement and to the best of our knowledge no default has occurred thereunder; ( i i i ) other than as set forth in the Official Statement, no litigation is pending or to my knowledge threatened in any court or other tribunal of competent jurisdiction (State or Federal) (A) affecting the existence of Miami Center Associates, Ltd., or in any way affecting the collection of revenues of the Hotel, or contesting the powers of Miami Center Associates, Ltd. to carry out the transactions contemplated with respect to Miami Center Associates, Ltd. by the Official Statement and the Purchase Contract, or (B) contesting or affecting the validity of the Hotel Agreement, the Development Agreement, the Construction Loan Agreement or the Tri-party Agreement, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the condition, financial or otherwise, of Miami Center Associates, Ltd., or (C) against Miami Center Associates, Ltd. or involving any of the properties or assets under control of Miami Center Associates, Ltd. which involves the possibility of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of Miami Center Associates, Ltd. other than routine litigation of the type which normally accompanies -2- 2 the development and operation of hotel facilities such as the Hotels and (iv) the statements contained in the Official Statement relating to Miami Center Associates, Ltd., the Hotel Agreement, the Hotel, the Development Agreement, the Construction Loan Agreement and the Tri-party Agreement are true and correct in all material respects and nothing has come to my attention which would lead me to believe that such information contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being understood that in rendering this opinion, no opinion is expressed with respect to other sections of the Official Statement and the financial state- ments and other financial data included in the Official Statement. Very truly yours, -3- Appendix D 10pinion of Counsel to Dade Savings and Loan Association) Smith Barney, Harris Upham 6 Co. Incorporated as representative of the Underwriters Re: Lease Agreement by and between the City of Miami, Florida, and Dade Savings and Loan Association, dated as of July 1, 1980 Gentlemen: 1980 I am counsel to Dade Savings and Loan Association and have acted as such in connection with the Lease Agreement by and among The City of Miami, Florida (the "City") and Dade Savings and Loan Association dated as of , 1980 (the OTC Agreement"). I have examined the following: (a) The TC Agreement; and (b) The Official Statement of the City relating to its $60,000,000 Convention Center and Parking Garage Revenue Bonds (the "Bonds") as used in connection with the public sale thereof, dated , 1980 (the "Official Statement") and not necessarily each and every of the docu- ments referred to therein. In addition, I have examined originals or copies, certified to my satisfaction, of all such other records, documents and instru- ments of officers and representatives of Dade Savings and Loan Association as I have deemed necessary. I am of the opinion that: M other than as set forth in the Official Statement, no litigation is pending or to my knowledge threatened in any court or other tribunal of competent jurisdiction (State or Federal) (a) affecting the existence of Dade Savings and Loan Association or contesting the powers of Dade Savings and Loan Association to carry out the transactions contemplated with respect to Dade Savings and Loan Association by the Official Statement and the A A Purchase Contract, (b) contesting or affecting the validity of the TC Agreement, except for [threatened litigation), or contesting or affecting the power of Dade Savings and Loan Association to carry out the transactions contemplated by the TC Agreement, in each case where an adverse judgment would result in any material adverse change in the busi- ness, properties or assets or the condition, financial or otherwise, of Dade Savings and Loan Association, or (c) against Dade Savings and Loan Association or involving any of the properties or assets under control of Dade Savings and Loan Association which if brought to a successful con- clusion would result in a material adverse change in the business, properties, assets or condition, financial or otherwise, of Dade Savings and Loan Association other than routine litigation of the type which normally accompanies the development and operation of office facilities such as the Trade Center, and (II) the statements contained in the Official Statement relating to Dade Savings and Loan Association, the TC Agreement and the World Trade Center are true and correct in all material respects and nothing has come to my attention which would lead me to believe that such informa- tion contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being understood that in rendering this opinion, no opinion is expressed with respect to other sec- tions of the Official Statement and financial statements and other financial data included in the Official Statement. Very truly yours, -2- Appendix E [Opinion of Counsel to Miami Center Associates, Inc.] Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Gentlemen: , 1980 We are counsel to Miami Center Associates, Inc. and have acted as such in connection with the Turnkey Design and Development Contract by and between The City of Miami, Florida (the "City"), and Miami Center Associates, Inc., dated as of , 1980 (the "Turnkey Contract"). We have examined the following: (a) The Turnkey Contract; (b) The Official Statement of the City relating to its $60,000,000 Convention Center and Parking Garage Revenue Bonds (the "Bonds"), dated , 1980 (the "Official Statement"); and (c) The Purchase Contract for the Bonds, dated , 1980, by and between the City and Smith Barney, Harris Up am & Co. Incorporated, as representatives of the Underwriters (the "Purchase Conract"). In addition, we have examined originals or copies, certi- fied to our satisfaction, of all such other records, documents and instruments of representatives of Miami Trade Center Associates, Ltd. as we have deemed necessary. We are of the opinion that: (1) (a) Miami Center Associates, Inc. is a corpora- tion duly organized and existing under the laws of the State of Florida and is in good standing in the State, (b) the making and performance of the Turnkey Contract by Miami Center Associates, Inc. has been duly authorized by all necessary corporate action, and (c) the Turnkey Contract has been authorized and duly executed by Miami Center Associates, Inc. and assuming proper authorization and execution thereof by the City, constitutes a valid and binding agreement of the parties thereto enforceable in accordance with its terms. (II) other than as set forth in the Official Statement, to our knowledge no litigation is pending or threatened in any court or other tribunal of competent jurisdiction (State or Federal) (i) affecting the existence of Miami Center Associates, Inc., or contesting the powers of Miami Center Associates, Inc. to carry out the transac- tions contemplated with respect to Miami Center Associates, Inc. by the Official Statement and the Purchase Contract, (ii) contesting or affecting the validity of the Turnkey Contract or contesting or affecting the power of Miami Center Associates, Inc. to carry out the transactions con- templated by the Turnkey Contract, in each case where an adverse judgment would result in any material adverse change in the business, properties or assets or the condi- tion, financial or otherwise, of Miami Center Associates, Inc., or (III) against Miami Center Associates, Inc. or involving any of the properties or assets under control of Miami Center Associates, Inc. which involves the possibil- ity of any judgment or uninsured liability that would result in any material adverse change in the business, properties, assets or condition, financial or otherwise, of Miami Center Associates, Inc. other than routine litigation of the type which normally accompanies the construction of parking facilities such as the Center; (III) the statements contained in the Official Statement relating to Miami Center Associates, Inc., the Parking Garage and the Turnkey Contract are true and cor- rect in all material respects and nothing has come to my attention which would lead me to believe that such informa- tion contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, it being understood that in rendering this opinion, no opinion is expressed with respect to other sec- tions of the Official Statement and financial statements and other financial data included in the Official Statement. Very truly yours, -2- Appendix F (Opinion of Counsel to Continental Illinois National Bank and Trust Company of Chicago) 1980 Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Gentlemen: We have acted as counsel to Continental Illinois National Bank and Trust Company of Chicago (the "Bank") in connection with the Construction Loan Agreement, dated , 1980, by and between the Bank and Miami Center Associates, Ltd. (Ehe "Construction Loan Agreement"), and the Tri-party Agreement, dated , 1980, by and among the Bank, Miami Center Associates, LtJ—.and Massachusetts Mutual Life Insurance Company or such other agreement or agreements achieving the same purpose thereof (the "Tri-party Agreement") . We are of the opinion that the Construction Loan Agreement and the Tri-party Agreement have been duly authorized, executed and delivered by the Bank and constitute valid, binding and enforceable agreements between the parties thereto. To our knowledge, Miami Center Associates, Ltd. is in full compliance with the terms and requirements of the Construction Loan Agreement and the Tri-party Agreement and no default has occurred thereunder. We are members of the Illinois Bar only. Accordingly, in rendering this opinion, we express no opinion with respect to matters of law of any other jurisdiction. This opinion is rendered solely for your benefit (and the benefit of the Underwriters) and may not be relied upon by any other party, including, without limitation, any purchasers of the subject Bonds. Very truly yours, APPENDIX G [Letterhead of Miami Center Associates, Ltd.) , 1980 Smith Barney, Harris Upham & Co. Incorporated as representative of the Underwriters Re: $60,000,000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Dear Sirs: Pursuant to the requirements of the Purchase Contract, dated May , 1980 (the "Purchase Contract"), with respect to the subject Revenue Bonds, MiAni Center Associates, Ltd, hereby repre- sents, warrants and agrees with you as follows: (a) The Official Statement of the City dated , 1980, relating to the subject Revnue Bonds (the "Official Statement"), describing Miami Center Associates, Ltd., the Hotel and the Hotel Agreement (all as defined in the Official Statement) did not, as of the date thereof and do not as of the date hereof contain an untrue statement of a material fact and did not as of the date thereof and do not, as of the date hereof omit to state any material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading. We hereby consent to the use of such state- ments and information in the Official Statement. (b) Miami Center Associates, Ltd. agrees, to the extent, if any, that a court of competent jurisdiction would enforce such agreement as not contrary to law or public policy, to indemnify and hold harmless the City, any member, officer, official, employee, counsel, consultant and agent of the City and each and any Purchaser of the Bonds whose name is set forth in the Purchase Contract and which provides for the initial sale of the Bonds by the OWN ON City, and each person, if any, who has the power, directly or indirectly, to direct or cause the direction of the man- agement and policies of such Purchaser through the owner- ship of voting securities, by contract or otherwise, against any and all losses, claims, damages, liabilities or expense arising out of or in connection with any misrepre- sentations contained in the portions of the Official Statement described above in Paragraph (a) as they pertain to Miami Center Associate, Ltd. The representations, warranties, agreements and indemnities contained herein shall survive the closing and delivery of the Bonds to the Underwriters and any investigation made by or on behalf of any of you or any person who controls any of you (as aforesaid) of any matters discribed in or related to the transactions contemplated hereby and by the Official Statement but these representations, war- ranties, agreements and indemnities shall not operate to extend any statute of Limitation or to render Miami Center Associates, Ltd. liable if the statute of limitation governing the cause of action in question has already run. This Letter of Representation and Indemnification shall be binding upon and inure solely to the benefit of the Underwriters, the City and Miami Center Associates, Ltd. and, to the extent set forth herein, persons controlling any of you, and their respective personal representatives, successors and assigns, and no other person or firm shall acquire or have any right under or by virtue of this Letter of Representation and Indemnification. Very truly yours, MIAMI CENTER ASSOCIATES, LTD. By General Partner -2- 0*4 APPENDIX H fLetterhead of Dade Savings and Loan Association) Smith Barney, Harris Incorporated as representative Dear Sirs: , 1980 Upham & Co. of the Underwriters Re: Trade Center Air Rights Lease Pursuant to the requirements of the Purchase Contract, dated June , 1980 (the "Purchase Contract"), relating to the $60,000,000 aggregate principal amount of Convention Center and Parking Garage Revenue Bonds (the "Bonds") of the City of Miami, Florida (the "City"), Dade Savings and Loan Association hereby repre- sents, warrants and agrees with you as follows: (c) The Official Statement of the City dated , 1980, relating to the Bonds as used in connec- tion with the public sale thereof (the "Official Statement") and not necessarily each and every of the docu- ments referred to therein, describing Dade Savings and Loan Association, the Trade Center (as defined in the Official Statement) and the TC Agreement (as defined in the Official Statement) did not, as of the date thereof and do not as of the date hereof contain an untrue statement of a material fact and did not as of the date thereof and do not, as of the date hereof omit to state any material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading. We hereby consent to the use of such statements and infor- mation in the Official Statement. (d) Dade Savings and Loan Association agrees, to the extent, if any, that a court of competent jurisdiction would enforce such agreement as not contrary to law or public policy, to indemnify and hold harmless the City, any member, officer, official, employee, counsel, consultant and agent of the City and each and any Purchaser of the Bonds whose name is set forth in the Purchase Contract and which provides for the initial sale of the Bonds by the City, and each person, if any, who has the power, directly or indirectly, to direct or cause the direction of the man- agement and policies of such Purchaser through the owner- ship of voting securities, by contract or otherwise, against any and all losses, claims, damages, liabilities or expense arising out of or in connection with any misrepre- sentations contained in the portions of the Official Statement described above in Paragraph (a), but these rep- resentations, warranties, agreements and indemnities shall not operate to extend any appropriate statute of limitation or to render Dade Savings and Loan Association liable if the statute of limitation governing the cause of action in question has already run. The representations, warranties, agreements and indemnities contained herein shall survive the closing and delivery of the Bonds to the Underwriters and any investigation made by or on behalf of any of you or any person who controls any of you (as aforesaid) of any matters described in or related to the transactions contemplated hereby and by the Official Statement. This Letter of Representation and Indemnification shall be binding upon and inure solely to the benefit of the Underwriters, the City and Dade Savings and Loan Association and, to the extent set forth herein, persons controlling any of you, and their respective personal representatives, successors and assigns, and no other person or firm shall acquire or have any right under or by virtue of this Letter of Representation and Indemnification. Very truly yours, DADE SAVINGS AND LOAN ASSOCIATION By -2- 0*4 Schedule I $6090009000 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds LIST OF INSTITUTIONS TO BE COVERED FOR GROUP ACCOUNT Aetna Life Insurance Co., Ilartford, Connecticut Albany Savings Bank, Albany, New York Allstate Insurance Companies, Northbrook, Illinois American Express, New York, New York American Fletcher National Bank Trust Co., Indianapolis, Indiana American General Insurance Co., Houston, Texas American Group Insurance, Worcester, Massachusetts American International Group, New York, New York American Mutual Liability, Wakefield, Massachusetts American National Bank & Trust Co., Chicago, Illinois American National Bank of St. Paul, St. Paul, Minnesota American National Insurance Co., Galveston, Texas American Reinsurance Co., New York, New York Andover Companies, Andover, Massachusetts Arizona Bank, Phoenix, Arizona Arkwright-Boston Manufacturers, Waltham, Massachusetts Atlantic Mutual Insurance, New York, New York Atlantic National Bank, Jacksonville, Florida Auto Owners Insurance Co., Kalamazoo, Michigan Automobile Club of Southern California, Los Angeles, California Avco Financial Services. Greenwich, Connecticut IZancNorthwest, Chicago, Illinois Bank of America National Trust and Savings Association, San Francisco, California Bank of California, National Association, San Francisco, California Bank of New York, New York, New York Bank of Oklahoma, Tulsa, Oklahoma Bank of Virginia, Ricbmund, Virginia Bankers Trust Company, New York, New York Barnett Bank of Jacksonville, National Association, Jacksonville, Florida Bay Banks. Boston, Massachusetts Bessemer Trttst Co., New York, New York The Boatmens National Bank, St. Louis, Missouri Boston Safe Deposit Trust Co., Boston, Massachusetts Brown Brothers Harriman R Co., New York. New York California Casualty Indemnity Exchange, San Francisco, California California State Auto Association Inter -Insurance, San Francisco, California Canal Insurance Company, Greenville, South Carolina Central Bancshares of the South, Birmingham, Alabama Central National Bank, Cleveland, Ohio Central National Bank ill Chicago, Chicago, Illinois Central Trust Company, Cincinnati, Ohio Chase Manhattan Bank, New York, New York Chemical Bank, New York, New York Chicago Title & Trust Co., Chicago, Illinois 't.' Chubb & Sons Inc., New 1'ork, New Fork Citibank, N.A., New York, New York Citizens & Southern National Bank, Atlanta, Georgia Citizens & Southern National Bank of South Carolina, Columbia, South Carolina City National Bank, Beverly Hills, California City National Bank of Detroit, Detroit, Michigan The Cleveland Trust Co., Cleveland, Ohio Colonial Bank & Trust, Waterbury, Connecticut Colonial Life & Accident Insurance, Columbia, South Carolina Colonial Pennsylvania Insurance, Philadelphia, Pennsylvania Columbia Ranking, Savings & Loan Association, Rochester, New York Combined Insurance Company of America, Chicago, Illinois Commerce Trust Co., Kansas City, Missouri Commerce Union National Bank, Nashville, Tennessee Commercial Credit Co., Baltimore, Maryland Connecticut Bank & Trust Co., Hartford, Connecticut Connecticut General Life Insurance Co., I Iartford. Connecticut Connecticut' Mutual Life Insurance, I Iartford. Connecticut Continental Casualty Company, Chicago, Illinois Continental Illinois National Bank and Trust Co. of Chicago, Chicago, Illinois Continental Insurance Co., New York, New fork The Country Companies, Bloomington, Illinois Crocker -Citizens National Bank, Los Angeles, California Crocker National Bank, San Francisco, California Crum & Forster, Morristown. New jersey Delaware Trust Company, Wilmington, Delaware Deposit Guaranty National Bank, Jackson. Mississippi Detroit Auto ]rater -Insurance Exchange, Detroit, Michigan The Detroit Bank and Trust Co., Detroit, Michigan Lionel D. Edie Empire'Mutual Insurance Co., New York, New fork Employers Commercial Union, L'oston. Massachusetts Employers'Mutual Casualty Co., lies Moines, Iowa Employers Mutual Liability, Wausau, Wisconsin Employers Rein,urance Corporation. Kansas City. Missouri Equihank, N.A., Pittsburgh. Pennsylvania Equitable General Corporation. McLean, Virginia Equitable Trust Company, Baltimore, 'Maryland Eric Insurance Exchange, Erie, Pennsyh•ania European American I;anl; & Trust Co.. New York, New York Farm Bureau Mutual Insurance Co., Iansing,'lichigan Farmers Insurance Exchange, I,os An,eles, California Federated Tax -Free Income Fund, Pittsburgh, Pennsylvania Fidelity Bank, Philadelphia, Pennsylvania Fidelity Bond Fund, Boston, Massachusetts Fidelity Union Trust Company, Newark, New Jersey First and Merchants National Bank, Richmond, Virginia First Kentucky Trust Co., Louisville, Kentucky First National Bank and Trust Company, Oklahoma City, Oklahoma First National Bank and Trust Company of Tulsa, Tulsa, Oklahoma First National Bank of Arizona, Phoenix, Arizona First National Bank of Atlanta, Atlanta, Georgia First National Bank of Birmingham, Birmingham, Alabama First National Bank of Boston, Boston, Massachusetts First National Bank of Chicago, Chicago. Illinois First National Bank of Denver, Denver. Colorado First National Bank of Florida, Tampa, Florida First National Bank of Kansas City, Kansas City, Missouri First National Lank of Maryland, Baltimore, Maryland First National Bank of Minneapolis, Minneapolis. Minnesota First National Bank of Oregon, Portland, Oregon First National Bank of St. Paul. St. Paul, Minnesota First National Bank of South Carolina. Columbia, South Carolina First National Tank in Dallas. Dallas, Texas First National Bank in I louston, 1 louston, Texas First National Bank in St. Louis. St. Louis. Missouri First National Exchange Batik. Roanoke, Virginia First National State Lank of New Jersey. Newark, New Jersey The First Pennsylvania Banking Trust Co., Philadelphia, Pennsylvania First Tennessee Bank. Memphis, 'Tennessee First union National Bank of North Carolina, Charlotte. North Carolina First Western Bank, Los Am;cles, California First Wisconsin National Bank. Milwaukee. Wisconsin Fitch Investors Service, New York, New York Florida First National Bank, Jacksonville, Florida Foremost Insurance Company, Grand Rapids. 'Michigan Fulton National Batik. Atlanta, Georgia General Accident Group. Philadelphia, Pennsylvania General Reinsurance Corp.. New fork, New York Robert C. Gilkison, Washington. D. C. Girard Bank, Philadelphia. Pennsylvania Government Employees Insurance Co., Chevy Chase, Maryland Granada Bank, Granada. Mississippi Great Southern Life Insurance Co.. I louston, Texas Greater New York Mutual Insurance Co., New York, New York The Gulf Insurance Company, Jacksonville, Florida John Ilancock Mutual Life Insurance, Boston. Massachusetts I Ianover Insurance Co.. New York, New York I larris Trust and Savings Bank, Chicago. Illinois Hartford Insurance Group. I Iartford. Connecticut Ilartford National Bank & Trust Co., I lart ford. Connecticut I lartford Steam Boiler Inspection Insurance. Ilartford, Connecticut Ileber, Fuber & Wendin, Inc., Detroit, Michigan The Dome Insurance Co., New York, New York 3 INA Management Co., Philadelphia, Pennsylvania Indiana Insurance Company, Indianapolis, Indiana Indiana National Bank, Indianapolis, Indiana Industrial National Bank of Rhode Island, Providence, Rhode Island Interstate Life and Accident Insurance, Chattanooga, Tennessee Investors Diversified Services, Minneapolis, Minnesota Irving Trust Co., New York, New York Jefferson Standard Life Insurance Co., Greensboro, North Carolina Kemper Financial Services, Chicago, Illinois La Salle National Bank, Chicago, Illinois Liberty Life Insurance Co., Greenville, South Carolina Liberty Mutual Insurance Co., Boston, Massachusetts Liberty National Bank and Trust Co., Oklahoma City, Oklahoma Life Insurance Company of Georgia, Atlanta, Georgia Life Insurance Company of Virginia, Richmond, Virginia Lincoln National Life Insurance Co., Fort Wayne, Indiana Loomis Sayles and Company, Inc., Boston, Massachusetts Loomis Sayles and Company, Inc., New York, New York Manufacturers Hanover Trust Co., New York, New York Manufacturers National Bank of Detroit, Detroit, Michigan Marine Midland, New York, New York Marine National Exchange Bank, Milwaukee, Wisconsin Marshall and Ilsley Bank, Milwaukee, Wisconsin Maryland National Bank, Baltimore, Maryland Massachusetts Mutual Life Insurance Company, Springfield, Massachusetts ]Mellon Bank, Pittsburgh, Pennsylvania Mercantile National Bank, Dallas, Texas ?Mercantile Safe Deposit Trust Co., Baltimore, Maryland :Mercantile Trust Co., St. Louis, Missouri Merchants National Bank, Indianapolis. Indiana Metropolitan Life Insurance Co., New York, New York Richigan Mutual Liability Co.. Detroit, Michigan Michigan National Bank, Lansing. Mitltigan Midland Mutual Life Insurance Co., Columbus. Ohio Midlantic National Bank, Newark, New Jersey Minneapolis Itititual Service Co., St. Paul, Minnesota Modern Woodmen of America, Rock Island, Illinois Monarch Life Insurance Co., Springfield, Massachusetts Moody's Investors Service, New York, New York Morgan Guaranty Trust Co., New York, New York Mortgage Guaranty Insurance Corp., Milwaukee, Wisconsin Motors Insurance Corl)uration, New York, New York Mutual Benefit Life Insurance Co., Newark, New Jersey Mutual of Omaha Insurance Co., Omaha, Nebraska Mutual Trust Life Insurance, Chicago, Illinois NN investment Services inc., Milwaukee, Wisconsin National Anto & Casualty Insurance Co., Los Angeles, California National Bank of Detroit, Detroit, Michigan National Bank of North America, New York, New York National Boulevard Bank, Chicago, Illinois National Commercial Bank & Trust, Albany, New York National Grange Mutual Insurance, Keene, New Hampshire National Investment Service, Milwaukee, Wisconsin National Life & Accident Insurance Co., Nashville, Tennessee National Life Insurance Co., Montpelier, Vermont Nationwide Life Insurance Co., Columbus, Ohio New England Merchants National Bank, Boston. Massachusetts New Jersey Manufacturers Insurance, Trenton, New Jersey North Carolina Mutual Life Insurance Co., Durham. North Carolina North Carolina National Bank, Charlotte, North Carolina The Northern Trust Company, Chicago, Illinois Northwest Bancorporation, Minneapolis, Minnesota Northwestern National Bank of Minneapolis. Minneapolis. Minnesota Northwestern National Life Insurance Co., Minneapolis, Minnesota Nuveen Municipal Bond Fund, Chicago, Illinois Nuveen Tax Exempt Bond Fund, Chicago, Illinois Ohio National Bank. Columbus, Ohio Oltio National Life Insurance, Cincinnati, Ohio Onondaga Savings Bank, Syracuse, New York Pacific Dlutual Life insurance Co., Los Angeles, California Pacific National Bank of Washington, Seattle, Washington Pennsyk-ania National Mutual Casualty, Harrisburg, Pennsylvania Peoples National Lank of Washington, Seattle, Washington Peoples Savings Bank, Bridgeport, Connecticut Philadelphia National Bank, Philadelphia, Pennsylvania Pittsburgh National Bank, Pittsburgh, Pennsylvania Providence Xkashin-ton Insurance Co., Providence. Rhode Island Provident Life & Accident Insurance Co., Chattanooga,'retinessee Provident 'Mutual Lit'e of Philadelphia, Philadelphia, Pennsylvania The Pro%ident National Bank, Philadelphia, Pennsylvania Prudential Insurance Company of America, Newark, New Jersey Rainier National Bank, Seattle, Washington Reinsurance Corporation of New York, New York, New York Reliance Insurance Company, Philadelphia, Pennsylvania Republic htsurance Company, Dallas, Texas Republic National Dank of Dallas, Dallas, Texas Rhode Island IMospital Trust Co., Providence, Rhode Island Riggs National I;ank, Washington, D. C. Royal Gl(rhe Insurance Co., New York, New York Safeco Insurance Company of America, Seattle, Washington St. Paul Fire & Marine Co., St. Paul, Minnesota Scudder Stevens & Clark, New York, New York Sears Lank & Trust Co.. Chicago, Illinois Seattle -First National Bank, Seattle, Washington Seattle Trust & Savings Bank, Seattle, Washington Security benefit life insurance, Topeka, Kansas Security Pacthc National Bank, Los Angeles, California Shawmut Bank of Boston, Boston, Massachusetts South Carolina Insurance, Columbia, South Carolina South Carolina National Bank, Charleston, South Carolina Southeast First National Bank of Miami, Miami, Florida Southern California 1st National Bank, San Diego, California Southern Farm Bureau Casualty Insurance Co., Jackson, Mississippi Southland Life Insurance Co., Dallas, Texas Southwestern Life Insurance Co., Dallas, Texas Standard & Yoors, New Fork, New York Standard Insurance Co., Portland, Oregon Standish. Ayer & Wood, Inc., Boston, Massachusetts State Bank of Albany, Albany, New York State Farm Dlutual Automobile Insurance Co., Bloomington, Illinois State Mutual Life Assurance Company of America, Worcester, Massachusetts State Street Bank &'Trust, Boston. Massachusetts Stein Rue & I-arnham, Chicago, Illinois Sun Life Insurance Company of America, Baltimore, Maryland Swiss Reinsurance Corporation, New York, New York Syracuse Savings Bank, Syracuse, New York Texas Commerce Bank, I Iouston, Texas Third National Bank, Nashville, Tennessee Title Insurance & Trust Co., Los Angeles. California Transamerica Insurance, Los Angeles, California Transit Casualty Co., St. Louis, Alissouri Travelers Insurance Co., Hartford, Connecticut Trenton Trust Co., Trenton, New Jersey Trust Company Bank, Atlanta. Georgia Unig,ard Insurance Company, Seattle, Washington Union America Investment Man. Co., Los Angeles, California Union Bank, Los Angeles, California Union Commerce Bank, Cleveland, Ohio Union Planters Bank of Memphis, Alemphis, Tennessee United Banl< & Trust, Iartford, Connecticut United California Bank, Los Angeles, California United Insurance Company of America, Chicago, Illinois United Missouri Bank of Kansas City, Kansas City, Missouri United States & Guarantee Co., Baltimore, Maryland United States Life Insurance Co., New York, New York United States Trust Co., New York, New York United Virginia Bank. Richmond, Virginia Utica Mutual Insurance Co., New Hartford. New York Valley National Bank, Phoenix, Arizona Virginia National Bank, Norfolk, Virginia Wachovin Bank & Trust Co., Winston-Salem, North Carolina Washin�ton National InsuranceCo., Evanston, Illinois Wells Fargo Bank, San Francisco, California Western & Southern Life Insurance, Cincinnati, Ohio Western Bancorporation, Los Angeles, California 6 Westland Bank, Santa Ana, California Wilmington Trust Co., Wilmington, Delaware Woodmen Accident do Life Co., Lincoln, Nebraska $60,000,000 CITY OF MIAMI, FL. CONVENTION CENTER AND PARKING GARAGE REVENUE BONDS Expenses incurred by Smith Barney, Harris Upham & Co. in connection with the subject issue as follows: 1. Packaging and Handling of bonds including mailing, back office expenses at $.50/M .......................$30,000 This expense is standard in the industry. 2. Advertising, including the tombstone advertisement in the Wall Street Journal and the Miami Herald Wall Street Journal $10,000 Miami Herald 4,000 Composition Work 2,000......... 16#000 3. Legal fees of the Underwriters, in- cluding disbursements, which include 3 typed drafts of the Official Statement and Purchase Contract 1 typed draft of the Blue Sky Legal Investment Memo Travel and Lodging expenses for various meetings held in Miami ...........120,000 4. Travel and Market Development for the Public Finance Representatives of Smith Barney since June 1979............ 25,000 Expenses incurred by Municipal Leasing Corporation in the development of a leverage lease with Smith Barney which would include working on such leverage leasing for a period of approximately a year. 5. Closing expenses, some of which have already been incurred, which would in- clude courier services, closing ex- penses, telecopier and reproduction costs.......................................5,000 6. Communication and Computer Services which would include Unifax, telegrams, representing a cost per underwriter of $35.00 ............................. 3,500 7. Syndicated closing telegrams and wires confirming closing..................$1,000 8. Smith Barney syndicated operations which include preparation of mailing list, labels and other material in connection therewith .......................1,000 9. Syndicated System Computer cost in connection with the running of the numbers......................................500 10. Public Finance Computer for expenses incurred in the last year, repre- senting about 20 different studies of various numbers............................6,000 11. Municipal Securities Rule -Making Board Standard fee for Underwriters $.0l/M.......................................600 $208t600 12. Printing of the following documents: 3 printed drafts of the Preliminary Statement. 7500 copies of the Pre- liminary Official Statement for marketing purposes. 5,000 copies of the Final Official Statement 2 printed drafts of the Agreement between the Underwriters 2 printed drafts of the Blue Sky Legal Investment Memo (150 copies) 1 printed draft of the Purchase Contract (150 copies Plus estimated expenses of the final Pur- chase Contract, mailing cost to the Underwriters and potential investors ... 120,000 (This cost includes printing done over the weekend and by nightshifts) The printing bill is an estimate. If it is less, the City will receive the difference but the cost will not be increased. 13. General Cost of $192,600 to be received by the City for payment of certain other expenses. Total of cost for 12 and 13 above is ............ 212,600 In connection with the printing, the City requested that the Underwriters handle this matter because of the time commit- ments and the need for fast and punctual service. Average Underwriter's spread would be $18.65/M, $5.00 management fee for a total of $300,000. -2- n Underwriter's risk of $1.50 per $1,000 (This fee paid to the syndicated members for bonds not sold at the time of the a!,•ard.)(At this time about 50% of the total bond issue has not been sold.) For a total of $25.15 per $1,000 add that to the expenses incurred by Smith Barney in the amount of $3.64 per bond and the printing bill of $2.00 per bond would make it a grand total of $30.79 per $1,000. '0 64,110-p ZZ44 gm-itgm-ith Barney, Harris UpNgffrf Co. -3- NEW ISSUE 1 LIMVNARY OFFICIAL STATEMENT DA $6090009000'r The City of Miami, Convention Center and Parking Garage Revenue Dated: July 1,1980 (0--v M, om •, ►A, n w , t FG ox %414, Dues January 1, as sbown below Interest on the Bonds is payable semi-annual)theT anuary 1 and July 1, commencing January 1, 1991. The Bonds are issuable as coupon !+Dods in the denomination of $S,0h or as bonds registered as to both principal and interest, in denominations of $5 000 or any integral multiple theroupon bonds and registered bonds are interchangeable at the corporate trust office of , ustee, upon the terms and conditions provided in the Truu Inds ture. Coupon bonds are payable, at the of the holder, at any office of the Trustee, or at GM l r► �tt►1. / N ti O•Aor at t�l►N 1kt•e+.ve Asi OAN, at the option of the holder. Registered bonds are payable at the corporate trust office of the Trustee. s': +es arse YAW WALrgn �y Muoot Rost GNTNtelt a ALtttANOttr ao nlroAo aTnttT.N[W Tona.MT. T n The Bonds are subject to redemption prior to maturity as more fully described herein. 0 `wo -•i • a 1Z.' a a y trts,'A In the opinion of Bond Counsel, Interest on the Bonds Is exempt from Federal Income taxes under existing statutes ttssd court decisions and from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, Income or profits on debt obligations owned by corporations, banks and savings associations. I Serial Bonds t 1990 $ 100,000 6.50% 10401996 $1,32n,000 8 00% iloo�t, 1991 1992 330,000 6.75 foe` 1997 1,425,000 8.10 • 1993 640,000 7.00 too 1998 1,540,000 i.20 ► tsA 1994 1,060,000 7.25 1#0 1999 1,665,000 8.30 too 1 1995 1,140,000 1,225,000 7.50 too 7.75 2000 2001 1,805,000 8.35 Ion [ turf 1,720,000 8.375 �'•% c Terrn Bonds due January 1, 2015 % • 4(p DJO Of (accrued interest to be added) The Bonds are special obligations of the City payable exclusively from the special fund provided therefor to be funded from Net Revenues of the Convention Center -Garage, certain telephone and telegraph excise tax revenues and certain other monies, as described herein. The payment of principal of and interest on the Bonds is also secured by a guarantee by the Municipal Bond Insurance Association, as more fully described herein. Neither the faith and credit nor the taxing power of the City to levy ad valorem real or tangible personal property taxes is pledged to the payment the Bonds. The Bonds are offered h7Ti, as and if issued and received by the Underwriters subject to approval of legality by Messrs. Brown, Wood, 1 Mitc:tell sec Petty, New York, New York, Bond Counsel, and certain other conditions. Certain I legal matters will bi passed upon for the City by the City Attorney. Certain legal matters will be paused upon for the Underwriters by Messrs. Mudge Rose Guthrie & AJerander, New York, New York. The Bonds are expected to be delivered in New York, New York on or about August S, 1960.••�— 's �, Smith Barney, Harris Upham & Co. Incorporated �'tlelr)attt•tsssass. ''''� /' • Subject to the pr. r closing of the financing for the Hotel. VI-71 0 Stci.t�Mls,nt dafft d TurA. 30, !4 to Wlu EJ, NEW ISSUE PRELINIIN'ARN' OFFICIAL STATEMENT DATED JUNE 23, 1980 The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Dai Jody 1, IM Due: Jt MWY 1, as sown below Interest on the Bonds is payable semi-annually on January 1 and July 1. commencing January I, 1981. The Bonds are issuable as coupon bonds in the denomination of S5,O(XI each or as bonds registered as to both principal and interest. in denominations of $5.000 or any integral multiple thereof. Coupon bonds and registered bonds are interchangeable at the corporate trust office of the Trustee. upon the terms and conditions provided in the Trust Indenture. Coupon bonds are payable, at the option of the holder. at any office of the Trustee, or at or at , at the option of the holder. Registered bonds are payable at the corporate trust office of the Trustee. The Bonds are subied to redemption prior to maturity as more fully described herein. M the opinion of SNi Counsel, interest an the Book is exesept from Federal itaome taxes under existing statutes and court decisions and front taxation under the laws of the State of Florida. except as to estate taxes nod taxes imposed by Chapter 220. Florida _Statutes, an interest, income or profits M debt obligations owned by corporations, basi and savings asmwidioas. Serial BON& liderert drive or la Brest nice or - DoeAmomd*- Rate vield Due A-uniod" Rate yield 1991 $ 200.000 % % 1996 $1,165.000 % % 1992 495.000 1997 1,265,000 1993 910.000 1998 1,370.000 _- - 1994 990,000 1999 1,485,000 1995 1,075,000 2000 1,615,000 $4994",M* % Tenor Goods dine Jamol 1, 2015 % °_ ; (accrued ittilerest to be added) C N PO W i, E ; The Bads are special obligations of the City payable exclusively from the special fund provided therefor to be funded a •' '^ from Net Revenues of the Convention Crnter-Garage, certain telephone and telegraph excise tax revenues and certain other monies, as described herein. The payment of principal of and interest on the Bonds is also secured by a guarantee by the _e eir a A hltmicipal Bond Insurance Association, as more fully described herein. C N a a Neither the faith and credit nor the taxing power of the City to levy ad valorem real or tangible personal property taxes w is pledged to the payment of the Bonds. �o A .W ;3 —='Z The Bonds are offered when, as and if issued and received M the Underwriters subject to approval of legalityp Messrs. ie a Brown, Wood. Ivy, Mitchell & Petty, New York. New York. Bond Counsel, and certain other conditions. Certain o 0 0 legal matters will be passed upon for the City by the City Attorney. Certain lea/ matters will be passed E upon for the Underwriters by Messrs. Mudge• Rose Guthrie h Alexander• New York. New York. « o The Bonds are expected to be delivered in New York, New York on or about August 5, I980.•' w E e S!E or Smith Barney, Harris Upham & Co. c e Inwgiorated E oY� ABC • Subject to tie. e• Subject flu the prior closing of the financing for the Hotel. 2%b OgWd SUbmami am ON eumdjuk an Sgw I* mg w dw saffieloodan d an efer to bay, Mar 511011 Ow be any ode d But 1118064 b my r''EMON MIW-0- IN wtitr It is NWINI 1hd 40 Inshe sm* awl salclads"' Or sale. No dssifer, issI , admiume or has bm - i I to SO* MY 111114111018dan Or to umhe 16 saw Own son �Wia dds 011kid s6dweewt, b re— A, wilt me 451 " - of any - as having been the hands. aId r §W=1 W Inside. 201ell bdWMMd= W - and ire nlled orm satrwiad by But Cky or am U k -5 Mw , , and Z= of arild" I I we to Chimp womw agar, and mdlhw do dellsel) of Sk Offikid SbOtment our any sale Oak bel"Idwler 51111111 we SAW r* P - emnee any ImpAcedew dwd dwa bw been m clump b dw affWa d the City since the dobbws@L IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER -ALLOT OR E"WF fRANSACTWNS THAT STABBAZE OR MAINTAIN THE MARKET PRICE OF THE BONDS I"M ABOVE IBM WHICH MIGHT OTHERWISE PREVAIL THE OPEN MARKET.AT SUCH STABRAZING,, UP COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TAKE OF CONTENTS PW ........ ....... INTRODUCTION . .... ...... ........ TileCity ... .. .. . .... .. . . . ... ... .......... purpose at issue ...................... .... .. ............... .... Tile convention Center -Garage 2 construction .......... ..... ..... .. ....... ..... 2 Municipal Bond Guaranty Insurance .. .. .. ........ 2 Security for the goods.........................I..................... ..... 2 Rate Covenant .. .... . .... ... 3 Additional Bonds .... .. . .... ..... 3 Odker Pardo ...... ... ................ .. .......... .. FINANCIAL FEA91MUTY STUDY 3 CIWS PRESENT INVESTMENT IN CONVENTION CENTER -GARAGE 4 4 ESTIMATED APPLICATION OF BOND PROCEEDS ....... .. 4 ESTIMATED SOURCES AND USES of FUNDS.. . .. .... ...... Sources of Funds 4 Uses of Funds ........... ..................... .. ...... 5 5 UDAGGrant .................. .. ..... ....... ...... ........ .. 5 EDAGraW ............. ....... ........ .. ........... . .... . TIM COMPLEX ... . ...... ..... . . ........ 5 General Description . . .................................. ........ ... .. .. 5 City of Miami Convention Center ...................... 1. ...... ................ 6 Conference center .. ........ .... . .... .. 6 6 Parldng GarW ..................... . ...... 7 Hotel. . . ............ ..................... ...... Trade Ceuta ................................................................ . 7 7 Approvals........ .. ..... .............. ............ ... ......... g Construction ........... ... .. ........... ...... .... .. 8 Architects............... . ....................................... 8 DEsCwrnoN OF THE BONDS ... ........ 99 GeneralTerms ....................................... . .. I ...................... .................. 9 MandanRedemption ................................... Redemption ... =............. ty Insurance Policy 9 9 security for Bonds ............ ..... ......... ....... . . Raft Covenant ............ ............................. 10 ........ 12 Bonds . ...... 13 Additional Collection and Disposition of Revenues ...... 13 TWXZMWE AND TELEGRAPH UTILITIES TAX ... ...... ...... 14 .................. I .............. 15 Par Bows AUTMR z M BUT Nor ISSUED ................................................... 15 .. 16 Tu 16 .................................................................... The � ............................................................ ...... 16 16 GovermsentofMiami........................................................... 71be City commission............................................................ 16 City Maoamement............................................................... 17 Protect Director ........................ . ...................................... 17 17 Department of Off-street Parking ........................................ 17 Principal Services Performed by the City ............................................. 18 Principal Facilities of the City .................................. I .................. C18 Capital Improvement Plan .... ........ . .......................................... Employee Relations .. ......... 18 is Population and Demographics..................................................... 19 ............................................... Transportation ................ 20 Local Mass Transit .............. ................ .............................. 20 Building Activity ............................................. 20 Convention Activity........................................................ CITY FINANCIAL INFORMATION 21 Procedure for Tax Levy and Tax Collection .. ...................... 21 Tax Limitation for Municipal Purposes Excludes Debt Service ..................... 26 General Description of Financial Practices .......................................... . 27 City Pension Funds............................................................. 32 RIM MANAGEMENT ....... ..... ............................ ............... 34 CONTINGENT LIABILITIES ........ 34 Pending Legal Proceedings 34 DADECOUNTY .............................................. .............. Government of Dade County ... ..... ........... 35 Business and Industry 36 ............................... Agriculture ................................................. ............ 37 Financial Institutions ... ................... ............ ....................... 38 Education................................................... ................ 38 Medical Facilities ... . ... . ........... I . .... ............ ................ 38 Recreation .... i......................................................... 38 .. .. Tourism.. ............................................................... 38 39 UNDERWRITING..... ............................................................. 39 VALIDATION OF THE BONDS.... ....................................... 39 LITIGATION . ............... ..... .... ............ 39 TAXEXEMPTION ................................................................. 39 APPROVAL OF LEGAL PROCEEDINGS.................................................... 39 MISCELLANEOUS................................................................... 40 FINANCIAL FEASIBILITY STUDY SUMMARY .. ........................ .... ........ Appendix A SUMMARY OF THE LEGAL DOCUMENTS ............................................ Appendix B FINANCIAL STATEMENTS OF THE CITY FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1978 AND 1979................................ ... ......... Appendix C FORM OF MUNICIPAL BOND GUARANTY INSURANCE POLICY . ...... ... ..... Appendix D i ii OFFICIAL STATEMENT $60,000,0W The City of Miami, Florida Convention Center and Parking Garage Revenu The purpose of this Official Statement is to set forth certain information co City of Miami, Florida (the "City") of its Convention Center and Parking G aggregate principal amount of $60,000,000• (the "Bonds"). The Bonds are suant to the Municipal Home Rule Powers Act, constituting Chapter 166, LI amended and the Charter of the City, constituting Chapter 10847, Special Lail (collectively the "Act"), the Trust Indenture, dated as of July 1, 1980, by , as Trustee (the "Trust Indenture") and certain ordinal proceedings of the City. ii Pursuant to the Trust Indenture, all bonds issued under the Trust Indentul secured by the pledges and covenants contained therein. Certain provisions of the y rized below. Words and terms defined in the Trust Indenture are used herein as III defined herein. INTRODUC 1ON The City The City is located in southern Florida and has a land area of approximate 1978 Bureau of the Census estimate of the City's population is approximately 3 rule city chartered under the Constitution and laws of the State of Florida. Certl demographic information concerning the City is set forth under the caption "The Q Purpose of Isme The City, pursuant to the Trust Indenture, will issue its Bonds to finance a pleting construction and acquisition of a convention and conference center official Miami/University of Miami James L. Knight International Center (the "Co construction of a parking garage (the "Parking Garage") (sometimes collectil Center -Garage"). Tie Convention Cenler-Garage The site of the Convention Center -Garage is located in the downtown area Miami River. The City will own and operate the Convention Center -Garage. 7 consist of approximately 410,000 square feet including circulation spaces and sups Garage will consist of approximately 1,450 parking spaces, space for a pedestrial space for a Downtown People Mover station. The University of Miami (t� to an agreement dated April 1, 1977 between the University and the City (the " agreed to enter into a lease with the City for approximately 30,750 net square feet Center in which it will operate a conference center. In connection with the dev Center -Garage, a 627 room (608 unit) hotel (the "Hotel") and a 600,000 gross office building (the "Trade Center") will be constructed and operated by parties fully dgscribed herein. Both the Hotel and the Trade Center will be privately fin pursuant to the Lease and Agreement for Development (the "Hotel Agree 7 • Subject to change. ri OFFICIAL STATEMENT $60,000,000' The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds The purpose of this Official Statement is to set forth certain information concerning the issuance by The City of Miami, Florida (the "City") of its Convention Center and Parking Garage Revenue Bonds in the ante principal amount of $60,000,000• ( the "Bonds") . The Bonds are authorized to be issued pur- suant to the Municipal Home Rule Powers Act, constituting Chapter 166, Florida Statutes Annotated, as amended and the (barter of the City, constituting Chapter 10847, Special Laws of Florida, as amended (collectively the "Act"), the Trust Indenture, dated as of July 1, 1980, by and between the City and , as Trustee (the "Trust Indenture') and certain ordinances, resolutions and other pr - - - - ions of the City. Pursuant to the Trust Indenture, all bonds issued under the Trust Indenture are equally and ratably secured by the pledges and covenants contained therein. Certain provisions of the Trust Indenture are summa- rized below. Words and terms defined in the Trust Indenture are used herein as so defined unless otherwise defined herein. INTRODUCTION 'Itie (Sly The City is located in southern Florida and has a land area of approximately 34.3 square miles. The 1978 Bureau of the Census estimate of the City's population is approximately 348,700. The City is a home rock city chartered under the Constitution and laws of the State of Florida. Certain financial, economic and demographic information concerning the City is set forth under the caption "The City." room M h e The City, pursuant to the Trust Indenture, will issue its Bonds to finance a portion of the cost of com- pkpng construction and acquisition of a convention and conference center officially designated as the City of Miami/University of Miami James L. Knight International Center (the "Convention Center") and the construction of a parking garage (the "Parking Garage") (sometimes collectively called the "Convention Center -Garage") . TW Cane"an Cemkr-G=W The site of the Convention Center -Garage is located in the downtown area on the north bank of the Miami River. The City will own and operate the Convention Center -Garage. The Convention Center will consist of approximately 410,000 square feet including circulation spaces and support facilities. The Parking Garage will consist of approximately 1,450 parking spaces, space for a pedestrian mall and retail space and Spam for a Downtown People Mover station. The University of Miami (the "University"), pursuant to an agrmwnt dated April 1, 1977 between the University and the City (the "University Agreement"), has agreed to enter into a low with the City for approximately 30,750 net square feet of space in the Convention Center in which it will operate a conference center. In connection with the development of the Convention CAmw-Garage, a 627 room (608 unit) hotel (the "Hotel") and a 600,000 gross square foot trade center and offim (wilding (the "'Trade Center") will be constructed and operated by parties other than the City, as more fly described herein. Both the Hotel and the Trade Center will be privately financed, owned and operated. PwsluM to the Lease and Agreement for Development (the "Hotel Agreement") dated September 13, 0 Sabiect 10 C11208L 1979, as amended, between the City and Miami Center Associates, Ltd., a Florida limited partnership (the "Hotel Developer"), the City has agreed to lease to the Hotel Developer air space over a portion of the Con- vention Center and the site thereof, and within part of the Convention Center, and to grant certain easements and other rights in and around the Convention Center. The Hotel Developer will construct, own and operate the Hotel and 26,000 square feet of retail stores. The Hotel is expected to be managed by the Hyatt Cor- poration. Pursuant to the Lease Agreement (the "TC Agreement") by and between the City and Dade Savings and Loan Association, a state Chartered savings and loan association (the "TC Owner") dated as of July 1, 1980, the TC Owner will lease from the City air space over a portion of the area comprising the Parking Garage in which the Trade Center, comprising approximately 600,000 gross square feet of space (500,000 square feet leaseable), will be constructed. The estimated total cost of the development of the Convention Center -Garage is approximately $93,750,000 of which approximately $33,750,000 has been or is being provided from sources other than Bond proceeds, including: (1) a $4.994,000 Urban Development Action Grant ( the ­UDAG Grant") from the United States Department of Housing and Urban Development, (2 ) it $4.373.WJ Economic Development Administration Grant (the "EDA Grant") from the United States Department of Commerce; (3) $4.147,065 of proceeds of general obligation bonds approved by the voters and sold by the City in 1%9 plus investment earnings thereon; (4) proceeds from the sale of land to Dade Count% in the amount of $5,300,000; (5) investment earnings on certain funds and accounts to be held pursuant to the Trust Indenture; (6) a $2,500,000 payment made by the University; (7) a $2,900.000 base rent payment made by the Hotel Devel- oper; and (8) a $5,216,781 capital contribution to be made by the City. CanNewed" Convention Center: The City initiated construction of the Convention Center on January 2, 1978. Contracts have been entered into for salvage excavation, sitework, foundations and part of the superstructure required for the commencement of the construction of the Hotel. As of June 30, 1980, the cost of this portion of the construction is expected to be approximately $4.669,726. The City has entered into a construction contract with Frank J. Rooney, Inc. for the completion of the Convention Center at a fixed price of $28,201,359. As of June 30, 1980 the City expects to have expended $15,320 258 of which $2,499,481 will have been paid pursuant to the contract for completion with Frank J. Rooney, Inc. Parking Garage: The City has entered into a turnkey contract with Miami Center Associates, Inc. for the design and construction of the Parking Garage for a price of $150)0.000, subject to increases caused by certain unanticipated subsurface conditions or changes requested by the City. The cost of construction of the Parking Garage will be paid in part from the proceeds of the Bonds. The cost of construction of the foundations, platform, utilities, elevators and stairwells in the Parking Garage necessary for the development of the Trade Center will be paid from the proceeds of the UDAG Grant. (See "UDAG Grant".) Maaici — BmW Guarasiee Dance The payment of the principal of and interest on the Bonds is unconditionally and irrevocably guaranteed pursuant to the Municipal Bond Guaranty Insurance Policy. (See "Municipal Bond Guaranty Insurance Policy" and "Appendix D". ) SKWky fir the his The Bonds and any additional bonds issued pursuant to the Trust Indenture are special obligations of the City payable exclusively from the special fund provided therefor to be funded from Net Revenues of the Convention Center -Garage and certain telephone and telegraph excise tax revenues and certain other monies. (Sec "Description of the Bonds —Security for the Bonds".) Rafe CA+esaett The City has covenanted to fix, charge and collect, to the extent possible, rates, fees and charges for the use and occupancy of, and for the services furnished by, the Convention Center -Garage which will be at least sufficient to produce Gross Revenues of the Convention Center -Garage in each 6 less than Current Expenses of the Convention Center -Garage, 125% of Principal for such fiscal year and the amount necessary, if any to make up any deficit Account, the Reserve Account, the Renewal and Replacement Fund and the S as provided in the Trust Indenture. Aii'iliaaal Bomb In order to provide additional funds for completing the payment of the cost Garage, additional bonds may be issued under and secured by the Trust Indenture with the Bonds. Such additional bonds are required to be of the same maturity date of the term bonds initially issued under the Trust Indenture and may be authorized completing the payment of the cost of the Convention Center -Garage but not in principal amount of Five Million Dollars ($5,000,000). Hotel Developer Miami Center Associates, Ltd., a Florida limited partnership will be the develoM Miami Center Associates. Inc. and Henry R. Silverman Associates, Inc. are the 10 Center Associates, Ltd. Miami Center Associates, Inc., a Florida corporation, is jo Brothers Company, Inc. and Turner Development Corporation, a wholly -owned si struction Co. Miami Center Associates, Inc. is also the turnkey developer for the Silverman Associates, Inc., a Delaware corporation, is wholly owned by Henry R. Trade Center Owner Dade Savings and Loan Association, a state chartered savings and loan associat' mately $1.9 billion, will be the owner of the Trade Center and will occupy all or a porn feet of the office space of the Trade Center and Dade Savings and Loan Associatio, thereof. University of Miami The University of Miami, founded in 1925, is a non -denominational, coeducat learning with its main campus located in Coral Gables. Florida. The University of approximately 18,000 during the academic year and is comprised of ten schools oi in the humanities, social sciences, natural sciences and the professional fields business administration, law and medicine. These programs are presently staffed full-time and 180 part-time faculty. FINANCIAL FEASIBILM STUDY The City has retained Laventhol & Horwath, a nationally recognized certifiq specializing in the hotel and hospitality industry, to prepare a financial feasibility Center -Garage. The estimates, projections and conclusions expressed in the Finan based and conditioned upon certain assumptions, calculations, rationales and qualific summary of the Financial Feasibility Study is attached hereto as Appendix A and Sim in order to evaluate such estimates, projections and conclusions. The projections c of the Financial. Feasibility Study should not be construed as statements of fact. The is dependent upon the occurrence or non-occurrence of future events which cannot results achieved during any projection period may vary from the projection. The co Study will be attached as Appendix A to the final Official Statement. sufcie -it to produce Gross Revenues of the Convention Center -Garage in each fiscal year in an amount not less than Current Expenses of the Convention Center -Garage, 125% of Principal and Interest Requirements for such fiscal year and the amount necessary, if any to make up any deficiencies in the Bond Service Account, the Reserve Account, the Renewal and Replacement Fund and the Supplemental Reserve Fund, as provided in the Trust Indenture. In order to provide additional funds for completing the payment of the cost of the Convention Center - Garage, additional bonds may be issued under and secured by the Trust Indenture on a parity as to payment with the Bonds. Such additional bonds are required to be of the same maturity date as the latest maturity date of the term bonds initially issued under the Trust Indenture and may be authorized in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars ($5,000,000). Hotei Developer Miami Center Associates, Ltd., a Florida limited partnership will be the developer and owner of the Hotel. Miami Center Associates, Inc. and Henry R. Silverman Associates, Inc. are the general partners of Miami Center Associates, Ltd. Miami Center Associates, Inc., a Florida corporation, is jointly owned by Worsham Brothers Company, Inc. and Turner Development Corporation, a wholly -owned subsidiary of Turner Con- struction Co. Miami Center Associates, Inc. is also the turnkey developer for the Parking Garage. Henry R. Silverman Associates, Inc., a Delaware corporation, is wholly owned by Henry R. Silverman. Trade Center Owner Dade Savings and Loan Association, a state chartered savings and loan association with assets of approxi- mately $1.9 billion, will be the owner of the Trade Center and will occupy all or a portion of 150,000 net square feet of the office space of the Trade Center and Dade Savings and Loan Association will lease the remainder thereof. University of Muni The University of Miami, founded in 1925, is a non -denominational, coeducational institution of higher learning with its main campus located in Coral Gables. Florida. The University has a student enrollment of approximately 18,000 during the academic year and is comprised of ten schools offering academic programs in the humanities, social sciences, natural sciences and the professional fields of engineering, education, business administration, law and medicine. These programs are presently staffed by approximately 1,296 full-time and 180 part-time faculty. FINANCIAL FEASIBILITY STUDY The City has retained Laventhol & Horwath, a nationally recognized certified public accounting firm Spocialitdng in the hotel and hospitality industry, to prepare a financial feasibility study of the Convention Center_Gamge. The estimates, projections and conclusions expressed in the Financial Feasibility Study are bared and conditioned upon certain assumptions, calculations, rationales and qualifications contained therein. A summary of the Financial Feasibility Study is attached hereto as Appendix A and should be read in its entirety in order to evaluate such estimates, projections and conclusions. The projections contained in such summary of the Fum ocaal Feasibility Study should not be construed as statements of fact. The accuracy of the projections is dependeat upon the occurrence or non-occurrence of future events which cannot be assured and the actual results achieved during any projection period may vary from the projection. The complete Financial Feasibility $tidy WE be attached as Appendix A to the final Official Statement. CENTER -GARAGE As of June 30, 1980 the City expects to have expended approximately $15,320,258 in the planning, construction and development of the Convention Center -Garage, as follows: Land Acquisition .......................... $ 6,611,170 Architects Fees .......................... 2,078,590 Consultants ......... ... 329,544 Administration 709,834 Archeological Diggings Costs 358,016 Construction Management Fees 921,394 Site and Foundation Work 4,311,710 $15,320,258 Such expenditures have been made from (i) $4,147,065 of proceeds of general obligation bonds approved by the voters and sold by the City in 1969, (ii) $5,300,000 of proceeds of the sale of land on Virginia Key to Dade County, (iii) approximately $700,000 of interest earnings on (i) and (ii) prior to disbursement, (iv) the EDA Grant in the amount of $4,373,000, and (v) a capital contribution by the City of $3,240,000. ESTIMATED APPLICATION OF BOND PROCEEDS Construction Account* $40.335,613 Reserve Account 5.960.(()0 Bond Service Account 9,875.139 Cost of Issuance 2.043.501 MBIA Insurance Premium 1,785.747 Total Bond Issue $60,000,000 * Upon delivery of the Bonds, the City will make a $1.876,589 deposit in the Construction Account. Available proceeds from the UDAG Grant will be deposited as received in the Construction Account. Such monies to be deposited in the Construction Account, together with the investment earnings on undisbursed funds in the Bond Service Account and the Reserve Account are estimated to meet construction costs of the Convention Center of $46,006,576 and bf the Parking Garage of $ I5,000,0(H) of which the City expects to have expended $50,000. ESTIMATED SOURCES AND USES OF FUNDS Sres elFwals Convention Center and Parking Garage Revenue Bonds $60,000,000 Payment by the University of Miami(I) 2,500,000 Base Rent Payment by Hotel Developer(2) 2,900,000 Urban Development Action Grant Funds 4,994,000 General Obligation Bonds, Series 1964 .... 4.147,065 Sale of Land ............... ...... 5,300,000 Economic Development Authority Grant .. 4,373,000 City of Miami Capital Contribution 5,216,781 Interest Earnings During Construction Period on: Construction Account(3) 2,172,023 Bond Service Account for Capitalized Interest (2) (4) 826.143 Reserve Account(5) 802,797 Supplemental Reserve Fund(4) 310.861 University of Miami Payment(1) (3) ....... ........ 200,((x) Total Sources of Funds $93,742,670 (1) Available upon commencement of operation of the Convention Center -Garage and the Hotel. (2) Available upon the commencement of operation of the Hotel. The Hotel Developer will provide a letter of credit in the amount of $2,900,000 upon delivery of the Bonds. (3) Fjdmasod at g%. (4) Estimated at 8.25 °k . (5) Estimated at 9.5%. 4 Utter of Ftttni Site Acquisition Costs ............................................ Construction Cost of Convention Center and Development Costs ....... . Construction Cost of Garage(1) .............................. I ... . Contingency for Changes ........................................ Pre -Opening Expenses .......................................... Furniture, Fixtures and Equipment ................................ Reserve Account .............................................. Supplemental Reserve Fund (3).................................... Capitalized Interest on Bonds .. ............ .. ......... Coat of Issuance .......... .... ............... .... MBIA Insurance Premium .......................................: Total Uses of Funds ................................ I ............ (1) Part of the construction cost of the garage will be paid from the UDAG (2) The City expects to have expended $50,000 of the $15,000,000 c Garage. (3) Amount required at the commencement of operation of the Convention CI UDAG GwtM The United States Department of Housing and Urban Development ("I preliminary agreement to grant the UDAG Grant in the amount of $4,994,000 1 of a portion of the cost of the Parking Garage. The City will receive a letter of cri of the UDAG Grant upon entering into a final agreement with HUD. The City ex; will be executed prior to the delivery of the Bonds. The Bonds are not secured by Grant and holders of the Bonds do not have any right or interest with respect to s EDA Gea d The City has received a grant from the United States Department of Comtnct Administration ("EDA") in the amount of $4,373,000 under the Public Works N, EDA. The proceeds of this grant have been expended on the cost of construction THE COMPLEX Geneml Dese%Wm The Complex will consist of the Convention Center and the Parking Garage and the privately financed Hotel and the Trade Center office tower. The Convention Center -Garage will be located on two sites connected by a area on the north bank of the Miami River. The major portion of the property in 1975 with its own funds at a cost of $4,000,000. The remaining portion was purg of $2,611,170, of which $750,000 is to be reimbursed to the City from the proceeo, deposited in the City's Enterprise Fund for the Convention Center -Garage. The Convention Center and the Hotel will be located on an approximately , central business district. Although there will be separate outside entrances to the 1 Hotel, these facilities will be interconnected and not readily distinguishable as designed as a totally integrated mixed use development. To the north, the P Center will be located on a site of approximately 1.5 acres connected by a walkway Center. The total 6 acre site is bounded to the east by S.E. 2nd Avenue, to the the north by S.E. 2nd Street and to the south by the Miami River. The Dupont Plaza Hotel is to the east, the Bauder Fashion College is to Johnson's Plaza Motor Lodge is to the north, of the site. Across the Miami Riv 5 � III R.Y. / o I um qd ftsh Site Acquisition Costs ................. ............................. $ 6,611,170 Construction Cost of Convention Center and Ikrelopment Costs .... .. . ...... 39,729.664 CoosWction Cost of Garap(1) ... ... .................... 14,950,000(2) Contingency for Changes ............................................... 2,500,000 .... 500,000 Furniture, Fixtures and Equipment ........ ............................ 2'000,0W Reserve Account .................................................. 5,960,000 Supplemental Reserve Fund(3).......................................... 7,787,449 Capitalized Interest on Bonds .... . ......... .. .. 9,875,139 Cost of Issuance .......... .... ............... .. 2,043,501 MBIAInsurance Premium ............................................. 1,785,747 Total Uses of Funds ................................................... $93,742,670 (1) Part of the construction cost of the garage will be paid from the UDAG Grant of $4,994,000. (2) The City expects to have expended $50,000 of the $15,000,000 construction costs of the Parking Garage- (3) Amount required at the commencement of operation of the Convention Center -Garage and the Hotel. UDAG Qu t The United States Department of Housing and Urban Development ("HUD") has entered into a preliminary agmement to grant the UDAG Grant in the amount of $4,994,000 to the City for the payment of a portion of the cost of the Parking Garage. The City will receive a letter of credit secured by the proceeds of the UDAG Grant upon entering into a final agreement with HUD. The City expects that such an agreement will be executed prior to the delivery of the Bonds. The Bonds are not secured by the proceeds of the UDAG Grant and holders of the Bonds do not have any right or interest with respect to such funds. EDA Caved The City has received a grant from the United States Department of Commerce, Economic Development Administration ("EDA") in the amount of $4,373,000 under the Public Works Program administered by the EDA. The proceeds of this grant have been expended on the cost of construction of the Convention Center. THE COMPLEX The Complex will consist of the Convention Center and the Parking Garage with a connecting walkway, and the privately financed Hotel and the Trade Center office tower. The Convention Center -Garage will be located on two sites connected by a walkway in the downtown area on the north bank of the Miami River. The major portion of the property was purchased by the City in 1975 with its own funds at a cost of $4,000,000. The remaining portion was purchased by the City at a cost of $2,611,170, of which $750,000 is to be reimbursed to the City from the proceeds of the UDAG Grant and deposited in the City's Enterprise Fund for the Convention Center -Garage. The Convention Center and the Hotel will be located on an approximately 4.5 acre site in the Miami oeotral business district. Although there will be separate outside entrances to the Convention Center and the HOWL then facilities win be interconnected and not readily distinguishable as separate entities, having been ddigoed as a totally integrated mixed use development. To the north, the Parking Garage with the Trade Center w+ffl be bated on a site of approximately 1.5 acres connected by a walkway to the site of the Convention Carta, The total 6 acre site is bounded to the east by S.E. 2nd Avenue, to the west by S.E. 1st Avenue, to *e Bath by S.E. 2nd Sued and to the south by the Miami River. The DuPont plaza Hotel is to the east, the Bauder Fashion College is to the west and the Howard johepu s plaza Motor bodge is to the north, of the site. Across the Miami River to the south a 600 room Holiday Inn is under construction. Flagler Street, a major retail street of downtown Miami, is two blocks to the north of the site. The most direct access to the site is provided by the S.E. 2nd Avenue exit off 1-95, the major north -south route in southeast Florida. East -west access is provided by State Road 836, the most direct route to Miami International Airport, as it intersects North 1-95 approximately one mile north of the site. Travel time from the site to the airport is approximately twenty minutes. Secondary access is provided by Biscayne Boulevard, Brickell Avenue (U. S. Route 1) and S.E. First Avenue. City of Mimi Convendm Cuter The Convention Center is to be housed within a 4-story structure of approximately 410,000 square feet which will be owned by the City of which approximately 97.000 square feet will be leased to the Hotel Developer and approximately 30,750 square feet will be (cased to the University. Within these four stories will be located a 5,000 seat auditorium, of which 4,(XX) will be fixed seats in a tiered configuration and approximately 10,(00 square feet of flat floor area in which various size stage facilities and or I,(XX) additional seats can be set. Seating in the flat floor area will be elevated in a tiered configuration to fit with that of the fixed seating. The auditorium will be divisible into three sections with seating for 1,250, 1,750 and 2,000 persons, respectively. It will be equipped with facilities having audio-visual and mixed media presentation, as well as simultaneous translation capability. The Convention Center will also include two major meeting rooms. One will be 2,250 square feet with a seating capacity of 225 and the other will be 966 square feet with a seating capacity of 96. The first meeting room will be divisible into three sections, two of which will accommodate 85 persons each and one of which will accommodate 55 persons. The second meeting room will be divisible into two sections with seating capacities of 48 each. There will also be four other smaller meeting rooms of 483 square feet with seating capacities of 48 each. The utility and delivery spaces for the Hotel and the Convention Center ( including the conference center) will be housed in the first floor of the Convention Center structure. The Convention Center will also include office space for the management personnel. It is intended that the Convention Centc: will be primarily programmed for conventions with advantage being taken of the facility's unique ability to augment the latest arts and techniques available in the communi- cations media. This ability will be enhanced by the technological capabilities being provided on a full time basis by the staff of the University of Miami's School of Continuing Education. In addition, the facility is intended to provide ticketed cultural and entertainment events to satisfy both the community and tourist market demand. The University of Miami will lease approximately 30,750 square feet of net working space within the third and fourth floors of the Convention Center's four-story structure. The facilities contained within this space will be operated and maintained by the Unwrrsity as a conference center ( the "Conference Ceder ' ). The Conference Center will be used for seminars, conferences and continuing education programs sponsored by the University. The Conference Center will consist of a 500 seat auditorium, a 150 scat lecture hall, a large class- room with a seating capacity of 204 that will be divisible into two sections, three smaller classrooms with seating capacities of 70 each, a 1,363 square foot library, a 4,255 square foot pre -function facility and office/ audiovisual/support spaces of 7,123 square feet. The Conference Center will be equipped with sophisticated audiovisual equipment, including closed circuit television and facilities permitting simultaneous translation. The Parking Garage, consisting of approximately 1,450 spaces, will be connected to the Convention Center by a pedestrian walkway and will house a pedestrian mall and retail commercial space on the ground floor totaling 37,600 square feet and 20,000 square feet, respectively. Approximately 17,500 square feet in the Parting Garage will be used to accommodate a station for the proposed "Downtown People Mover" transit loop 6 around downtown Miami. The Parking Garage will be owned and operated by will be designed and constructed to support the Trade Center. Hood Over the eastern portion of the Convention Center the Hotel Developer will c operated a 627 room (608 unit) hotel. The Hotel is expected to be operated as the Hyatt Corporation under a management contract with the Hotel Developer. Th mately 97,000 square feet within the four-story Convention Center structure prov a ballroom of approximately 11,700 square feet with a seating capacity of neJ into two sections of 3,476 square feet and two sections of 2,370 square feet 348 and 237 respectively; kitchen space and hotel offices; a prefunction ro a seating capacity of 370, divisible into two sections of 1,100 square feet with and two sections of 750 square feet with seating capacities of 75 each; thre3,582, 6,217 and 1,000 square feet; a swimming pool; and approximately 26, Additional meeting room requirements of the Hotel will be met by City owned nCenter on a rental basis. The 19-story tower will contain the 627 rooms (608 units), consisting of 400 square feet in area and two, three, four and five bay suites, to provide a mix. The Hotel Developer has entered into an agreement with the Worsham 11 venture between Turner Development Corporation and Worsham Brothers Coo ment of the Hotel. The Hotel will be financed privately with a construction loan from Continen Trust Company of Chicago. The conditions and requirements of the const other things, that the completion of construction of the Convention Center-G or before February 1, 1982. The Hotel Developer has received a long term mo Massachusetts Mutual Life Insurance Company. The mortgage loan commitment'. Life Insurance Company is subject to certain conditions, including among other construction of the Convention Center -Garage and the Hotel by April 13, 1982. these requirements may result in the delay of the completion of the Convention C and additional costs related thereto. Trade Ceder The Trade Center office tower, located above a portion of the Parking Gar 600,((X) gross square feet of space. The Trade Center will be financed and ow will retain for its purposes approximately one-third of the available office space a space. The structural support and other facilities for the Trade Center will be Parking Garage. Any changes or additions to the Parking Garage required by tht the TC Owner. Aprovals Construction and operation of the Convention Center -Garage requires a vad and approvals. Under Florida law, a project approaching this scale might be o regional impact and in such event the City would have to file an impact statemq Florida Regional Planning Council for review and recommendation for issua The City received a "binding letter of no impact" from the State Department 1975 in connection with the Convention Ccnter-Garage and the Hotel. The is pending. In connection with the Parking Garage the City will need to acquire appr the Florida Department of Environmental Regulation. Additionally the City 7 around downtown Miami. The Parting Garage will be owned and operated by the City. The garage structure will be deigned and constructed to support the Trade Center. Held Over the eastern portion of the Convention Center the Hotel Developer will construct, own and cause to be operated a 627 room (608 unit) hotel. The Hotel is expected to be operated as The Hyatt Regency Miami by the Hyatt Corporation under a management contract with the Hotel Developer. The Hotel will occupy approxi- mately 97,000 square feet within the four-story Convention Center structure providing the following facilities: a ballroom of approximately 11,700 square feet with a seating capacity of nearly 1,200 that will be divisible into two sections of 3,476 square feet and two sections of 2,370 square feet, and with seating capacities of 348 and 237 respectively; kitchen space and hotel offices: a prefunction room of 3,700 square feet with a seating capacity of 370, divisible into two sections of 1,100 square feet with seating capacities of 110 each and two sections of 750 square feet with seating capacities of 75 each; three food and beverage outlets of 3,582, 6,217 and 1,000 square feet; a swimming pool; and approximately 26,000 square feet of retail space. Additional meeting room requirements of the Hotel will be met by City owned meeting rooms in the Convention Center on a rental basis. The 19-story tower will contain the 627 rooms (608 units), consisting of typical rooms of approximately 400 square feet in area and two, three, four and five bay suites, to provide a desirable and marketable room mt:. The Hotel Developer has entered into an agreement with the Worsham Development Group, a joint venture between Turner Development Corporation and Worsham Brothers Company, Inc., for the develop- ment of the Hotel. The Hotel will be financed privately with a construction loan from Continental Illinois National Bank and Trust Company of Chicago. The conditions and requirements of the construction loan include, among other things, that the completion of construction of the Convention Center -Garage and the Hotel occur on or before February 1, 1982. The Hotel Developer has received a long term mortgage loan commitment from Massachusetts Mutual Life Insurance Company. The mortgage loan commitment from Massachusetts Mutual Life Insurance Company is subject to certain conditions, including among other things, the completion of construction of the Convention Center -Garage and the Hotel by April 13, 1982. The failure to comply with these requirements may result in the delay of the completion of the Convention Center -Garage and the Hotel and additional costs related thereto. 'Neale CeMW The Trade Center office tower, located above a portion of the Parking Garage, is expected to consist of 600,000 gross square feet of space. The Trade Center will be financed and owned by the TC Owner, which will retain for its purposes approximately one-third of the available office space and lease the remainder of the space. The structural support and other facilities for the Trade Center will be built in conjunction with the Parking Garage. Any changes or additions to the Parking Garage required by the TC Owner will be paid by the TC Owner. Appmvab Construction and operation of the Convention Center -Garage requires a variety of governmental permits and approvals. Under Florida law, a project approaching this scale might be considered a development of regional impact and in such event the City would have to file an impact statement ("DRI") with the South Florida Regional Planning Council for review and recommendation for issuance of a development order. The City received a "binding letter of no impact" from the State Department of Administration in August, 1975 in connection with the Convention Center -Garage and the Hotel. The DRI for the Trade Center is pending. In connection with the Parking Garage the City will need to acquire approval in a timely fashion from the Florida Department of Environmental Regulation. Additionally the City will need to acquire building 7 permits to be issued by the City. Delays in the DRI process for the Trade Center or litigation over required permits or approvals could have an adverse impact upon the construction schedule of the Convention Center - Garage, the Hotel and the Trade Center. Convention Center. The City initiated construction of the Convention Center on January 2, 1978. Contracts have been entered into for salvage excavation, sitework, foundations and part of the superstructure required for the commencement of the construction of the Hotel. The City has entered into a construction contract with Frank J. Rooney, Inc. for the completion of the Convention Center at a fixed price of $28,201,359. As of Jute 30, 1980 the City expects to have expended $15,320,258 of which $2,499,481 will have been paid pursuant to the contract for completion with Frank J. Rooney, Inc. The City estimates that construction of the Convention Center will be completed on or before February 1, 1982. Frank J. Rooney, Inc., headquartered in Ft. Lauderdale, Florida, is a subsidiary of Centex Corporation. Headquartered in Dallas, Texas, Centex is a general conglomerate engaged in real estate, home building and general construction. Frank J. Rooney, Inc. is one of the largest general construction contractors in the State of Florida, with a business volume in excess of $100 million during its fiscal year ended March 31, 1979. Parking Garage: The City has entered into a turnkey contract with Miami Center Associates, Inc. for the design and construction of the Parking Garage for a price of $15,000,000 subject to contingencies as set forth in the contract. The turnkey contractor will provide a payment and performance bond in the amount of $15,000,000. Construction on the foundation is expected to commence by October 1980 and is estimated to be completed on or before February 1, 1982. Miami Center Associates, Inc., the turnkey developer for the Parking Garage, is a Florida corporation jointly owned by Worsham Brothers Company, Inc. and Turner Development Corporation, a wholly -owned subsidiary of Turner Construction Co. Miami Center Associates, Inc. is also a general partner of the Hotel Developer. Hotel: The Hotel will be constructed by Frank J. Rooney, Inc. who will act as general contractor for the Hotel Developer. Construction of the Hotel is expected to be completed on or before February 1, 1982. Trade Center. The structural support and other facilities for the Trade Center will be built in conjunction with the Parking Garage. No contracts have been entered into for the construction of the Trade Center. Convention Center and Hotel: Ferendino/Grafton/SpillisjCandella, Architects, Engineers, Planners, Inc. ("F/G/S/C") was established in 1926. F/G/S/C headquarters are located in Coral Gables, Florida. F/G/S/C provides services in planning, architecture, engineering, interior design, landscape architecture and construc- tion administration. F/G/S/C has won several design awards in the U. S. and abroad. From its Florida headquarters, F/G /S/C has provided its professional services in Latin America, the Middle East, and Europe. Parking Garage and Trade Center: Development plans for the Parking Garage and the Trade Center have not yet been finalized. Convention Center -Garage: Although the City has not yet appointed the management staff for the Con- vention Center, contractual agreements of the City with other parties require the City to retain a professional management consultant of national reputation to manage the operation of the Convention Center. The University may provide its own management staff for the Conference Center under the School of Continuing Education. The School has been building a conference program without its own facilities by utilizing available on -campus facilities and major hotels in Dade County. The Parking Garage will be managed by the Department of Off -Street Parking of the City. Hotei: The Hotel is expected to be operated under a management contract with Hyatt Corporation. Trade Center. The Trade Center management will be determined by the TC Owner. 8 DFSCRWTION OF THE BONDS G P es' Teams The Bonds will bear interest at the rates and will mature on the dates and the cover page of this Official Statement. Interest on the Bonds will be payable and July 1 of each year commencing January 1, 1981. The Bonds will be issued as coupon bonds, in the denomination of $5,000 without coupons in denominations of $5,000 or any integral multiple thereof. C bonds are interchangeable at the corporate trust office of the Trustee upon the to in the Trust Indenture. The term bonds are subject to mandatory redemption in part by lot o0 January 1, 2001 at the principal amount thereof plus accrued interest to the dateffic' which are required to be deposited in the Redemption Account in amounts su of each year the principal amount of such Bonds specified for each of the years A Year rriocillal AmowM* Year 2001 ...... ... $1,750,(M 2008 ........... 2002 ..... 1,900,000 2009 ............ 2003 ..... 2,060,000 2010 2004 .. ............ 2,235,000 2011 ... .. ... 2005 ............. 2,425,000 2012 ...... 2006 ................... 2,635,000 2013 ........ 2007 ................... 2,855,000 2014 ....... .... 2015**.. • Subject to change. *• Maturity. 011iond Redempil m The Bonds will be subject to redemption prier to maturity from any monies such purpose at the option of the City either in whole, at any time, on and after Jan inverse order of maturity on any interest payment date not earlier than January 1, 1 all of a maturity is to be redeemed) at the redemption prices (expressed as a percen to be redeemed) set forth below, plus interest accrued to the date of redemption: (1=Rd ear�tlaa Period Dales hwholve ) January 1, 1990 through December 31, 1990 . ..... . . . January 1, 1991 through December 31, 1991 ...... January 1, 1992 through December 31, 1992 .. . January 1, 1993 through December 31, 1993 . ............. January 1, 1994 through December 31, 1994 . ............ . January 1, 1995 through December 31, 1995 .. ... ........ January 1, 1996 and thereafter ..... .. .. . ..... Mu■icird now G SSINO Ranee PoScy Delivery of the Bonds is subject to the issuance of a Municipal Bond Guaranty from the Municipal Bond Insurance Association ("MBIA") under which MBIA 9 DESCRUrMN OF THE BONDS Gem" Test The Bonds will bear interest at the rates and will mature on the dates and in the amounts set forth on the cover page of this Official Statement. Interest on the Bonds will be payable semi-annually on January 1 and July I of each year commencing January 1, 198 L The Bonds will be issued as coupon bonds, in the denomination of $5,000 each, or as registered bonds without coupons in denominations of $5,000 or any integral multiple thereof. Coupon bonds and registered bonds are interchangeable at the corporate trust office of the Trustee upon the terms and conditions provided in the Trust Indenture. The term bonds are subject to mandatory redemption in part by lot on each January I on and after from monies mount thereof plus accrued interest to the date of redemption, January 1, 2001 at the principal a p January 1 which are required to be deposited inthe Redemption Account in amounts sufficient to redeem on of each year the principal amount of such Bonds specified for each of the years shown below: A Year A�ort Yew € 2001 $1,750,000 2008 f 1,900,000 2009 ............ 3,365,000 200 ... 200 ... ... 2,060,000 2010 3.650,000 � 2004 2,235,000 2011 3,960,000 ............ 2005 2,425,000 2012 41295,000 2,635,000 2013 4,660,000 2006 ........ i 2,855,000 2014 5,055,000 2015 • • .. 5,485,000 • Subject to change. s s Maturity. A The Bonds will be subject to redemption prior to maturity from any monies that may be available for such purpose at the option of the City either in whole, at any time, on and after January 1, 1990, or in part in inverse order of maturity on any interess than t redemptdate not earlier than January 1, ion on prices ( expressed as a percentage of the pri(and by lncipal ot if amount all of a maturity is to be redeemed)at interest accrued to the date of redemption: to be redeemed) set forth below, p ■e+r.rt m r rw .moo. rrsce t3e& DoM hWkdv0 January 1, 1990 through December 31, 1990 .. ...... 103 % January 1, 1991 through December 31, 1991 102% January 1, 1992 through December 31, 1992 102 January 1, 1993 through December 31, 1993 ................ 101% January 1, 1994 through December 31, 1994 ................ 101 January 1, 1995 through December 31, 1995 .. 100% January 1, 1996 and thereafter ................ .. ..... 100 M■■64d Bwd CAMONy bwraria FWky Delivery Bonds is subject to the issuance of a Municipal Bond Guaranty Insurance Policy ("Policy") ("MBIA") under which MBIA guarantees unconditionally hmm the Municipal Bond prance Association 9 and irrevocably the payment of an amount equal to the principal of and interest on the Bonds becoming due and payable. MBIA has issued a commitment to the City for such insurance. The Policy (a form of which is attached hereto as Appendix D) is noncaneellable for any reason and is fully paid for at its inception. Upon notification of the City's failure to deposit full payment for the principal of and interest on the Bonds. then maturing and becoming due, with the paying agent on the date required. MBIA's members are obligated to deposit funds promptly with Citibank, N.A., New York, New York, as Fiscal Agent for MBIA, sufficient to cover fully the deficit in the paying agent's account. If, under the terms of the Trust Indenture, any acceleration of the due date for the payment of the principal of all the Bonds occurs, MBIA is not required by the terms of the Policy to pay the Bonds in accordance with such accelerated maturity schedule. MBIA is required only to pay in accordance with the original maturity schedule. MBIA will be responsible for such payments, less any amounts received by the holders of the Bonds from the Cite and from any other sources other than MBIA. These funds will be applied to the payment of the Bonds and the interest coupons then maturing and becoming due upon surrender thereof together with an appropriate instrument of assignment. Normally, notice of an impending default will be received in advance of the payment date of the Bonds allowing MBIA time to make the funds available for payment on the due date of the coupons or Bonds. If notice of nonpayment is received on or after such date, MBIA will provide for payment on the business day following receipt of the notice. Upon payment by MBIA of any Bonds or coupons, MBIA becomes the owner thereof. MBIA is a pint venture of the following insurance companies whose respective percentage liability is as follows: The Aetna Casualty and Surety Company, forty percent (40'; ). Fireman 's Fund Insurance Company, thirty percent (30%); Aetna Insurance Company, fifteen percent 051.7; 1; and United States Fire Insurance Company, fifteen percent (151c ). The Policy is a several and not a joint obligation of the participating insurance companies. Security ffK leis The Bonds are special obligations of the City payable from the Sinking Fund provided therefor to be funded from Net Revenues of the Convention Center -Garage (see Summary of the Trust Indenture) and certain other money, as set forth in the Trust Indenture. The Bonds are not a debt of the City payable, and the City is not obligated to pay the Bonds, from any ad valorem real or tangible personal property tax revenues and the full faith and credit of the City are not pledged to the payment of the principal of, the redemption premium, if any, or the interest on, the Bonds. In the Trust Indenture, the City has pledged to the payment of the Bonds the Net Revenues of the Convention Center -Garage, consisting of all gross revenues derived in such period by or on behalf of the City from its ownership, lease, use, operation or possession of, or in connection with, the Convention Center -Garage, or any part thereof, including rent received pursuant to the Hotel Agreement, the TC Agreement and the University Agreement and other revenues derived from leases, subleases and contracts, less the amount of parent operating expenses in such period in connection with the Convention Center -Garage ("Current Expenses") . The Bonds are also secured by a first lien on and pledge of Pledged Telephone and Telegraph Excise Tax Revenues (see Summary of the Trust Indenture). The City has covenanted that if Gross Revenues of the Convention Center-Garagc (see Summary of the Trust Indenture) are not sufficient to pay when due Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts created under the Trust Indenture at their required levels, the City shall cause to be deposited in the Revenue Fund or Supplemental Reserve Fund, as required by the Trust Indenture, Pledged Telephone and Telegraph Excise Tax Revenues or such other available revenues of the City, exclusive of ad valorem real or tangible personal property tax revenues, an amount sufficient to pay Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts at their required levels. A Reserve Account will be established by the Trust Indenture and will be required to be maintained in an amount equal to the maximum Principal and Interest Requirements for the current or any succeeding fiscal year, as a reserve for payment of principal of and interest on the Bonds in the event money held in the 10 Bond Service Account or the Redemption Account shall be insufficient for such pu will be initially funded from the proceeds of the Bonds. The Trust Indenture requin Reserve Account not be used until money in the Surplus Fund, the Supplemental Renewal and Replacement Fund has been expended. A Supplemental Reserve Fund will be established by the Trust Indenture and win tained as a reserve for the payment of Current Expenses and principal of and in maintain the respective balances in the funds and accounts created under the Trust I levels. Upon the delivery of the Bonds the City will deposit in the Supplemental R At the time of commencement of operation of the Convention Center -Garage and deposit in the Supplemental Reserve Fund (i) $2,500,000 received by the City f with investment earnings thereon, or, alternatively, $2,500,000 of lawfully available (ii) $2,900,000 received by the City from the Hotel Developer. Money held for mental Reserve Fund shall be applied for the following purposes: (a) to pay Curren money held for the credit of the Revenue Fund shall not be sufficient to pay Curren payable, and (b) under certain conditions, to make deposits to the Bond Service Account, the Reserve Account and the Renewal and Replacement Fund in an any deficiencies therein. The Supplemental Reserve Fund shall be maintained in an 25% of the maximum Principal and Interest Requirements for the current or any In the event there is a deficiency in the amount of Gross Revenues of the CO available for (a) and (b) in the above paragraph, the City shall make deposits into d Supplemental Reserve Fund as required by the Trust Indenture from (a) Pledged Ti Excise Tax Revenues, and (b) other lawfully available revenues of the City to the ei of the alternative sources of available revenues of the City are pledged to other ou tst and may be pledged by the City for other lawful purposes. Hotel Agreement: The Hotel Agreement provides for an initial lease term of f the commercial operation of the Hotel and an option for a renewal term of forty-fiv Developer has agreed under the Hotel Agreement, among other things, to pay to ment of the commercial operation of the Convention Center and the Hotel, rent consq to $2,900,000 and Additional Rent rate calculated as shown below. i The Hotel Developer's contribution under the Hotel Agreement to the cost of t) the amount of $1,200,000 shall be made in five equal annual installments commend Hotel first opens for business. "Gross Sales' shall mean, on an annual basis, the sum of 0 ) gross room revenue therefrom; and (2) gross food and beverage sales or services in the Hotel a Excluded from Gross Sales shall be commissions paid on room rentals at a rate no rm of a first-class hotel. Additional Rent equal to a percentage of annual Gross Sales will be calculated as f Adiiliwiil 20 Dear of a ____ �, ace Gna San Sda $ 0_520,000,000 0`�O 20,000,001— 22.000,000 1 9 22,000,001— 24,000,000 24,000,001— 26,000,000 2.2 26,000,001— 28,000,000 2.5 28,000,001— 30,000,000 2.7 30,000,001— 32,000,000 .. 3.0 32,000,001— 34,000,000 3.2 34,000,001— 36,000,000 3.3 36,000,001— 38,000,000 .... 3.4 38,000,001— 40,000.000 3.5 40,000,001— 41,666,667 3.6 • Subject to change. I 1 I1I~" �I,�JIr Bond Service Account or the Redemption Account shall be insufficient for such purpose. The Reserve Account win be W iapy funded from the proceeds of the Bonds. The Trust Indenture requires that the money in the Reserve Account not be used until money in the Surplus Fund, the Supplemental Reserve Fund and the Renewal. and Replacement Fund has been expended. A Supplemental Reserve Fund will be established by the Trust Indenture and will be required to be main- tained as a reserve for the payment of Current Expenses and principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts created under the Trust Indenture at their required levels. Upon the delivery of the Bonds the City will deposit in the Supplemental Reserve Fund $1,876,588.'- At the time of commencement of operation of the Convention Center -Garage and the Hotel, the City will deposit in the Supplemental Reserve Fund (i) $2,500,000 received by the City from the University together with investment earnings thereon, or, alternatively, $2,500,000 of lawfully available monies of the City, and (ii) $2,900,000 received by the City from the Hotel Developer. Money held for the credit of the Supple- mental Reserve Fund shall be applied for the following purposes: (a) to pay Current Expenses if at any time money held for the credit of the Revenue Fund shall not be sufficient to pay Current Expenses then due and payable, and (b) under certain conditions, to make deposits to the Bond Service Account, the Redemption Account, the Reserve Account and the Renewal and Replacement Fund in an amount sufficient to make up any deficiencies therein. The Supplemental Reserve Fund shall be maintained in an amount at least equal to 25% of the maximum Principal and Interest Requirements for the current or any succeeding fiscal year. In the event there is a deficiency in the amount of Gross Revenues of the Convention Center -Garage available for (a) and (b) in the above paragraph, the City shall make deposits into the Revenue Fund or the Supplemental Reserve Fund as required by the Trust Indenture from (a) Pledged Telephone and Telegraph Excise Tax Revenues, and (b) other lawfully available revenues of the City to the extent necessary. Certain of the alternative sources of available revenues of the City are pledged to other outstanding bonds of the City and may be pledged by the City for other lawful purposes. Hotel Agreement: The Hotel Agreement provides for an initial lease term of forty-five (45) years from the commercial operation of the Hotel and an option for a renewal term of forty-five (45) years. The Hotel Developer has agreed under the Hotel Agreement, among other things, to pay to the City upon commence- ment of the commercial operation of the Convention Center and the Hotel, rent consisting of Base Rent equal to $2,900,000 and Additional Rent rate calculated as shown below. The Hotel Developers contribution under the Hotel Agreement to the cost of the Convention Center in the amount of $1,200,000 shall be made in five equal annual installments commencing fifteen months after the Hotel first opens for business. "Gross Sales^ shall mean, on an annual basis, the sum of 0) gross room rentals, charges or other revenue therefrom; and (2) gross food and beverage sales or services in the Hotel and the Convention Center. Excluded from Gross Saks shall be commissions paid on room rentals at a rate normally paid in the operation of a first-class hotel. Additional Rent equal to a percentage of annual Gross Sales will be calculated as follows: • 8ijeet 10 dnye. Darar Vie of Gv s Sales $ 0420,000,000 20,000,001— 22,000,000 22,000,001— 24,000,000 24,000,001— 26,000,000 26,000,001— 28,000,000 28,000,001— 30,000,000 30,000,001— 32,000,000 32,000,001— 34,000,000 34,000,001— 36,000,000 36,000,001— 38,000,000 38,000,001— 40,000,000 40,000,001— 41,666,667 11 Addklomal Rent as a raeentaw of Gran sales 0% 1.6 1.9 2.2 2.5 2.7 3.0 3.2 3.3 3.4 3.5 3.6 1� rr ice, a III If Gross Sales exceed $41,666,667 the Developer shall pay Additional Rent to the City in the amount of $1,500,000 subject to upward adjustment for equivalent increases in the Consumer Price Index for the City of Miami, or such other comparable index which may be in effect from time to time if said Consumer Price Index is unavailable, using the index for the first year in which Gross Sales exceed $41,666,667 as a base year. Payment of Additional Rent shall be deferred if there are no funds available to the Hotel Developer after the payment of ( i ) principal, interest and participation interest under the Hotel Developer's first mortgage, (ii) operating expenses and certain reserves and (iii) priority return to equity capital investors, provided the sum of (i) and (iii) shall not exceed $5,300 per hotel guest room per annum. That portion of the deferred Additional Rent shall accrue with interest equal to ' : `; above the rate on the Bonds. The aggregate amount of such accruals of unpaid Additional Rent shall be due and payable by the Hotel Developer to the City at the end of each third year and at the end of the forty-fifth year after the Hotel first opens for business. If there are any funds available to the Hotel Developer after payment of (i ), (ii) and (iii) and there exists unpaid accrued Additional Rent for any prior year or years, such funds available shall be applied to the payment of said unpaid accrued Additional Rent. TC Agreement: The TC Owner has agreed under the TC Agreement, among other things, to make air space ]ease payments of $150,000 annually commencing one year after certification by the architect that the Parking Garage is sufficiently completed to commence construction of the Trade Center. Such lease payments shall be subject to an annual increase or decrease based on 70'(' of the change in the Consumer Price Index for the City (the "CPT'), but in no event shall the payment be less than $150.000. In addition, the TC Owner has agreed to make air space lease payments based upon the achievement of specified levels of occupancy of the Trade Center. This payment shall increase to $150,000 in the fifth full calendar year of lease payments, and is thereafter subject to an annual increase or decrease based on 70ri of the change in the CPI. Such payments are unconditional and not subject to the construction of the Trade Center. Certain other lease payments are required to be paid after the fifth year of operation if a certain amount of rental space is not used for Trade Purposes as defined in the TC Agreement. The initial term of the TC Agreement will be for 35 years, with an option to extend for an aggregate (case term of 90 years. University Agreement: The University and the City have agreed to enter into a lease for space in the Convention Center to be used by the University for the Conference Center which will he for an initial term of 30 years from the completion of construction of the Convention Center -Garage and an option for two renewal terms of thirty (30) years each. The University has agreed under the University Agreement, among other things, to deposit the sum of $2,500,(XX) in escrow during the period of construction of the Convention Center -Garage which, with the earnings thereon, %ill be paid by the University to the City as advance rent for the initial 30 year term, upon commencement of operation of the Convention Center -Garage and the Hotel and the execution and delivery of a lease agreement. In the event that a lease agreement is not executed and delivered by such time, the City has agreed under the Trust Indenture to deposit S2,500,(X)0 into the Supplemental Reserve Fund within six months of the commencement of operation of the Convention Center -Garage and the Hotel. hale Coveomd The City has covenanted in the Trust Indenture that, prior to the date any portion of the Convention Center -Garage is ready for use and occupancy, the City will fix. charge and collect, or cause to be fixed, charged and collected, reasonable rents, rates, fees and charges for the use or occupancy of, and for the services furnished or to be furnished in connection with, the Convention Center -Garage then completed, upon considera- tion of the schedule of rents, rates, fees and charges recommended by the consultant retained for such purpose. The City also covenants in the Trust Indenture that commencing with the fiscal year preceding the fiscal year in which substantially all of the Convention Center -Garage is ready for use and occupancy, and in each fiscal year thereafter, the City will put in effect, on October of each fiscal year, an ordinance which shall fix rents, rates, fees and charges, the sum of which will be at least sufficient to produce Gross Revenues of the Convention Center -Garage, in the ensuing fiscal year, in an amount not less than (a) the Current Expenses of the Convention Center -Garage; (b) 125% of the Principal and Interest Requirements for said fiscal year; (c) the amount necessary, if any, to provide for deposits to the credit of the Renewal and Replacement Fund; and (d) the amount necessary, if any, to make up any deficiencies in the Bond Service Account, the Reserve Account, the Renewal and Replacement Fund and tl c Supplemental Reserve Fund, which cannot be made up from any other funds available therefor. 12 The City also covenants and agrees that it will not reduce the rates, rents, fiscal year below those in effect at the end of the preceding fiscal year unless either for such purpose estimates that by reason of any such reduction, the Gross Revenues Garage for such year shall be at least five percent (5 % ) in excess of the Gross Re Center -Garage for such preceding fiscal year or (ii) the Gross Revenues of the Cot any fiscal year are lower than the Gross Revenues of the Convention Center-Gara year and such consultant determines that such reduction was substantially caused by the requirements described in this paragraph to reduce the rates, rents, fees and clu If the City shall comply with all recommendations of said comultant with res and charges, it will not constitute an event of default under the Trust Indenture if Convention Center -Garage shall be less than the amount stated above. Rates, rents, fixed upon the basis of reasonable classifications, to prevent unlawful discrimination, application. No free use of the Convention Center -Garage will be permitted. Addildo■al I kab In order to provide additional funds for completing the payment of the cost Garage, additional bonds may be issued under and secured by the Trust Indenture with the Bonds. Such additional bonds are required to be of the same maturity date of the term bonds initially issued under the Trust Indenture and may be authorized ii completing the payment of the cost of the Convention Center -Garage but not in a principal amount of Five Million Dollars ($5,000,000). Col Kdm mW Disposiliou of Revettnses Pursuant to the Trust Indenture, all Gross Revenues of the Convention C deposited in the Revenue Fund and used to pay the Current Expenses of the Conv or before the 25th day of each calendar month, after the delivery of the Bonds, withdraw from the Revenue Fund all money held for the credit of said fund on the month and deposit the sum so withdrawn to the following accounts or funds in the f First, to the Bond Service Account, an amount equal to the sum of 1982, an amount (or the entire sum so withdrawn if less than the required a (r/e ) of the interest payable on all outstanding bonds on the next ensuing inter that there shall be allowed as a credit toward such deposits to the credit of any money deposited to the Bond Service Account pursuant to the Trust Indent January 1, 19 , an amount (or the entire sum so withdrawn if less than the re one -twelfth (1 / 12) of the next maturing installment of principal of all serial any calendar month there shall be a deficiency in the amount that is required to of the Bond Service Account pursuant to this provision, the amount otherwise r the next ensuing calendar month to the credit of the Bond Service Account shall be increased by the amount of such deficiency; Second, to the Redemption Account, commencing January 1 preceding th any term bonds are required to be redeemed in satisfaction of the Amortizatid an amount (or the entire sum so withdrawn if less than the required amount) eq'I of the principal amount of the term bonds required to be retired on the next I satisfaction of the Amortization Requirements therefor; provided that if in any a be a deficiency in the amount that is required to be deposited to the credit of I pursuant to this provision, the amount otherwise required to be deposited in t, month to the credit of the Redemption Account pursuant to this provision shall of such deficiency; Third, to the Reserve Account, such amount, if any, of any balance r required deposits in the Bond Service Account and the Redemption Account drawn if less than the required amount), as may be required to make the amo of the Reserve Account equal to the maximum Principal and Interest Requi outstanding for the current or any succeeding fiscal year; 13 The City also covenants and agrees that it will not reduce the rates, rents, fees and charges for any fiscal year below those in effect at the end of the preceding fiscal year unless either (i) the consultant retained for such purpose estimates that by reason of any such reduction, the Gross Revenues of the Convention Center - Garage for such year shall be at least five percent (5% ) in excess of the Gross Revenues of the Convention Center -Garage for such preceding fiscal year or (ii) the Gross Revenues of the Convention Center -Garage in any fiscal year are lower than the Gross Revenues of the Convention Center -Garage in the preceding fiscal year and such consultant determines that such reduction was substantially caused by the City's inability under the requirements described in this paragraph to reduce the rates, rents, fees and charges. If the City shall comply with all recommendations of said consultant with respect to said rents, rates, fees and charges, it will not constitute an event of default under the Trust Indenture if the Gross Revenues of the Convention Center -Garage shall be less than the amount stated above. Rates, rents, fees and charges are to be fixed upon the basis of reasonable classifications, to prevent unlawful discrimination, and are to be of uniform application. No free use of the Convention Center -Garage will be permitted. Adiilia�al Sam& In order to provide additional funds for completing the payment of the cost of the Convention Center - Garage, additional bonds may be issued under and secured by the Trust Indenture on parity as to payment with the Bonds. Such additional bonds are required to be of the same maturity date as the latest maturity date of the term bonds initially issued under the Trust Indenture and may be authorized in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars ($5,000,000). CmEwdou aril Disp=N= of Revemes Pursuant to the Trust Indenture, all Gross Revenues of the Convention Center -Garage received arc deposited in the Revenue Fund and used to pay the Current Expenses of the Convention Center -Garage. On or before the 25th day of each calendar month, after the delivery of the Bonds, the Trustee is required to withdraw from the Revenue Fund all money held for the credit of said fund on the last day of the preceding month and deposit the sum so withdrawn to the following accounts or funds in the following order: First, to the Bond Service Account, an amount equal to the sum of (i) commencing in June 1982, an amount (or the entire sum so withdrawn if less than the required amount), equal to one -sixth (V6 ) of the interest payable on all outstanding bonds on the next ensuing interest payment date, provided that there shall be allowed as a credit toward such deposits to the credit of the Bond Service Account any money deposited to the Bond Service Account pursuant to the Trust Indenture, and (ii) commencing January 1, 19 , an amount (or the entire sum so withdrawn if less than the required amount), equal to one -twelfth 0 / 12) of the next maturing installment of principal of all serial bonds; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Bond Service Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Bond Service Account pursuant to this provision shall be increased by the amount of such deficiency; Second, to the Redemption Account, commencing January 1 preceding the first fiscal year in which any term bonds are required to be redeemed in satisfaction of the Amortization Requirements therefor. an amount (or the entire sum so withdrawn if less than the required amount) equal to one -twelfth (1 12 ) of the principal amount of the term bonds required to be retired on the next succeeding January I in satisfaction of the Amortization Requirements therefor; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Redemption Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Redemption Account pursuant to this provision shall be increased by the amount of such deficiency; Third, to the Reserve Account, such amount, if any, of any balance remaining after making the required deposits in the Bond Service Account and the Redemption Account (or the entire sum so with- draw. if less than the required amount), as may be required to make the amount then held for the credit of the Reserve Account equal to the maximum Principal and Interest Requirements on all bonds then outstanding for the current or any sutxxeding fiscal year; 13 Fowth, to the Renewal and Replacement Fund, commencing in June 1982, one -twelfth ( I / 12) of $100,000 and one -twelfth (1 / 12) of such additional amount, if any, which the consultant retained for such purpose in its latest written report prepared pursuant to the Trust Indenture shall have recommended be deposited for the credit of such fund in the then current fiscal year (or the entire sum so withdrawn if less than the required amount), so long as the balance in the Renewal and Replacement Fund shall be less than (i) the greater of One Hundred Thousand Dollars ($100,000) or one and one -quarter percent (1.25 % ) of the Gross Revenues of the Convention Center -Garage for the preceding twelve (12) month period, or (ii) such larger amount which the consultant retained for such purpose in its latest written report, shall have recommended be held for the credit of such fund in the then current fiscal year; Fifth, to the Supplemental Reserve Fund, such amount, if any, as may be required to make the amount in the Supplemental Reserve Fund equal to Two Million Five Hundred Thousand Dollars ($2,500,000) (or the entire sum so withdrawn if less than the required amount), and Sixth, to the Surplus Fund, the balance, if any, of the amount so withdrawn. TELEPHONE AND TELEGRAPH UTILITIES TAX The City presently levies and collects utilities service taxes pursuant to Section 167.431, Florida Statutes, on the purchase of certain utilities services including but not limited to, water, gas, electric and telephone and telegraph services. The City has pledged under the Trust Indenture a portion of such utilities service taxes, the utilities service tax upon the purchase of telephone and telegraph services, to make up any deficiency in Gross Revenues of the Convention Center -Garage in the event such revenues are insufficient to pay when due Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts established under the Trust Indenture at the required levels. The telephone and telegraph excise tax revenues are subject to the prior lien of and pledge to the City's outstanding Utilities Service Tax Bonds and any bonds issued to refund such Utilities Service Tax Bonds. The City has covenanted in the Trust Indenture that it will not use or pledge these telephone and telegraph excise tax revenues to pay or secure the payment of any bonds or obligations or indebtedness other than the outstanding Utilities Service Tax Bonds, lxmds issued for the refunding thereof and the Bonds and any addi- tional bonds issued pursuant to the Trust Indenture. The City may, however, use said revenues for any lawful purpose if they exceed the amount necessary to pay the Utilities Service Tax Bonds, bonds issued for the refunding thereof and the Bonds and any additional bonds issued pursuant to the Trust Indenture. The City has covenanted in the Trust Indenture that it will increase the utilities service tax upon the pur- chase of telephone and telegraph services, within the limits and restrictions fixed by applicable law, as may be necessary to satisfy the City's obligations under the Trust Indenture. Revenues derived from the utilities service tax upon the purchase of telephone and telegraph services for the fiscal years 1975-1979 is as follows: Telephone a W Telegraph Utilities Tax Revetwes F'iecal Year E W" Sepe30 1979 $5,274,287 1978 .. 5,257,913 1977 .. 4,632,457 1976 ....... .. ... 4,498,147 1975 .. 3,985,362 The annual debt service on the outstanding Utilities Service Tax Bonds for the fiscal years ending September 30, 1980 to 1988 ranges from $152,550 to $192,412. There can be no assurance, so long as the Utilities Service Tax Bonds and bonds issued for the refunding thereof shall remain outstanding, that any of the telephone and telegraph excise tax revenues will be available for making up such deficiencies. 14 PROPOSED BOND ISSUES I. The City intends to issue and sell in the future $35,000,000 Public Bonds, Series 1979 A ( Watson Island Project) ( the "Series A Bonds") and $2 Revenue Bonds, Series 1979 B (Watson Island Project) (the "Series B Bonds" a theme and amusement park located on Watson Island in Biscayne Bay in will be payable from and secured by a first lien upon and pledge of the net r The Series B Bonds will be payable from and secured by a junior lien upon a derived from the park and a first lien on and pledge of the City's Guaranteed E revenues received by the City as its portion of the State of Florida's revenue s) Chapter 218, Part 11, Florida Statutes. 11. On October 26, 1979 a statement was made to the Securities and Exc hs the Official Statement dated October 15, 1979 used in connection with the General Obligation Bonds omitted or misstated a number of material facts. Afte said bonds, it submitted to the Securities and Exchange Commission ( the "SE Statement correcting such alleged misstatements and omissions of facts. The I that it has concluded its investigation and has determined that it will not r" any enforcement proceedings against the City. Under the pertinent SEC rules, suC as indicating that the City has been exonerated or that no action ultimately a investigation. j III. The City presently expects to offer public improvement general obli as yet determined after the expiration of not less than 90 days from the date IV. The City presently expects to submit for the approval of the electorate issue its general obligation bonds in the principal amount of $75,000,000 for improvements. RECENT BOND ISSUES The City, acting through the Department of Off -Street Parking, on April revenue bonds for the purpose of constructing a parking garage, acquisition of pa( to existing parking facilities. BONDS AUTHORIZED BUT NOT ISSUED Of the $81,475,000 bonds approved by the electorate on June 30, 1970 all I except $2,375,000 of Streets and Highway Improvement Bonds and $4,000,00 The $35,000,000 bonds approved by the elctorate on September 28, 1976 1 unissued are as follows: Amy So -wen Authorized $ 25.000,000 Previously Issued 16,000,000 Balance Unissued 9,000,000 At an election held on March 7, 1978, the electorate approved the issue Sewer Improvement Bonds. $5,000,000 of said Storm Sewer Improvement 1 The principal amounts issued and unissued of the $25,000,000 Genet approved by the electorate on March 9, 1976 and validated on February 17, 11 Previously Issued $ 1,50 Unissued 23,50 Total Authorized $25,00 15 4 ,ll. mil.+ Ti ,71"11,11l I. The City intends to issue and sell in the future $35,000,000 Public Improvement Senior Revenue Bonds, Series 1979 A (Watson Island Project) (the "Series A Bonds") and $20,000,000 Public Improvement Revenue Bonds, Series 1979 B ( Watson Island Project) ( the "Series B Bonds") for the purpose of financing a theme and amusement park located on Watson Island in Biscayne Bay in the City. The Series A Bonds will be payable from and secured by a first lien upon and pledge of the net revenues derived from the park. The Series B Bonds will be payable from and secured by a junior lien upon and pledge of said net revenues derived from the park and a first lien on and pledge of the City's Guaranteed Entitlement Revenues, being the revenues received by the City as its portion of the State of Florida's revenue sharing trust funds pursuant to Chapter 218, Part 11, Florida Statutes. II. On October 26, 1979 a statement was made to the Securities and Exchange Commission claiming that the Official Statement dated October 15, 1979 used in connection with the proposed sale of $6.750,000 General Obligation Bonds omitted or misstated a number of material facts. After the City cancelled the sale of said bonds, it submitted to the Securities and Exchange Commission ( the "SEC") a revised form of Official Statement correcting such alleged misstatements and omissions of facts. The SEC staff has advised the City that it has concluded its investigation and has determined that it will not recommend the commencement of any enforcement proceedings against the City. Under the pertinent SEC rules, such advice may not be construed as indicating that the City has been exonerated or that no action ultimately may not result from the staffs investigation. III. The City presently expects to offer public improvement general obligation bonds in an amount not as yet determined after the expiration of not less than 90 days from the date hereof. IV. The City presently expects to submit for the approval of the electorate in October 1980 a proposal to issue its general obligation bonds in the principal amount of $75,0W,000 for sanitary sewers and highway improvements - RECENT BOND ISSUES The City, acting through the Department of Off -Street Parking, on April 21, 1980 issued $8,725,000 of revenue bonds for the purpose of constructing a parking garage, acquisition of parking meters and improvements to existing parking facilities. BONDS AUTHORIZED BUT NOT ISSUED Of the $81,475,000 bonds approved by the electorate on June 30, 1970 all of such bonds have been issued except $2,375,000 of Streets and Highway Improvement Bonds and $4,000,000 of Pollution Control Bonds. The $35,000,000 bonds approved by the elctorate on September 28, 1976 and the amounts of such bonds unissued are as follows: Fire Sen Footing Authorized $25,"," $10,000,000 Previously Issued 16,000,000 8,250,000 Balance Unissued .. .... 9,000,000 1,750,000 At an election held on March 7, 1978, the electorate approved the issuance of $15,000,000 of Storm Sewn[ Improvement Bonds. $5,000,000 of said Storm Sewer Improvement Bonds were previously issued. Me principal amounts issued and unissued of the $25,000,000 General Obligation Housing Bonds approved by the electorate on March 9, 1976 and validated on February 17, 1977, are as follows: previously I ... . $ 1,500,000 Unissued ..................... 23,500,000 Total Authorized $25,000,000 15 lucky T'he City of Miami, the largest city in the State of Florida, was first settled in 1es and was incorporated w in 1896. It is located in Dade County on the lower east coast of Florida along the western shore of Biscayne Bay. It comprises 34.3 square miles of land and 19.5 square miles of water. resenting e 1197 f the U. S. Buretal au of the Census estimate of the City's population is approximately 3 representing ion of Dade County. lie Climate The temperature of Miami is essentially subtropical marine, characterized by long. warm summers, with abundant rainfall, followed by mild, dry winters. The average temperature in the summer is 81.4 and 69. I if' the winter, with a yearly average of 75.3 °. Govenareat of !N'�ami The City of Miami 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 pass ordinances, adopt regulations and appoint a chief administrative officer known as the City Manager. City elections are held in November every two years on a non -partisan basis. At each of these elections a Mavor is elected for a two year term. Candidates for Mayor must run as such and not for the Commission in general. At each election two members of the Commission are elected for four year terms. I hus. the City Commissioners' terms are staggered so that there are always at least two experienced members on the e City Clerk, the City Attorney, the City 11an: ,per, the Commission. The City Commission appoints th members of the Off -Street Parking Board and the members of the Planning and Zoning Board. The City Manager acts as the administrative head of the municipal government and k responsible for the proper administration of all affairs of the City. The Charter of the City of Miami places considerable responsibility upon the City Manager. He is .authorized to appoint and remove all departmental directors. prepare the annual budget, investigate the affairs of the City or of any City department, reorganize the administrative structure and recommend to the City Commission any policies which will benefit the health, safety or welfare of the community. 'llu Cdy Gtmmissioa MAURICE A. FERRE, Mayor, was first elected Mayor in November 1973 and reelected in November 1975, November 1977 and November 1979 for two -}ear terms respectively. Mayor Ferre is a graduate of Lawrence- ville School in New Jersey and holds a Bachelor of Science degree in Architectural Engineering from the University of Miami. He is a prominent businessman and corporate consultant with interests in both the United States and the Caribbean. JOE CAROLLO, Commissioner, was elected in November 1979, for four-year term. Commissioner Carollo is 24 years old and is a graduate of Miami Dade Community College and Florida International University. He holds a Baccalaureate of Arts Degree in international Relations and a Baccalaureate of Science Degree in Criminal Justice. He is presently Vice -President of Export for International Trading and Shipping Corporation. THEODORE P. GIBSON, Commissioner, was appointed a Commissioner in April 1972 and was elected in November 1973 and reelected in November 1977 for four-year terms respectively. Father Gibson was graduated from St. Augustine's College in Raleigh, North Carolina and from Bishop Payne Divinity School, now a pact of the Virginia Theological Seminary. Father Gibson has been the Rector of the Christ Episcopal Church, Miami, for 32 years. 16 ARMANDo E. I.ACA", Commissioner, was appointed a Commissioner in J Lacasa is a graduate from Villanueva University School of Law, Havana, Cuba a School of Law. He is presently a member of the law firm of High, Stack, Lea Lacasa. He belongs to the Florida Bar and Dade County Bar Associations. Latin Festival of the Orange Bowl Committee- J. L. PLUMMER, JR., Commissioner, was appointed a Commissioner in elected Commissioner in November 1971 and reelected in November 1975 and terms, respectively. Commissioner Plummer is a graduate of Miami Senior Hi; College of Mortuary Science. He is Chairman of the Board of Ahern -Plummer JOSEEPH�R. GRAwE, City Manager, was appointed by the City Commission to post on July 30, 1976. He served as City Manager of Grand Rapids, Michigan Deputy City Manager of Grand Rapids from 1%8 to 1970. City Manager University of Chicago with both a Bachelor of Arts degree and a Master's dep nomics. He is an active member of the International City Management Associa VINCENT E. GRIMM, JR., Assistant City Manager, a City employee sine graduated from the University of Miami with a degree in Civil Engineering q engineer in the State of Florida. Prior to coming to the City Manager's Office apl years ago, he was Director of the City of Miami's Department of Public Works. JAMES E. GUNDERSON, Director Of Finance, joined the City in November, 19 the private and governmental sectors of the economy. Prior employment includes 4 Boeing Airplane Company, Pierce County, Washington and the City of Grand a former School Board Director in the State of Washington and also served as a Col Crime Commission for the State of Michigan. GEORGE F. KNox, JR., City Attorney, heads the legal staff representing the City Attorney in October, 1976. Mr. Knox was graduated from the Michigan Su of Miami, Florida School of Law. Prior to becoming City Attorney, Mr. Knox Law at the University of Arkansas. He is a member of the Association of Amerk fteJed Dbe~ JAMES J. CONNOLLY, Project Director, who joined the City in December, 1 Of the Convention Center -Garage, was graduated from the Engineering School of City. He has extensive experience in the development of public facilities, hi development of Lincoln Center for the Performing Arts in New York City Authority (interama) for the State of Florida. Deprdel t of Of -Street Parkiag All parking within the City of Miami is under control of the Department Department is a special Department of the City vested with the authority to mans off-street parking facilities of the City. The City exercises control of the Depatl its budget and the control of the sale of the revenue bons which l are 5 Id in the presently 10,675 parking spaces operated by the Department.spaces 0 41 off-street parking lots. The remainder is comprised of on -street parking. The and operates, an annual budget slightly in excess of $2,000,000. The DepartnTA $8,725,000 Parking Facility Revenue Bonds of the City for the purpose of cl acquisition of parking meters and improvements to existing parking facilities. hiaeipl Se vkw Palo md by dw City Services performed by the City include fire and police protection; parks and collection; sanitary sewer, storm sewer, and highway construction; tourism, tr planning, and building and zoning inspection. 17 I ARMAmw E I.AcAsA, Commissioner, was appointed a Commissioner in January 1979. Commissioner Lacasa is a graduate from Villanueva University School of Law, Havana, Cuba and of Florida State University School of Law. He is presently a member of the law firm of High, Stack, Lazemby, Bender, Pallahach, and Lacasa. He bekmp to the Florida Bar and Dade County Bar Associations. He is Vice -President of the Latin Festival of the Orange Bowl Committee. J. L. PLUMMER, JR., Commissioner, was appointed a Commissioner in October 1970, and was first elected Commissioner in November 1971 and reelected in November 1975 and November 1979 for four-year terms, respectively. 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 Home, Miami. JOSEPH R.�GRASSIE, City Manager, was appointed by the City Commission to the City's top administrative post on July 30, 1976. He served as City Manager of Grand Rapids, Michigan from 1970 to 1976 and as Deputy City Manager of Grand Rapids from 1968 to 1970. City Manager Grassie is a graduate of the University of Chicago with both a Bachelor of Arts degree and a Master's degree in Political Science/Eco- nomics. He is an active member of the International City Management Association. VINCENT E. GRIMM, JR., Assistant City Manager, a City employee since September of 1950, was graduated from the University of Miami with a degree in Civil Engineering in 1950. He is a registered engineer in the State of Florida. Prior to coming to the City Manager's Office approximately three and a half years ago, he was Director of the City of Miami's Department of Public Works. JAMES E. GUNDERSON, Director of Finance, joined the City in November, 1976. He has experience in both the private and governmental sectors of the economy. Prior employment includes the University of Washington, Boeing Airplane Company, Pierce County, Washington and the City of Grand Rapids, Michigan. He was a former School Board Director in the State of Washington and also served as a Commissioner on the Governors Crime Commission for the State of Michigan. GEORGE F. KNOX, JR., City Attorney, heads the legal staff representing the City. He assumed the post of City Attorney in October, 1976. Mr. Knox was graduated from the Michigan State University and University of Miami, Florida School of Law. Prior to becoming City Attorney, Mr. Knox was Assistant Professor of Law at the University of Arkansas. He is a member of the Association of American Law Schools. f sleet DiswW JAMES J. CONNOLLY, Project Director, who joined the City in December, 1975 to direct the development of the Convention Center -Garage, was graduated from the Engineering School of Cooper Union in New York City. He has extensive experience in the development of public facilities, having been employed in the development of Lincoln Center for the Performing Arts in New York City and the Inter -American Center Authority (Interama) for the State of Florida. DepoMme d of Off-ftrcd PwkiL All parking within the City of Miami is under control of the Department of Off -Street Parking. The Department is a special Department of the City vested with the authority to manage and control on -street and off-street parking facilities of the City. The City exercises control of the Department through the control of ifsbudgctand the control of the sale of the revenue bonds which are sold in the name of the City. There are presently 10,675 parking spaces operated by the Department. 1,675 spaces are in 3 garages; 4,800 are in 41 off-street parting lots• The remainder is comprised of on -street parking. The Department has 37 employees and operatM an annual budget slightly in excess of $2,000,000. The Department on April 21, 1980 issued $8,725,000 Parting Facility Revenue Bonds of the City for the purpose of constructing a parking garage, action of parting meters and improvements to existing parking facilities. !h rk — say by 1he (Sty Services performed by the City include fire and police protection; parks and recreation operation; garbage coacem; sankry sewer, storm sewer, and highway construction; tourism, trade and commerce promotion; pb=W, and building and zoning MW=tlon. 17 The Police Department is the largest department of the City. In addition to law enforcement, it provides personnel training, information and computer systems, and criminal investigations. The City's Fire Department, in addition to its traditional fire fighting and prevention services, provides emergency medical and rescue services. The Department also provides training, enforcement of fire and build- ing codes, and emergency communication services. hiseipd Faeiiifies of Ire City The City maintains 87 parks having an area of 836 acres, and two golf courses. It operates and maintains the Orange Bowl Stadium; the Miami Baseball Stadium; the Marine Stadium; four City -owned marina facilities providing 685 berthing facilities; the newly renovated Dinner Key Exposition Building; and the Bayfront Park Auditorium. The Downtown Government Center is a 30-acre joint development among the City, County, State and Federal governments. Facilities at the Center include the City of Miami Police Headquarters, the City of Miami Administration building, a County Administration building presently being constructed, a County Court building, a Central Library, a Museum of Art, a Museum of Science, a City Parking Garage and four State buildings. Space is reserved for future construction of a Federal Building. Califal 1[lrovement !less The 1978-1984 Capital Improvement Program of the City includes 175 projects totaling $243,704,000 in value. There has been an increase in programmed spending for storm, sanitary sewer and street projects scheduled in the latter years of this program. Watson Island, 87 acres in size and located one mile from downtown Miami, is projected as a planned development which will include entertainment, cultural, marine, shopping and dining facilities. (See Paragraph I under "Proposed Bond Issues".) The City has negotiated multiple -year agreements with all its labor organizations. Three separate labor agreements with the Fraternal Order of Police, Lodge No. 20, the International Association of Firefighters, Local 587, and the American Federation of State, County & Municipal Employees, Local No. 1907 expire on October 1, 1981. The Sanitation Employees Association and the City have recently entered into a 3-year agreement ter- minating October 1, 1982. All of these agreements provide for increases not to exceed 6% on the second and third years of the contract, and there are neither cost -of -living escalator clauses nor any economic reopener clauses. Further negotiations are precluded by a waiver clause (the waiver precludes reopening the contract), and all the employee organizations enumerated above specifically waived the right to request negotiations until the termination of these contracts. The City Manager's Office has a professional labor relations staff dedicated solely to labor negotiations and contract administration during the term of these agreements. !ap■IaI asi DeaoaaphicS While the Miami Economic Region, comprised of Dade, Broward and Palm Beach Counties, experienced a rapid increase in population in the 1970's attributable primarily to immigration, the City experienced a much slower growth rate due primarily to substantial prior development and increasing suburbanization. The average annual population increase, from 1970 to 1978, in the City was 1,200, in Dade County 28,300 and is the Miami Economic Region 90,200. 18 Average Ammid Pgmbdm Gnwru Mitri, Dais Cowry, will Ire Mini Etameak Region Ara City of Miami ....... Balance of Dade County Total Dade County ................ Broward County ................... Palm Beach County ................ Total Miami Economic Region .... Source: U. S. Bureau of the Census Business Research (1970-1978). Iffy-117� TOW Told Dub Fkammok Neer C41wt7 ng0W 4,317 13.0 5.9 1, 28,957 87.0 39.2 27, 33,275 100.0 45.0 28,3 28,615 38.7 38A 12,054 16.3 23,1 73,944 100.0 90,E (1960-1970); University of Florida, The U. S. Bureau of the Census figures for 1970 show that the working group, prises 57.6% of the City of Miami's population, compared to 52.3% for the I percent of population 65 and over exceeds the national average by 4.5 %. Age G o" n a Percent of Total rorelEdws AV U11" I of hod C 0-4 17,154,337 8.4 20,920 5-9 19,956,247 9.8 24,770 10-14 20,789,468 10.2 24,227 15-19 19,070,348 9.4 23,872 20-24 16,371,021 8.1 23,523 25-34 24,907,429 12.3 40,222 35-44 23,087,805 11.4 43,760 45-54 23,219,957 11.4 43,758 55-59 9,973,028 4.9 21,418 60-64 8,616,794 4.2 19,906 65-74 12,435,456 6.1 30,463 75 and over 7,630,046 3.8 19,020 Total 203,211,926 100.00 334,859 Mamoelalias Pon of Miami: Eight terminals accommodate the seven cruise litres which dog five seasonal ships in the Port of Miami. The Pore's contribution to the community is not soley economic in nature. Miami's role as the Gateway of the Americas. This is evident by multinational offices in the area, supported by the foreign banking departments of local banks am establishing Miami as a major international center. Miami International Airport: Miami International Airport experienced a 20 traffic during 1978, averaging more than 45,000 passengers per day through concourses. 19 lll' � I1!gyT'r �:1 I i.ISa,x ti IP P I isn Beals AvemV Aw=W P"WWim Gnwfr MM=k Dais Canty, said Se Miami EcMemie Regina ieaa-trn � ts�-trn trn-trn %of %.t Told Told TOW TOW Dan Fkammuk Dab EeNs=fe 1gda Ara Number Cow RgOm Neer County � city of Miami ... _ „ . ............. 4,317 13.0 5.8 1,192 4.2 1.3 Balance of Dade County ............ 28,957 87.0 39.2 27,119 95.8 30.0 33,275 100.0 45.0 28,311 100.0 31.4 Total Dade County ................ j gn)wud County 28,615 38.7 38,686 42.9 . . . . .. . ............ Palm Beach County ................ 12,054 16.3 23,225 25.7 Total Miami Economic Region ...... 73,944 100.0 90,222 100.0 Source: U. S. Bureau of the Census (1960-1970); University of Florida, Bureau of Economic and Business Research (1970-1978). ! The U. S. Bureau of the Census figures for 1970 show that the working group, ages 20 through 64, com- f prises 57.6% of the City of Miami's population, compared to 52.3% for the entire United States. The percent of population 65 and over exceeds the national average by 4.5 % . Age Geng as a PereeM of TOW Perabdisa Alp Umlied 19" city of Pare•dae MOW Pace~ 91010" 0.4 17,154,337 8.4 20,920 6.3 5-9 19,956,247 9.8 24,770 7.4 10-14 20,789,469 10.2 24,227 7.2 15-19 19,070,348 9.4 23,872 7.1 20-24 16,371,021 8.1 23,523 7.0 25-34 24,907,429 12.3 40,222 12.0 35-U 23,087,805 11.4 43,760 13.1 45-54 23,219,957 11.4 43,758 13.1 55-59 9,973,029 4.9 21,418 6.4 60.64 8,616,784 4.2 19,906 5.9 65-74 12,435,456 6.1 30,463 9.1 75 and over 7,630,046 3.8 18,020 5.4 Total 203,211,926 100.00 334,859 100.0 I, 11e■■ilasdliaR Pon 0, Mom; El& terminals accommodate the seven cruise lines which dock their 16 permanent and five seasonal ships in the Port of Miami. •k poWs con"ibntion to the community is not soley economic in nature. The Port also strengthens )Lamps tole as the C,&teway of the Americas. This is evident by multinational companies locating overseas O ffim in tk arM supported by the foreign banking departments of local banks and 14 Edge Act banks, thus cNablidtiog lfiaan as a major international Center - MOW 1jennedond Airport: Miami International Airport experienced a 20 percent increase in passenger tta6c dwing 1978. averaging more than 45,000 passengers per day through the terminal and its seven ' cotaoostnea. 19 r. W}y 2� 1 GY. 1.�! rty.,T'i The Airports facilities include three runways, a 5,000 car parking complex, approximately two million square feet of warehouse and office space, and maintenance shops. Approximately 30,000 individuals are dyed at the art. Lecid Man TWOR Metropolitan Dade County Rapid Transit System: One of the most important developments affecting Dade County in general, and downtown Miami in particular, is the recent start of construction of a rail rapid transit system. Construction has begun on the development of a 21-mile, elevated rail system to extend from Kendall Drive, in southwest Miami, to Hialeah, north of Miami International Airport. The system will pass through the western portion of Miami's Central Business District (CBD) and have 21 stations. Construction was begun in May 1979 and is expected to extend through 1984. Downtown People -Mover System: Efforts arc also underway to secure funding for the development of a separate rail transit system in Miami's Central Business District. This project, the Downtown People -Mover System, is planned to consist of a two-way, elevated rail line extending around the CBD core with spur lines extending north and south to the outer portions of the downtown area. The project would be developed and operated under the auspices of Metropolitan Dade County's Transportation Authority and is projected to cost approximateh $186 million. Dade County and the City of Miami have committed $24 million to the project and an application has been filed with the Urban Mass Transit Administration (UMTA) for the balance of funds required to develop the system. Suisun` Activity The dollar value of building permits issued in the City since 1971, are as follows: City of Miami Teas (009's) 1971 .. $156.239 1972 ... ... 241,967 1973 .... 190,026 1974 .... 113,619 1975 ... ... 60,750 1976 ...... 80,744 1977 ........ 97,151 1978 ...... 105,064 1979 ........ ... . .... .... 201,667 CnveaiiN Aedwhy The City, as reflected in the table below, is one of the major convention centers in the United States. City of Mtatii Conventoo Activity Coaveatkm Year Heil Delegates $ Value 1971 .............. 361 101,241 $14,173,740 1972 ........ ..... 220 83,075 11,630,500 1973 ......... ... 212 84,740 11,863,600 1974 .............. 192 83,927 16.585,400 1975 .............. 255 81,720 16,344,000 1976 .............. 191 93,600 18,720,000 1977 .............. 202 86,120 17,224,000 1978 ........ ..... 214 105,820 23,280,400 1979 .......... ... 212 93,640 24,346,400 NOTE:: The dollar value figures are based on guidelines provided by the International Association of Convention and Visitors Bureaus. 1971 to 1973 figures provide for a $35 per day per delegate; 1974 to 1977 provide for $50 per day; 1978 provides for $55 per day; 1979 provides for $60 per day per delegate. Swam City of Miami Convention Bureau. 20 Irrrilar Tart 1,"y at d TSz Cd"ft Real and personal property valuations are determined at just value each year County Assessor of Property. A notice is mailed to each property owner The property owner has the right to file an appeal with the Dade County Clerk of if such property valuation as determined by the property appraiser is inconsistent 1 the property owner. All appeals of such valuation determinations are heard by t) Equalization. The Board certifies the assessment roll upon completion of the he" All taxes are due and payable on November I of each year or as soon thereafll certified and delivered to the Dade County Tax Collector. The Dade County Ti taxpayer on the assessment roll notice of the taxes levied. Taxes may be paid upon j discounts at the rate of four, three, two and one percent if paid in the months of N and February, respectively. Taxes paid during the month of March are without real and personal property become delinquent on April I of the calendar year fol taxes were levied. All tax collections for the City are delivered to the City of M' delinquent real property taxes bear interest at the rate of eighteen percent per yeal sale certificate is sold at auction from which time the interest rate shall be as bid by 1 Tea largos TasMyess is Ire City of Mini Name of Taxwer Nadre at Activity Southern Bell Telephone & Telegraph Co. .. Telephone Utility Equitable Life Assurance (Omni) Hotel and Retail Sales Florida Power & Light Co. ............ Electrical Utility First Federal Savings & Loan Co. Bank One Biscayne Association ......... Office Rentals Miami Herald ... .................. Newspaper International Business Machine Co. ... Retail Sales St. Joe Paper Co. ... ...... ........ Paper Manufacturer Massachusetts Mutual Ins. Co. ( Four Ambassadors) Hotel New York Life Insurance Insurance Total Assessed Valuation of top ten taxpayers which is 13.39% of total 1979 assessed valuation ... .. .. .... ........ . 21 1 CrfT FWANC[AL VOORMAMN is awkiaa farTa: Leo and Tan COMWOan Real and personal property valuations are determined at just value each year as of January I by the Dade County Anessor of Property. 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 F 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. All taxes are due and payable on November I of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rase of four, three, two and one percent if paid in the months of November, December, January and February, respectively. Taxes paid during the month of March are without discount. All unpaid taxes on red and personal property become delinquent on April 1 of the calendar year following the year in which the tares were levied. All tax collections for the City are delivered to the 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 sok cer ificate is sold at auction from which time the interest rate shall be as bid by the buyer of the certificate. Ten Lwged Tmpyers is the City of Miami 1979 Assawd Nave of Tammer NaMm of AcdvkY_ Val" Southern Bell Telephone & Telegraph Co. .. Telephone Utility $230,587,174 Equitable Life Assurance (Omni) Hotel and Retail Sales 73,312.973 Florida Power &Light Co. .. ....... Electrical Utility 66,516,920 First Federal Savings & Loan Co........ Bank 42,661,571 One Biscayne Association ........ . Office Rentals 36,385,979 Miami Herald . - . � � � � • ........... Newspaper 34,970,266 International Business Machine Co. ... Retail Sales 30,795,094 25,157,156 St Joe Paper Co ......... Paper Manufacturer Massachusetts Mutual Ins. Co. Hotel 24,888,445 (Four Ambassadors) 19,751,681 New York Life Insurance .. • ...... • • . Insurance Total Assessed Valuation of top ten taxpayers which is 13.39% of total 1979 assessed $585,027,259 valuation ................ 21 die � City dMWod,L" rW leieirl and 111dMst a am 0otsta ft Cese� Md Special pbhPpoa Goods F6eal Year FAMN Total � 30 l�[eKilal �� S 16.020.879 1980 $ 8,299,(M S 7.721.879 18,486,542 1991 ....... 11,411,000 7,075,542 17,659,690 1982 ........ 11,240,000 6,419,690 15,874,011 1983 10,089,000 5,785.011 14.835,552 1984 .... 9,651,000 5,184,552 14.260,191 1985 ... 9,647,000 4,613,191 13,593,794 1986 ..... 9,527,000 4,066,794 12.320,788 1987 8,733,000 3.587,788 1 1.498 207 1988 8,340,000 3,158,207 1989 7,241,000 2,759,615 10,000,615 .. 1990 7,057,000 2,419,325 9,476.325 1991 6,385,000 2.097,587 8,482,587 1992 5,700,000 1,782.884 7,481584 1993 5,320,000 1,486,685 6.8�u,,685 1994 5,010,000 1,215,853 6.15.853 1995 5,065,000 986,318 6.051.318 1996 4,545,000 775,506 5.320.506 1997 4.305,000 576,330 4.881.330 1998 3,135,000 380,965 3.515.965 1999 2,010,000 255,835 2.205.835 2000 970.000 181,481 1.151.481 2001 1,000.000 126.743 1.126.743 2002 795,000 70,356 865.356 2003 555,000 30,100 585,100 2004 75.009 17.500 92.500 2005 .. ... 95,000 14,100 109.100 2006 .... 95,000 10,300 105.300 2007 100,000 6,400 106,400 2008 110,000 2,200 112,200 $146,505,000 562,809,737 $209.313.737 22 Gemad O611odw Sank OubbitiWift M SIrImdow 3% rod General OMkatiw Lwe Dated Fire Fighting Facilities ..................... 3- 1-58 1988 $ Coconut Grove Incinerator ..... ............ 3- 1-58 1988 Refunding Sewage Disposal Bonds ........... 1- 1-62 1990 1 Dinner Key Marina ..... ... ........... 6- 1-65 1985 ; Land Acquisition Bonds . ...... 6- 1-65 1985 Bayfront Recreational Facilities .. ... ... 8- 1-67 1987 Recreational Facilities .. 8- 1-67 1987 Storm Sewer Improvements ..... 8- 1-67 1987 Recreational Facilities 7- 1-68 1988 Storm Sewer Improvement .... 7- 1-68 1988 Sanitary Sewer 7- 1-68 1988 Convention Center 5- 1-69 1989 Sanitary Sewer 5- 1-69 1980 Fire Fighting Facilities 10- 1-70 1"0 Police Headquarters 10- 1-70 1990 Pollution Control Facilities 10- 1-70 1990 Sanitary Sewers .. 10- 1-70 1990 Highway Improvement 2- 1-71 1982 Storm Sewer Improvement 2- 1-71 1991 Highway Improvement 9- 1-71 1991 Sanitary Sewer .... ....... 9- 1-71 1991 Fire Fighting .... 6- 1-72 1992 Sanitary Sewer 6- 1-72 1992 Police Headquarters 6- 1-72 1992 Storm Sewer Improvements 6- 1-72 1992 Street and Highway Improvements .. .. 6- 1-72 1992 Public Park and Recreation Facilities .. 10- 1-72 1997 2 Storm Sewer Improvements 9- 1-73 1993 Police Headquarters 9- 1-73 1993 Storm Sewer Improvements 3- 1-75 1995 Sanitary Sewer Improvements 3- 1-75 1986 Police Headquarters 3- 1-75 1995 Street and Highway Improvements .. 3- 1-75 1986 Sanitary Sewer &)nds 10- 1-75 1995 Police Headquarters 10- 1-75 1995 Sanitary Sewer 5- 1-77 1997 1 Street and Highway Improvements 5- 1-77 1988 Fire Fighting 5- 1-77 1997 Police Headquarters 5- 1-77 1997 Storm Sewer Improvement 5- 1-77 1997 Fire Fighting 12- 1-77 1998 Public Park and Recreation Facilities 12- 1-77 2003 1 Housing 12- 1-77 2008 Street and Highway Improvements .. 12- 1-78 1998 Sanitary Sewer 12- 1-78 1998 Fire Fighting Prevention and Rescue Facilities 12- 1-78 1998 Storm Sewer Improvement 12- 1-78 1998 23 N Getend (IONVIimom& O.tslmii■g w Seplember 30, 19" >F111 r w A�t Gumd ObOrAm ewe DOW yew >� Fire Fighting Facilities ..................... 3- 1-58 1988 $ 850,000 $ 370,000 485,000 Coconut Grove Incinerator .. ... . • . • 3- 1-58 1- 1-62 1988 1990 1,100,000 14,565,000 6,490,000 Refunding Sewage Disposal Bonds ........... 6- 1-65 1985 2,370,000 745,000 Dinner Key Marina ...... 6- 1-65 1985 700.000 210,000 Land Acquisition Bonds Bayfront Recreational Facilities 8- 1-67 1987 2,250.000 930,000 Recreational Facilities 8- 1-67 1987 1,000.000 400.000 .. Storm Sewer Improvements 8- 1-67 1987 1,000.000 1,500,000 400.000 720,000 Recreational Facilities 7- 1-68 7- 1-68 1988 1988 1,500,000 720,000 Storm Sewer Improvement .. 7- 1-68 1988 5.000,000 1,050.000 i .............. Sanitary Sewer ....... 5- 1-69 1989 4.500,000 2,350, 000 Convention Center .. . .. ........ 5- 1-69 1980 3,000,000 300,000 Sanitary Sewer 10- 1-70 1990 1,000,000 Fire Fighting Facilities ... t0- 1-70 1990 1,500,000 860,000 0,000 Police Headquarters .. . . 10- 1-70 1990 3,000,000 1,720,000 Pollution Control Facilities . 10- 1-70 1990 7,000,000 2,440,000 Sanitary Sewers .. .. 2- 1-71 1982 3,000.000 900,000 Highway Improvement 2- 1-71 1991 1,500,000 945, 000 Storm Sewer Improvement ....... 9- 1-71 1991 2.000,000 1.230,000 Highway Improvement 9- 1-71 1991 5,000,000 2,235,000 Sanitary Sewer 6- 1 72 1992 1,100.000 760,000 Fire Fighting .. ....... . 6- 1-72 1992 5,000,000 2,450, 000 Sanitary Sewer ...... 6- 1-72 1992 1,500,000 1.020,000 Police Headquarters 6- 1-72 1992 3.000,000 2,040,000 Storm Sewer Improvements 6- 1-72 1992 2,000.000 1,070,000 Street and Highway Improvements ..... .. 10- 1-72 1997 28,350,000 21,260,000 Public Park and Recreation Facilities .. 9- 1-73 1993 2,000,000 1,475,000 Storm Sewer Improvements ... � 9- 1-73 1993 4,000,000 2,950,000 Police Headquarters 3_ 1-75 1995 3,000,000 2,520,000 Storm Sewer Improvements 3- 1-75 1986 5,000,000 3,500,000 Sanitary Sewer Improvements ... . • . 3- 1-75 1995 8,000,000 6,710,000 Police Headquarters 3- 1-75 1986 3,000,000 2,100,000 Street and Highway Improvements ....... 10- 1-75 1995 5,000,000 3,935,000 Sanitary Sewer Bonds .. 10- 1-75 1995 2,000,000 1,680,000 Police Headquarters 5- 1-77 1997 13,000,000 12,260,000 Sanitary Sewer .......... 5- 1-77 1988 5,000,000 4,500, Street and Highway Improvements 5- 1-77 1997 5,000,000 4,735,000 Fite Fighting ...... 5- 1-77 1997 3,000,000 000 Police Headquarters 5- 1 77 1997 2,000 000 I.8�,� Sewer improvement � Stormp 12- 1-77 1998 1,000,000 1. Fire Fighting Facilities 12- 1-77 2003 11,540,000 11,540,000 Public Park and Recreation .. .... 12- 1-77 2008 1.500,000 1,00,000 ........ Housing5,000, 12- 1-78 1998 5,000,000 000 Street and Highway Improvements ............ 12- 1-78 1998 6,000,000 6,000,000 Sanitary Sewer ........... Rescue Facilities ... 12- 1-78 1998 2,250,000 2,250,000 Fite Fighting Prevention and 12- 1-78 1998 5,000,000 5.000,000 Storm Sewer Improvement .................. $138,065,000 23 1i f Re•eiisse ad %lei 011ftlidels s alas olststmbft °a 30,19" r � isai Incinerator Revenue ...... Utilities Service Tax Series A ....... . Orange Bowl Special Obligation .... . Orange Bowl Warehouse Revenue . Orange Bowl Warehouse Revenue . Off Street Parking Revenue Series A and B Series C Assert Amiststt Dale of Issee Maw Yew Laren 3,330,000 346� � 7- 1-51 1981 3,1 1,350,000 2- 1-63 1988 1982 _000 1,900,000 485,000 3- 1-67 12- 1-69 1982 105,0(>D 225,000 44,000 185,000 12-20-74 1989 4- 1-66 1994 4,800,000 3.150,000 2,925,000 3,105,000 4- 1-73 2002 Total $ 8,440,000 Utilities Service Tax Bonds Principal sad ialerest Matrtrities as of September 30. 1979 Fined 1 lilitics k•n ice Ten, Bonds Yak FAWN Principal Interest Total $ 150,000 5 41412 5 192.412 1980 150,000 37.537 187,537 198 1 .. 31.625 182,625 1982150,(") 1500)0 11.675 177.675 1983 .... 150M =_,7'5 172,725 1984 ... .. ,0 ISU,INN► 17 715 167,775 1985 ... .. 150.0(N) 1'_.1- 0 5 16_,7_ (► 1986 .. I5(►.(N)0 710,,O 157,650 1986 .. 1988 ... 150,W0 z ;-tr 152,550 _ 5 $1,3. U,IN►11 ti�03.n Iu `1.553.699 Stakme®t of Direct and O,erlapping Debt* Percentage Applicable Citys scare Name Net Debt a, Cits of Dent City of Miami, September 30, 1979 5138,065.00(1 1rN).o0f(' 18.68 $138,065,000 63,352,995 Trade County, September 30, 1979 33``,n15,000 5476,670.000 $201,417,995 • Debt as used in this table refers to general obligation debt. •• Percentage applicable to City for Dade Count} b;,,cd on Januan 1. 1 971) as,,cssed valuation. Ratio of Net General Bonded Debt To Net Assesed Value and Net Bonded Debt Per Capita F1st:a1 Ratio of Yew Net Bonded Debt Assessed Homestead Assessed Bonded to Net Bowl" Debt 39 r.r.b,u..• Valise Exemption Value Drht Asnewsed Value Per 1979 ..... 345,000 $4,227,175,027 $196,708.033 $4.031),460,944 c1 3.43% $400.19 197E . 345,000 4,023,947,098 199,664,076 3.r-9,183,11-2 124,67S.(No 3.39 375.87 1977 ..... 342,000 3,938.270,393 198,558,652 1.7,39,711.741 1111.826694 2.78 303.59 1976 ..... 340,000 3,7%,881,240 199,947,752 3.S96.933.48x 44.:23.990 2.63 279.01 1975 ..... 338,000 2,541,205,760 196,797,718 3.344.40 ,042 83.933,263 2.51 248.32 • Estimated on basis of added electric and water connection, and new dwelling units constructed, except in tbaae years for which a Federal census was available. 24 Sbbae d of Assessed Vah"m and L d Debt I 1 51 fted Year Failed 11 1 1 er 3g 0" 1 Assessed Vishill les ToW Assessed Valuation .................................. Homestead Exempt Valuation ............................... Net Assessed Valuation ................................... Legal Debt I 1 91 Debt Limitation for Bonds (15 % of $4,030,466,994) • Present DeM Application to Debt Limitation: General Bonded Debt ..... .............. . Less: Sinking Fund ....................... $138,065,000 $3,319,000 Legal Debt Margin ..................... . • Section 58 of the City Charter limits voted bonds of the City to 15% of th real and personal property within the city limits as shown by the last preceding 4 and provides that bonds for street, sewer, sidewalk and other public improvements M assessments, shall not be subject to such limitation of amount nor be considered wl of general obligation bonds that may be issued. i Tax Dab Fiscal Year Faded Sepbsber 34,19" Armed VWW Total Net Assessed Value .... Tax Rates 1978-79 (Dollars per Thousand of Assessed Valol Frtls Tax General Operations"' ............... 4.000 .. Debt Service ..................................... 487 Total Millage & Ad Valorem Tax Levy .. ....... 14.487 • Ten Mill Limit. (See "Tax Limitation for Municipal Purposes Record of Tax CelleetNete Tod Ted Fiscal Adunct j Yew Tax Cep of Current Percent of Ce CIM Ted Ts: CAllecdo hrew of Cerra w AN i Year's Tsaes Levy Collected DAMPNO Taws Cellwder Levy 1979 $58,389,375 $57,325,287 98.18% $430,947 $57,756,234 99.921 1978 50,532,016 49,095,263 97.16 523,373 49,618,636 98.19 1977 43,854,070 42,%9,232 97.99 650,775 43,620,007 99.47' 1976 38,508,055 37,280,660 96.81 633,860 37,914,520 99.46 1975 34,923,276 33,833,693 96.88 1,583,714 35,417,407 101.41 • Net of $614,028 (charge to current year expenses) and $1,655,672 (write able and reserve). ies are based upon the cumulative amount of delinquent • • Rates of delinquenc 25 Saftan t d Assessed Val Wsw said lAgd nett Margie Flsal Year Enbd Seple.— 3091979 Asaessed Val■atiass Total Assessed Valuation .................................. $4,227,175,027 Homestead Exempt Valuation ............................... 196,708,033 Net Assessed Valuation ................................... $4,030,466,994 Legal Dent 19 Debt Limitation for Bonds (15% of $4,030,466,994)• $604,570,049 Present Debt Application to Debt Limitation: General Bonded Debt ..... ............... $138,065,000 L>rss: Siniting Fund $3,319,000 134,746,000 $469,824,049 • Section 58 of the City Charter limits voted bonds of the City to 15% of the assessed valuation of all rea and personal property within the city limits as shown by the last preceding assessment roll of the City and provides that bonds for street, sewer, sidewalk and other public improvements which are paid from special assents, shall not be subject to such limitation of amount nor be considered when computing the amount of general obligation bonds that may be issued. Tax Data Flail Year F.sded Sep/enter 30,19" Asesaed Vslae Total Net Assessed Value ....... $4,030,466,994 Tax Rates 1978-79 (Dollars per Thousand of Assessed Value) Ad Vakreas Fwi Tax MUIW Tax Levy General Operations* ........ . ........ 10.000 $40,304,670 Debt $ervtce................................... 4.487 18,084,705 Total Millage do Ad Valorem Tax Levy ..... ....... 14.487 $58,389,375 • Ten Mill Limit. (See "Tax Limitation for Municipal Purposes Excludes Debt Service".) Retiwd of Tax Corectioss TOW COMec�aO TOW c veme4weat Taxes FbWTow AdTjax Of Necden cOnesa Year's retreat Of Levy of TOW T As !melt Of Carrest OuttaOiin De�est As rawest a CIN eat •o ��+ IAM AN PWRO Taxes cOfteaaei c $430,947 $57,756,234 98.92% Taxes $1,559,360• 2.67% 98.18% 1979 $59,399,375 $57,325,287 50,532,016 49,095,263 97.16 523,373 49,618,636 98.19 3,195,919 6.32 1978 1977 43,854,070 42,969,232 97.99 650,775 43,620,007 99.47 2,282,539 5.20 5.32 1975 34,923 276 96.88 37,914,520 1,583,796-81 14 35,417,407 101.41 1,454,941 4.17 1975 , 33,933,693 O Net of $614,028 (charge to current year expenses) and $1,655,672 (write down of prior years' receiv- abk and the based upon cumulative amount of delinquent taxes for past years. e• gates of � are 25 Estimate of Ad Valorem Taxes levied for the City of Miami on the average home (a24,000 asssesed value for the 1979 tax year), exclusive of Dade County and other taxes. t" S24,04010 302s. 4%ith S5.0" t w inout Homeste" Hanestead vwlm poii) E%emption t 5,65 ,4 $335.04 Average Total Tax Specific Purposes: ,p.60 26.02 Administration 13.56 17.14 Public Works 23.45 29.62 Sanitation 1().41 13.15 Parks and Recreation 8110 103.71 Police and Fire Protection 9.29 11.74 !Miscellaneous ,5 4S 32.19 Pensions 5.1 1 6.43 Street Lighting 75.24 95.04 Debt Retirement TM Ijutiftfin For 1Nuieipal Purposes Excludes Debt Service Article 7, Section 8 of the Florida Constitution pro,i.:es that municipalities in the State may not levy ad valorem taxes in excess of ten mills upon the assc,scd %aluc of real estate and tangible personal property having a situs within the taxing cite, when the tax is being imposed to gencratc monies for municipal purposes. Taxes levied for the payment of binds are not. hove%er, limited by this ten mill maximum. For the fiscal years 1977-78 and 1978-74 the Cir,'s tax rate . exclusivc of that attributable to bonded maximum. Conscyuenth. %%hile the (it% is not limited in the taxes which indebtedness, reached the ten mill it may impose to discharge its bonded indebtedness, it may not generate additional re�cnues to meet increased annual operating expenses or to finance new construction b% increasing the tax rate. Tax Rate Per $1.000 of Assessed Valuations Fiscal fears Ended September 30, Fbcd Geaerai (Perneft Lighting Hydrant Cih_ Service Publicih Pensions Libraries Deb Service Total Yew 10.000 — — — — — 4.487 14.487 1979 10.000 — — — — — 3.200 13.200 1978• 1977 ... 5.683 .541 — .239 3.129 — 2.311 11.903 1976 5.553 .374 — 171_.521 — 2.311 10.830 1975 4.959 .24'_ — .304 3.064 - — _2.311 10.880 � ' The 1977-78 Mdlage Ordinance consolidated the Li_htin Cite. Puhh,:m an.l Pensions into the General Fund. Tax Levies Fiscal tears Ended September 30. Pineal General Lighting Debt yew O11eratiaR City Publicity Pensions Service Total 1979 $40.304,670 — — -- 51 ts.0,i4.7t r5 558.399.375 1978• 38,281,830 — — — 12.250,156 50.532.016 1977 .. 21.252,782 $2.023,184 S 893,791 Sl1,7u I.55 1042.4,4 44.513.789 ! 1976 19,973,772 1,345,253 015.076 9,067,869 8.312,513 39.314,483 1975 16,584,919 809,347 1,016,700 10,247,266 7,728,927 36,387,159 • The 1977-78 Millage Ordinance consolidated the Lighting City, Publicity and Pensions into the General Fund. 26 rk 'It�t GMKd Daerkdm ei Fiw W >reaelh m The City Charter requires the City Manager to submit a budget estimate not la September 30 of each fiscal year for the ensuing fiscal year. Each department preparl for review by the City Manager. The City Commission holds public hearings on required to adopt the budget not later than October 1 of such ensuing fiscal year. The City's budgetary funds (General, Special Revenue, and Debt Service F accrual basis of accounting, under which expenditures, other than interest on when the liability is incurred and revenues are recorded when received in cash i.e., measurable and available to finance the City's operations, or of a material normal time of receipt. The accrual basis is utilized (with minor exceptions) by The accounts, books, records and financial transactions of the City are audi independent certified public accountants. The opinions of such independent certifia included in the Annual Reports of the Director of Finance. During fiscal 1979, the City experienced difficulty with its accounting records, the relocation of computer facilities, as well as from changes both in its computer 11110 software. The City has made and continues to make substantial modifications to i and believes that it has substantially solved these problems. 27 ea.e..� Dank" d t+t■ndd P aeiees The City Charter requires the City Manager to submit a budget estimate not later than one month before September 30 of each fiscal year for the ensuing 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 is required to adopt the budget not later than October 1 of such ensuing fiscal year. The City's budgetary funds (General, Special Revenue, and Debt Service Funds) follow the modified accrual basis of accounting, under which expenditures, other than interest on long-term debt, are recorded when the liability is incurred and revenues are recorded when received in cash unless susceptible to accrual, i.e., measurable and available to finance the City's operations, or of a material amount and not received at the normal time of receipt. The accrual basis is utilized (with minor exceptions) by all other funds. The accounts, books, records and financial transactions of the City are audited annually by a firm of independent certified public accountants. The opinions of such independent certified public accountants are included in the Annual Reports of the Director of Finance. During fiscal 1979, the City experienced difficulty with its accounting records, primarily resulting from the relocation of computer facilities, as well as from changes both in its computer hardware and its computer software. The City has made and continues to make substantial modifications to its data processing system and believes that it has substantially solved these problems. tin the City and evidence financial information respecting d �` � i1Wtr The tables hereinbelow set forth present certain of its obligations. Geaeeal lFttt the financial capacity of the City respecting the payment Uaa■di4i Silelert eat of Rmemmits, Fxpmdbre4 Adad 1979 and FAdmi sled 1M Reveaaes and Expeodilares EMmoMd Geme al Food 117f 1ftN 1 Specid Tax Levy Funds REvENUEs: Taxes: and General Property Tax ................. $ 42,179,807 S 39,11 Penalties and Interest ................. — 27 Sand sad Iderest Redremst Fusels Business and Excise Taxes ............. 21,905,145 20,051 Fiscal year Ended September 30 64,084,952 59,43 1979 1977 �c of � ' ` A`n"t Licenses and Permits: Business Licenses and Permits .......... 3,015,600 3,76 Construction Permits ................. 1,243,723 1,0 Revenue: 4,259,323 4,79 Ad Valorem Taxes (Net)— General Operating Fund $ 42,179,807 $ 39, 116.411 S 36.996-79 I $ 14,0I 6,087 18,321,806 Intergovernmental Revenue: — Special Tax Levies Fund — 16,703,774 17,5-t7,315 11,819,882 8,32I,806 Federal Grants ...... ................ State Grants 1,039,000 13,455,371 13,88 Debt Service Fund Other .. ........................... Other Income— 58,6x9,883 54,073,641 62,649.592 57,900,999 15,346,871 16,53 Operating ... ............. Debt Service — 1,376.457 864.698 238,496 Intergovernmental Revenue: Debt Service Fund Balance 991,956 — — — Engineering Services .... 1,500,000 1 66 $122.5_, 5,129 $115,941,182 S1()x.371._'54 $ 97.225,759 Charges for Services: — —-------- Public Safety u........... ................ 1,689,157 48 Expenditures: General Operations $104,829,399 $ 97.985,196 S 93.71'_.t►n7 S 72,946,790 Recreation ........ ...... .......... Other 89,800 4,544,834 12 1,44 Special Tax Levy Fund ... — — — 15,959.621 — 6,323,791 2,06 Debt Service — Principal and Interest . ...... 17,695,730 17,121,745 1 i.87u'S'_ 13.516,195 Miscellaneous Revenues: 1,846,28 6,428 944 Other .... — 146,559 95.32u 437,473 - - _ — Interest ............................ Rents .......................... 84 SSZ M $S10'_.x60.079 122,525,129 S115?53,500 titll?;,67 7.579 _ Other .... . ............... . 3,125,184 561 Surplus of ( Deficiency of) Revenue , - t : 'F S t 5.6 34.32(1►' • • $ — S 687.68_ i 06.3_� 5,058,512 2,061 —~ over Expenditures ......... ... -- =-_=- - - = Total Revenues 96,573,449 86,55 • The 1980 Budget does not include the Operating Funs Baian:c as a resource hccausc the Cits did not Transfers from other funds ....... 8,255,950 10,46 feel it appropriate to estimate this figure in view of the difficult} it expericnccd %%ith its :,ccounung records Total Revenues and Transfers 104,829,399 97,01 during fiscal 1979. The City did include the Operating Fund B:rlan:e as it res, ur:c in hud:cts for prior EXPENDITURES AND ENCUMBRANCES: fiscal years. " 1978 Budget consolidated the General Operating Budget and the Specia' I as Lc� ic. Budget. General Government: Mayor and Commission ............... 278,962 259, '•• The deficiencies of revenue over expenses in 1978 and 1977 %%crc mainly in the dcht scr%ice funds. 983,913 78- 781 These deficiencies were offset by using accumulated fund balances front prier \cars. It should he noted that all I City Manager ....... City Clerk 406,264 240 debt service payments were met as scheduled in those cars. .. Management and Budget .. ........... 1,147,653 72Z Finance ...............•.........••• 1,426,929 1,471� Legal .. ......................... 823,002 707 Civil Service ........... ............ 148,714 195, Haman Resources ... . . . . . 1,086,019 767, Community Development .... 681,039 4 Conference Center ................. 1,182,067 12 Tourism and Trade ............. .... 700,424 1,161 Computers and Communications 2,388,119 3,362 11,253,105 10,24 (Continued on following page) 29 28 t ram ., r.41 (Sly d IMiad General Fasd Ummodbled SIMenesd of Revenum, sod Transfers Acted 1M ani FAdmslcd 1 FAd=Mbd 1rn-1�N REweNUES: Taxes: General Property Tax ................. $ 42,179,807 Penalties and Interest ................. Business and Excise Taxes ............. 21,905,145 64,084,952 Licenses and Permits: Business Licenses and Permits .......... 3,015,600 Construction Permits ................. 1,243,723 4,259,323 Intergovernmental Revenue: 039000 1,455,371 Federal Grants ...................... 13,852,,500 State Grants ........................ Other .. ..... ..... .............. 852__ 15,346,871 Intergovernmental Revenue: 1,500,000 Engineering Services ........ . Charges for Services: 1,689, 157 Public Safety ...................... 00 89,800 Recreation ..................... ---. - - - - - 4,544,834 6,323,791 isceilaneous Revenues: 1,086,900 Interest 846,428 Rents ......... ..................... _ _ _ 3,125,184 5,058,512 Total Revenues 96,573,449 Transfers from other funds 8,255,950 Total Revenues and Transfers . 104,829,399 EXPENDITURES AND ENCUMBRANCES: General Government Mayor and Commission . . ...... • ... 278,962 983,913 City Manager - I . ........ 426,929 M264 t anagement and Budge . .......... 1,147,653 1,426,929 Finance ............... ...._....,.. 823,002 IAPI Service civil ....... ................ 086,019 1,086,019 esources.. , .. 39 682,067 C, mmuo y Development ... 1,100,424 Coafaence Center ................. 700,424 Tourism and Trade ............ .... Computers and Communications.... 2,388,119 11,253,105 (Continued on following page) 29 t Adwl 1978-1rn $ 39,116,411 271,124 20,050,193 59,437,728 3,762,963 1,030,161 4,793,124 12,650,084 3,885,609 16,535,693 1,662,968 488,871 128,757 1,448,023 2,065,651 944,711 552,906 563,582 2,061,199 86,556,363 10,461,047 97.017.410 259,271 782,742 240,857 722,679 1,471,667 707,748 195,156 767,372 490,102 127,851 1,161,280 3,322,428 10,249,153 Adwl 1979-I9" 7 Mos. $42.180_076 11,109.027 53,289.103 3,171,939 285,272 3,457,211 7,944,321 710,449 8,654,770 _772.971 1.165.615 3ti.Ui3 --1,158.564 2,362.232 839 123,056 461.980 795,875 69,322,162 5,505,797 74,827,959 178,751 489,861 298,769 587,501 847,951 426,928 66,590 915,414 321,856 48,014 442,492 1,336,641 5,960,768 city of Walla C,eaeral Fmnd Umi'Med of Revenues, Egeaditares, Encumbrances and Transfers AchW ITM and Estiwsted 1980-4Coatinmedl Public Improvements: Public Works .... ........... ...... . Building Planning and Zoning Boards . . Public Safety: Police ... .... Fire Solid Waste Parks and Leisure Services Other: Employee Benefits Special Programs Miscellaneous Total Expenditures and Encumbrances Transfer to other funds Total Expenditures, Encumbrances and Transfers ... Deficiency of Revenues and Transfers over Ex- penditures, Encumbrances and Transfers . 1979-19" S 8,915,954 1,920.050 766.164 - 11.602,068 30,842.574 23,150,688 53,993,262 15,421,454 --6.852.598 2,304,511 1,144,313 865,458 4,314,284 103,436,771 1,392,628 104,829,399 REVENUE STmt CTCRE Actual 1978-1979 S 8.294.197 1.634.998 707.765 10.636.960 28.850.564 21.619.250 . ).469.814 14.31 1.787 6.6's.1 16 1,631.679 1,3_28.619 8'-h,431 3.786.7'9 96,0S2.559 1.902.637 97.985,196 967.786 Acted 1979-19ae 7 Mos. S 4,605,532 1,014,837 436.459 61056,828 16,157,202 12, 961.895 - 29.019,097 - 9.216,781 3,960,063 991,920 2,627,538 3,619,458 57,832,995 523,057 58.356,052 The following is a description of the City's revenue structure. See Appendix B for a detailed statement of revenues for the fiscal years ended September 30, 1978 and September 30, 1979. General amd Special Tax Levy Fmmds Ad Valorem Taxes —Described elsewhere in this Official Statement. Business License & Permits —The City levies a license tax for business privilege licenses which is collected by the City's Treasury Management Division. License taxes vary according to the type of business. The exceptions 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 each city 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. Utilities Service Tax —The City imposes a 10% tax on each purchase of electricity, metered gas, bottle gas, water and local telephone and telegraph services. The revenue is pledged for debt service on Utilities Service Tax Bonds. The excess over the debt service is transferred to the general fund.* • (See "Telephone and Telegraph Utilities Tax".) 30 Telepra.e Wd Telepapb Uwe. Tlz Fieeal Year 206i s"kaier 3l 1980 (Budgeted) ................ $ 1979 .......................... 5,274 1979 .......................... 5,257 1977 .......................... 4,63 1976 .......................... 4,49k 1975 .......................... 3,985 Federal Revenue Sharing —The revenues derived from the Federal Commission for various social service programs throughout the City as well as lire rescue service, recreation programs and the continuation of the City's federal revenue sharing funds since fiscal year ended September 30, 1973 are as f Fedwd Rean■e 51as1 Receipt Faecal Year Es" Sq*mb r 3e 1979 ........ ................ $ 8,248, 1979 .......................... 8,351,1 1977.......................... 8,89321 1976 .... ...... .............. 9,775 1975 .. ....... 9,935 1974 ........ ..... 8,075 1973...... ... .. .......... 10,3 60, Total received to date . $61,640 State Revenue Sharing —The revenues distributed to the municipalities State's revenue sharing program are derived from a percentage of its collect' State motor fuel tax, and the State road taz. The City has received the fo the State: _ Tow FAded Setae•ier 3e 1979 ....................... $11,561,3 1978 ....................... 11,005,4 1977 11,070,71 1976 ....... ............... 10,880, (see "proposed Bond Issues".) Fines and Forfeitures --The City receives a pro rata share of fine a County. Since the year ending September 30, 1976 the City has received County: Find Tow Fried Stood r 3e 1979 .......... $ 1.304,3 1978 1,299,50 ............... 1977 ....................... 1,125,30 1976 ....... ............... 1,162,5 Internal Service —There are five internal service funds that are self-su are derived from charges for services to other City Departments. These fu City Garage Fund. For purchase and maintenance of all heavy eq Motor Pool Fund. For purchase and maintenance of the automobile 31 Tdelia■e atttd TdepMpb UAW= T8Z Rya 1980 (Budgeted) ................ $ 6,202,722 1979 .......................... 5,274,287 1978 .......................... 5,257,913 1977 .......................... 4,632,457 1976 .......................... 4,498,147 1975 .......................... 3,985,362 Federal Revenue Sharing --The revenues derived from the Federal government are appropriated by the Commission for various social service programs throughout the City as well as the City's improvements to the fire resale service, recreation programs and the continuation of the City's pay plan. The City's receipts of federal revenue sharing funds since fiscal year ended September 30, 1973 are as follows: Federal Rirr a Sian■` Receills Fbal Yet rA" SgdMd er 3G 1979 .......................... $ 8,248,815 1978.......................... 8,351,251 1977.......................... 8,893,709 1976 ........... ............. 8,775,313 1975 .......................... 8,935,551 1974 .......................... 8,075,539 1973 .......................... 10,360,577 Total received to date ................... $61,640,755 State Revenue Sharing —The revenues distributed to the municipalities by the State of Florida under the States 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 taz. The City has received the following revenue sharing funds from the State: Fbeal Yet VA" &}seier M 1979 ....................... $11,561,380 1978 ....................... 11,005,477 1977 .................. .... 11,070,719 1976 ....................... 10,880,405 (See "proposed Bond Issues".) Fins and Fvrjeitures The City receives a pro rata share of fine and forfeiture revenue from Dade County. Since the year ending September 30, 1976 the City has received the following amounts from the Canty: Foal Yet FAMI SeMeeier 3O 1979 ....................... $1,304,381 1978 1,299,509 ....................... 1977 ....................... 1,125,302 1976 ....................... 1,162,587 internal Service —There are five internal service funds that are self-supporting because their revenues an deffived from charges for services to other City Departments. These funds and their uses arc: Cfry► (,argre Fund: For purchase and maintenance of all heavy equipment used by the City. 3 Motor pool Fund. For purchase and maintenance of the automobile fleet. 31 VA i i t Maintenance property Fund: For regular building maintenance, and a limited amount of building alterations and additions, print Shop Fund: For all of the City's printing needs. 1 items consumed in quantity in the Stationery Stock Fund: For purchase and storing of office supply City's operations. rtin activities which render Enterprise Funds —Monies for these funds are generated by self-suppo g services on a user charge basis to the general public and contributions from the general fund. These activities include operation of the Convention Center -Garage, Orange Bowl Stadium. ndcu end warehousetproperty hin Miami Baseball Stadium, various marinas, Dinner Key Auditorium, g € floats for the annual Orange Bowl parade are built and stored. Cky 111=9 a Flimb The City has two separate pension funds, the Retirement System (Prlice and Firemen) which went into effect on February 1, 1940 (the "System' or "Retirement System") and the Retirement Plan (General , Employees) which went into effect & Co., Wash 56 n, D.C. and for Rthe r Retirement System, m, the actuary y for the Retiirement Plan is E. H. Friend Alexander & Alexarhdcr, Atlanta, Georgia. With respect to the System and the Plan, the principal actuarial assumptions are: (1) As to funding method: System —Entry Age Normal Cost Method with Frozen Initial t.iabilit} modification. Plan —Entry Age Normal Cost Method, modified to result in level funding by City as a per- centage of payroll, taking into account lower Cit% costs for employee, hired after October 1, 1974. (2) As to interest rate: System and Plan-7%. (3) As to assets: System and Plan —Market Value taken into account to some degree (5-year average). (4) As to retirement age:_ System and Plan have adopted, as of October 31, 1979, the use of probabilities by age, rather than a single retirement assumption. Prior to October 31, 1979, the System used age 53 and the Plan used age 62. Membership in the System or the Plan is compulsory for classified employees, optional for unclassified employees and not open to temporary employees. The City's contribution is determined annually by the Cite Commission. The Board of Trustees of the Retirement System and the Retirement Plan provide the City with a certificate of the recommendations of actuaries based upon the assumptions adopted by each Board. The Boards take the position that the City is required to contribute the amounts so certified. The two actuaries determine pension benefits to reflect cost of living adjustments for all retirees. Also, they calculate separate cost studies whenever new benefits arc being considered. 'Through December 1976, the Retirement Systcm and the Retirement Plan were reported on a calendar year basis. The City's required contribution was made on a fiscal year basis, commencing October 1st. Subsequent to January 1977, the Retirement System and the Retirement Plan began reporting on a fiscal year basis. 'lbe table below sets forth in summary form certain essential data respecting both the Retirement Plan and the Rettirernent System for the calendar years 1973 through 1976 inclusive, and for the fiscal years ending September 30, 1977, 1978 and 1979. The unfunded liability reflected was determined upon the basis of data as of jattniary 1st of each year. For the year 1979-1980, the unfunded liability was determined with data as of jaooary 1, 1979 for the System, and October 1, 1978 for the Plan. 32 Cky P1__9 F=6 Fi■sUN Deb for P1101ee P11= C �iN Udrid ( Bob) Fiscal Year FA ft September 30, 1979 Miami Employees' Retirement System ... $10,960,543 $ 89,741,198 Miami Employees' Retirement Plan ..... $ 4,452,053 $ 72,010,327 $15,412,596 $161,751,525 September 30, 1978 Miami Employees' Retirement System*** $10,400,013 $ 81,000,000 Miami Employees' Retirement Plan** ... $ 3,309,064 $ 56,000,000 $13,709,077 $137,000,000 September 30, 1977••• Miami Employees' Retirement System ... $ 6,229,299 $ 81,177,566 Miami Employees' Retirement Plan ..... $ 2,465,716 $ 46,290,391 Total ...................... $ 8,695,015 $127,467,957 CWWkd r Year Eoft December 31, 1976 Miami Employees' Retirement System ... Miami Employees' Retirement Plan ..... $ 6,527,501 $ 3,097,787 $ 90,554,826 $ 54,652,564 Total ...................... $ 9,625,288 $145,207,390 December 31, 1975 Miami Employees; Retirement 61 56,203,346 Miami Employees Retirement Plan. ... $ 2,936, 83 $ Total ...................... $ 8,121,651 $145,480,107 December 31,1974 Miami EmpkyeW Retirement System $ 4,271,823 $ 99,000_000 Miami Employees' Retirement Plan ..... $ 1,786,752 Total ...................... $ 6,058,575 $ 99,000,000 December 31,1973 Miami Employees' Retirement System ... $ 2,800,408 $ 65,000_000 Miami Employees' Retirement Plan ..... $ 1,842,092 Total ................ ..... $ 4,642,500 $ 65,000,000 • Earnings for Plan and System were combined prior to 1975. In 1975 all d transferred to Plan. •• Figures adjusted to include Cost of Living increase to retirees. • • • For the nine months ended September 30, 1977. The fiscal year was changa thaafta• The anticipated aggregate contribution for the fiscal year ending September 30, 19 by $5,672,119. The City Commission has adopted a policy limiting the increase to 5 the fiscal y� ending September 30, 1979. The Trustees of the Retirement Plan have sued the City to force it to�Ve� a y the motion to828 rdismiss (Seease. Thew e "Contingeits are pres o n the City, Paul, Landy dt Beiley 33 aly heir Fri rOOKil Dad for Ptmian Ph= BemdbpmtL Cirhn ( Uohm" bK101110i Employee Employee Lterest �) � VA11Wkswals CaONIV dioo Ear,11+1s Heal Yew Ea ft September 30,1979 Miami Employees' R�etinement System ... Miami Employees' Retirement plan ..... $10,960,543 $ 4,452,053 $ 89,741,198 $ 72,010,327 $ 7,450,813 $ 6,887,022 $2,358,418 $2,579,139 $5,353,645 $4,027,786 $15,412,596 $161,751,525 $14,337,835 $4,937,557 $9,381,431 September 30, 1978 Miami Employees' Retirement System' $10,400,013 $ 81,000,000 $ 6,364,922 $2,346,232 $3,007,515 Miami Employees' Retirement Plan** ... $ 3,309,064 $ 56,000,000 $ 6,198,957 $2,462,769 $1,885,234 $13,709,077 $137,000,000 $12,563,879 $4,809,001 $4,892,749 September 30, 1977 * * * Miami Employees' Retirement System ... $ 6,229,299 $ 81,177,566 $ 4,182,323 $1,791,842 $3,033,058 Miami Employees' Retirement Plan ..... $ 2,465,716 $ 46,290,391 $ 4,377,429 $1,888,139 $2,344,190 Total . . ...... . ............. $ 8,095,015 $127,467,957 $ 8,559,752 $3,679,981 $5,377,248 Calendar Year Fidi■t December 31,1976 Miami Employees' Retirement System ... $ 6,527,501 $ 90,554,826 $ 4,876,775 $2,339,785 $2,974,713 Miami Employees' Retirement Plan ..... $ 3,097,787 $ 54,652,564 $ 4,706,876 $2,563,735 $2,215,597 Total ...................... $ 9,625,288 5145,207,390 $ 9,583,651 $4,903,520 $5,190,310 December 31,1975 Miami Employees' Retirement System ... $ 5,184,668 $ 89,276,761 $ 4,468,664 $2,192,304 $2,555,907 hllud Employees' Retirement plan ..... $ 2,936,983 $ 56,203,346 $ 3,862,404 $2,463,447 $2,018,482 Total .................. $ 8,121,651 $145,480,107 $ 8,331,068 $4,655,751 $4,574,389 December 31,1974 Miami Employees' Retirement System ... $ 4,271,823 1,786,752 $ 99,000,000 — $ 4,483,326 $ 2,667,295 $2,187,051 $2,027,594 $4,571,531 Miami Employees' Retirement plan ..... $ Told ... . ............ $ 6,058,575 $ 99,000,000 $ 7,150,621 $4,214,645 $4,571,531 December 31,1973 Miami Employees' Retirement System ... $ 2,800,408 $ 65,000,000 $ 3,914,596 $1,789,515 $3,212,809 Miami ems' Retirement plan ..... $ 1,842,092 $ 2,749,837 $1,705,526 Total ............ ......... $ 4,642,500 $ 65,000,000 $ 6,664,433 $3,495,041 $3,212,809 * Earnings for plan and System were combined prior to 1975. In 1975 all General Employees were u=daTed to Plan. *• Figures adjusted to include Cost of Living increase to retirees. *** For the nine months ended September 30, 1977. The fiscal year was changed to end September 30, dw=dW. Theandcipatedate contribution for the fiscal year ending September 30, 1980 was projected to rise by $5,672,119. The City Comm has adopted a poles' limiting the increase to 5% of the contribution for tW meal year ending September 30, 1979. The Trustees of the Retirement Plan and the Retirement System hm sued the (Sty to force it to pay the $4,200,828 increase. These suits are presently pending. Counsel for dw City, pod, Laody & Be;ky have entered a motion to dismiss. ( See "Contingent Liabilities'.) 33 r RIISR MANAGEMENT )k became apparent through past experience that measures had to be taken to halt the spiraling costs of insurance premiums. A charter amendment was successfully voted on 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 is a Self -Insurance Committee, appointed by the City Manager, to administer the plan. The City is self -insured for all vehicular accidents, Police Torts and Premises Liability up to $50,000 per accident and $100,000 per occurrence in accordance with Florida Statutes, Section 768.28, waiving sovereign immunity in tort claims. The City of Miami is self -insured for all other exposures with the exception that coverage by outside insurance purchase is made where it is found available at acceptable rates. Coverages currently purchased include accidental death and property damage, excluding burglary. Group Life and Accident Disability and Death benefits have been purchased. Group Health benefits are self -funded. CONTINGENT LIABILITIES (a) Board of Trustees v. City of Miami, Case No. 79-395 EX (Circuit Court, I Ith Judicial Circuit, Appellate Division, Dade County, Florida); Board of Trustees v. City of Miami, Case No. 79-396 EX (Circuit Court, 11 th Judicial Circuit, Appellate Division, Dade County, Florida) : The Board of Trustees of the Miami City General Employees' Retirement Plan ("Plan") and the Board of Trustees of the Miami City Employees' Retirement System ("System") have each filed a Petition for a Writ of Mandamus, seeking to require the City to contribute a total of an additional $4.2 million over and above the amount actually appropriated by the City for the fiscal year 1980 as its contribution to the Plan and System. The Plaintiffs in each action contend that the City is required to contribute the amount that the Pension Boards certify in accordance with the Actuarial Reports prepared for the Boards. The Plaintiffs contend that the amount appropriated for fiscal 1980 by the City falls short of the amount certified, and these two actions seek to require the City to appropriate an additional $4.2 million. In Case No. 79-395 EX, the City has moved to dismiss the Petition on the grounds that, as a matter of law, the City's Pension Ordinance provides the City Commission with discretion as to funding the pension trust funds. It is the Citys position that it was fiscally sound to limit its budgeted contribution, that the budgeted amount is actuarially sound, and that the City is not automatically required to appropriate and contribute the amount certified by the Pension Boards because to do so would constitute a default of the City Commission's responsibility for government of the City. The Court has not as yet ruled on the City's Motion to Dismiss the Petition. In Case No. 79-396, the City is not yet required to respond to the Petition. It is anticipated, however, that Case No. 79-396 will be consolidated with Case No. 79-395, that the City will assert the same position in the latter case as it has asserted in the former, and that both cases will be decided at the same time. (b) Gates v. City of Miami is a class action on behalf of present and former employees of the City seeking to require the City, for the years 1957-1975, to retroactively make additional deposits to its pension plans totalling $22,860,393.00, plus interest.' The Plaintiffs claim that the City levied property taxes for ' The Complaint prays for an award of interest in an unspecified amount. If the plans are successful on all Counts, interest, if awarded, could aggregate as much as $8 million. The Court may or may not award interest. Summary judgment on liability has been entered against the City on two of the seven counts of the Gates Complaint, upon a finding by the Court that tax revenues for pension or relief purposes were improperly used by the City to pay off two judgments against the City and for contributions toward workmen's com- pensation obligations. Though judgment has not been rendered on the issue of damages, Plaintiffs seek damages on these counts in the amount of $2.2 million, plus interest. The City has filed an interlocutory appeal from the Court's ruling on the two counts as to which summary judgment was granted. In response to the plaintiffs' motion for summary judgment as to liability on two additional counts, the Court stayed decision of this motion pending the Appellate Court's determination of the City of Miami's interlocutory appeal of the previously entered summary judgment. 34 "pension or relief" purposes and was required to, but did not, deposit all such rev Instead, a portion of these tax monies was used for the City's social security con portion of premiums on group health and fife insurance policies, and payment of cases, the City's workmen's compensation obligations, and reimbursement to expenses. The City maintains that its allocation of the monies collected pursuant for "pension or relief" purposes was proper. (c) City of Miami v. FEC. The City is involved in a "Quick Take" E 32.64 acres of bayfront land owned by the Florida East Coast Railway Com located in Downtown Miami, between N. W. 6th and N. W. 9th Streets, and Boulevard. In March, 1978, a Trial Court entered an Order of Taking and an to said property in the City, subject to a Stipulation entered between the parties. I of Taking, and the Stipulation, the City deposited $14,500,000 of certificates of On March 30, 1978, FEC and certain other defendants appealed. On June 12, 1 of Appeal issued its opinion affirming the Order of the Trial Court. The FEC ask Third District Court of Appeal which was denied, and FEC filed both a Notice Certiorari in the Supreme Court of Florida which was denied. The case is presen of valuation. (d) Other Pending Actions. With respect to pending tort actions for which reserves have been set aside as follows: There are presently 104 claims pending, involving various types of automobile acc� ing all Departments of the City. These claims have been recorded and reservl Insurance Fund, including the Rosen Case of $400,000 The City is involved in 63 police civil liability matters which have been recorded the Self -Insurance Fund The City is involved in 156 general liability matters of various types which have be the Self Insurance Fund Group Insurance claims processed in September by City's Claims Administrator to the City are accrued in the City's Self Insurance Fund • .1 TOTAL ......... ......... ...I In the opinion of the City Attorney, there is no pending litigation that may effect on the financial condition of the City of Miami, other than the claims and have been budgeted by the City. DADE COUNTY Goverrrrat of Dale Coaw/y The following information and data concerning Dade County are relevant to, of the City's status as the largest municipality in Dade County. A constitutional amendment designed to give a new form of government to 1 by the Florida Legislature in 1955 and by the voters in a state-wide general e) A Dade Charter Board was constituted and in April, 1957 it completed a draft I The proposed charter, which established a form of Metropolitan County governmq election in May, 1957 and became effective on July 20, 1957. The electors power to revise and amend the charter from time to time by county -wide vote. has been amended in 1961, 1962, 1963, 1966, 1967, 1969, and 1972. The rule powers subject only to the limitations of the Florida Constitution and ge is, in effect, a municipality with governmental powers effective upon the twenty - the unincorporated areas. It has not displaced nor replaced the cities, but supple take over particular activities of a city's operations (1) if the services fall bel the County Commission, or (2) with the consent of the governing body of the cit 35 "pension or relier pntpotes and was required to, but did not, deposit all such revenues into the pension funds. Imwd, a portion of these tax monies was used for the City's social security contributions, the City's required portion of prrmioms on group he" and life insurance policies, and payment of judgments on pension -related cases, the City's workmen's compensation obligations, and reimbursement to the City of pension -related expenses, The City maintains that its allocation of the monies collected pursuant to its levy of property taxes for "pension or r liei" purposes was proper. (c) City of Miami v. FEC. The City is involved in a "Quick Take" Eminent Domain action to acquire 32.64 acres of bayfront land owned by the Florida East Coast Railway Company (FEC). The property is located in Downtown Miami, between N. W. 6th and N. W. 9th Streets, and bounded on the West by Biscayne Boulevard. In March, 1979, a Trial Court entered an Order of Taking and an Order of Necessity, vesting title to said property in the City, subject to a Stipulation entered between the parties. In accordance with the Order of Taking, and the Stipulation, the City deposited $14,500,000 of certificates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. On June 12, 1979, the Third District Court of Appeal issued its opinion affirming the Order of the Trial Court. The FEC asked for a rehearing before the Third District Court of Appeal which was denied, and FEC filed both a Notice of Appeal and Petition for Certiorari in the Supreme Court of Florida which was denied. The case is presently awaiting trial on the issue of valuation. (d) Other Pewdim Actions. With respect to pending tort actions for which the City may have liability, reserves have been set aside as follows: There are presently 104 claims pending, involving various types of automobile accidents, includ- ing all Departments of the City. These claims have been recorded and reserved in the Self- $ I ,063,717 Insurance Fund, including the Rosen Case of $400,000 The City is involved in 63 police civil liability matters which have been recorded and reserved in 876,495 the Self-Inwnnce Fund ............................. . The City is involved in 156 general liability matters of various types which have been recorded in 445,931 the Self Insurance Fund Group Insurance claims processed in September by City's Claims Administrator but unreported 345,850 to the City are accrued in the City's Self Insurance Fund .... . . .. ..... . Torn[. $2,731,993 In the opinion of the City Attorney, there is no pending litigation that may have any materially adverse effect on the financial condition of the City of Miami, other than the claims and actions above, all of which have been budgeted by the City. DADE COUNTY Gwerretit ui Dab C NOY The following information and data concerning Dade County are relevant to the City of Miami by reason of the City's status as the largest municipality in Dade County. A constitutional amendment designed to give a new form of government to Dade County was approved by the Florida Legislature in 1955 and by the voters in a state-wide general election in November, 1956. A Dude Charter Board was constituted and in April, 1957 it completed a draft of a charter for the County. The proposed charter, which established a form of Metropolitan County government, was adopted in a county lion in May, 1957 and became effective on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time to time by county -wide vote. Since its adoption the charter has been amended in 1%1, 1%2, 1%3, 1966, 1967, 1969, and 1972. The County now enjoys home rule Pin subject only to the limitations of the Florida Constitution and general state laws. The County is, in cfect, a sty with governmental powers effective upon the twenty-seven cities in the County and the unincorporated areas. It has not displaced nor replaced the cities, but supplements them. The County can tAe Ova PardCular activities of a cityPs operations (1) if the services fall below minimum standards set by Cow, or (2) with the consent of the governing body of the cityGle County 35 I rE Gn.�f its itw'tptian. the Metrapolitan Count, Government has assumed respc,ns'bliit% on a County-ttvide 1+acts faT a number o; fan:tians. Including a Count)--wlde P01t�c s�srem. cf:mrlemrnt!ng the municipal W-ith ire:; access W the Nanuna! Cr:nee I^fvrmatton Center ie pa11,r centers within the muni:t{+allttec. unic , _ s,e.r of fir: protection. COmpio- Wachington. I) C arse the Flanda Crime Intorr at:; r. Center: a ,Ws. rm menting the muni:im. lire promcnon Service- A-,,*h,,n ten mt;:1:::pai1L'e5 and �.rr ::(f:ng fU" CfiuCe fire protection .' n..,:;,- :he:r fre del an^ eats u tl: :he Cotm;�•�s fire depart- w'hlcl. have ' fa: •fventeer. municli+all:ics :• .` �� r.f A t'IC Florida Statutes c, rl'rm" c :o :he re'• Sr thority rrie :.,nv�l+date: M. -tic; sra;:r- - Sewer Au c :']e �f' Da'�C C :,:: zrr whti1, became effect:%r or. )anuar� 1. :� _ .:rC :;:... `T - s:err, under a single WitT thf rcit��na ill:. '..: d vO,%ring an,:::� ( _. _.,ordination of the p C rip,;, transit system; . ';•I: �urfa:, tran.z` a r. , F _� : !%encg:ment. regula- ccn:r:, .:-,afh. ,n:m.:, n^ .,. .�...... uC... ins •. � - - i!r,z eighteen mtmi- Vor -v al. Ulvcat-^ wither the C aline%. .- :. ^1'.1e. - .:€ `:^�-four county- t-, Iltir„r� ,,, fr - ?- ...:;e. :\ data mal,t•e...• hi: T..,rc:... thf malr. f u-nisning of :h: ^ua DTepaIaLOII ,• Puhh, ins:'uc:1, r �. :�; 3i, _.c .._ '' g='. is muni:Inaiar:.. R.,ar:. ." __ _ ., ,._:x of all taxes an.. fog ther:-cav�.t'.�r :. _ _-. •c '10. ieVies; and :hf t - .,mm!ssioners and the ,, m a: c; nt:, if - _ _ ._c_•rr"n: ^Ll,autg and zon- ing. c, r.-umc. h.:alth. hoii,inc Vic. ]nwd iw�tr� - - . ,nt U IM c MOM :'I: ....ila- econoauc �•, n C: ,,n.�:T1 �: major f,,r:cs lh: C,�unt' •> attr.;: , .: .. ., .. - __'n�ml. base. h: :. ,. .... tn.. State, iladc : our." ha.. ,L mor, thar.:wa;. a, ❑lar. :mni, �„ ,:. , ... The tea largest private employers in the County are: Eastern Air Lines .................. 1 Southern Bell Telephone Co........... 10,1 National Air Lines Co. .............. 5 Southeast Banking Corp . .... ........ 5,2 Burdines 4,8 University of Miami 4, Florida Power & Light Co. .... ...... 4, Sears 3,0$ Delta Air Lines 2,70 Mount Sinai Medical Center ...... 2,46 Adding to the County's diversified economic base is its growth as the loc� international firms doing business in Latin America. Among firms having sue County are such corporations as Dow Chemical Company, Gulf Gil Corp., Ott American Hospital Supply Corporation, Coca-Cola International Corp., and Oq, sidiary of Rohm & Haas Co. Other national firms which established international 4 in Dade County are Alcoa International, Ltd.. Atlas Chemical Industries, Inc., Beq Dymo Industries, Inc., International Harvester Co., Johns -Manville InternatioW Export, Inc., Pfizer Latin American, Royal Export and United Fruit Co. United 0 Per Capin Personal income Dade County and Other Areas 1973 U.S.A. 5,023 Southeast 4,308 Florida 5,041 Miami area 5,862 Miami./USA 1.17 SOURCE: Dade County Planning Department. (Greater Miami) 1rf4 1975 5,486 5,903 4,740 5,054 5,406 5,640 6,375 6,455 1.16 1.09 Average Labor Fate Saat,oary 1975 1976 Civilian Labor Force 691,000 672,000 Employment ... .......... .... 613,000 609,000 Unemployment .. .. 78,000 63,000 Unemployment Rate ... 11.3% 9.4% ' As of April 1979. SOURCE: Florida Department of Labor and Employment Security. ,"7 681,700 621,100 60,600 8.9% A significant factor of the Dade County economy is its agricultural prod Florida in the production of limes, avocados, mangos, tomatoes and pole beans climate allows crops to be grown and harvested during winter months. An averal dollars of agricultural products are produced annually, with a total retail value at approximately 300 million dollars. In addition, millions of dollars are generata and distribution of these products. 37 tan County Government has assumed responsibility on a County -wide Since its inception, the Metropolitan lice system, complementing the municipal service basis for a number of functions, including: iraCt County-wide to the National Crime Information Center is police services within the municipalities, stem of fire protection, compk- Washington, D.C. and the Florida Crime Information Center; a uniform �ovidin full service fire protection meeting the municipal fire protection services within ten municipalities and p . th the County's fire 8 _ for seventeen municipalities which have conforming ngh in ire revision departments w, V �o meat; a consolidated two-tier court system Statuft which became effective on January 1, 1973; creation of the Miami -Dade County Water and Sewer Au dxirity with the responsibility for developing and operating a County -wide water and sewer system under a single Board of County Commissioners; coordination of the body composed of seven members appointed by the f a unified rapid transit system; various surface transportation programs and planning for the development o installation of a central traffic control computer system which will computerize traffic management; regula- tion of all taxicabs within the County; a combined public library system of the County and eighteen muni- cipalities, which operates the main library, seventeen banchest and colleintobile u its serving data county- wide locations; centralization of the property appraiser of budget to municipalities, Board of Public Instruction and several state agencies for the purposege pm1miration and for their respective governmental operations. collection by the Dade County Tax Collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies; and the prescription of minimum acceptable standards adopted by the Board of County Commissioners and enforceable throughout the County in such areas as environmental resources management, building and zon- ing, consumer protection, health, housing and welfare. l wbieu and im bslry Dade County in recent years has begun to shift from a tourist -oriented economy to one with a more varied economic base. While the County's share of Florida's tourist trade remains one of the major economic forces, the County's attractiveness as a residential area to skilled labor and its selection as the site for major and smaller light industrial activities have combined with tourism to pTod1i,:e a more diversified economic base. Dade County, in addition to being Florida's tourist capir.11, is also the industrial having more than twice as many employed in manufacturing as an} other count% in the State. 36 center of the State. The ten largest private employers in the County are: Eastern Air Lines .................. 12, Southern Bell Telephone Co........... 10, National Air Lines Co. .............. 5, Southeast Banking Corp. ............. 51 Burdines .......................... 4, University of Miami ................ 4, Florida Power & Light Co. .... ...... 4, Sears ............................. 3, Delta Air Lines ................... 2, Mount Sinai Medical Center ...... 2, Adding to the County's diversified economic base is its growth as the international fume doing business in Latin America. Among firms having County are such corporations as Dow Chemical Company, Gulf Oil Corp., American Hospital Supply Corporation, Coca-Cola International Corp., and 00 sidiary of Rohm & Haas Co. Other national firms which established international i in Dade County are Alcoa International, Ltd.. Atlas Chemical Industries, Inc., Beq Dymo Industries, Inc., International Harvester Co., Johns -Manville Internatiorq Export, Inc., Pfizer Latin American, Royal Export and United Fruit Co. United i Per Capita Persomal Income Dade County and Other Areas 1973 1974 1975 U.S.A. 5,023 5,486 5.903 Southeast 4,308 4,740 5,054 Florida 5,041 5,406 5,640 Miami area 5,862 6,375 6,455 Miami/USA 1.17 1.16 1.09 SOURCE: Dade County Planning Department. Average Labor Force S�y (Greater Miami) 1975 1976 1f" Civilian Labor Force 691,000 672,000 691,700 Employment .. 613,000 609,000 621,100 Unemployment .... .... ... 78,000 63,000 60,600 Unemployment Rate 11.3% 9.4% 8.9% • As of April 1979. SOURCE: Florida Department of Labor and Employment Security. Avkvftme A significant factor of the Dade County economy is its agricultural pros Florida in the production of limes, avocados, mangos, tomatoes and pole beans climate allows crops to be grown and harvested during winter months. An avers dollars of agricultural products are produced annually, with a total retail value at approximately 300 million dollars. In addition, millions of dollars are generate and distribution of these products. 37 Tyre Iles lard private employers in the County are: Eastern Air Lines .................. 12,500 Southern Bell Telephone Co........... 10,158 National Air Lines Co. .............. 5,300 Southeast Banking Corp. ............. 5,285 Burdines .......................... 4,890 University of Miami ................ 4,805 Florida Power & Light Co. ... ....... 4,398 Sears ............................. 3,059 Delta Air Lines .................... 2,700 Mount Sinai Medical Center ...... 2,407 Adding to the County's diversified economic base is its growth as the location for many national and international firms doing business in Latin America. Among firms having substantial properties in Dade County are such corporations as Dow Chemical Company, Gulf Oil Corp., Owens-Corning Fiberglas Corp., American Hospital Supply Corporation, Coca-Cola International Corp., and Ocean Chemicals, Inc., a sub- sidiary of Rohm & Haas Co. Other national firs which established international operations or office locations in Dade County are Alcoa International, Ltd., Atlas Chemical Industries, Inc., Bemis International Sales Corp., Dymo Industries, Inc., International Harvester Co., Johns -Manville International Corp., Minnesota (3-M ) Export, Inc., Pfizer Latin American, Royal Export and United Fruit Co. United Brands Co. Per Capita lersmw Iaccme Dade County and Other Areas 1973 1974 I975 1976 I977 U.S.A. .... ............. .... 5,023 5,486 5,903 6,441 7,026 Southeast 4,308 4,740 5,054 5,544 6.057 Florida . . ....... 5,041 5,406 5,640 6,108 6,697 Miami area 5,862 6,375 6,455 6,931 7,755 Miami/USA ... ..... ....... - 1.17 1.16 1.09 1.08 1.10 SOURCE: Dade Canty Planning Department. Average Labor Forte Son my (Greater Miami) tars 1976 ><�n urn v»• Civilian Labor Force ... .... . 691,000 672,000 681,700 688,034 697,500 613,000 609,000 621,100 639,847 650,800 FApbyt 78,E 63,000 60,600 48,187 46,700 Unemployment ................. Unemployment Rate . - ....... 11.3% 9.4% 8.9% 7.0% 6.7% • As of April 1979. Florida Department of Labor and Employment Security. A t factor of the Dade County economy is its agricultural production. Dade County leads Florida in the PLOn of limes, avocados, mangos, tomatoes and pole beans for fresh market. The mild cloaft allows dogs to be tin and harvested during winter months. An average of more than 100 million dollars of agricultural productsPare produced annually, with a total retail value of these products estimated at aPP 300 million doilam In a"dou, millions of dollars are generated each year in the marketing surd direr at these products' 37 a Flnaneial6MiMMias There are approximately 70 commercial banks located in Dade County which together have a total of over $7,000,000,000 in deposits. Aggregate savings deposits in Dade County savings and loan institutions exceed $10,500,000,000. Dade County continues to grow as an international financial center. This has resulted from location in the County of such major northern and western banks as Bank of America, Bank of Boston,CO., Chase Manhattan Bank, Citizens and Southern Bank, First National City Bank, Irving Trust Co., Northern Tout Co. and The Wells Fargo Bank. The Federal Reserve System has located a branch office in Dade County to assist the Atlanta office with financial transactions in the South Florida area. Such branch received full branch status on July 1, 1975. The Federal Reserve Edge Act amendment, adopted in 1919, permits banks to open international banking subsidiaries outside their home states. There are 13 major overseas Edge Act banks that have moved to Miami. FAnculim Dade County provides educational facilities at the primary, secondary and college levels. Colleges and universities located within the area are: University of Miami Miami -Dade Community College Florida International University Barry College Biscayne College Public school enrollment, including both primary and secondary levels, since 1971 is as follows: School EovRo cut ftMk School System 1975 243,444 1976 239,806 1977 ... 235,123 1978 228,592 1979 226,155 11fedeal Faerftles There are approximately 42 hospitals located in Dade County. The Miami area is known for its sailing, deep sea fishing and hunting in the Everglades. Athletics for the spectator sportsman include professional football, baseball and basketball competition, university competition, open golf tournaments, and professional exhibition games. There are approximately twenty public and eight private golf courses in Dade County. There are approximately 297 public parks and pla%erounds which have a total area of approximately 408,710 acres in Dade County. Tend= Tourism is, and will be for the near future. an important economic force in both the Countv and the City as a result of the combination of favorable climate, together with excellent recreational opportunities— dleatM ballet, symphony orchestras, famous entertainers. parks, public beaches, yacht basins, fishing, golf, outstanding restaurants, racing, spectator sports, historic sites, and other land and water recreational facilities. 38 h iwelws Data which reflect the growth of the economy of Dade County since 1950 are table. Growth Fadm Reladve to Dole Comity, Fkdb Water Numdm Cone llim KWH Tekpbm3 of Mites et Sam cows eeid Retdemd Is v Year Wa6w Mdm Ga/aas f ews) Caelemm Cadreown Se"ke 1975 ..... 122,870 69,437 12,416,964 53,334 494,269 1,235,015 1 1976 ..... 126,500 70,770 12,388,600 55,200 511,900 1251,390 1 1977 ..... 130,500 71,774 13,032,900 57,600 537,200 1.328,413 1, 1978 ..... 145,000 72,409 13,060,000 59,500 546,000 1,368,634 1. 1 1979 ..... 167,000 76,363 14,280,000 62,400 572.100 1,472,631 SOURCE: Economic Society of South Florida. UNDERWRITING The Underwriters have jointly and severally agreed, subject to certain cult to purchase the Bonds from the City at an aggregate discount of S f prices set forth on the cover page of this Official Statement. The Underwriters w all such Bonds if any such Bonds are purchased. The Bonds may be offered and eluding Underwriters and other dealers depositing such Bonds into investment t such public offering prices, and such public offering prices may be changed, from writers. The representative of the Underwriters is Smith Barney, Harris Upham & VALIDATION OF THE BONDS The Circuit Court in and for Dade County entered a final judgment validatin 1979. Such judgment was appealed to the Supreme Court of Florida and affir LITIGATION No litigation is pending or threatened in any court, questioning the official title of the officers thereof, or the validity of the Bonds, or to restrain or enjoin the Bonds or the validity of the Hotel Agreement, TC Agreement, or the Universi of the City to pledge Net Revenues from the Convention Center -Garage and to pay of pending litigation affecting the City, see Contingent Liabilities on p. 34. TAX EXEMPTION In the opinion of Messrs. Brown, Wood, Ivey, Mitchell & Petty, interest on Federal income taxes under existing statutes and court decisions and from taxation uq Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Stattl profits on debt obligations owned by corporations, banks and savings association APPROVAL OF LEGAL PROCEEDINGS All of the legal proceedings in connection with the authorization and issuance the approval of Messrs. Brown, Wood, Ivey, Mitchell & Petty of New York, New Y of the unqualified, approving opinion of Bond Counsel will be delivered with the with regard to the City will be passed on by George F. Knox, Jr., City Attorney. BI 39 3 Mialtiraa� Data wr6ich reflect the growth of the economy of Dade County since 1950 are presented in the following table. Crrr v& Fades Relalive M Dale Cm*, Filorift i Warr FJeckkity tf er deli Caa�sseLl Reddealiat bsees Tele InVeriek mew Past Oiee Saks Tax Colleclioas Year WaterMs1aa Gallons (SM) C Crshnees Service RecdPb tows) 1975 ..... 122AM 69A37 12,416,%4 53,334 494,269 1,235,015 1,040,047 $ 71.088,591 $218.347 1976 ..... 126,500 70,770 12,3E8,600 55,2W 511,900 1,251,390 1,200,212 78,907,661 224,801 1977 ..... 130,500 71,774 13 032,900 57,600 537,200 1,328.413 1,269.632 77.379,596 259,119 IM ..... 145,000 72,409 13,060AW 59,500 546,000 1,368,634 1,081,224 99,873,395 298,386 366,670 1979 ..... 167,000 76,363 14,280,000 62,400 572,22W 1,472,631 1,058,734 111,173,015 Sousm: Economic Society of South Florida. The Underwriters have jointly and severally agreed, subject to certain customary conditions to closing, to purchase the Bonds from the City at an aggregate discount of $ from the initial public offering ptiices set forth on the cover page of this Official Statement. The Underwriters will be obligated to purchase alI such Bonds if any such Bonds are purchased. The Bonds may be offered and sold to certain dealers (in- cluding Underwriters and other dealers depositing such Bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Under- writers. The representative of the Underwriters is Smith Barney, Harris Upham & Co. Incorporated. VAJUDATION OF THE BONDS The Circuit Court in and for Dade County entered a final judgment validating the Bonds on October 22, 1979. Such judgment was appealed to the Supreme Court of Florida and affirmed on January 24, 1980. LITIGATION No litigation is pending or threatened in any court, questioning the official existence of the City or the title of the ors thereof, or the validity of the Bonds, or to restrain or enjoin the issuance or delivery of the Bonds or the validity of the Hotel Agreement, TC Agreement, or the University Agreement or the power of the City to pledge Net Revenues from the Convention Center -Garage and to pay the Bonds. For a description of pending litigation affecting the Croy, see Contingent Liabilities on p. 34. TAX EXEMPTION In the opinion of Mew, Brown, Wood, Ivey, Mitchell & Petty, interest on the Bonds is exempt from Federal income taxes under existing statutes and court decisions and from taxation under the laws of the State of Fbrida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or proft on debt obligations owned by corporations, banks and savings associations. APPROVAL OF LEGAL PROCEEDINGS All of the b*d prigs in connection with the authorization and issuance of the Bonds are subject to d Mom, Brown, Wood, Ivey, Mitchell & Petty of New York, New York, Bond Counsel. A copy the ofapprovingopinion of Bond Counsel will be delivered with the Bonds. Certain legal matters the un,,Wfied, T wah rqWd to the City will be passed on by Ceorge F. Knox, Jr., City Attorney. s 39 ) t� rk+ YoCertain legal matters in ��with the Bonds are subject to the approval of Messrs- Mudge Rope Counsel to the Underwriters. Guthrie do Alernder, New York, New MISCELLANEOUS Brief descriptions of the Bonds, the Trust Indenture, the Hotel Agreement, the TC Agreement, the Univer city Agreement and the Financial Feasibility Study and information about the City, including rt to be com menu relating thereto, are included in � hereis in official the Sta In denture, the Hotel Agreement, thetement. Such descriptions do not y TC Agreement, prehensive or definitive. All references ualifieJ in their entirety by reference to the University Agreement and the Financial Feasibility Study are y such documents. References herein to the Bonds are qualified in their entirety by reference to the forms thereof included in the Trust Indenture, and h a on file at thion e olt information the with and therespect thereto included in the aforementioned documents, copies of Any statements made in this official and not as reprekntations of favolving matters of ct. and n estimates, nt t n ihether or not so expressly stated, are set forth as that any of the estimates will be realized. .... City Clerk CITY O1 MIAMI, FLORIDA By 40 Mayor CITY OF MIAMI CONVENTION CENTER AND PARKING FINANCIAL FEASIBILITY STUDY S JUNE 1980 f APPENDIX A i CITY OF MIAMI CONVENTION CENTER AND PARKING GARAGE FINANCIAL FEASIBILITY STUDY SUMMARY JUNE 1980 k Mr. James J. Connolly Project Manager City of Miami Convention Center - Garage Miami, Florida We have completed the feasibility study for the City of Miami Convention Center - Garage (the "Project") to determine the potential of the Project to meet debt service and other financial requirements in connection with $60,000,000 of bonds ("The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds" or "the Bonds") to be issued by the City of Miami to finance, with other available funds, the cost to develop the Project. The accom- panying summary report presents, among other items, a description of the Project, a summary of projections of funds available for debt service and debt service coverage from the operations of the Project for the period from July 30, 1980, the date of the issuance of the Bonds, through December 31, 1992, and a brief explanation of the bases of the projections. The full report of our findings, conclusions and bases of projections will be contained in the official Statement and should be read in its entirety. In the course of our study, we analyzed general economic and demographic characteristics of the Miami area, the supply of and demand for convention, conference and lodging facilities in Miami's central business district and the advantages and disadvantages of the site of the Project. We also reviewed other studies and financial projections for the parking garage and retail elements of the Project. Our analyses involved discussions of the Project with representatives of the City of Miami, the university of Miami, prospective users of the Project, the private deratopseof competitive nt group lfacated ilitieswith tandhe hotel portion of the Project, ope others. s-e oeen Zrrf=nt or G== - ===G-=?-===- ='= ='= ':=___-_ _'__:= -- -"yG-:nmental - - - - - - 1 - - - - - - ;r research :-ojec- 1*0 lawevv�, V11- CONTENTS PROJECT DESCRIPTION CONSTRUCTION PERIOD AND DATE OF OPENING SOURCES AND APPLICATIONS OF FUNDS DESCRIPTION OF THE BONDS SUMMARY OF FINANCIAL PROJECTIONS BASES OF PROJECTIONS Revenue Convention Center Main Theatre/Auditorium Rentals Meeting Room Rentals Hotel Promotional Contribution Parking Garage Additional Rent - Hotel Gross ADom Sales Commissions Net Room Sales Food and Beverage Sales Concession Sales Total Specified Sales Additional Rent Percentage Additional Rent Rent - Trade Center OPERATING EXPENSES Convention Center Payroll and Related Expenses Marketing Utilities Repairs and Maintenance Supplies Telephone Management Fees Insurance Miscellaneous expenses .al s i- CONTENTS Page PROJECT DESCRIPTION 5 CONSTRUCTION PERIOD AND DATE OF OPENING 6 SOURCES AND APPLICATIONS OF FUNDS 6 DESCRIPTION OF THE BONDS 7 SUMMARY OF FINANCIAL PROJECTIONS 10 BASES OF PROJECTIONS 11 Revenue 11 Convention Center 11 Main Theatre/Auditorium Rentals 11 Meeting Roos Rentals 13 Hotel Promotional Contribution 14 Parking Garage 14 Additional Rent - Hotel 16 Gross Roos Sales 17 Commissions 17 Net Room Sales 18 Food and Beverage Sales 18 Concession Sales 19 Total Specified Sales 19 Additional Rent Percentage 19 Additional Rent 19 Rent - Trade Center 20 OPERATING EXPENSES 21 Convention Center 21 Payroll and Related Expenses 21 Marketing 22 Utilities 22 Repairs and Maintenance 22 Supplies 23 Telephone 23 Management Fees 23 Insurance 23 24 Miscellaneous expenses S ':1-_ PROJECT DESCRIPTION CONTENTS (Continued) Page The Project is located in the Miami cen 24 district at the intersection of Southeast Fourth S Parking Garage 24 Second Avenue. It will consist of a Convention Cenl RESERVE FOR RENEWAL AND REPLACEMENT 25 taining a 5000-seat theatre/auditorium, a 500-seat { NONOPERATING REVENUE � meeting rooms ranging in seating capacity from 35 to Incremental Cost Payment by 25 Hotel Developer 26 50,000 square feet of lobbies, offices and other sq Interest Income 26 and a parking garage with not less than 1,450 parki�, INTEREST FUNDED IN THE BOND ISSUE ��11 parking garage will also contain approximately 20,U DEPOSITS TO THE REVENUE FUND FROM THE 26 SUPPLEMENTAL RESERVE FUND space for retail stores. FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE 26 The 500-seat auditorium, nine meeting SUPPLEMENTAL RESERVE FUND 27 other facilities will be leased by the University DEBT SERVICE University") and operated as the University of Mia DEBT SERVICE COVERAGE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL 27 Center in accordance with an agreement executed on RESERVE FUND 27 and between the University of Miami and the City o� BALANCE OF THE SUPPLEMENTAL RESERVE FUND to be supplemented by a lease agreement when the ca FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING 27 BALANCE OF THE SUPPLEMENTAL RESERVE FUND the Convention Center is completed. DEBT SERVICE COVERAGE INCLUDING BALANCE OF 26 THE SUPPLEMENTAL RESERVE FUND In conjunction with this project, a 62 units) Hyatt Regency Hotel ("the Hotel") is planned Statement of Projected Funds Available air rights above the Convention Center and within c EXHIBIT 1 for Debt Service Convention Center, and a Trade Center office builds square feet of leaseable space (net) is planned for air rights above the parking garage and within cert garage. The Hotel will be developed by Miami CentA Ltd., a limited partnership ("the Hotel Developer") with the terms of a lease agreement by and between „ y,. PROJECT DESCRIPTION The Project is located in the Miami central business district at the intersection of Southeast Fourth Street and Southeast Second Avenue. It will consist of a Convention Center complex con- taining a 5000-seat theatre/auditorium, a 500-seat auditorium, 15 meeting rooms ranging in seating capacity from 35 to 400, approximately 50,000 square feet of lobbies, offices and other supporting facilities and a parking garage with not less than 1,450 parking spaces. The parking garage will also contain approximately 20,000 square feet of space for retail stores. The 500-seat auditorium, nine meeting rooms and certain other facilities will be leased by the University of Miami ("the University") and operated as the University of Miami Knight Conference Center in accordance with an agreement executed on April 1, 1977 by and between the University of Miami and the City of Miami, which is to be supplemented by a lease agreement when the construction of the Convention Center is completed. In conjunction with this project, a 627-room (608 rental units) Hyatt Regency Hotel ("the Hotel") is planned for development on air rights above the Convention Center and within certain areas of the Convention Center, and a Trade Center office building with 500,000 square feet of leaseable space (net) is planned for development on air rights above the parking garage and within certain areas of the garage. The Hotel will be developed by Miami Center Associates, Ltd., a limited Partnership ("the Hotel Developer"), in accordance reement by and between the Hotel Developer with the terms of a lease ag z 5 i f �q Miami ("The Hotel Agreement"). The Trade Center and the City of t will be developed by Dade Savings and Loan Associa-' office building reement by and between r, tion in accordance with the terms of a lease a9 "the TC the City of Miami and Dade Savings and Loan Association Agreement"). CONSTRUCTION PERIOD AND DATE OF OPENING The City of Miami ("the City") projects that, assuming the the ('itY on or about July 30, proceeds of the Bonds are received by 1980, construction of the Project will be completed as of February 1, 1982. However, for the purposes of this analysis, it has been assumed that the Project will not Open for business until July 1, 1982. This assumption has been made at the request of the City to demonstrate the ability of the Project to meet debt service require- ments on the Bonds, given the proposed financial structure of the Project, in the event that opening of the Project is delayed for any reason until July 1, 1982• SOURCES AND APPLICATIONS OF FUNDS The Bonds are being issued to provide funds to finance, with other available funds, the cost to construct the Convention Center - Garage, to fund the Reserve Account, to fund capitalized interest and to pay the costs of issuing the Bonds. For the purpose of preparing the financ presented herein, the following sources and applica were assumed: Sources of funds: The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Sale of land General Obligation Bonds, Series 1964 Economic Development Authority Grant Urban Development Action Grant City of Miami capital contribution Prepayment of rent by the University of Miami Base rent payment by Hotel Developer Interest earnings during construction period Total sources of funds Applications of funds: Land Furniture, fixtures and equipment Construction and development costs Reserve Account Funded interest Supplemental Reserve Fund Preopening expenses Cost of issuance expense Contingency M.B.I.A. insurance premium Total applications of funds As of June 30, 1980, the City projects expended approximately $15.3 million in the plannin� land for and construction of the Project. DESCRIPTION OF THE BONDS The Bonds are assumed to be dated July payable on January 1, 1981 and on each July 1 and For the purpose of preparing the financial projections presented herein, the following sources and applications of funds were assumed: Sources of funds: The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds $60,000,000 Sale of land 5,300,000 General Obligation Bonds, Series 1964 4,147,065 Economic Development Authority Grant 4,373,000 Urban Development Action Grant 4,994,000 City of Miami capital contribution 5,216,781 Prepayment of rent by the University 2,500,000 of Miami Base rent payment by Hotel Developer 2,900,000 Interest earnings during construction 4,311,824 period Total sources of funds $93, 742, 670 Applications of funds: Land $ 6,611,170 Furniture, fixtures and equipment 2,000,000 54679664 Construction and development costs 5960,000 Reserve Account 9,,5,13 Funded interest Fund ,78787,,449 Supplemental Reserve 000 Preopening expenses 2,043,501 Cost of issuance expense 2,500,000 Contingency 1,785,747 M.B.I.A. insurance premium Total applications of funds $93,742,670 As of June 30, 1980, the City projects that it will have expended approximately $15.3 million in the planning, acquisition of land for and construction of the Project. ' DESCRIPTION OF THE BONDS A, The Bonds are assumed to be dated July 1, 1980 with interest ?' 1 and January 1 thereafter. payable on January 1, 1981 and on each July '{ 7 4 The Bonds are assumed to bear interest at an average coupon rate of 8.5 percent and to mature in the prinicipal amounts per annum as set forth in the following schedule: The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Bond year ending January 1 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Bond principal maturities 200,000 495,000 910,000 990,000 1,075,000 1,165,000 1,265,000 1,370,000 1,485,000 1,615,000 1,750,000 1,900,000 2,060,000 2,235,000 2,425,000 2,635,000 2,855,000 3,100,000 3,365,000 3,650,000 3,960,000 4,295,000 4,660,000 5,055,000 5,485,000 $60,000,000 Interest $ 2,550,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,083,000 5,040,925 4,963,575 4,879,425 4,788,050 4,689,025 4,581,500 4,465,050 4,338,825 4,201,550 4,052,800 3,891,300 3,716,200 3,526,225 3,320,100 3,096,125 2,853,450 2,589,950 2,303,925 1,993,675 1,657,075 1,292,000 895,900 466,225 $136,235,875 Total annual debt service $ 2,550,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,300,000 5,578,000 5,950,925 5953,575 5:954,425 5,953,050 5,954,025 5,951,500 5,950,050 5,953,825 5,951,550 5,952,800 5,951,300 5,951,200 5,951,225 5,955,100 5,951,125 5,953,450 5,954,950 5,953,925 5,953,675 5,952,075 5,952,000 5,950,900 5,951,225 $196,235,875 8 Various Funds and Accounts to be held to be established under the terms of the Trust Inde which the Bonds are being issued. Those Funds or Jk to these projections include the Revenue Fund, Bond (Interest Account and Principal Account), the Redem the Reserve Account, the Construction Fund, the Su Fund, the Renewal and Replacement Fund and the Surp Funds are described below: Revenue Fund - Pursuant to the Trust all Gross Revenues from the Project w deposited into the Revenue Fund. Amo the Revenue Fund will then be used to current operating expenses of the Proj Bond Service Account (Interest Accoun Principal Account) - These accounts a established for the purpose of accumu the monthly interest on the Bonds and accumulate the monthly deposits for t annual principal payment of the serial, Redemption Account - This account is 1 for the purpose of accumulating the ml deposits for the annual principal pays the term Bonds. Reserve Account - The amount deposit Reserve Account will be $5,960,000. account is to protect the bondholders to provide for payment of principal a interest in the event of unforeseen f difficulties. All interest income eal any investments held in the Reserve A4 shall accrue to and become part of th4 pal Account. . Construction Fund - The Depository Agl hold and maintain the Construction Ful H:. Various Funds and Accounts to be held by the Trustee are to be established under the terms of the Trust Indenture pursuant to which the Bonds are being issued. Those Funds or Accounts pertaining to these projections include the Revenue Fund, Bond Service Account (Interest Account and Principal Account), the Redemption Account, the Reserve Account, the Construction Fund, the Supplemental Reserve Fund, the Renewal and Replacement Fund and the Surplus Fund. These Funds are described below: . Revenue Fund - Pursuant to the Trust Indenture, all Gross Revenues from the Project will be deposited into the Revenue Fund. Amounts in the Revenue Fund will then be used to pay the current operating expenses of the Project. Bond Service Account (Interest Account and Principal Account) - These accounts are established for the purpose of accumulating the monthly interest on the Bonds and to accumulate the monthly deposits for the annual principal payment of the serial Bonds. Redemption Account - This account is established for the purpose of accumulating the monthly deposits for the annual principal payment of the term Bonds. Reserve Account - The amount deposited in the Reserve Account will be $5,960,000. This account is to protect the bondholders and to provide for payment of principal and interest in the event of unforeseen financial difficulties. All interest income earned on any investments held in the Reserve Account shall accrue to and become part of the Princi- pal Account. Construction Fund - The Depository Agent will hold and maintain the Construction Fund. Supplemental Reserve Fund - The amount deposited to the Supplemental Reserve Fund by the City at the time of the issuance of the Bonds will be $1,876,583. Prior to or at the time of comple- tion of construction of the Project, the City will deliver to the Trustee for deposit to the credit of the Supplemental Reserve Fund the sum of $2,500,000, plus interest accrued thereon, to be paid by the University to the City pursuant to the University Agreement and the sum Of Hotel $2,900,000 to be paid to the City by the Developer pursuant to the Hotel Agreement. current account is to provide for payment operating expenses and/or principal and interest requirements of the Bonds and/or Renewal and Replacement Fund requirements in the event that Gross Revenues, as defined in the Trust Indenture, are insufficient to do so. The amount held in this account must at least be equal to 25 percent of the maximum principal and interest requirements on the then outstanding Bonds in the current or any succeeding fiscal year. Renewal and Replacement Fund - The amount to be deposited to this fund will be $100,000 annually plus an additional amount if determined to be necessary by a consultant to the Project pursuant to the Trust Indenture securing the Bonds. . Surplus Fund - This Fund is established to accumu- late monies, if any, in excess of current operating expenses, debt service on the Bonds, and monies re- quired in any and all funds and accounts pursuant to the Trust Indenture securing the Bonds. SUMMARY OF FINANCIAL PROJECTIONS Exhibit 1, on pages 30 and 31, presents a summary of pro- jected funds available for debt service and debt service coverage for the Project for the period from July 30, 1980 through December 31, 1992. Debt service coverage is calculated by dividing annual debt service requirements into projected funds available for debt service. The projections indicate that, with the proposed Supplemental Reserve F011do sufficient funds can be generated to meet projected operating expenses of the Project and projected debt service requirements during the projection period. 10 i [THIS PAGE IM ENMNALLY LEFT BLANK] ill ki rnM PAGE ncrENTK)NALLY LEFT BLANK] 1992. v y SI _ I l� 111 cn N I N C) OOR C O BASES OF PROJECTIONS Except as noted, all projections of rev � were prepared first in 1979 dollars and then inflat o calendar year at a rate of seven percent compounded; are summary explanations of the assumptions upon wh � I 0 - �) col �I N' are based. N �I REVENUE �I Convention Center 0 0 operatio Revenue from Convention Center n co from the rentals of the main theatre/auditorium and o � o o ; rooms operated by the City and from charges made fo E¢. N 8 Z ; N cc and the provision of ancillary services (electrical � ?� o'i telephone installations and similar services). Al N category are a contribution from the Hotel Deve ope U 14 U of marketing and promoting the Convention Center. U3r � �I �I h N C\J .D of Main Theatre/Auditorium Rentals: o HI �I v o. = N -m+ Revenue derived from theatre/auditorium N t C" o ? �O R �I "� �i i upon projected utilization of the facility by convei for locally attended events such as concerts, commei and similar events. The table on the facing page pi U of projected utilization. L NI O O X L O m 01 N ? N r� C C O � n .� 4J c > �n r d1 C > > U :0 ICJ MZ F- C E .� y G. d J U NC x C U BASES OF PROJECTIONS Except as noted, all projections of revenues and expenses were prepared first in 1979 dollars and then inflated to the appropriate calendar year at a rate of seven percent compounded annually. Following are summary explanations of the assumptions upon which the projections are based. REVENUE Convention Center Revenue from Convention Center operations would be derived from the rentals of the main theatre/auditorium and the six meeting rooms operated by the City and from charges made for equipment rental and the provision of ancillary services (electrical service hookups, telephone installations and similar services). Also included in this E; category are a contribution from the Hotel Developer for the purposes of marketing and promoting the Convention Center. F{ Main Theatre/Auditorium Rentals: Revenue derived from theatre/auditorium rental is based upon projected utilization of the facility by convention groups and for locally attended events such as concerts, commencements, lectures 1 and similar events. The table on the facing page presents a summary �r of projected utilization. 11 It has been assumed that rental for use of the facility by convention groups and for locally attended events for which no admission would be charged (nonticketed events) would be based upon a flat rate. The rate schedule for rental of the facility in its various seating configurations was assumed to be as follows (expressed in 1979 dollars): Projected Rental Rates Main Theatre/Auditorium (1919 Dollars) Section Total 1 2 3 1 and 3 combined 2 and 3 combined Seating capacity Meeting Room Rentals: Revenue derived from the rental of other based upon projected utilization multiplied by a rent cents per square foot of meeting space utilized. Oti jected to be 30 square feet for each guest room in the,II by a member of a convention or meeting group. This ra, an analysis of the facility requirements of various si as determined from data obtained from SM Databank, a Rental rate of Successful Meetings Magazine, a leading trade journ per event day interviews conducted with the convention service mana� 5,000 $1,750 1,250 450 1,750 600 2,000 700 3,250 1,150 3,750 1,300 Revenue derived from use of the facility for events for which admission would be charged (ticketed events) was projected based on the assumption that rental revenue would be the greater of the flat rental rate or ten percent of ticket sales per event. It was assumed that ticket prices would average $10 (1979 dollars) for events ranging in attendance of up to 2,100 persons and $15 (1979 dollars) for larger events. 12 existing Hyatt Regency Hotels. y The number of rooms occupied in the Hotel meeting groups was projected to be 50 percent of tots based upon our market study. A summary of projected i is presented on page 17. Revenue derived from charges for equipmen� i vision of ancillary services and other miscellaneous to be equal to five percent of revenue derived from r theatre/auditorium and other meeting rooms. This is analysis of the proportion of total income derived frc at existing civic and convention centers. i Meeting Room Rentals: Revenue derived from the rental of other meeting rooms is based upon projected utilization multiplied by a rental rate of five 16ed cents per square foot of meeting space utilized. utilization was pro- jected to be 30 square feet for each guest room in the Hotel occupied by a member of a convention or meeting group. This ratio is based upon an analysis of the facility requirements of various size conventions as determined from data obtained from SM Databank, a research division flat M of Successful Meetings Magazine, a leading trade journal, and from interviews conducted with the convention service managers of several existing Hyatt Regency Hotels. The number of rooms occupied in the Hotel by convention or meeting groups was projected to be 50 percent of total occupied rooms based upon our market study. A summary of projected Hotel occupancy is presented on page 17. Revenue derived from charges for equipment rental, the pro- vision of ancillary services and other miscellaneous charges is assumed to be equal to five percent of revenue derived from rental of the main theatre/auditorium and other meeting rooms. This is based upon an analysis of the proportion of total income derived from these sources at existing civic and convention centers. 6 F F i I 13 12 F l a l Hotel Promotional Contribution: :5 { The Hotel Agreement between the City and the Hotel Developer states that the Hotel will contribute an amount not to exceed $100,000 annually to the Convention Center for the purpose of promoting cultural, civic or other events at the Center. This must be matched by the City. It has been assumed that the Hotel would contribute $50,000 for this purpose in 1982 (six months of operation) and $100,000 in each full calendar year thereafter. The financial projections incorporate the City's matching expenditure in the form of the excess of total expenditures for marketing over the Hotel's contribution. Parking Garage Projected parking garage revenue, including revenue derived from the rental of retail space, is based upon projections prepared by the firm of Slack, Slack 6 Roe, Inc., Members of the Appraisal Institute (M.A.I.), Miami, Florida, ("the Slack Projections") for an appraisal of the value of the air rights and shell spaces to be leased for the development of the Trade Center office building. The Slack Projections are presented in a report submitted to the City of Miami, dated June 22, 1979, entitled "World Trade Center - Appraisal #79148". A separate M.A.I. appraisal on the air rights and shell space value for the Trade Center development was prepared by Leonard A. Bisz, M.A.I., Miami, Florida entitled "Air Rights - World Trade Center Site - June 22, 1979" ("the Bisz Projections"). Both reports are based upon the assumption that the garage will contain 1,500 parking spaces. 14 We have not conducted a market study garage; however, with the exception of the items following paragraphs, we believe the projections the Slack report and the Bisz report are rea is based upon our general knowledge of the supply parking facilities in downtown Miami at present, for other elements of the Convention Center project of a feasibility study prepared by Conrad Associo nois, for a 988-space garage which was planned for to the inception of the Trade Center proposal. The Slack Projections have been utiliz� I this analysis because they yield the lower (more tion of net operating cash flow. It should be not the differential between the projected net operati sented in the Slack Projections and the Bisz Proje� substantial. The Slack Projections assume that the ga a stable level of utilization and revenue (express dollars) in the fifth year of operation. Parking first year of operation, expressed in constant doll to equal 50 percent of those projected for the stag enues in the second, third and fourth years of ope� in constant dollars, are projected to equal 70, 80 pectively, of those in the fifth, or stabilized, y comparison of these projections with the projection garage, presented in the report prepared by Conrad i' We have not conducted a market study for the parking r garage; however, with the exception of the items discussed in the following paragraphs, we believe the projections presented in both the Slack report and the Bisz report are reasonable. This assessment 1, is based upon our general knowledge of the supply of and demand for I • parking facilities in downtown Miami at present, our market study for other elements of the Convention Center project and our review of a feasibility study prepared by Conrad Associates, Chicago, Illi- nois, for a 988-space garage which was planned for the Project prior to the inception of the Trade Center proposal. The Slack Projections have been utilized as the basis for this analysis because they yield the low r (more conservative) projec- :ed tion of net operating cash flow. It shou d be noted, however, that by the differential between the projected nf. operating cash flows pre- .tute sented in the Slack Projections and the Bisz Projections is not substantial. s The Slack Projections assume that the garage will achieve :ons stable level of utilization and revenue (expressed in constant 1979 a dollars) in the fifth year of operation. Parking revenues in the ,,ate expressed in cons taut dollars, are projected operation, exp first year of � ade 50 of those projected for the stabilized year; rev- to equal percent in the second, third and fourth years of operation, expressed enues J79" in constant dollars, are projected to equal 70, 80 and 90 percent, res- an those in the fifth, or stabilized, year. Based upon a pectively, of these projections with the projections for a 988-space comparison of it has prepare by Conrad Associates, presented in the report P re P garage, 1{ 15 "W-IN I, '0 W, r N r O 11.0 If1 I N N N OD OD Q M CID J+ IO N • z T N N N a V? m � o N 1.0 Qri Ifr1 ao o Ln N N V1 _ to C m � � N N \ ��p Im N fV d V). (A N t/V r0 a) Ln in !+1 O M N Q OWE �. 4 U W N • • I N N Z V). r�n. to to 1n N N 0 CO CO CO 0 -.a ain d V O m N cc — N N O � O c o o N N N % V? r •� C U, Act01 m O m N M G rr V} C� l %o r o� • . . m ppp m X N N O O, � in N y� W Ir •I r IO �D 47 f�i QED yr OD CDJ op r M a N c�v U1 IIDr • a, N % CD I OD c kol N N CO N V W V O N N N 1f1 r 0 Ln Vn JN I N X C to U -- c rn Qc� cc N r N I O O N O o 44 % '^��4.1 HCD V? JLA C! C r d U) G1 CC N .�roi C C N p r C N N 0 O v % lettoo N to to N aJ 4 U) it 3 i 8 9� z .. I been concluded that while the revenues projected for year are reasonable, greater revenues in the early could be anticipated, given the assumptions upon wh are based. Accordingly, the Slack Projections of pa have been adjusted to take into account stabilizati expressed in constant dollars, to occur in the four) tion; revenues in years 1 through 3 are projected t and 90 percent, respectively, of projected revenues year of operation when expressed in constant dollar Projected revenues from the rental of rod the garage walkway and lobby are as presented in thoa tions. Expressed in 1979 dollars, projected revenuq an annual rental rate of $17.50 per square foot for, feet of occupied space. Additional Rent - Hotel Additional Rent to be paid by the Hotel the schedule of percentages of specified Hotel sales the Hotel Agreement between the Hotel Developer and to specified sales as projected on the basis of our The schedule on the facing page presents a summary o specified sales and the calculation of projected Ado based thereon. The bases of the projections are as 1 i t been concluded that while the revenues projected for the stabilized year are reasonable, greater revenues in the early years of operation could be anticipated, given the assumptions upon which the projections are based. Accordingly, the Slack Projections of parking revenues have been adjusted to take into account stabilization of revenues, expressed in constant dollars, to occur in the fourth year of opera- tion; revenues in years 1 through 3 are projected to equal 70, 80 and 90 percent, respectively, of projected revenues in the stabilized year of operation when expressed in constant dollars. Projected revenues from the rental of retail space in the garage walkway and lobby are as presented in the Slack Projec- tions. Expressed in 1979 dollars, projected revenues are based upon an annual rental rate of $17.50 per square foot for 20,000 square feet of occupied space. Additional Rent - Hotel Additional Rent to be paid by the Hotel is based upon the schedule of percentages of specified Hotel sales set forth in the Hotel Agr eement between the Hotel Developer and the City applied to specified sales as projected on the basis of our market study. k i The schedule on the facing page presents a summary of projected specified sales and the calculation of projected Additional Rent based thereon. The bases of the projections are as follows: Blip III Plc: i77` Et.1 47 derived from the j ._.F .Fs- -��^�. r.-�•_-�. :-,�s r�;,-xrr sales are calct�i - :_ca�,�ed zoom nights �e d aar:::al average rate -f s6f 'expressed in ----- _ - _ - are ren increased by ad 1st for the ?_ ected occupied z:,oTr. nights 155,344 166,440 177,536 186,632 Ded,;=tions from* gross room saes consist of commissions: paid to travel agents, tie !.niversity and other parties for room sales achieved from nookings derived from these sources. 57: VIN Commissions paid to the University are basis of 15 percent of projected room sales from the University's Conference Center. Such room sal multiplying the projected number of occupied room this source by the projected average room rate of 1979 dollars). other commissions are projected to bet percent of room sales other than those derived fro Conference Center. commissions. Net lmom Sales: Net room sales represents gross room I Food and Beverage Sales: Food and beverage sales consists of al from the sale of food and beverages in the Hotel, Food sales have been projected based upon project' of customers served by meal period and projected customer. Beverage sales have been projected to sales in the first full calendar year of operation percent by the fourth year and stablizing as a per thereafter. ts :t t f 1 I ! 117 Commissions paid to the University are projected on the basis of 15 percent of projected room sales from conferences held in the University's Conference Center. Such room sales are projected by multiplying the projected number of occupied room nights annually from this source by the projected average room rate of $65 (expressed in 1979 dollars). Other commissions are projected to be one-half of one percent of room sales other than those derived from the University's Conference Center. commissions. Net Room Sales: Net room sales represents gross room sales reduced by Food and Beverage Sales: Food and beverage sales consists of all revenue derived from the sale of food and beverages in the Hotel, including banquets. Food sales have been projected based upon projections of the number of customers served by meal period and projected average sales per customer. Beverage sales have been projected to be 47 percent of food sales in the first full calendar year of operation, increasing to 48 percent by the fourth year and stablizing as a percentage of food sales thereafter. n i i Piew ii 9"WVW4,. . 18 Concession Sales: Concession sales consists of revenue derived by the from the sale of food and beverages in the Convention Center. This in accordance with the Hotel Agreement between the City and the 1b Developer whereby the Hotel is granted exclusive rights to provide and beverage service in the Convention Center. Sales are projected be an average of $.17 per person attending theatre events (1979 Total Specified Sales: Total specified sales represents the total of projected room sales, food and beverage sales and concession sales. Additional Rent Percentage: Additional Rent percentage is the appropriate percentage be applied to total specified sales as stipulated in the Hotel Additional Rent: Additional Rent is the amount projected to be paid by the Hotel. It should be noted that the Hotel Agreement provides that i payment of Additional Rent by the Hotel Developer shall be deferred to the extent that funds available to the Hotel Developer from the revenues of the Hotel are insufficient to pay such Additional Rent after the payment of (i) debt service nn the mnri'nana of the Hotel, K 1 (ii) all operating expenses and cash reserves requir Developer under the Hotel Agreement, and (iii) a pri the equity capital investors of the Hotel, provided (i) and (iii) shall not exceed in the aggregate $5,3 room per annum. That portion of the deferred Additiq accrue with interest equal to 1/2 percent above the 1 the City on the Bonds. The aggregate amount of such' unpaid Additional Rent shall be due and payable by t� to the City at the end of each third year and at the fifth year after the Hotel first opens for business.', funds available to the Hotel Developer after payment) and (iii) above, for any calendar year and there exi� Additional Rent for any prior year or years, such f be applied to the payment of said unpaid accrued Add Rent - Trade Center As provided in the TC Agreement between Savings and Loan Association, rental revenue to be d from the Trade Center has been projected based on th Agreement and the assumptions summarized below: 1. Payment of the First Rent Component will on March 1, 1983 and will be $124,950 fol year 1983 based upon $150,000 annually pi for ten months. (ii) all operating expenses and cash reserves required of the Hotel Developer under the Hotel Agreement, and (iii) a priority return to xl is the equity capital investors of the Hotel, provided that the sum of sl (i) and (iii) shall not exceed in the aggregate $5,300 per Hotel room per annum. That portion of the deferred Additional Rent shall food accrue with interest equal to 1/2 percent above the rate paid by to the City on the Bonds. The aggregate amount of such accruals of lays). unpaid Additional Rent shall be due and payable by the Hotel Developer to the City at the end of each third year and at the end of the forty- fifth year after the Hotel first opens for business. If there are any net funds available to the Hotel Developer after payment of items (i), (ii), and (iii) above, for any calendar year and there exists unpaid accrued Additional Rent for any prior year or years, such funds available shall be applied to the payment of said unpaid accrued Additional Rent. :e to -ement. Rent - Trade Center As provided in the TIC Agreement between the City and Dade ae Savings and Loan Association, rental revenue to be derived by the City from the Trade Center has been projected based on the terms of the TC at Agreement and the assumptions summarized below: 1. payment of the First Rent Component will commence on March 1, 1983 and will be $124,950 for calendar year 1983 based upon $150,000 annually pro rated for ten months. 20 �: 19 2. The First Rent Component will be increased by 4.9 beginning in effect in the Miami area. Overtime payroll expe percent compounded annually following the commence- second full calendar year of increase is based projected to be ten percent of full-time expenses. ment of rent payment. This rate rate of increase of upon 70 percent of an assumed index set forth in the expenses (employee benefits) have been projected to 7.0 percent annually in the to compute increases or lease agreement to be used be, in the First Rent total salaries and wages. decreases, as the case may Component. 3. Payment of the Second Rent Component will commence 1, Marketing: in the amount of $150,000 annually on January following the 1988, the fifth full calendar year the First Rent Marketing expenses consist of expendi_u commencement of the payment of Component. sales and promotional programs for the Convention C� 4. The Second Rent Component will be increased by 4.9 beginning in 1989. This I expenses are based upon the experience of comparable percent compounded annually is based upon 70 percent of an rate of increase assumed rate of increase of 7.0 percent annually in Utilities: the index set forth in the lease agreement to be used to compute increases or decreases, as the case may Utilities expenses consist of all expend be, in the Second Rent Component. both the First and Second Rent Com- tricity, water and sewerage services and are project 5. In the case of ponents, the rent paid in any given calendar year for per square foot of public space in the Convention C will be based on the rental amount calculated the previous calendar year and any additional rent forth only) and $2 r square foot in 1983, the fit y) q due as a result of increases in the index set in the lease agreement will actually be paid in the year of operations. This expense is projected to inq following calendar year. square foot per year by 1985 and stabilize thereaft OPERATING EXPENSES 1979 dollars). Convention Center Repairs and Maintenance: Payroll and Related Expenses: Repairs and maintenance expenses consist Payroll and related expenses have been projected on the tures for ongoing maintenance of the grounds, buildil basis of staffing requirements as determined from an analysis of of the Convention Center and are projected to be $.1 existing civic and convention centers, and salary and wage scales foot of public space per year in 1982 (six months oo square foot in 1983, the first full calendar year o This expense is projected to increase to $.93 per s year by 1985 and stabilize thereafter (expressed in 21 R k in effect in the Miami area. Overtime payroll expenses have been projected to be ten percent of full-time expenses. Payroll related expenses (employee benefits) have been projected to be 25 percent C` j total salaries and wages. Marketing: Marketing expenses consist of expenditures for advertising, sales and promotional programs for the Convention Center. Projected expenses are based upon the experience of comparable convention centers. �I Utilities: 'I Utilities expenses consist of all expenditures for elec- tricity, water and sewerage services and are projected to be one dollar i per square foot of public space in the Convention Center in 1982 (six months only) and $2 per square foot in 1983, the first full calendar year of operations. This expense is projected to increase to $2.10 per square foot per year by 1985 and stabilize thereafter (expressed in 1979 dollars). Repairs and Maintenance: Repairs and maintenance expenses consist of all expendi- :^e tures for ongoing maintenance of the grounds, building and equipment of the Convention Center and are projected to be $.40 per net square foot of public space per year in 1982 (six months only) and $.80 per square foot in 1983, the first full calendar year of operations. This expense is projected to increase to $.93 per square foot per year by 1985 and stabilize thereafter (expressed in 1979 dollars). 22 211' r E Supplies: Supplies expenses consist of all expenditures for office, cleaning and other operating supplies and are projected to be $.32 per net square foot of public space in 1982 (six months only) and $.64 per square foot in 1983. This expense is projected to increase to $.75 per square foot per year by 1985 and stabilize thereafter (expressed in 11 ) 1979 do ars . Telephone: Telephone expenses consist of all expenditures for telephone equipment rental and local and long distance service and are projected based upon information supplied by Southern Bell Telephone Company. Management Fees: Management fees expenses consist of the fees paid to a professional convention center management company for services rendered in managing the Convention Center and are projected to be ten percent of total revenue excluding the Hotel promotional contribution. Insurance: Insurance expenses consist of all expenditures for property, comprehensive general liability and business interruption insurance for the Convention Center and are projected based upon information provided by Frank B. Hall Associates, Miami, Florida, insurance underwriters. M1. 23 44, i ,; `•phi ��; - ,rf+,�^"• • _ I, Miscellaneous Expenses: Miscellaneous expenses consist of all e in other categories such as fees, licenses, commiss and equipment rentals and are projected to be $.33 i of public space in 1982 (six months only) and $.66 1983. This expense is projected to increase to $.71 1985 and stablize thereafter (expressed in 1979 doll Parking Garage As in the case of parking garage revenul parking garage operating expenses presented herein jections prepared by Slack, Slack 6 Roe, Inc. for aj value of the garage air rights and shell spaces to 1 Savings and Loan Association. I The Slack Projections present garage op' the first year of operation, expressed in constant ' equal 72 percent of projected expenses in the stabij in the second, third and fourth years of operation,' stant dollars, are projected to be 79, 82 and 89 pe of those projected for the fifth, or stabilized, ye Projections have been adjusted to present garage op expressed in constant dollars, stabilizing in the t! operation; expenses in years one and two have been a Miscellaneous Expenses: Miscellaneous expenses consist of all expenses not included in other categories such as fees, licenses, commissions, special services and equipment rentals and are projected to be $.33 per net square foot of public space in 1982 (six months only) and $.66 per square foot in 1983. This expense is projected to increase to $.77 per square foot by 1985 and stablize thereafter (expressed in 1979 dollars). Parking Garage As in the case of parking garage revenues, the projected parking garage operating expenses presented herein are based upon pro- jections prepared by Slack, Slack & Roe, Inc. for an appraisal of the value of the garage air rights and shell spaces to be leased by Dade Savings and Loan Association. The Slack Projections present garage operating expenses in the first year of operation, expressed in constant 1979 dollars, to equal 72 percent of projected expenses in the stabilized year; expenses in the second, third and fourth years of operation, expressed in con- stant dollars, are projected to be 79, 82 and 89 percent, respectively, of those projected for the fifth, or stabilized, year. The Slack Lye Projections have been adjusted to present garage operating expenses, r expressed in constant dollars, stabilizing in the third year o operation; expenses in years one and two have been adjusted to equal IN f 24 ;f P C t V R � t 80 and 90 percent, respectively, of expenses in the stabilized year t Interest Income t Yrwhen expressed in current dollars. All expenses have then been Interest income represents the income e increased to take into account the effects of inflation at a rate of Account. This is assumed to be 9.5 percent compou seven percent compounded annually. RESERVE FOR RENEWAL AND REPLACEMENT INTEREST FUNDED IN THE BOND ISSUE This amount represents the capitalized ij In accordance with the Trust Indenture for the Bonds, it has the Bonds, to be paid during the calendar year. been assumed that a reserve for renewal and replacement of furniture, fixtures and equipment would be funded in the amount of $50,000 in 1982 DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND (six months only) and $100,000 each year thereafter. It has further been assumed that these monies and the interest earned thereon would be used exclusively for renewals or replacement of assets from time to time and would not be available for debt service. NONOPERATING REVENUE Incremental Cost Payment by Hotel Developer In accordance with the Hotel Agreement between the City and the Hotel Developer, the Hotel Developer will pay the City $240,000 per year for five years, beginning in the fifteenth month following the date on which the Hotel first opens for business, representing the costs to the City of constructing and equipping certain portions of the Convention Center so as to enable the construction and operation of the Hotel. 1983. It has been assumed these payments would begin in 25 These deposits represent the projected f1 drawn from the Supplemental Reserve Fund and deposit Fund based upon the amount required to meet the ann requirements on the Bonds after all operating expens to the Renewal and Replacement Fund have been paid f I Fund. FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND Funds available for debt service includi� the Revenue Fund from the Supplemental Reserve Fund t jected Gross Revenues, as defined in the Trust Indent jected operating expenses of the Convention Center at and deposits to the Renewal and Replacement Fund plus the Revenue Fund from the Supplemental Reserve Fund. presents projected total funds available for debt sey - I,_.... - ri has Interest Income Interest income represents the income earned on the Reserve Account. This is assumed to be 9.5 percent compounded annually. INTEREST FUNDED IN THE BOND ISSUE This amount represents the capitalized interest, funded from the Bonds, to be paid during the calendar year. 2 DEPOSITS TO THE REVENUE FUND FROM THE SUPPLENENTAL RESERVE FUND These deposits represent the projected funds to be with - be drawn from the Supplemental Reserve Fund and deposited to the Revenue :' me Fund based upon the amount required to meet the annual debt service requirements on the Bonds after all operating expenses and deposits to the Renewal and Replacement Fund have been paid from the Revenue Fund. FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMMAL RESERVE FUND :00 a Funds available for debt service including deposits to the Revenue Fund from the Supplemental Reserve Fund represents pro- jected Gross Iaevenues, as defined in the Trust Indenture, less pro- jected operating expenses of the Convention Center and Parking Garage on and deposits to the Renewal and Replacement Fund plus deposits to Fund from the Supplemental Reserve Fund. This amount re- the Revenue total funds available for debt service exclusive of presents projected Ali 26 ?I J Fund and of monies DEBT SERVICE COVERAGE INCLUDING BALANCE the remaining balance of the Supplemental Reserve OF THE SUPPLEMENTAL RESERVE FUND held in the Reserve Account. Debt service coverage including t DEBT SERVICE t Supplemental Reserve Fund represents the ex e total funds available for debt service, excluml Annual Debt Service represents th e annual interest and the Reserve Account, meet annual debt service I principal due on the Bonds for each calendar year in accordance with Bonds. the schedule presented on page 8. For the purpose of determining cowl DEBT SERVICE COVERAGE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL Covenant as set forth in the Trust Indenture 9 RESERVE FUND debt service coverage is to be calculated base i Debt service coverage including deposits to the Revenue ble for debt service exclusive of funds held i Fund from the Supplemental Reserve Fund represents the extent to Reserve Fund and other Funds or Accounts estab which projected funds available for debt service including deposits Indenture. to the Revenue Fund from the Supplemental Reserve Fund meet debt The Rate Covenant states that rates, service requirements on the Bonds. other charges for the use or occupancy of the BALANCE OF THE SUPPLEMENTAL RESERVE FUND and Parking Garage must be set in accordance w, I tions of a consultant to be retained by the Cil The balance of the Supplemental Reserve Fund is the tions shall be intended to set rates, rents, f amount in the Supplemental Reserve Fund after withdrawals for the so as to be sufficient to produce Gross Revenu Revenue Fund. monies held in any and all Funds and Accounts 4 FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING the Trust Indenture, in an amount at least equ BALANCE OF THE SUPPLEMENTAL RESERVE FUND current operating expenses of the Convention C These funds represent projected total funds available Garage, deposits to the Renewal and Replacemen, for debt service exclusive of funds held in the Reserve Account. percent of debt service on the Bonds in the co 27 ;es th cue :s M :e DEBT SERVICE COVERAGE INCLUDING BALANCE OF THE SUPPLENENTAL RESERVE FUND Debt service coverage including the balance of the Supplemental Reserve Fund represents the extent to which projected total funds available for debt service, exclusive of monies held in the Reserve Account, meet annual debt service requirements of the Bonds. For the purpose of determining compliance with the Rate Covenant as set forth in the Trust Indenture securing the Bonds, debt service coverage is to be calculated based upon funds availa- ble for debt service exclusive of funds held in the Supplemental Reserve Fund and other Funds or Accounts established under the Trust Indenture. The Rate Covenant states that rates, rents, fees and any other charges for the use or occupancy of the Convention Center and Parking Garage must be set in accordance with the recommenda- tions of a consultant to be retained by the City, which recommenda- tions shall be intended to set rates, rents, fees and other charges so as to be sufficient to produce Gross Revenues, exclusive of monies held in any and all Funds and Accounts established under the Trust Indenture, in an amount at least equal to the sum of current operating expenses of the Convention Center and Parking Garage, deposits to the Renewal and Replacement Fund and 125 percent of debt service on the Bonds in the current fiscal year. 28 F The projections presented herein indicate that for the first seven years of operation, it will be necessary to utilize monies in the Supplemental Reserve Fund to meet the annual debt service requirements of the Bonds since Gross Revenues, as defined in the Trust Indenture, will be insufficient to meet the annual debt service requirements. For this reason, the Supplemental Re- serve Fund is to be established. The Trust Indenture further provides that it shall not constitute a default of the Rate Covenant if rates, rents, fees and other charges are not set so as to produce sufficient Gross Revenues, as defined in the Trust Indenture, so long as such rates, rents, fees and charges are set at the maximum level obtainable as recommended by the consultant to be retained by the City to make this determination. Therefore, while the projections presented herein indicate that Gross Revenues, exclusive of the Supplemental Reserve Fund, will not be sufficient to meet the total of current operating expenses, deposits to the Renewal and Replacement Fund, and 125 percent of debt service on the Bonds for the projection period, this shall not constitute a default under the Rate Covenant. 29 [THIS PAGE INTENTIONALLY LEFT K ANT IV pr 19 rnm PAGE nampmoNALLY LEFT BLANK] 10, Revenue: Convention center: Main theater/auditorium rental❑ Meetinq room rentals Miscellaneous operatinq income Hotel promotional contribution Parklnq garage: Parklna r,•ntal- Store rentals Ad'!Itn,n,l gent - H"h•I Pent - Tr.r•1,• t',nt,•r nt a l re v,•n, 1r. nperat:ng ,-xr-n,!,••:: 7•nnven� [,m r',•nt,.r: P,vr,,lI 1,11 rei.11"A "XI-r,u Marle,•t ln': 11t 1 I It I„- Penairti end m Il lit ,•nan r, SuppI i,•r Te IPphr,ne Management fa - Insurance, Miscellaneous expense; Parking garage Total operatinq expenses Excess of operating revenues over operating expenses (carried forward) H Excess of operating revenues over operating expenses (brought forward) !,ass reserve for renewal and replacement •lonoperatinq revenue: Payback of incremental cost by Hotel Developer Interest income Interest funded in the Bonds Deposits to the Revenue Fund from the Supplemental Reserve Fund Funds available for debt service including deposits to the Revenue Fund from the Supplemental Reserve Fund Debt service Debt service coverage including deposits to the Revenue Fund from the Supplemental Reserve Fund 9alance of the Supplemental Reserve Fund Funds available for debt service including balance of the Supplemental Reserve Fund Debt service coverage including balance of the Supolemental Reserve Fund CITY OF MIAMI EXHIBIT I Page 1 of 2 CONVENTION CENTER - GARAGE. STATFMF.NT OF PROJECTED FIINDS AVAILABLE FOR DEBT SERVICE, _ - jCnnsZcTe�at on q van to a ects o to at on) (Thousands) Years ending December 31i _ _ 1-41i'l- 1981 -_m 9 $ 292 $ 794 $ 942 $1,oR5 $I,1fin $1,241 $1,328 $1,421 $1,521 $1,627 $1,741 72 15l 175 200 232 248 265 284 304 325 346 18 47 56 64 70 74 80 85 91 98 104 5n lot) 100 Inn Ion 100 100 100 100 100 __ 100 _ 432 1,nR9 1,273 1,449 1,562 11663 1,771 1,890 2,016 21150 2.293 651 1,494 I,H11 2,166 2,440 2.611 2,793 2,989 1,19R 1.422 3,662 160 - 389 474 507 544 SH3 623 6.67 712 761 815. 811 1,8H{ 2,2H5 21671 2,984 1,194 3,416 3t6S6 3,910 4,183 `4,477 21n 5511 741 1,077 1, 151 1, 406 1, 500 1,605 1,717 1,838 1,966 12`, 150 1110 1',7 165 421 132 348 365 383 1, 4'.1 1, 6',6 4, 449 3q4 6, 054 6,504 '7,012 7, 481 7,991 8, 516 9,119 200 170 t9t, 42 1 4`, 1 4H4 919 SSS 544 61% 690 1u0 211n 2117 21', 223 231 240 250 261 272 284 7H 1"'1 1H4 202 216 211 247 264 281 303 324 11 67 17 H9 95 102 109 116 125 133 143 l5 4 62 72 77 R2 88 94 101 108 116 H 1:' 22 24 15 18 40 41 46 49 53 iH 9v 117 li`� 146 1S6 167 179 192 205 219 86 194 147 210 225 241 258 276 295 116 338 26 55 64 74 79 85 91 97 104 111 119 592 1,214 1,125 1,449 11549 1,650 1,75H _ 1,877 22 196 445 532 999 641 686 734 785 841 899 962 78R 11659 1,858 2,048 2,190 2,336 2,492 2,659 2,842 3,031 3,238 665 1,997 2,641 3,301 3,864 4,172 4,S20 4,024 5,149 S.50S $,@$I Years ending December 31, 19R0 - 1491 19H2 -"- 19H3 --1984 1905 1986 1987 1988 1999 199 9 99 665 1,997 2,641 3,301 3,064 4,172 4,520 4,824 5,149 5.505 5,681 50 100 100 100 100 100 100 100 100 100 100 615 1, 997 2,541 3,201 3-� _f; _T,720 4,724 5- 0-0 --T;Tn --,, u 240 240 240 240 240 _ 662 566 566 566 566 566 566 566 566 S66 S66 2,550 5,100 2,225 1,598 2,397 1,753 1,093 530 222 114 $2,550 $5,100 $ 5.100 $5,100 $5,100 $5,100 $5,100 $5,100 $S,100 $S,290 $5,615 $S,971 $6,347 $2,550 $5000 $5,100 $S,100 $5,100 $5,100 $5,100 $5,100 $5.100 $S,100 $5,300 $S,578 115,9S1 1.00x I.00x 1.00x I.00x 1.0Ox 1.00x I.00x 1.00x 1.00x 1.04x 1.06x 1.07x 1.07x S1,941 $2,103 $6,442 $4,432 $2,944 $2,026 $1,623 $1,SOS $1,489 $I,S87 $1,692 $1.804 $1,923 $4,491 $7,203 $11.542 $9,532 $8,044 $7,128 $6,723 $6,605 $6,569 $6,877 $7,307 $7,77S $8,270 1.76x 1.41x 2.26x 1.87x 1.58x 1.40x 1.32x 1.30x 1.29X 1 . 3 S x 1.38x 1.39X 1.39x The comments and assumption contained in this report are an integral part of this projected statement. 11 I. .,A 4, I /J 4.',JII 4,NJA 144 �9yE. _ Years end in DwcemAer 31 -T§iio fT�T -T9f T 9W19 8 5 9 6 9 B 19 9 9 excess of operating revenues over operating expenses (brought forward) 665 1,997 2,641 3,301 3,864 4,172 4,52o 4,824 5,149 S,SOS S,881 Use reserve for renewal and replacement 50 -6 i 100 -F5$7 100 -T, T 100 irif 100 -7,767 100 100 '7;!3b 100 -T,"Tf7 100 -3 674 100 �735 100 �7iT Nonoperating revenuer Payback of incremental cost by Hotel Developer 240 240 240 240 240 Interest income 662 -T7T" 566 �'T61 566 "3, 347 S66 T, 63'1 566 -, " 566 - 'l6 S66 -77M 566 �5, 290 566 -F;M 566 nr.Tn S6 0.3 Interest funded in the Bonds 2,550 5,100 2,225 Deposits to the Revenue Fund from the Supplemental Reserve Fund 1,S98 2,397 1,753 1,093 530 222 114 Funds available for debt service including deposits to the Revenue Fund from the Supplemental Reserve Fund $2,SSO $5,100 $ 5,100 $S,100 1S,100 3S,100 $S,100 $S,100 $S,100 $S,290 $5,615 $3,971 i Debt service i2,SSO $5,100 $5,100 $5,100 1S,100 $5,100 1S,100 1S,100 $5,100 $5,100 $5,300 $5,570 $5,951 Debt service coverage including deposits to the Revenue fund from the Supplemental Reserve Fund 1.0Ox 1.00x 1.0Ox 1.0Ox 1.0Ox 1.0Ox 1.0Ox 1.00x 1.00x 1.04x 1.06x 1.07x 1 Salance of the Supplemental Reserve Fund $1,941 $2,103 $6,442 $4,432 $2,944 $2,028 $1.623 01,50S $1,489 $1,587 $1,692 $1,804 $1,923 funds available for debt service including balance of the Supplemental Reserve fund $4,491 $7,203 $11,S42 $9,532 $8,044 $7,128 $6,723 $6,605 $6,589 $6,877 $7,307 $7,773 $6,270 Debt service coverage including balance of the Rupplemental Reserve Fund 1.76x 1.41x 2.26x 1.87x 1.S8x 1.40x 1.32x 1.30x 1.29x 1.35x 1.3ex 1.39x 1.39x The comments and assumption contained in this report are an integral part of this projected statement. 31 a APPENDIX B SUMMARIES OF LEGAL INSTRUMENTS Four basic legal instruments to be delivered by the City on the date of the delivery of the Bonds are (i) the Trust Indenture, (ii) the Hotel Agreement, (iii) the TC Agreement, and (iv) the University Agreement. Some of the provisions of each of the foregoing instruments are summarized below. Reference is made to said instruments on file with the Trustee for the complete provisions thereof. SUMMARY OF THE TRUST INDENTURE Summaries of certain provisions of the Trust Indenture are included in this Official Statement under the caption "Description of the Bonds". Deiilions of Ce IM111 Tests The following is a summary of certain definitions used in the summary of the Trust Indenture. "Amortization Requirements" shall mean, for the term bonds, for any fiscal year the principal amount (which shall be in a multiple of $5,000) of such bonds required to be redeemed or otherwise retired on January 1 of such fiscal year. "bondholder" shall mean the holder or registered owner, as the case may be, of any bonds then outstanding. "bondholders of record" shall mean the registered owners or the holders of bonds, who shall have filed with the Trustee within the period of two (2) years immediately prior to any time when such term has appli- cation, a request in writing setting forth his name and address and the particular d_ cuments which he desires to receive and which are required to be mailed to him under the Trust Indenture. "bonds" shall mean the bonds then outstanding issued under the Trust Indenture. "Co►nrrrission" shall mean the governing body of the City. "Convention Center" shall mean the convention center being completed in the City in conformity with the plans, drawings, specifications and other contract documents therefor prepared by the architect with respect to the Convention Center. "Convention Center -Garage" shall mean, collectively, the Convention Center and the Parking Garage, and a connecting walkway, including machinery, equipment, fixtures, furniture, improved and unimproved land, landscaping and other facilities appurtenant or incidental thereto. "Current Expenses for any particular period shall mean the reasonable and necessary current expenses incurred during such period by the City for the operation, repair, maintenance, management and administration of the Convention Center -Garage, as determined in accordance with generally accepted auditing standards except as modified. "fiscal year" shall mean the fiscal year of the City, being the period commencing on the first day of October of any year and ending on the last day of September of the following year. "Government Obligations" shall mean direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America. "Gross Revenues of the Convention Center -Garage" for any particular period shall mean (subject to which require that certain amounts received by the City pursuant to the provisions of the Trust Indenture Hotel Agreement and the University Agreement be deposited to the credit of the Supplemental Reserve Fund and not the Revenue Fund) (i) all revenues, rents, fees, rates, charges and other income and receipts derived in such period by or on behalf of the City from its ownership, lease, operation or possession of, or in connec- tion with, the Convention Center -Garage, or any part thereof, including rent derived under the Hotel Agreement, the TC Agreement and the University Agreement and other revenues derived from leases, subleases and contracts, (ii) proceeds of any use or occupancy insurance, and of any other insurance which insures against business interruption, relating to the Convention Center -Garage and (iii) interest on any money or securities held under the Trust Indenture and required to be paid into the Revenue Fund. B-1 "Note! Agreement" shall mean the Lease and Agreement for Development between the City and the l I First Supplement to theI� Aim B,� Miami Center Associates, Ltd., dated as of September 13, 1979, as amended by the from time to time. l� Additional bonds may be issued under and secured by the Trust Indentu to December 1, Lease and Agreement for Development, dated as of June 6, 1980, as amended as the latest maturity date of the term bonds, at any time prior Government ON and, to the extent from time to time for completing the payment of the cost of the Convention Center -Garage but "Mvcstment Obligations shall mean of the Federal Financing Bank, Federal Home Loan Banks, Federal It total principal amount of Five Million Dollars ($5.000,000). permitted by law, direct obligations Land Banks, Federal Banks for Cooperatives, Federal National Mortgage Association, Government National Bank of the United States, Farmers ?• CoYettio� ttttni Di�oeiilien d Revetwes Mortgage Association, Federal Intermediate Credit Banks, Export -Import Administration and ]international Bank for Reconstruction and Development, and negotiable or non- � The Trust Indenture provides for the establishment, with the Trustee, oft I Home negotiable certificates of deposit or time deposits of any bank, branch of any bank, trust company or national bank trust company acting as Depositary), which is Fund, the Renewal and Replacement Fund, the Supplemental Reserve Fund and in Sinking Fund three separate accounts designated the Bond Se banking association (including the Trustee and any or a member of the Federal Deposit Insurance Corporation, such certificates of deposit to be secured as provided law, agreements covering any of the fore- created the Account and the Reserve Account. in the Trust Indenture and, to the extent permitted by repurchase deposit shall be included within such term unless the The Trust Indenture provides that the Gross Revenues of the Convention Ceq going. provided, that no such obligations or certificates of as received, with the Trustee to the credit of the Revenue Fund. provided that same shall be payabl: in United States dollars in the United States of America. $2,900,000 derived by the City pursuant to the Hotel Agreement and (ii) Adv� "Net Revenues of the Convention Center -Garage" for an} particular period shall mean the excess of all all Current Expenses for such period. $2,500,000 plus the earnings thereon, derived by the City pursuant to the Uni fully by the University when due, to be provided by the City) shall not be d� Gross Revenues of the Convention Center -Garage over paid but shall be deposited to the credit of the Supplemental Reserve Fund. All d "Parking Garage" shall mean the parking garage which is part of the Convention Center -Garage. shall be held by the Trustee in trust and applied as provided in the Trust 0 "Pledged Telephone and Telegraph Excise Tat Revenues- (i) shall mean during the period that there Refunding Bonds (collect- application, shall be subject to a lien and charge in favor of the holders of th as in the Trust ltt� remain outstanding any Utilities Service Tax Bonds, including Utilities Service Tax to the of Ordinance No. 7066 (adopted by the security of such holders until paid out or withdrawn provided tively called the "Utilities Tax Bonds") pursuant provisions Commission on November 21, 1962), only that portion of such tax revenues derived from the levy and The Trustee shall withdraw from the Revenue Fund on or before the 25th I bonds issued under Section 208 of the Trust Indenture, collection of the utilities service tax upon the purchase of telephone and telegraph services which each month the Miami Utility Tax Fund (defined in said Ordinance No. 7066) immediately after after the delivery of the of said fund on the last day of the preceding month and deposit the sum so remain to the credit of the withdrawal therefrom and the deposit by the City with the trustee to the credit of the sinking fund under accounts or funds in the following order: said Ordinance No. 7066 of the respective amounts as required under clauses (a). (h) and (c) of Section (a) to the Bond Service Account, an amount equal to the sum of ( i 402 of said Ordinance No. 7066 and (ii) shall mean, when no Utilities Tax Bonds shall be outstanding, all an amount equal to one -sixth ( li•,,) of the interest payable on all the outstand the tax revenues derived from the levy and collection of the utilities service tax upon the purchase of interest payment date; and (ii) commencing January 1, 19 , an amount equ of telephone and telegraph services. next maturing installment of principal of all serial bonds. provided that if I in that is required to be deposited to N "Principal and Interest Requirements" for any fiscal year as applied to the bonds, shall mean the sum of: shall be a deficiency the amount Account pursuant to this provision, the amount otherwise required to be d (1) the amount required to pay the interest on the bonds and the principal of all serial bonds then outstanding calendar month to the credit of the Bond Service Account pursuant to this which is due and payable in such fiscal year, and (2) the amount of the Amortization Requirements for such by the amount of such deficiency; fiscal year. "serial bonds" shall mean the bonds, other than term bonds, authorized to be issued as serial bonds, (b) to the Redemption Account, commencing January 1 preceding term bonds are required to be redeemed, an amount equal to one-t which are stated to mature by their terms in consecutive annual installments, amount of the term bonds required to he retired on the next succeeding J amount "•tern bonds" shall mean the bonds, other than serial bonds, authorized to be issued as term bonds Amortization Requirements therefor; provided that if in any calendar mon which are stated to mature by their terms on in the amount that is required to be deposited to the credit of the Redem provision. the amount otherwise required to be deposited in the next cm "Trade Center" shall mean that certain trade center and office building. to he constructed, operated and credit of the Redemption Account pursuant to this provision shall be incrl maintained pursuant to the TC Agreement. deficiency; "TC Agreement" shall mean the Lease Agreement between the City and Dade Savings and Loan (c) to the Reserve Account, such amount, if am, of any balance Association ("Dade Savings"), dated as of July 1, 1980, as amended from time to time. deposits under the two preceding provisions, as may he required to make I "University Agreement" shall mean the agreement between the City and the University of Miami, dated credit of the Reserve Account equal to the maximum Principal and Interet April 1, 1977, as amended from time to time. then outstanding for the current or any succeeding fiscal year; "utilities service tat" shall mean the tax levied and imposed by the City for the purchase of certain (d) to the Renewal and Replacement Fund. commencing in June utility products and services, including local telephone and telegraph services, within the corporate limits $100,000 and one -twelfth ( 1.1) of such additional amount, if any, which of the City, as provided in Section 166.231 of Florida Statutes, the Code of the City and ordinances adopted purpose in its latest written report prepared pursuant to the Trust Indent by the Commission, including particularly Ordinance No. 3143. adopted July 2(., lO46, Ordinance No. 4914, so long as the balance in the Renewal and Replacement Fund shall be adopted October 26. 1953, Ordinance No. 5272, adopted April 11, 1955. Ordinance No. 5829, adopted One Hundred Thousand Dollars ($100,000) or one and one -quarter pa December 10, 1956 and Ordinance No. 7066, adopted Nov ember 21, 1962. B-3 B-2 P,�,4I14 Wry.. AddiOnd lsewh Additional bonds may be issued under and secured by the Trust Indenture, of the same maturity date as the latest maturity date of the term bonds, at any time prior to December 1, 1982, in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars ($5,000,000). Collectim and Di400Mm of ReveorrKs The Trust Indenture provides for the establishment, with the Trustee, of the Revenue Fund, the Sinking Fund, the Renewal and Replacement Fund, the Supplemental Reserve Fund and the Surplus Fund. There arc created in the Sinking Fund three separate accounts designated the Bond Service Account, the Redemption Account and the Reserve Account. 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; provided that (i) Base Rent amounting to $2,900,000 derived by the City pursuant to the Hotel Agreement and (ii) Advance Rent, in the amount of $2,500,000 plus the earnings thereon, derived by the City pursuant to the University Agreement (or if not fully paid by the University when due, to be provided by the City) shall not be deposited to the Revenue Fund but shall be deposited to the credit of the Supplemental Reserve Fund. All money in the Revenue Fund shall be held by the Trustee in trust and applied as provided in the Trust Indenture and, pending such application, shall be subject to a lien and charge in favor of the holders of the bonds and for the further security of such holders until paid out or withdrawn as provided in the Trust Indenture. The Trustee shall withdraw from the Revenue Fund on or before the 25th day of each calendar month, after the delivery of the bonds issued under Section 208 of the Trust Indenture, all money held for the credit of said fund on the last day of the preceding month and deposit the sum so withdrawn to the following accounts or funds in the following order: (a) to the Bond Service Account, an amount equal to the sum of (i) commencing in June 1982, an amount equal to one -sixth (%) of the interest payable on all the outstanding bonds on the next ensuing interest payment date; and (ii) commencing January 1, 19 , an amount equal to one -twelfth (1 r s ) of the next maturing installment of principal of all serial bonds; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Bond Service Account pursuant to this provision, the amount otherwise required to he deposited in the next ensuing calendar month to the credit of the Bond Service Account pursuant to this provision shall be increased by the amount of such deficiency; (b) to the Redemption Account, commencing January I preceding the first fiscal year in which any term bonds are required to be redeemed, an amount equal to one -twelfth (' i.) of the principal amount of the term bonds required to be retired on the next succeeding January I in satisfaction of the Amortization Requirements therefor; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Redemption Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Redemption Account pursuant to this provision shall be increased by the amount of such deficiency; (c) to the Reserve Account, such amount, if any, of any balance remaining after making the deposits under the two preceding provisions, as may be required to make the amount then held for the credit of the Reserve Account equal to the maximum Principal and Interest Requirements on all bonds then outstanding for the current or any succeeding fiscal year; (d) to the Renewal and Replacement Fund, commencing in June 1982, one -twelfth O; _) of $100,000 and one -twelfth (r/ •:) 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, so long as the balance in the Renewal and Replacement Fund shall be less than (i) the greater of One Hundred Thousand Dollars ($100,000) or one and one -quarter percent (1.25 %) of the Gross B-3 Revenues of the Convention Center -Garage for the preceding twelve (12) calendar month period, or (ii) such larger amount, if any, which the Consultant retained for such purpose in its latest written report, shall have recommended be held for the credit of such fund; (e) 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 Two Million Five Hundred Thousand Dollars ($2,500,000) ; (f) to the Surplus Fund, the balance, if any, of the amount so withdrawn. Money in the Revenue Fund shall be used for the payment of the Current Expenses of the Convention Center -Garage under a requisition procedure set forth in the Trust Indenture. Money in the Bond Service Account shall be applied to the payment of the interest on all the outstanding bonds and the principal of all serial bonds. Money in the Redemption Account shall be applied to the purchase, redemption or retirement of term bonds. if any, in compliance with the Amortization Requirements, and otherwise as provided in the Trust Indenture. Money in the Construction Account shall be applied to the pa%mcnt of the cost of the Convention Center - Garage, subject to the filing of requisitions and certifications in connection therewith, as provided in the Trust Indenture. Any surplus in the Construction Account shall be deposited to the Sinking Fund. Money in the Reserve Account shall be used to pay interest on the honds and maturing principal of the bonds, whenever and to the extent that the money held for the credit of the Bond Service Account or the Redemption Account shall be insufficient for such purpose. provided that money in, first, the Surplus Fund, second, the Supplemental Reserve Fund and, third, the Renewal and Replacement Fund shall be applied to make up any such deficiency in the Bond Service Account or the Redemption Account before any money in the Reserve Account is disbursed for such purpose. Excess money in such account shall be transferred to the Revenue Fund; provided, however, that prior to the completion date of the (convention Center -Garage, such earnings shall be deposited in the Construction Account. Money in the Renewal and Replacement Fund (i) shall be transferred to the Bond Service Account or the Redemption Account to make up deficits therein, provided that money in first, the Surplus Fund and, then, the Supplemental Reserve Fund shall be applied to make up any such deficiency before any money in the Renewal and Replacement Fund shall be disbursed for such purpose; and (ii) except to the extent necessary to supplement proceeds of insurance in the event of any damage or loss of property and subject to the require- ments of the Trust Indenture, may be disbursed for the payment of the costs of unusual or extraordinary mainte- nance or repairs, renewals, replacements, and engineering and architectural expenses incurred in the expenditure of renewal and replacement funds or for paying the cost of any capital improvement exceeding $25,000 in any fiscal year. Any obligation payable from the Renewal and Replacement Fund in excess of $50,000 must be approved by a consultant. Insurance proceeds must be applied first to the payment of such obligations before the application of money in the Renewal and Replacement Fund. Excess money in such fund shall be trans- ferred to the credit of the Revenue Fund. Money held for the credit of the Supplemental Reserve Fund shall be applied for the following purposes: (i) if at any time money held for the credit of the Revenue Fund shall not be sufficient to pay Current Expenses then due and payable, the Trustee shall then transfer to the credit of the Revenue Fund an amount sufficient to make up any such deficiency; and ( ii) if at any time money held for the credit of the Bond Service Account shall not be sufficient to pay the interest on all the outstanding bonds and the principal of all serial bonds then due, or the total money held for the credit of the Redemption Account shall be less than the amount required to pay the principal of all term bonds (including retirement thereof in accordance with Amortization Requirements) then due, the Trustee shall then transfer to the credit of such accounts an amount sufficient to make up any such deficiency; and (iii) if at any time money held for the credit of the Renewal and Replacement Fund shall be less than the maximum requirement therefor, the Trustee shall then transfer to the credit of the Renewal and Replacement Fund an amount sufficient to make up any such deficiency; provided, however, that B-4 money held for the credit of the Surplus Fund shall be applied to make up any deficiencies described in provi- sions (i), (ii) and (iii) before any money in the Supplemental Reserve Fund shall be disbursed for such purpose. Money held for the credit of the Supplemental Reserve Fund may be used for the purposes and in the same manner as money held for the credit of the Renewal and Replacement Fund, provided: (i) there shall remain on deposit for the credit of the Supplemental Reserve Fund after the withdrawal of any money for such purposes, an amount at least equal to the greater of twenty-five percent (25 % ) of the maximum Principal and Interest Requirements for the current or any succeeding fiscal year; (ii) Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years immediately preceding the fiscal year in which such withdrawal is proposed shall have been at least one hundred and twenty-five percent (125 % ) of the Principal and Interest Requirements for each of said fiscal years, respectively; and (iii) a consultant certifies in writing to the City and the Trustee that such expenditure of money is necessary and desirable. The Trust Indenture also provides that money held for the credit of the Supplemental Reserve Fund may be transferred by the Trustee from such fund for deposit to the credit of the Surplus Fund provided: (i) there shall remain on deposit for the credit of the Supplemental Reserve Fund after the transfer of any money, an amount at least equal to Two Million Five Hundred Thousand Dollars ($2.500,000) ; (ii) Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years immediately preceding the fiscal year in which such transfer is proposed shall have been at least one hundred and twenty-five (125 %) of the Principal and Interest Requirements for each of said fiscal years, respectively; and (iii) a consultant certifies in writing to the City and the Trustee that Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years next succeeding the fiscal year in which such transfer is proposed will be at least one hundred and twenty-five percent (125% ) of the Principal and Interest Requirements for each of said fiscal years, respectively. Money held for the credit of the Surplus Fund shall be applied to make up, in the order of priority as follows, any deficit in, first, the Bond Service Account and the Redemption Account, second, the Reserve Account, third, the Renewal and Replacement Fund, and fourth, the Supplemental Reserve Fund. Subject to the foregoing, money held for the credit of the Surplus Fund may be used by the City, in conformity with applicable law, for any lawful purpose. Cr,stody mW Applica6m of Beni Proceeis The proceeds (including accrued interest) of the bonds shall be applied by the Trustee as provided in the Trust Indenture, simultaneously with the delivery thereof, to the credit of the Bond Service Account, the Reserve Fund and the Construction Account and to the payment of the premium for the municipal bond insurance. Investment of Fuels Money held for the credit of the accounts and funds under the Trust Indenture, as nearly as may be practicable, shall be continuously invested and reinvested in Investment Obligations which shall mature, or be subject to redemption by the holder thereof at his option, as provided in the Trust Indenture. Investment Obligations purchased as an investment of money credited to any fund or account shall be deemed to be a part of such fund or account, and any interest or profit thereon shall be credited to the respective fund or account (except for certain excess earnings) and any loss shall be charged to such fund or account; provided, however, that prior to the completion date of the Convention Center -Garage, any interest accruing on obligations purchased with money credited to the Bond Service Account and the Reserve Account shall be deposited to the credit of the Construction Account. I5raece The City covenants that during the construction of the Convention Center -Garage it will cause the Convention Center -Garage to be insured against such risks as are customarily insured against in connection B-5 with construction of comparable facilities. Each insurance policy shall contain a loss payable clause in which any loss with respect to the Convention Center shall be paid to the City and to the Hotel Developer, the Hotel Mortgagee, and the University, as additional insureds. as their respective interests may appear, and any loss with respect to the Parking Garage shall be paid to the City and to Dade Savings, as an additiood insured, as their respective interests may appear. The City further covenants that it will cause all improvements in or constituting part of the Convention arih insured against in connection Center -Garage at all times to be insured against such risks as are custom with the operation of convention center and parking facilities of comparable type and size and that the City will carry and maintain at least the following insurance, in the respective specified in the Trost indenture, when and as such insurance is commercially available: (a) fire, with Uniform Standard Extended ischief insurance, with the broadest all risk coverage Coverage Endorsements, and vandalism and malicious m endorsements; (b) war risk insurance, when obtainable from the United States of America; (c) coverage for sprinkler leakage, boilers, pressure vessels or similar apparatus, auxiliary piping and selected machinery objects; (d) comprehensive general liability insurance. (e) comprehensive automobile liability insurance; (f) wort men's compensation insurance as required by the laws of Florida. and (g) use and occupancy or businew interruption insurance covering the loss of revenues by reason of the suspension of, or interruption in, ibe operation of the Convention Center -Garage caused bN damage to or destruction of any part of the Convention Center -Garage, caused by any peril insured against, covering a period of suspension or interruption by reason of such damage. Damaged our Des&eyd Property Immediately after any substantial damage to or destruction or loss of any part of the Convention Center - Garage, the City shall cause to be prepared plans and specifications for repairing, replacing or reconstructing the damaged, destroyed or lost property (to conform with the approved plans and specifications for the Con- vention Center or the Parking Garage, as the case maN be, as they existed immediately preceding the date of loss or damage, unless otherwise agreed to by the Hotel Developer and the University with respect to the Coo- vention Center and the Hotel Developer and Dade Swim_, with respect to the Parking Garage) and an estimate of the cost thereof. The proceeds of all such insurance a� ailable for the replacement, repair or recon- struction of the lost, damaged or destroyed property. shall tk disbursed b� the Trustee for such purpose. If such proceeds are more than sufficient for such purpose. the balance remaining shall be deposited to the credit of the Sinking Fund. If such proceeds shall be insufficient for such purpose, the deficiency shall be provided (i) by the Trustee, upon requisition of the City, from am money held for the credit of the Renewal and Replacement Fund and (ii) by the City, from any other money of the Cite legally available therefor. Artriteets, Accomm ant and Consul ants The City covenants to retain an independent architect, an accountant and such consulting, parking, structural or traffic engineers, or feasibility or management consultants. as it deems necessary and appropriate, each having a favorable national repute for skill and experience in such work, to perform the functions of the Architect, the Accountant and the Consultants, respectively, under the Trust Indenture. MediimOm d Trost Indentm The City and the Trustee may enter into supplemental trust indentures to cure any ambiguity, formal defect or omission, to grant to the Trustee for the benefit of the bondholders additional security and to pledge additional property. The Trust Indenture may be amended in am particular. with the consent of the holders of not less than 51 % of the aggregate principal amount of the bonds then outstanding; provided that 00 such amendment shall permit (i) an extension of the maturity of principal or interest payment, (ii) a reduction in the principal amount, the redemption premium or the rate of interest of any bond. (iii ) the creation of a lien on or a pledge of the Gross Revenues or Net Revenues of the Comention Center -Garage other than the lien and pledge created by the Trust Indenture, (iv) a preference or priority of am bond or bonds over any other bond or bonds, or (v) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental trust indenture. B-6 Remodks d des Events of default include, among others: failure to pay principal, interest or redemption premium when due; failure to meet the Amortization Requirements; unreasonable delay in, failure to carry on with reasonable dispatch, or he abandoning of, the construction of the Convention Center -Garage or any substantial part thereof; the City's incapability of fulfilling its obligations under the Trust Indenture; any substantial part of the Convention Center -Garage shall be destroyed or condemned to the extent of impairing the efficient operation or usefulness thereof which shall not be promptly repaired, replaced or reconstructed; the termination of the Hotel Agreement, TC Agreement or the University Agreement except in accordance with the terms thereof; an event of default under the Hotel Agreement, TC Agreement or the University Agreement which shall have continued for 30 days after written notice thereof; insolvency, receivership, bankruptcy or other proceedings affecting certain financial aspects of the Convention Center -Garage or the City; or certain other events, acts or omissions to act; in each case within or for the specified period of grace, if any. Upon the happening and continuance of any event of default the Trustee may, and upon the written request of the holders of not less than 15% of the principal amount of the bonds outstanding shall, declare the principal of all the bonds to be due and payable. Such declaration may be rescinded under the circum- stances and requirements specified in the Trust Indenture. No bondholder shall institute any suit, action or proceeding on any bond or for any remedy under the Trust Indenture except as provided in the Trust Indenture. The holders of not less than 15% of the principal amount of the bonds outstanding may institute any such suit, action or proceeding in their own names for the benefit of all holders of bonds. Coves nis of the My In addition to other covenants, the City has covenanted under the Trust Indenture that it will not use or pledge any of the Gross Revenues or Net Revenues of the Convention Center -Garage to pay or secure obliga- tions that are not secured under the provisions of the Trust Indenture, and that. so long as any bonds authorized under the Trust Indenture shall be outstanding, it will not authorize or issue any bonds secured by any lien on or pledge of the proceeds of the utilities services tax levied and imposed on the purchase of local telephone and telegraph services (other than Utilities Service Tax Refunding Bonds); provided that Pledged Telephone and Telegraph Excise Tax Revenues may be applied by the City for any lawful purpose if such revenues exceed the amount necessary to pay any bonds secured by the Trust Indenture. The City further covenants that so long as any Utilities Tax Bonds shall be outstanding it will not reduce the utilities service tax if such reduction would adversely affect the availability of revenues from the utilities service tax upon the purchase of telephone and telegraph services for the purposes described in the Trust Indenture. The City further covenants that it will not repeal the utilities service tax upon the purchase of telephone and telegraph services while any of the bonds issued under the provisions of the Trust Indenture shall be outstanding and that no reduction in such tax upon the purchase of telephone and telegraph services will be made unless certain requirements of the Trust Indenture are satisfied. The City covenants that M if at any time it shall appear necessary, it will increase the utilities service tax upon the purchase of telephone and telegraph services, within the limits and restrictions fixed by applicable law, as may be necessary to satisfy the City's obligations under the Trust Indenture and (ii ) if at any time the amount of Pledged Telephone and Telegraph Excise Tax Revenues received by the City from the utilities service tax upon the purchase of telephone and telegraph services shall decrease for any reason then the City shall increase such tax, within the limits of applicable law, or will endeavor to substitute service tax revenues as security for the payment of the City's obliga- an equivalent amount of other utilities tions under the Trust Indenture. The City covenants that it will not create or suffer to he created a lien, encumbrance or charge upon the Convention Center -Garage or any part of the site upon which the Convention Center -Garage is located or upon the Gross Revenues or Net Revenues of the Convention Center -Garage, Pledged Telephone and e Trust edge, lien Telegraph Excise th Tax ty of henues and bondsher created thereby Pledgedney upon under saidtlrevenues and said other except money and except and charge for as otherwise provided therein. B-7 i I'VK':ks II'�.iiirr.�!',,, The City also covenants that, except as in the Trust Indenture otherwise permitted, it w ill not sA demolish, remove, or otherwise dispose of or encumber the Convention Center -Garage or an part there4 or such air rights, easements, licenses or other similar rights in land necessary for construction, operation or maintenance of the Convention Center -Garage or am part thereof, and that it will not take or fail to tale any actions which may result in the termination or cancellation of the Hotel Agreement, the TC Agreement or the University Agreement except in accordance with the terms thereof, and that it will fulfill its obligations and will require the Hotel Developer, Dade Savings and the Uniyersity, respectiyel%. to fulfill their respective duties and obligations under the Hotel Agreement, the TC Agreement or the University Agreement. Assize d of Hold Agreement, TC Agreement and [; niversih Agreement The City has given, assigned and pledged to the Trustee and the holders from time to time of the bonds, as additional security for the bonds, the Hotel Agreement. the TC Agreement and the l:nicersity Agreement and all the rights, powers, privileges and immunities of the Clt\ under the Hotel Agreement, the TC Agree- ment and the University Agreement. Release of Trod Indewlem If, among other things, the bonds shall have become due or shall have been duly called for redemp- tion or irrevocable instructions to call the bonds for redemption shall have been given by the City to the Trustee, and the principal, interest and premium, if any. so due upon all the bonds shall be paid or sufficient money or Government Obligations, or both. shall be held in trust by the Trustee therefor, the Trust Indenture shall be released and the defeasance thereof shall be effected. Otherwise the Trust Indenture shall remain in full force and effect. M_neons No covenant, stipulation, obligation or agreement contained in the Trust Indenture shall be deemed to be binding upon any officer, agent or employee of the City in his individual capacity, and no officer of the City executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Except as otherwise expressly provided in the Trust Indenture. nothing therein is intended or shall be construed to confer upon any person, firm or corporation, other than the City, the Trustee and the holders of the bonds, any right, remedy or claim, legal or equitable, under or by reason of the Trust Indenture. All obligations, liabilities and expenses incurred by the City in carrying out the Trust Indenture shall be payable solely from funds provided thereunder, and no liability or obligation shall be incurred by the City beyond the extent to which money shall have been provided under the Trust Indenture. The Trustee, the Depositary and any bank or trust company acting as Paying Agent under the Trust Indenture and their directors, officers, employees or agents and any Commissioner or other officer, employee or agent of the City may, in good faith, buy, sell, own, hold and deal in any of the bonds or coupons and may join in any action which any bondholder may be entitled to take. Any amendment of the Hotel Agreement, the TC Agreement and the University Agreement may be approved by the Trustee provided such an, tdment is in conformity with the provisions of the Trust Indenture and such agreement and the Trustee shall , termine that the rights of the bondholders shall not be prejudiced or impoired by such amendment. SUMMARY OF HOTEL. AGREEMENT TWO The initial term of the Hotel Agreement shall commence on September 13, 1979 and shall expire 45 years after the date on which the Hotel first opens for business. CI Hotel Developer is obligated to complete construction of the Hotel on or before February 1, 1982). The Hotel Agreement may be renewed by the Hotel Developer, upon the same terms and conditions, for an additional 45 years after the expiration of the initial term. B-8 Red The Hotel Developer covenants to pay rent consisting of a Base Rent and Additional Rent. The Base Rent is $2,900,000. being equal to the average present value of all of the rights of the Hotel Developer under the Hotel Agreement, and is payable on the date the Hotel first opens for business. Additional Rent is payable semi-annually based upon a percentage of annual Gross Sales increasing from 1.6% at $20,000,000 of Gross Sales to 3.6% at $40,000,001 of Gross Sales. A definition of Gross Saks and a complete table of percentages and amounts are included in this Official Statement under the caption "Descrip- tion of the Bonds --Security for the Bonds —Hotel Agreement". If Gross Sales exceed $41,666,667 the Hotel Developer shall pay Additional Rent to the City in the amount of $1,500,000 subject to upward adjustment for equivalent increases in the Consumer Price Index for the City of Miami, or such other comparable index which may be in effect from time to time if said Consumer Price Index is unavailable, using the index for the first year in which Gross Sales exceed $41,666,667 as a base year. Payment of Additional Rent shall be deferred to the extent that funds available to the Hotel Developer from the revenues of the Hotel are insufficient to pay such Additional Rent after the payment of (i) principal, interest and participation interest under the Hotel Developer's first mortgage loan, (ii) all operating expenses and cash reserves required of the Hotel Developer under the Hotel Agreement and Hotel management agree- ment, and (iii) priority return to equity capital investors, provided, that the sum of (i) and (iii) shall not exceed in the aggregate $5,300 per room per annum. Interest is payable upon the deferred Additional Rent at the rate of 1/2 % above the rate paid by the City on its Bonds. Additional Rent may be deferred for three years and is then payable from any funds available to the Hotel Developer in any calendar year after payment of items (i) , (ii ), and (iii) above. The rent during the renewal term shall be as agreed upon at such time by the parties to the Hotel Agreement. 1w ememM Cads of Comirncdm The Hotel Developer shall pay to the City $1,200,000, representing the costs to the City of constructing certain structural and support elements in the Convention Center in sufficient size and capacity to serve the Hotel. These incremental costs shall be paid by the Hotel Developer to the City in five equal annual install- ments of $240,000 each beginning fifteen months following the date on which the Hotel first opens for business. Offset Rent and all other sums payable by the Hotel Developer shall be paid without notice, demand, counter- claim, setoff, deduction or defense and without abatement, suspension, deferment, diminution or reduction except if the Hotel Developer or the Hotel Developer's first mortgagee shall incur any cost or pay any sum anywhere in the Hotel Agreement prescribed to be obligations of the City, then the Hotel Developer or the Hotel Developer's first mortgagee shall have a claim against the City which claim shall bear interest thereon at the rate at which funds are available to the Hotel Developer from commercial sources, and if not sooner paid, may be offset against Additional Rent. Coustrnedeat of the Hotel The Hotel Developer agrees to promptly begin construction of the Hotel. The Hotel Developer shall construct the Hotel fully equipped, adequately capitalized, and ready to commence business within the time limits and in accordance with the standards provided in the Hotel Agreement. The Hotel Developer must substantially complete the Hotel on or before February 1, 1982 including installation of furniture, fixtures and equipment. BE CeMer sad rw hisig Gam C s# the Cwve� The City shall construct the Convention Center, including support elements for the Hotel, the Parking Garage, the public Park and the river walk, and the installation of all furniture, fixtures and equipment on or 11 i before February 1, 1982. B-9 U" ies The City will construct as part of the Convention Center a plant or plants to produce hot and cltiej and the Hotel water sufficient for the needs of the Convention Center . The Hotel Developer d City on a monthly basis the direct unit cost of hot and chilled water delivered use the Hotel.. Each of pay to o tY parties shall pay the cost of utility services to its respective premises or otherwise used by the respective path Coavew&m Center Fw1des The cost of performing the City s undertakings shall b, paid from proceeds of the Bonds, from tie revenues of the Convention Center and Parking Garagc, and from such funds of the City as may be lawfully available therefor. m. The City at its expense shall operate and maintain the Comention ('enter and Parking Garage as a 1 class convention and conference center and parkin_ garage. If the City fails to operate or maintain the Conven- tion Center and Parking Garage, as aforesaid, then, the Hotel Developer shall have the right to perform =& and the Hotel Developer shall be entitled to an appropria operation, maintenance, repair or replacement te offset against Additional Rent. The Comention Center (excluding the Conference (enter) snail ment with a professional management firm. The Conference Ccntcr agreement with the same professional management firm with regard maintenance functions. he placed under a management agree - shall be placed under a management to the performance of custodial and pad irrg The Cite has agreed with the Hotel Dei,clopei to construct the Parking Garage with parking facilities for not fewer than 1.450 automobiles connected to the Comention Center b% means of a pedestrian walkway. Tk Hotel Developer or its Hotel manager shall haze priorit% to rescric cash day up to -14.9% of all the parking spaces in the Parking Garage for use during such day by guests of the Hotel. Hotel NLWAg;oeN The Hotel Developer shall submit to the Cite an executed managemen recognized hotel management firm for operation and management of the Hotel. commissions and discounts shall be onh those txpcs normally associated with hotel and shall be maintained at competiti\e price Ic\cls. F,gnily Nveshwat Capital and Mortgage Financing t contract with a nationaft The Hotel Developer's trade the operation of a first It shall be the sole nspunsihilit\ of the Hotel De�eloncr to secure sufficient equity capital and mortgW financing, in any combination thereu , to construct the Hotel ir. such a manner as to meet its obligations under the Hotel Agreement. The Hotel Developer shall furnish the Cite with the name and address of the holder of all mortgages against the leased premises and of am other lien or encumbrance which has been created on or attached to the leased premises whether by act of the Hotel Developer or otherwise. Rights of the Hord Devebpees Mortgagees Should the Hotel Developer's first mortgagee succeed to the position of the Hotel Developer, then the payment of Additional Rent shall be deferred to the extent that funds available to the mortgagee from the revenues of the Hotel are insufficient to pay Additional Rent after payment or retention of (i) the debt service which would have been due on the Dc%cloper's first mortgage; (ii) all operating expenses and cash reserves required under the Hotel Agreement and the Hotel management agreement; and (iii) any other amounts secured by the Hotel Developer's first mortgagee including, but not limited to, arrearages in debt service and sums advanced by said mortgagee in payment of obligations of the Hotel Developer under said B-10 i mortgage or the Hotel Agreement. At the end of each year if there are funds available to such mortgagee as determined in the manner described above, and there exists unpaid Additional Rent which accrued after I the Hotel Developer's first mortgagee came into possession of the leased premises, such funds available shall be applied fast to the payment of such accrued Additional Rent until paid in full, then to the payment of Additional Rent currently due. r If, prior to completion of the Hotel, the Hotel Developer's first mortgagee shall acquire title to the Hotel Developer's leasehold estate, then in such event, the mortgagee, or the mortgagee's nominee, may complete the construction of the Hotel, subject to an extension of the time therefor. If the mortgagee elects to com- plete the Hotel, it shall agree to assume all of the obligations of the Hotel Developer and shall agree to be bound by all of the provisions of the Hotel Agreement. The Hotel Developers first mortgagee shall not be obligated to pay any money or cure any default of the Hotel Developer by the payment of money or otherwise with respect to (i) any indemnity of the Hotel Developer, (ii) deferred Additional Rent or interest thereon, or (iii) the incremental costs of construction E described above. The City agrees that no action by the City to declare a default shall be effective to terminate tl . Hotel Agreement if any leasehold mortgagee shall promptly commence the enforcement of and diligently pursue all rights and remedies legally available to it to correct or cure all defaults (other than defaults which are not within the power of said mortgagee to correct or cure, which defaults shall be deemed waived as to said mortgagee), or if said r;-artgagee shall promptly commence the enforcement of and diligently pursue all rights and remedies legally available to it to acquire the leasehold estate, and upon acquisition thereof, perform all of the covenants and provisions on the part of the Hotel Developer to be performed during the period of its ownership of the leasehold estate. If the Hotel Agreement shall terminate by reason of the happening of any default, the City shall give notice thereof to the Hotel Developer's first mortgagee. Upon request of the Hotel Dcccloper's first mort- gagec and upon payment to the City of all monies due and payable by the Hotel Developer hereunder (subject, however, to the provisions of and the curing of all defaults hereunder up to the date of such termination which are within the power of such mortgagee to cure and the performance of all of the covenants and provisions hereunder up to the date of such termination which are within the power of said mortgagee to perform) the City shall enter into with, and deliver a new lease of the leased premises to, such mortgagee for the remainder of the term at the same Additional Rent and on the same terms, provisions, and conditions as contained in the Hotel Agreement. Any mortgagee or any person acquiring the leasehold estate of the Hotel Developer shall have the right to assign such leasehold estate. Upon such assignment the assignor shall be forever released and discharged from the obligations of the Hotel Agreement. The liability of any mortgagee, and of any mortgagee successors or assigns, shall be limited to the lease- hold estate created by the Hotel Agreement. The Hotel Developer agrees it shall not amend or terminate the Hotel Agreement without the prior written consent of any holder of any mortgage lien on the leased premises. The City shall not amend or terminate the Hotel Agreement without the prior written consent of the Trustee under the trust agreement securing the Bonds. 10bouffegglm mw in matsee The Hotel Agreement includes provisions concerning the allocation of insurance proceeds between the parties thereto in the event of a loss, and the indemnification of employees of both parties respecting actions, claims or demands asserted against them respecting injury to persons or property damage in connection with the construction or operation of the premises. The Hotel Developer and the City are each obligated, at their own expense, to carry insurance on the Hotel and on the Convention Center and Parking Garage, respecti%cly, pursuant to the requirements therefor set forth in the Hotel Agreement, which requirements are in substantial conformity with the insurance require- ments summarized under the "Trust Indenture —Insurance." B-11 rA5&6C ans w Use and the The Hotel Developer shall use and operate the Hotel as a first-class s� toh inhotel the HotelHAgroemeat. �� the Convention Center for the intended purposes and square footag In the event gaming is legalized or authorized within the Stante of loridasuch D advent.Count t� ��he Cky I*of Miami, it is agreed that the Hotel may be used for such purposes- urp renegotiate the rent provided that any additional rent to the City shall be competitive with induy standoh in effect for other similar type facilities where such gamistr ng is permitted. MainleMsice, Repir ad Repbemem The Hotel Developer, at its expense, shall ktcp the Hotel in good condition and will promptly make all necessary repairs thereof. The Hotel Developer shall establish a rrservr for replacements in the minimum amount of $324 per Poop per year, subject to upward adjustments for any increases m the consumer Price Index for the City of Miami, to provide funds for replacement and repair so that the Hotel will at all times be kept and maintained it first-class condition. The Hotel Developer shall not, without the prior µnttcn consent of the City, demolish all or any Pon of the Hotel, or change the Hotel so as to make it less compatible with the operation of the Convention Cmlx Fine or Ober Cam The Hotel Agreement includes pro%isions concerning the e�p,n.iture u( insurance proceeds respecting the repair and reconstruction of the Hotel, the Comcntion Centci and the Parking Garage. Cn■deraliN The Hotel Agreement includes provisions concerning the right, and liabilities of the parties under the Hotel Agreement in the event all or part of the Hotel, the ('on%cntion Center or the Parking Garage is taken under an exercise of the power of eminent domain. Del" The Hotel Agreement includes provisions which set forth certain c%cnts of default including: the failure to pay any installment of rent, the default upon am indebtedness secured b% a lien tin the Hotel, the failure of the Hotel Developer or the City to comply with am material term or provision of the Hotel Agreement, insolvency, feorganization or other similar relief, the failure of the Hotel Developer to secure sufficient funds to construct the Hotel prior to delivery of the Bonds, and the failure of the Cit% to construct the Convention Center or parking Garage. Remedies for such defaults include termination of the Hotel Agreement. SLMMARV OF TRADE CENTER AGREEMENT Tam The initial term of the TC Agreement shall he for 35 %ears and shall commence on the date of the TC Agreement with an option to extend for an aggregate lease term of yU years. Rem srtd Gwa meald Charges Except as expressly provided under applicable law or in the I-C Agreement, the amount of Rent, Govern' mental Charges and all other sums payable by the TC Owner shall not be abated, reduced, abrogated, waived, diminished or otherwise modified in any manner or to any extent whatsoe%cr. The Rent shall be comprised of the First Rent Component, the Second Rent Component, and the Third Rent Component, if any. B-12 The First Rent Component nibs[" be $150,000 per annum, subject to an annual increase or decrease, but shall not be less than $150,000. Beginning with the second full calendar year after the Rent Commence- ment Date and for each year thereafter, the First Rent Component shall be increased or decreased by an amount equal to seventy percent (70%) of the result obtained by multiplying $150,000 by a fraction, the numerator of which shall be the difference in the Consumer Price Index for the City of Miami between the fast month of the current year (or the nearest reported previous month) and the first month of the Base Year, hereinbelow defined (or the nearest reported previous month), adjusted on a consistent basis, and the denomi- nator of which shall be the Index number for the first month of the Base Year (or the nearest reported previous month). The Base Year for purposes of the First Rent Component shall be the first full calendar year after the Rent Commencement Date. The Second Rent Component shall increase from zero to $150,000 per annum based upon the achieve- ment of specified levels of occupancy of the Trade Center, provided, however, that the Second Rent Component shall increase to $150,000 in the fifth full calendar year after the Rent Commencement Date. without regard to occupancy levels. The Second Rent Component shall be subject to an annual increase in the same manner as the First Rent Component except that the Base Year for the purposes of the Second Rent Component shall be the fifth full calendar year after the Rent Commencement Date. Should a majority of the Qualified Space (as defined below under the heading "Use") for any reason not be used for Trade Purposes (as defined below under the heading "Use") in any calendar year after the fifth calendar year from the Rent Commencement Date, the TC Owner shall pay to the City the Third Rent Component. The Third Rent Component shall be $75,000.50, in the event that less than a majority of the Qualified Space is being used for Trade Purposes, and shall increase proportionately to a maximum of $150,000, in the event that all of the Qualified Space is not being used for Trade Purposes, subject in all cases to adjustments based on the Consumer Price Index. The TC Owner shall pay monthly installments of Rent based upon the Rent, as adjusted, for the previous calendar year. The TC Owner shall pay the total amount of all Governmental Charges. If such Governmental Charges are not separately assessed, the TC Owner shall pay its fair and equitable portion of such Governmental Charges. The TC Owner shall pay for all heat, light, water, gas and any and all other services used in connection with the Trade Center. The City shall, at its expense, provide utility, sewer, water and like connections to the service core area of the Trade Center. Use The Parking Garage shall have parking facilities for at least 1,450 automobiles. The TC Owner shall use its best efforts to cause a majority of the Qualified Space (Qualified Space being approximately 60% of the space in the Trade Center) to be used for Trade Purposes, meaning purposes related directly or indirectly to international banking, law, finance, insurance, transportation, communications, govern- ment, technology, trade, tourism, import and export business and other international business and activity. The TC Owner shall provide written reports to the City of its leasing efforts, information about tenants and such other information as the City may reasonably request to determine whether Qualified Space has been used for Trade Purposes. � cornstr•dio. Promptly after the execution of the TC Agreement, the TC Owner shall cause the Architects to develop final plans and specifications for the Trade Center and the City shall cause plans and specifications for the Parking Garage to be developed. The plans and specifications for the Trade Center shall be subject to the approval of the City. The plans and specifications for the Parking Garage shall be subject to the approval of the TC Owner. The TC Owner may i B-13 propose changes or additions to the plans and specifications for the Parking Garage to change the architeewd and aesthetic features thereof in order to meet the special needs of any eoial design of e Trade Centthe er, subject to tie de Center or% harmonize the appearance of the Parking Garage with the appearance approval of the City. It is anticipated the City shall complete the construction of the Parking Garage, and the apputte@M facilities for the Trade Center to be constructed by the City within the Parking Garage, not later than Febrmy 1. 1982. if the City, by failing to commence or to prosecute the construction, or by failing to eompiete the construction, shall prevent commencement of the construction or the use and occupancy of the Trade Center, or if the City for any reason shall fail to fully complete construction of the Parking Garage by the dale that is 24 months subsequent to the Parking Garage completion date, the TC Owner may elect to prosecute &a construction of the Parking Garage and the City shall reimburse the TC Owner for all their charges, costs and expenses theretofore or thereafter paid or incurred in connection therewith. If the City has not fully completed the construction of the Parking Garage for any reason by the date that is 24 months subsequent to said Parkin Garage completion date. and if the TC Owner has not elected to complete the construction of the Parking Garage, then the TC Owner may terminate the TC Agreement. If the TC Owner shall fail to commence or complete construction of the Trade Center within the respective time required by the United States Department of Housing and Urban Development under its agreement with the City providing for the UDAG Grant for the Parking Garage, and such failure is not named by the City, the TC Owner agrees to pay to the City an amount equivalent to the amount of said UDAG Graait that is not paid or that the City must refund by reason of the TC Owner's failure to commence or to complete such construction within the respective time required under said agreement. opeme" aid Maintenance of tlbe Trade Center and Parking Garage The TC Owner shall operate and maintain the Trade Center in good order, condition and repair, normal wear and tear and damage by fire and other casualty or taking excepted. The City shall operate and maintain the Parking Garage and all facilities therein, including those appurtenant to the Trade Center, in good order, condition and repair, normal wear and tear and damage by fire and other casualty or taking excepted. The TC Agreement includes provisions concerning the rights and remedies of the parties thereto Mveeting the failure of either party to comply with the above -mentioned requirements concerning upkeep and repair of the Trade Center and Parking Garage. Insaraice and Indemnification The TC Owner and the City are each obligated to carry insurance on the Trade Center and the Parking Garage, respectively, pursuant to the requirements therefor set forth in the TC Agreement, which requireareats are in substantial conformity with the insurance requirements described in this Official Statement under the caption "Summary of the Trust Indenture —insurance". The TC Agreement includes provisions concerning the allocation of insurance proceeds between the patties thereto in the event of a loss, and the indemnification of officers, agents and employees of the City and the TC Owner respecting expenses, claims or actions asserted against them in connection with the constrict" and operation of the Trade Center and Parking Garage. DmW The TC Agreement includes provisions concerning the expenditure of insurance proceeds respecting the repair and reconstruction of the Trade Center and the Parking Garage, and the abatement of Rent and COMO charges due in the event the Parking Garage - damaged by fire or other casualty and such damage intetferes with the TC Owner's use of the Trade Center. B-14 Cwtlettraliw The TC Agreement includes provisions concerning the rights and liabilities of the parties under the TC Agreement in the event all or part of the Trade Center or the Parking Garage is taken under an exercise of the power of eminent domain. The TC Owner covenants (a) not to assign or otherwise transfer the TC Agreement or the term and estate thereby granted, (b) not to allow the Trade Center to be used, occupied or utilized by anyone other than the TC Owner except as provided in the TC Agreement, and (c) not to mortgage, pledge, or encumber the TC Owner's leasehold interest in the Trade Center or any part thereof, in any manner by reason of any act or omission on the part of the TC Owner, without in each instance obtaining the prior written consent of the City. The City shall not withhold its consent to (i) a mortgage of the TC Owner's leasehold interest by mort- gage to a reputable leasehold mortgagee, or (ii) an assignment, sublease or other transfer to a reputable corporation or other entity, if in the case of either (i) or (ii) above, such leasehold mortgagee or transferee, at the time of snaking such mortgage or transfer, is reasonably determined by the City to have, after taking into account a reasonable projection of rental income from the Trade Center, net worth sufficient to pay the Rent and operate and maintain the Trade Center, subject to exceptions set forth in the TC Agreement. The TC Owner covenants not to assign, sublet or transfer its interest, until substantial completion of con- struction of the Trade Center unless such transfer is required as a result of regulatory action by any governmental agency having jurisdiction over savings and loan associations. Further, the TC Owner covenants not to assign, sublet or transfer its interest after substantial completion of construction of the Trade Center unless, at such time, the TC Owner pays to the City an amount that is the lesser of (a) the Net Proceeds, or (b) $4,104,000, with respect to a transfer during the calendar year in which substantial completion of construction occurs, and, with respect to a transfer in any of the next ten years after substantial completion of construction occurs, an amount equal to $4,104,000 less $410,400 for each year that has passed since substantial completion of construction has occurred. All Net Proceeds received by the TC Owner after the City has been paid such amount shall be retained by the TC Owner. This provision shall not apply to transfers subsequent to an initial transfer by the TC Owner, so long as such initial transfer was made at "arms- length" with a non- affiliated transferee. "Net Proceeds" is a term defined in the TC Agreement. Utfiu Developmea Action Grad ftow esta Provisions proscribed by the United States Department of Housing and Urban Development with regards to the Urban Development Action Grant made by such Department to the City have been included. DAMM The TC Agreement includes provisions which set forth certain events of default, including: the failure to pay all or part of the Rent or any other sum of money which shall fall due, or the failure of said Owner to perform any of the other obligations set forth in the certain TC Agreement. Remedies for such defaults include termination of the TC Agreement. Upon such a termination the City may exercise its right to reenter and take possession of the Trade Center, or exercise such other related remedies set forth in the TC Agreement. If the City at any time shall fail to perform any of the City's agreements or obligations and fails to cure or commerce the cure of the same within the applicable grace periods provided in the TC Agreement, the TC Owner to the fullest extent permitted by law shall have the right to elect and pursue the remedies set forth in the TC Agreement. Rigs d tk TC owmes mer"mee The City agrees to accept performance and compliance by any leasehold mortgagee of and with any term, covenant, agreement, provision or limitation on the TC Owner's part to be kept, observed or performed by the TC Owner. If a leasehold mortgagee shall acquire the leasehold estate by foreclosure or B-15 ail' �.•�-... 'S Fp'' otherwise, then, in such event, the TC Agreement shall continue in full force and effect so long as the leasehold mortgagee is not in default thereunder. The leasehold mortgagee shall become liable and be fully bound by the provisions of the TC Agreement; provided, however, that the leasehold mortgagee shall not b end by or be liable under the provisions of the TC Agreement for the period of time prior or subsea tperiod of time during which it holds the leasehold estate, except as provided below. The City agrees that following an Event of Default it will take no action to terminate the TC Agreement nor to reenter and take possession unless it shall first give each leasehold mortgagee notice specifying such Event of Default and stating the City's intentions. Notwithstanding such notice the TC Agreement shall not be terminated nor shall the City reenter and take possession if t i) such Event of Default can be cured by the payment of a fixed monetary amount and within twent% da%s after the date such notice is given any leasehold mortgagee shall make such payment, or (ii) such Event of Default can he cured with the exercise of reasonable diligence by a leasehold mortgagee after obtaining possession and the leasehold mortgagee, within thirty days after the date such notice is given, commences such proceedings as it may deem necessary to obtain attteh possession and thereafter diligently prosecutes such action and promptly upon obtaining such possession commences (and thereafter diligently pursues) the curing of such default. In the event of the termination of the TC Agreement prior to its stated expiration date, the City shall give all leasehold mortgagees notice of such termination and shall enter into a new lease on the same terms with a leasehold mortgagee or with an assignee, designee or nominee of such mortgagee or, for the remainder of the term effective, provided such conditions therefor set forth in the TC Agreement are satisfied. The TC Agreement shall not be modified, amended. surrendered, canceled or wholly or partially terminated by the TC Owner, nor shall any waiver of the TC (%%tier', right thereunder or any approval or consent of the TC Owner required thereunder be eticcti%c. without the written consent of each leasehold mortgagee whose name and address shall have been furnished to the Cit%. ma's ObMpd tas Any obligation of the City or any liabilit% imposed on the City under or pursuant to the TC Agreement shall be payable solely out of revenues of the Cit% derk ed b} the City from the operation of the Parking Garage and from other revenues of the City lawfully available therefor. SLTMMARV OF UNIVERSITI' AGREEMENT T W Leasehold Property The City under the University Agreement agrees to 0n1'struct. :Is it part of the Convention Center, a Conference Center to be used by the univcrsit\. Terms of the Lease The City and University agree to execute and dcli\cr a lease for the Conference Center. The term of sttch lease shall be for thirty years, with options to renew the lease for two conxcutise 30 year periods. The lease shall commence upon completion of the construction and occupanc\ of the Hotel, Convention Center and Parking Garage and upon satisfaction of such other conditions as are specified in the university Agreement. Rod The University agrees to pay $2,500,M) to the Cite as a single payment of rent under the aforesaid lease. Such amount including interest thereon shall be paid to the City upon satisfaction of the abovementioned conditions and the execution and delivery of the lease. No further basic rent is to be paid by the University for use of the Conference Center space for the terms of the two thirty year lease renewal periods. In consider- ation for each lease renewal period, the University agrees that it will modernize its equipment and furnishings for the Conference Center within one year of the commencement of the lease renewal period, or demonstrate that it has :odernized the Conference Center prior to the commencement of the lease renewal term. B-16 4 MOW FaclMn The City agrees to cause to be constructed a Hotel, a retail area, and a Parking Garage on the site of the Convention Center. Both the Hotel and retail area are to be completed and the Hotel is to be in operation within sixty days from the date upon which the University occupies the Conference Center. Rebied Renal and Use Apam ft The University may use the City's facilities at the Convention Center on a scheduled priority basis, and the City may use the University's Conference Center space, teaching staff and the associated equipment provided by the University, on schedule priority bases at reasonable rates. The University shall have a priority to use at least 300 of the parking spaces in the Parking Garage upon scheduled request for programmed events, and up to 25 parking spaces to be available on a continuous basis for convenient administrative parking. The University is to have scheduled priority as to all facilities of the Hotel for its conferences and visitors and certain other rights as to the Hotel and the Convention Center. Neither the City nor the University shall solicit conferences or conventions which offer educational or other programs similar to any program or convention theretofore conducted by the other party. The City agrees that at no time during the life of the University Agreement or any renewal thereof will it rent space on a regular and continuing basis to any other institution of higher education for conducting programs which are similar to those which are offered by the University at the Conference Center. Design; Aheeadens The University is granted certain rights respecting the Convention Center, including the right to approve the design, working drawings and specifications prior to advertising for bids, and review the resulting work product with respect to its compliance with the working drawings and specifications. The University agrees to furnish all movable furnishings and equipment needed in the area covered by the University Agreement, including instructional equipment. In furnishing the Conference Center, the University shall have the right to establish its own interior design. Maimie■soce; Opaalim The University has sole responsibility for management, scheduling of events and utilization of the space covered by the University Agreement. The City is responsible for maintaining normal security and public safety and for providing custodial and maintenance services for the Conference Center. The cost of special security or public safety requirements shall be borne by the party programming the event. The cost of custodial and maintenance services for the area covered by the University Agreement will be determined annually, and reimbursed to the City. The University shall be responsible for utility costs for areas covered by the University Agreement, except that the City shall be responsible for all utility, security, maintenance or custodial costs of the common areas. Right to Assign or Silkase The University shall have the right to assign or transfer the University Agreement or to sublease the Conference Center or any part thereof without the prior written consent of the City, provided that the assignee or transferee or subleasee shall be obligated to use the premises for the same purposes for which they can be used by the University under the terms of the University Agreement, and provided further that the City shall have a right of first refusal in the event of a sublease of the entire Conference Center or an assignment of the University Agreement. Insurance The City will obtain property insurance covering the replacement cost of the Conference Center, with the proceeds thereof payable to the University, and the University shall reimburse the City for the cost of such coverage. The University shall provide its own insurance protection on personal property owned by it. The City and the University will each be responsible for providing public liability coverage for the area occupied by it. B-17 De1a■M The University Agreement includes certain default provisions and remedies therefor. If the City dcbdb be paid an amount sufficient to repay under the terms of the University Agreement, the University is entitled to the University or to replace the facilities covered by the University Agreement and the amount of income lost by reason of the default. B-18 APPENDIX C i CITY OF MIAMI, FLORIDA FINANCIAL REPORT Year Ended September 30, 1979 Table of Contents Page Accountant's Report C- 3 Part 1 - Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Changes in Financial Position - Enterprise Funds Notes to Financial Statements Part II - Supplementary Data General Fund: Balance Sheet Statement of Revenues, Expenditures, Encumbrances and Transfers - Budget and Actual Statement of Changes in Fund Balance Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Transfers Combining Statement of Changes in Fund Balances Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances C-1 C-5 C-7 C-8 C-9 C-10 C-11 C-29 C- 30 C-32 C-33 C-34 C-35 C-36 C-37 CITY OF MIAMI, FLORIDA Financial Report Table of Contents, Continued Page Capital Projects: C-38 Combining Balance Sheet Combining Statement of Revenues, Expenditures, C - 39 Transfers, and Changes in Fund Balances Enterprise Funds: C-40 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes C - 41 in Contributed Capital and Retained Earnings Internal Service Funds: C-42 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes C - 4 3 in Contributed Capital and Retained Earnings Trust and Agency Funds: C -4 4 Combining Balance Sheet C -4 5 Combining Statement of Revenues, Expenses and Changes in Fund Balances C-2 Certified Public Accountants IWO Brickell Avenue PNWaLMarwiCkMitCheU&Cd Miami, Florida 33131 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida: we 11:1ve examined the financial statements of the various funds and account groups of tilt. city of Miami, Florida as of September 30, 1979 and for the year then ended, as listed in the accompanying Table of Contents. Our examination was made in accordance with generally accepted auditing standards, and accordingly include3 such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described more fully in note 13 to the financial statements, the City is experi- ,ncink; difficulty in maintaining the current level of services with existing avail- able resources, and in addition, several contingencies exist which could place addi- tional strain on the City's financial resources. The City is levying the maximum property tax millage for operating purposes and has determined that future inter- governmental revenues will be decreasing and that anticipated contributions in sup- p,lrt of the pension plan may be increasing significantly over the next few years. The ability of the City to continue to provide the current level of services in the tuture will depend on its ability to maintain or expand existing revenue sources whip• containing expenditures. As described more fully in note 2 to the financial statements, the City does not provide depreciation on property, plant and equipment of the Enterprise and Internal service Funds as required by generally accepted accounting principles. ich isoself as described more fully in note 7 to the financial statements, the City, record claims payable in the Self Insurance insured for a variety of risks, does not y generally accepted accounting principles. Fund for all losses incurred as required b As described more fully in note 9(a) to the financial statements, the City is currently defendant in a lawsuit seeking to require the City t make additional contributions to its pension plans totalling approximately $22 , P [crest. The final outcome oin- f this suit is not presently determinable and no provi- Sion has been made in the financial statements for the effect, if any, of such litigation. C-3 PPcaLMar-ick.Mi1c1x41&Ct1 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida Page Two In our opinion, except for the effects on the financial statements of the failure to provide depreciation on property, plant and equipment of the Enterprise and Internal Service Funds and the failure to provide for all loss,�s incurred in the Self Insur- ance Fund as described in the second preceding paragraph above, and subject to the effect of such adjustments, if any, as might h,av, been required had the ultimate outcome of the matter discussed in the preceding paragraph hNen known, the financial statements present fairly the financial Fosition of the various funds and account groups of the city of Miami, Florida at September 10, 1979, and the results of operations of such funds and the changes in financial position of the Enterprise Funds for the year then ended, in conformity with zont—rally accepted accounting principles applied on a basis consistent with that of the preceding year. The examination r•?ferred to above was directe.l primarily toward formulating an opin- iun on the financ A statements of the various '.:uid, :cid account groups of the City of Miami, Florida. The supplementary data inclu.',,•': is tlru schedules listed in the iable of Contents are presented for supplementary inal:sis purposes and are not necessary for a fair presentation of the financial position and results of operations of the various funds and account groups and changes in financial position of the Enterprise Funds of the City of Miami, Florida. The supplementary data have been subjected to the auditing procedures applied in the examination of the basic finan- cial statements and, in our opinion, except for the effects (if the failure to provide depreciation on property, plant and equipment in the Fnterprise and internal Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund as described in toe third preceding paragraph ab,)ve, and subject to the effect of such adjustments, if any, a•: might have been required had the ultimate outcome of the matter discussed in the second preceding paragraph above been known, are stated fairly in all material respects only when consider,�d in conjunction with the basic financial statements taken as a whole. 7A4Ad&Or-(40. March 28, 1980 C-4 �Y 7,; CITY OF MIAM1, FLORIDA Combined Balance Sheet - All Fund Types and Account Croups September 30. 1979 Assets and Other Debits Equity in pooled cash and investments (note 2) Receivable%: Taxes receivable - delinquent (less allnvance for estimated uncollectible amount, (•f $520,73S) ceneral accounts receivable (net of ..11'wance for doubtful accounts of $657,114) Assr%sm,nt liens receivable O.her g—t-ruments (net of allowance e-+ for doubtful ncc,.uuts of $110,000) Le:„sits :1": prepaid .xl,.nses In%.,:,torios and other (note 2) ..0 t.+m. thrr fum:. ;q„-t l'.., �:.• t.• and I�.v.: receivable tnet r • rl !. -,I, I. fur ..t,mat.•d uncut lest ible aas mot f t440,cpf, t n•te pr. ?erl v, il..nt ,r •y npm�nt rn.rtr 21: I and S�,i11r,it .• .,cJ rc�...... .m.-nts ".a: hinery and ('. pm,"! Imps •v, Ite-11s •t!,^r -h:•n hul Id mg con,tr•...:Inrt :n J­ gr�.s Amount ava Ian, I•' f,• r„tit. m"'t -f hnad•.: t .enet•tl Special n!I,gat,­ Amount t, be ;revid.J nr rrt' "ment of bnnd� and otter pa ya tr l.. s: General ,ill igat,.ur t`„nd% Spec rat ,•h l igat t.,n bonds Other pavabl. s Governmental Fund Types Proprietary Fund Types Fiduciary Fun$elf�s crou^eral Total Cene aft Special Debt capital internal Trust and Insurance fixed long-term debt (1lemorandum only) General revenue service projects Enterprise service agency Fund assets $ 4,064,077 - 8,182,077 58,418,126 1,023,410 2,048,921 - 5,981,147 - - 79,717,753 - - 42,449 - - - 1,076,625 720,106 - 316 070 • - 454,451 - 8011715 ,, 295.379 I2,105 237,283 - 108,016 _ - - - - 9,118,949 20,629 _ - 3.138 17,491 - - 5,1749194 - - - 7,236,398 - 2,062.204 - - - 2,196 156,427 - - 159,199 _ 576 392,422 - 435,608 43,186 - - - _ _ _ 350,000 _ _ - 350,000 - - 1.920,108 - - 17,153,484 - 18,973,592 _ - 21,741,hO5 727,346 - - - 15,007,005 8,877,817 - - 37,415,956 18.623,84. _ 817,068 - 8,928,956 2,838,906 - - - 99,115,339 - 101,954,245 _ 4,092,677 - - - $0,788,975 - 54,681,652 3,278,834 3.278,634 1,647.740 1,647,740 - 134,766,166 134,786,166 - 533,260 533,260 _ _ - 596,921 596,921 c 5,281.820 2,062,704 8,501,285 66,197,908 29,790,247 14,948,656 5,456,122 6.245,590 190,942,620 140,842,921 470,869,373 �i o� CITY OF MIAMI, FLORIDA combined Balance Sheet - All fund Types and Account Groups Liabilities Deficit in pooled cash and investments (note 2) Accrued liabilities (principally salaries) Accounts payable Deferred revenue (note 2) Revenue bonds payable (note 51 Deposits refundable Due to other Governments Due to other funds claims payable (notes 7 and 8) General obligation bonds payable (not" 5) Special obligation bonds payable (note S) Other payables Total (,abilities Encumbrances -,tstandeng (note 2) Reserve for noncurrent delinquent taxes r.ceivable Fund Hular— (ootribut"' ('apical and H.•tained Earnin-V Fund balances - appropriated Fund balanceF - unappropriated Contributed capital and retained earnings - appropriated Contributed capital and retained earnings - unappropriated Investment in general fixed assets Commitments and contingencies (notes 4, 91 109 11 and 12) Bee accompanyin8 notes to financial statements. ____ Governsental Fund Types Special Debt Capital General revenue Service projects S 1,90O,2R1 - - 1,062,555 - - 7,403 1, 534, 395 4,761 3,474.614 1,015,748 1 ,071,PhO - 1,9o5,W,2 1.474 ,h11.023,151 I.HHP - - 91.2qu 1rn�,1•v7 - Proprieta� Fund Tea Piduciar�Fund�T 09 Account Crou a Total -- -- Genera Genera Internal Trust and Insurance fixed Iona -term (Meawrondum Enterprise service agency Fund assets debt only) _ - 2.645,007 - - - 4,545,288 31,968 50,462 176,126 22,910 - - 1,351.424 131,287 212,229 1,838,235 389,225 - - 10.602,483 25i,414 - - - - - 1.325,274 229,000 _ - 15,978 - - 75,938 12,077 - - - 12,077 350,000 - - 350,000 :,731,993 - 3,106,993 138,065,000 138,065,000 _ - 2,181,000 2,181,000 596,921 596,921 262 ,h90 5,097,183 3,144,128 _ _ - _ _ 140,842,921 162,441,398 346,583 345,162 272, 171 150.Oo0 I.t51,R91 b3,774,757 - - 344,933 2,955,6S1 - _ 68.650,406 39I,R93 1,214 3,773,681 - - - - 145,811 - 4,314,660 S38,711 - - - - - 538,711 _ - - 28,603,867 14.685,966 - - - - 43,289,833 - _ _ - 190,942,620 - 190,942,620 $ 5,281,820 2.062,204 8,501,285 66,797,908 29,790,247 14,948,656 5.456,122 6,245,590 190,942,620 140,842,921 410,869,373 n V (I !'I ''1 ".IA"I, t1''1;""1 ('.or; b(nod StIt, ru•nt et Raven ue..,, Fxp,n,Iet It, for or! tnIt, ;m.! C hanpcs in Fund Sal ances - At C„v,'r nr,•nt al Fund 'Ivp,'- Year ended September 10. 1970 Revenues: Taxes (note :S) Licenses and permits Intergovernmental re vonur Intragovernmf•ntal revenue Charges for services Sale of bonds Assessment Ii,n Collections rnote Franchise- and utility service l:tw r"'"- Sale of land (note 1,1 Interest Grants Other Total r,venu,^ 'I rant f er f ror e,11-1 1 oral•: I „[nl rrn v, n... I .end tr :•r f,• Expend itnte• .wd n,-imbr.in' General pov,•rnr,nt Pub Ii, impnw,•w,•et�• Public safety Solid vast,' Parks and Icisurt' s, rvi Cer Other Project expenditures Uncollectible delinquent pr„petl� t.i.,•. Debt service (note i): Bond principal Bond interest Fiscal agents' tees and administratir, ,harp, Total expenditures and ru—nblav-- Transfers to other funds Total expenditures, encumhrunes and transfers Excess (deficiency) of revenues and transfers over expenditures, encumbrances and transfers Fund balances, October 1, 1978 Equity transfers (to) from other funds (note 2) Transfer of current portion of judgment payable (note 8) Fund balances, September 30, 1979 Total Special Debt capital (memorandum General revenue service projects only) $ 59,437,728 - 17,547,314 - 76,985,D42 4,793,124 - - - 4,793,124 15,491,017 8,248,815 - - 23,739,832 1,662,968 - - - 1,662,968 841,742 - - - $41,742 - 18,250,000 18,250,000 - 571,523 - 571,523 - _ - 1,528,946 1,528,946 892,176 - - 8,000,000 8,892,176 944,711 - 950,317 5,647,187 7,542,215 - 3,760,381 3,760,381 2,599,604 - 144 081 2 743 685 86,663,070 ,248,815 19,069,154 37, 30,59 151:311!634 9,171,663 - 560t360 3,240,000 12,972,023 95,834,733 8,248,815 19,629,514 40,570,595 164,283,657 9,355,952 - - - 9,355,952 10,636,960 - - - 10,636,960 50,205,834 - - - 50,205,834 14,311,787 - - - 14,311,787 6,869,830 - - - 6,869,830 3,308,997 - 22,117 - 3,331,114 - 6,949 - 21,450,097 21,457,046 319,923 - 139,668 - 459,591 - - 10,326,000 - 10,326,000 - 7,294,501 - 7,294,501 8,144 - 211 44 95,009,283 6,949 17,790,430 21,450,097 134,2 6,7 9 1,807,830 9,075,901 20,762 3,641,135 14,545,628 96,817,113 9,082,850 17,811,192 25,091,232 148,802,387 (982,380) (834,035) 1,819,322 15,479,363 15,481,270 1,474,525 1.643,173 3,108,252 48,295,394 54,521,344 546,921 (655,864) - - (108,943) (375,000) - - - (375,000) $ 664,066 153,274 4,926,574 63,774,757 69,516,671 See accompanying notes to financial statements. n W cITY OF MIAM1, FLORIDA atement of Revenues;, Expenditures, Encumbrances and .nges in Fund Balances - Budget and Actual - General and Special Revenue Funds Year ended September 30, 1979 Total Grneral Fund Special Revenue Funds — (memorandumOnly) _ Budget Actual Budget Actual Budget Actual pevrnue s: S 61,2R0,42R 59,437,72R - 61,280,428 5,, 729 Tam („te I) 4, 417,OR3 4,793,124 - - 4,317,083 4 4,793,124 Licrns:rn�, h.rmit� ui,l •., rvcr t—,s 17.074,104 15,491,017 - 8,248,815 17,074,104 23,739,832 I ntert;ov, rnmont.il nc, nu,• Imt. I�.,` 1, 5Rtr,000 1,1,96R - - 1,580,000 1 662,968 , I nt rarov,+ nmrnt tl 1, c. 11- nih ,95H 841, 142 _ 936,958 841,742 i 6.n g,, t"r ��,rv,•.� 500,000 892,176 - 500,000 892,176 Nate . I? (m•t, t 1177,n00 944,711 - - 1,177,000 944,711 Intrt, other (I•„ I,u! Inr,,•r•,: I hm l,`,1'+,'.70 SU9,h11[. 1 539,470 1--' 2,599,604 „t Sl.rtin,nr� tr n l iiI-t•I .,I.,� •.,i,. „til �, n,n ni+,4u5,�i'. t ---- 86,6h3,n70 --_---- _- __ - R,2[.R,R15 _ 9i),405,043 94,911,885 I:.,+1L 9_171,61,t I. (179.774 _9,171,663 I—T- „t,•r t.n�!, 'f•t �l rev, ^,., n ,.,. .•r !�': ..F'. ,-.17 u',,R 7'.,1!4 ----..—------- ----_-- 91249,81`, 1117,494,417 104,083,548 ,,I it II, .i.i4 ,; p.• 'r, ,`+'': - - it 5O9, 2H2 9,355,952 Crn,rul r., tnr,nt Il,nr,,I,R:,+i if, II,Obu,826 10,636.96(1 Yuhlic u,.pr.v•n, It •. •, I:F,nri/ 'u,.'0`,,f, v, - 52,129,087 50,205,834 Y,�hli. =:�t,tv . .'I'., ",' I.,111,7R7 - 1-.,514,757 14,311,787 ',,,lid a.i t• t,hY ,,r,,86v,81n - - h393 ,R85, 6,869,830 I'm i•. .mil l,i •.ur, _ - 6.g44 - 6,944 II't,v:! - 319,923 I'n. .•I I.. til•l,,1Iin,.„nt pry •rt. �.�.. ,.'.+•,,:_.•: 1,30R,vn7 - - 4, (,4.242 3,309,997 utl.rr 'r ,004.:81 ----- - 6,441) 100,676,587 95,016,232 I,•tdl ,sp n!i: n, •. .nil �., �. m.,, ,•;• I,�il ,h,u I,807,R30 9 07529O1 L, R07,830 10,883,731 'Iran=t,•r• I,- 't h,r t,i,,. l.. _ -- _-- 717 4h,H17,113 - 9,082,850 102,484,417 105,899,963 .uid tr.ur t, r. l Det I i encv) of rc.......... and tIan, c - (982,390) - (834,075) - (1,816,415) exprnJrtures, rncur•,br,n,ceti .and tt.in�.(.•r. ------ 1,474,525 1,643,173 3,117,698 Fund balances, nctohrr I. 1478 546,921 (655,864) (108,943) Equity transfers (tn) from other tends (note 2) Transfer of current portion of lenp-term judgment (375,000) - (375,000) payable (note 9) $ 664,066 153,274 817,340 Fund balances, September 10, 1979 See accompanying notes to financial statements. Y. 4 dM,Ii. sx . ,.•. +w,T , .:..r . `aN, s� t�+Akt=,*..4 : =. f {'$:a'°'.F, f i+: V '"! CITY OF MIAMI, FLORIDA Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similiar Trust Funds Year ended September 30, 1979 Proprietary Fiduciary Fund Types fund Type• Sall Internal Trust Insurance Enterprise service 4 agent Fund Revenues[ Revenue from operations g 3,888,108 _ 7,411,594 - - 15,056,396 - 7,471,236 Intragovernmental charges _ - 23,347,822 - Intergovernmental grants (note 10) _ _ - 2,427,754 Contributions from employees and retirees 131,309 - - 515,348 Interest - - 1 128 348 294834 Other 4,019,417 7,4— 1 39, 32,566 10,709:172 Total revenues 647,179 316.602 684,822 - Transfers from other funds 4,666,596 7,728,196 40,217,388 10,709,172 Total revenues and transfers Expenses: 4,165,363 7,100,710 - 10,759,893 Operating expenses _ - 24,672,449 - Grant and related expenditures - - 15,093,031 - Pension expense (note 4) - - 90,207 - Uncollectible delinquent property taxes - - 564,391 - Other 4,165,363 7,100,710 40,420,078 10,759,893 Total expenses 15,000 - - Transfers to other funds 4,240,363 7,100,710 40,4209078 10.759,893 Total expenses and transfers 426,233 627,486 - - Met income (Deficiency) of revenues and transfers over expenses _ _ (202,690) (50,721) and transfers Contributed capital and retained earnings/fund balances, 28,468,493 13,037,277 438,660 1,461,456 October 1, 1978 _ - 108,943 - Equity transfers from other funds (note 2) _ _ - 1,690,727 Reclassification of claims payable (note 7) 247,852 1021,203 - - Contributions from other governmental agencies Contributed capitaland retained earnings/fund balances, g 29,142,578 149685,966 3449933 3,101,462 September 30, 1979 See accompanying notes to financial statements. CITY OF MIAMI, FLORIDA Enterprise Funds Combined Statement of Changes in Financial Position Year ended September 30, 1979 Funds provided: $ 426,233 Net income Item not using funds - disposition of machinery 41,676 and equipment 467,909 Funds provided from operations 247,852 Contributions from other funds 69,235 Increase in accounts payable and accrued liabilities 189,510 Decrease in receivables 974,506 Funds used: 20,000 Retirement of revenue bonds 681,021 Additions to property, plant and equipment 23,923 Decrease in deferred revenue 249,562 Increase in equity in pooled cash and investments $ 974,506 See accompanying notes to financial statements. C-1G Ea, CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1979 (1) Governmental Structure (a) The City of Miami, in the County of Dade, was incorporated in 1896, and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under a Commission/City Manager form of govern- ment and provides the following services as authorized by its charter: public safety, public works, sanitation, recreation and community devel- opment. The County is a separate governmental entity and its financial statements are not included in this report. (b) The Florida Legislature, in 1955, approved and submitted to a general elec- tion, a constitutional amendment designed to give a new form of government to the County of Dade. The amendment was approved in a statewide general election in 1956. A Dade County Charter Board was constituted, and in 1957 it drafted a charter which established a form of Metropolitan County Government. The Charter was adopted in a county election on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time to time by county -wide vote. The County is, in effect, a municipality with governmental powers effective upon twenty- seven cities and unincorporated areas, including the City of Miami. It has not displaced or replaced the cities, but supplements them. The County can take over particular activities of a 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, the Metropolitan County Government has assumed respon- sibility on a county -wide service basis for a number of functions, includ- ing county -wide police services, complementing the municipal police ser- vice; uniform system of fire protection, complementing the municipal fire protection; consolidated two-tier court system; creation of the Miami - Dade County Water and Sewer Authority; coordination of the various sur- face transportation programs; installation of a central traffic control computer system; merging all public transportation systems into a county system; effecting a combined public library system; and centralization of the property appraiser and tax collector functions. (2) Summary of Significant Accounting Policies The accounting policies of the City of Miami, accepted accounting principles as applicable to the non -recognition of depreciation on fixed Internal Service Funds and the non -recognition in the Self Insurance Fund. The following is cant policies: C-11 Florida conform to generally governmental units except for assets of the Enterprise and of certain claim liabilities a summary of the more signifi- (Continued) -,r,., .tip �,i'��j���+;3-•: CITY OF MIAMMI, FLORIDA Notes to Financial Statements (a) Basis of Presentation - Fund Accounting The accounts of the City are organized on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The Department of Off -Street Parking, the Downtown Development Authority and the City of Miami Retirement Plan and System are entities indepen- dent of the City. The financial statements of these entities are not included herein. The various funds are grouped by type in the financial statements. The following fund types and account groups are used by the City: GENERAL GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. General operating expenses and the fixed charges that are not paid through other funds are paid from the fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments or major capital improvements projects) requiring separate accounting be- cause of legal or regulatory provision or administrative action. Bud- get information has not been presented since all resources are appro- priated in the General Fund. Prior to 1978, the City maintained three Special Tax Levy Funds to account for specific property tax millages levied for (1) Pension; (2) Street Lighting; and (3) Publicity and Tourism. In the current year all property taxes were levied for general operating purposes and therefore recorded in the General Fund. Effective October 1, 1978, the residual fund balances of the Special Tax Levy Funds and subsequent activities were transferred as follows: Special Tax Levy Fund Pension Publicity and Tourism Street Lighting Transferred to Pension Trust and Agency Fund General Fund General Fund Debt Service Funds - Debt Service Funds are used to account for the annual payment of principal, interest, and expenditures on long-term general and special obligation debt, other than bonds payable from the opera- tions of an enterprise. (Continued) C-12 CITY OF MIAMI, FLORIDA Notes to Financial Statements Capital Projects Funds - Capital Projects Funds are used to account for financial resources segregated for the acquisition or construction and financing of public improvements. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that provide a service to citizens, financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capital mainte- nance, public policy, management control, accountability or other pur- poses. In certain Enterprise Funds, user charges are not sufficient to support operations and operating deficits are funded by General Fund transfers. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services by a department of the City 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 trust, or as an agent for others. These funds are used to account for revenues and expenditures relating to most Federal and State grants. For the year ended September 30, 1979, ap- proximately $25,000,000 of grant expenditures were reported in the Trust and Agency Funds which benefit other funds. The amount of benefit provided to other funds is not readily determinable, although the ma- jority is in support of general governmental services. Self Insurance Fund - Self Insurance Fund is used to account for losses incurred by the City for a variety of risks for which it is self insured. The fund also accounts for employees and employer contribu- tions for certain health coverages. GROUPS OF ACCOUNTS General Fixed Assets Croup of Accounts - This group of accounts is estab- lished [o account for all fixed assets of the City, other than those accounted for in the Enterprise and Internal Service Funds. General Long -Term Debt Group of Accounts - This group of accounts is established to account for long-term debt not accounted for in the Enterprise Funds. (Continued) C-13 CITY OF MIAMI, FLORIDA Notes to Financial Statement (b) Basis of Accounting The modified accrual basis of accounting is followed by the General Gov- ernmental Fund Types. Under the modified accrual basis of accounting,: revenues are recorded when received in cash unless susceptible to ac- crual, i.e., measurable and available to finance the City's operations, or of a material amount and not received at the normal b alaieme of receiipptt. Expenditures, other than interest on long-term the liability is incurred. The accrual basis of accounting is utilized by the Proprietary and Fiduciary Fund Types. (c) Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the exp:nditure of funds are recorded in order to re- serve that portion of the applicable appropriation, is utilized in the General and Special Revenue Funds- (d) Investments Investments are consist of U.S institutions. U.S. (e) Inventories stated at cost, which approximates market. Investments government obligations and time deposits with financial Inventories are priced at cost on a first -in, ies in the Internal Service Funds consist for consumption. (f) Mortgage Notes and Loans Receivable first -out basis. Inventor - of expendable supplies held In February, 1978, the City Commission approved the Great Neighborhoods: Program to be funded through the Community Development Block Grant. The Program, designed to operate over a three-year period, will provide lot and middle -income families, residing in designated areas, with mort- gages and housing improvement loans at low interest rates. Thy mortgage notes and loans are payable when the property is sold, or over term `. from ten to twenty years, depending on the type of loan made. As of September 30, 1979, the City had extended $440,508 in mortgage notes and loans. A full allowance was established for this amount due to the City's lack of historical data on programs of this nature and the questionable collectibility of the amounts. As funding for the Progra increases and more information becomes available, the City will re- evaluate its allowance policy. (Conti C -14 kk� CITY OF MIAMI, FUMIDA f, Notes to Financial Statements (g) Property, Plant and Equipment -Enterprise and Internal Service Funds Property, plant and equipment owned by the Enterprise and Internal Ser- vice Funds is stated at cost. Depreciation has not been provided as required by generally accepted accounting principles. The amount of accumulated depreciation at September 30, 1979, and the related depre- ciation expense for the year then ended is not susceptible to determina- tion at this time. (h) General Fixed Assets General Fixed Assets have been acquired for general governmental pur- poses. Assets purchased are recorded as expenditures in the General Governmental Fund Types and capitalized at cost in the General Fixed Assets Group of Accounts. In the case of gifts or contributions, such assets are recorded in the General Fixed Assets Group at fair market value at the time received, except for the Olympia Building, which houses the Maurice Gusman Cultural Center for the Performing Arts, which was donated in 1975, but has not been recorded. The fair market value of the Center at the date of donation is not considered material to General Fixed Assets. General Fixed Assets include certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, and lighting sys- tems. No depreciation has been provided on General Fixed Assets. (1) Vacation, Earned Time and Sick Leave Under terms of Civil Service regulations and administrative policy, City employees are granted vacation and sick leave in varying amounts. Addi- tionally, certain overtime hours can be accrued and carried forward as earned time off. Due to the uncertainties relating to the timing and amount of payment to be made, the above liabilities are not recorded. (see note 11). (j) Pooled Cash and Investments The City maintains an accounting system in which all cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All cash and investments, including accrued interest and accounts. are reflected in the equity (deficit) in pooled interfund transfers, cash and investments. Interest income is allocated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments. No interest is charged funds having deficit balances. (Continued) C-15 f .h �i CITY OF MIAMI, FLORIDA Notes to Financial Statements A summary of pooled cash and investments, and equity (deficit) in pooled cash and investments as of September 30, 1979, follows: Short term investments, including accrued $ 78,346,660 interest 61,203 Petty cash and other $ 78,407,863 $ 1,902,040 Bank overdrafts 1,331,261 Liability for payroll deductions 2,092 Other Equity (deficit) of funds: 4,064,077 General Fund (1,900,281) Special Revenue Funds 8,182,077 Debt Service Funds 58,418,126 Capital Projects Funds 1,023,410 Enterprise Funds 2,048,921 Internal Service Funds (2,645,007) Trust and Agency Funds 5,981,147 Self Insurance Fund $ 78,407,863 The liability for payroll deductions shown above represents employee sal- ary deductions for FICA, credit union, bond purchases, etc. This lia- bility is not reflected in the accompanying financial statements since each fund's equity in pooled cash and investments amount has been reduced for its respective portion. (k) Allocation of Administrative Expenses The General Fund incurs certain administrative expenses for other funds, including accounting, legal, and engineering services. An administra- tive charge is levied against these funds to defray a portion of these expenses. (1) Deferred Revenue Deferred revenue at September 30, 1979 represents collections made in advance, for which the use or service will not be provided until the subsequent year. (m) Debt Service Funds Activities Included in the operations of the Debt Service Funds are collections of assessment liens. These revenues have been reported in the Debt Service Funds because they are restricted for the payment of principal and interest on certain bond issues. rt C-16 (Continued) li CITY OF MIAMI, FLORIDA Notes to Financial Statements (3) Real and Personal Property Tax The City's real and personal property tax is levied each January 1 on the assessed value listed as of the prior September 30, for all property located in the City. Assessed values are established by the Dade County Assessor of Property at just values. The assessed value of property at September 30, 1978, upon which the 1978/79 levy was based was approximately $4,030,000,000. The City is limited under Article 7, Section 8 of the Florida Constitution to a maximum tax levy of 10 mills per $100 ($10 per $1,000) of the assessed valuation, for general governmental services. Taxes levied for the payment of principal and interest on long -terse debt are not subject to this limitation. The tax rate to finance general government services, other than the payment of principal and interest on long-term debt for the year ended September 30, 1979 was $10 per $1,000 of assessed valuation, which means that the City exhausted its taxing capability to finance general government services. An additional $4.487 per $1,000 of assessed valuation was levied for the purpose of debt service. Total taxes, net after discounts for the year ended September 30, 1979, aggregated $55,127,251 of which $38,053,374 was designated for general government service and $17,073,877 for debt service. All taxes are due and payable on November 1 of each year, or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment rolls a notice of 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. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by Dade County. The delinquent real property taxes bear interest at the rate of eighteen -per- cent 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 certifi- cate. (4) Retirement Plans The City has contributory pension plans covering substantially all employees. The Pension Fund charges each department of the City its respective share of the actuarially computed contribution which is disbursed by the Pension Fund to the retirement plans. Total pension expense for the current fiscal year, including amortization of prior service cost over 35 years was approximately $15,100,000 ($14,650,000 in 1978). Of this amount, approximately $14,400,000 was funded by the GeerInternalFund, and thremainder by various Servicee andcertain gran[ fundsother funds, principally Enterprise, (Continued) C-17 CITY OF MIAMI, FLORIBA Notes to Financial Statc-ments fits der At September 30, 1979, the actuarially comp.ited value of vested s on funds' the plans as of the date of the last valuation exceeded the ber 30, f9n8s. assets by approximately $93,885,000 ($•b,-11,000 at Sep (5) Bonds Payable General Long -Term Debt (a) General obligation bonds, 1110% to 7-1l2a. maturing in various years through 2008, principal payments due in 1980 of approximately $10,160,00, bzcked by the full 138,065,000 faith and credit of the City and its taxing power. $ Special obligation bonds, 3% to 4-1 10'., maturing in var- ious years through 1988, principal payments due in 1980 of approximately $478,000. $ 2,181000 , lb) Enterprise Funds Revenue bonds, 6.57yo, maturing in various vears through 1989, principal payments due in 1980 if approximately $ 229,000 $21,000. (c) Debt Service Requirements General Obligation Bonds - Debt service is provided by a tax levy on non- exempt property value and collections on assessment liens from projects financed by proceeds of such bonds. The total general obligation debt outstanding cannot exceed fifteen percent of the assessed non-exempt pro- perty value. Special Obligation Bonds (1) Incinerator revenue bonds - Debt service is being provided by General Fund transfers. A reserve of $250,000 must be maintained. (2) Utilities service tax bonds - Debt service is provided by utilities service taxes imposed by the City on each purchase of electricity, gas, water and local telephone and telegraph service. A reserve must be maintained equal to the maximum annual debt service requirement. The utilities service tax revenues exceeding debt service and reserve requirements, can be used for any lawful purpose. During the year ended September 30, 1978, $15,442,625 of utilities ser- vice taxes was recorded in the Utilities Service Tax Bonds debt ser- vice fund and $15,240,175 was transferred to the General Fund, which represented amounts in excess of debt service and reserve require- ments. Effective October 1, 1978, all utilities service taxes were recorded directly in the General Fund (under the caption "Taxes") and an amount sufficient to provide debt service and maintain reserve requirements was transferred to the Debt Service Fund. _ g (Continued) r is = CITY OF MIAMI, FLORIDA Notes to Financial Statements (3) Orange Bowl special obligation bonds - Debt service is provided by electric franchise revenues. A reserve equal to the maximum annual debt service requirement must be maintained. At September 30, 1979, there were sufficient funds reserved to fully pay the amount out- standing. (4) Enterprise Fund revenue bonds - Rental income from the lease of the warehouse facilities is pledged to provide debt service on these bonds. (6) Land Transactions (a) During 1974, the Inter -American Authority (which was dissolved in 1975) purchased a parcel of land from the City known as the Graves Tract, for $8,500,000. The Authority had agreed to pay the amount of indebtedness, together with 5% annual interest, in equal semiannual installments of $300,000, beginning January 1, 1977. In March of 1980, the City accepted a payment of $8,000,000 from the State of Florida in full settlement of its rights to the property. The funds received may only be used for "tourist related activities" as defined by Florida law. Because the funds are restricted in this manner, the amount has been included as revenue in the Special Obligation Capital Improvements Fund. (h) Prior to October 1, 1977, the City sold the Dodge Island Seaport site to Dade County for $1,330,000 of which $500,000 was received during 1978. The remainder, plus interest, was received in 1979 and is included in General Fund revenues. (7) Self Insurance The City maintains a Self Insurance Fund to provide insurance for certain prop- erty and liability risks, group accident and health and workers' compensa- tion. The City has continued to purchase outside coverage for certain expo- sures where the premium is small in relation to the coverage provided. The charges made by the Self Insurance Fund are not determined on an actuarial basis. The City believes the amounts provided in the accompanying financial statements would not differ materially from actuarially determined amounts. The City's accounting policy and amount of unpaid claims at September 30, 1979, for the various coverages, is explained below: (Continued) C-19 n Ili I CITY OF MIAMI, FLORIDA Notes to Financial Statements j', Amount inc luded in Claims Payable $ 2,386,143 (a) General Coverage Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims are re- ported, claims personnel investigate each claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not report- ed. The amount of this liability is not susceptible to determination at this time. 345,850 (b) Group Accident and Health Employees participating in the City's group coverage contribute through payroll deductions and depart- ments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability for this coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liabil- ity. During 1979, this liability was reclassified as a reserve, i.e., an appropriation of fund balance. All claims paid subsequent to this date have been expensed as paid. The amount of claims at September 30, 1979 represents September claims paid by the City in October. (c) Workers Compensation In 1978, workers compensation claims were charged on an actual cost basis directly to the worker's respective department. Effective October 1, 1978, all workers compensation costs are included in the Self Insurance Fund, with all departments of the City being assessed a charge for this coverage. At September 30, 1979, there is no claim liability for workers compensation recorded. The amount of this liability is not sus- ceptible to determination at this time. Total Claims Payable $ 2,731,"3 (Continued) C-20 CITY OF MIAMI, FLORIDA Motes to Financial Statements General Coverage Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims are re- ported, claims personnel investigate each claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not report- ed. The amount of this liability is not susceptible to determination at this time. Group Accident and Health Employees participating in the City's group coverage contribute through payroll deductions and depart- ments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability for this coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liabil- ity. During 1979, this liability was reclassified as a reserve, i.e., an appropriation of fund balance. All claims paid subsequent to this date have been expensed as paid. The amount of claims at September 30, 1979 represents September claims paid by the City in October. :) Workers Compensation In 1978, workers comphnsation claims were charged on an actual cost basis directly to the worker's respective department. Effective October 1, 1978, all workers compensation costs are included in the Self Insurance Food, with all departments of the City being assessed a charge for this coverage. At September 30, 1979, there is no claim liability for workers compensation recorded. The amount of this liability is not sus- a*tible to determination at this time. Total Claims Payable Amount ietle in Clair $ 2,366,143 345,850 $ 2,7319993 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements The City maintains reserves as an appropriation of fund balance as follows: Amount included in Appropriated Fund Balance Hurricane loss - established by ordinance. $ 500,000 Workers Compensation - 10% of annual operating budget for this coverage. 274,471 Group accident and health - 25% of the annual operating costs for this coverage, exclusive of life, acciden- tal death and disability for which the City has out- side coverage. 1,629,774 General liability - 10% of the number of incidents re- ported during the year at actual average claim cost. 551,406 $ 2,955,651 (8) Claim Payable In April, 1978 the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain City employees in prior years. The City agreed to pay the plaintiffs, $1,100,000 covering all back wages, attorney's fees, court costs, and auditor costs. This amount was charged to General Fund expenditures in prior years. The City disbursed $350,000 during 1978, and $375,000 during 1979. The remaining $375,000 pay- ment is scheduled to be made during fiscal 1980 and is reported as a claim payable in the General Fund. During 19769 with the cooperation of the Office of Revenue Sharing, the U.S. Justice Department filed suit against the City alleging a pattern and practice of illegal employment discrimination. A consent decree was entered requiring the City to employ minorities and women in proportion to their availability in the Miami labor force. The consent decree provides that the City will "set aside" $100,000 each year for the next five years to provide back pay and other financial relief to persons injured by the City's former employment policies. At September 30, 1978, in accordance with the provisions of the consent decree the City had included approximately $250,000 in outstanding encumbrances in the General Fund. During the year ended September 30, 19799 this encumbrance was closed and the balance, net of disbursements, is now included in the financial statements as appropriated fund balance. The amount so appropriated also includes $100,000 for 1979. C-21 (Continued) C-20 CITY OF MIAMI, FLORIDA Notes to Financial Statements The City maintains reserves as an appropriation of fund balance as follows: Amount included in Appropriated Fund Balance Hurricane loss - established by ordinance. $ 500+000 Workers Compensation - 10% of annual operating budget for this coverage. 274,471 Group accident and health - 25% of the annual operating costs for this coverage, exclusive of life, acciden- tal death and disability for which the City has out- side coverage. 1,629,774 General liability - 10% of the number of incidents re- ported during the year at actual average claim cost. 551,406 $ 2,955,651 (8) Claim Payable In April, 1978 the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain City employees in prior years. The City agreed to pay the plaintiffs, $1,100,000 covering all back wages, attorney's fees, court costs, and auditor costs. This amount was charged to General Fund expenditures in prior years. The City disbursed $350,000 during 1978, and $375,000 during 1979. The remaining $375,000 pay- ment is scheduled to be made during fiscal 1980 and is reported as a claim payable in the General Fund. During 1976, with the cooperation of the Office of Revenue Sharing, the U.S. Justice Department filed suit against the City alleging a pattern and practice of illegal employment discrimination. A consent decree was entered requiring the City to employ minorities and women in proportion to their availability in the Miami labor force. The consent decree provides that the City will "set aside" $100,000 each year for the next five years to provide back pay and other financial relief to persons injured by the City's former employment policies. At September 30, 1978, in accordance with the provisions of the consent decree the City had included approximately $250,000 in outstanding encumbrances in the General Fund. During the year ended September 30, 1979, this encumbrance was closed and the balance, net of disbursements, is now included in the financial statements as appropriated fund balance. The amount so appropriated also includes $100,000 for 1979. (Continued) C-21 CITY OF MIAMI' FLORIDA Notes to Financial Statements (9) l.i.tigction (a) ity of Miami Gates vs the C This is a class action on behalf of present and former employees of tl1t.' the City for the years 1957-1975 to retroactiMely'. City, seeking to requirepension plans totalling approximatelf make additional deposits to its p $30 add'00, including $890009000 in interest. The plai purposesaandtwe ro ert taxes for "pension or relief" p p the City levied P P y t osi.t all such revenues into the pension fmsi. required to, but did not? P on of these tax monies instead, :+ portiwas used for the City's sgu�ly the City's required portion of premiums on r security contributions, a health and life insurance policies, payment of judgments on pension re laud cases, the City's workers' compensation obligations, and reimburse-: -related expenses. went to the City of pension against the City on two of seett it1RQ131-�,. ��idKment on lion a ability was entered aga u finding by the court, counts of the complaint on October 99 1979, P ies taxed for pension or relief purposes were improperly used by that monu the Citv to pay off two judnm���li ati ns. t 1otb The City hasfiledanintet-' tow.3rd workers ' :ompensatio g locutory appeal from the court's ruling on the two counts as to which summary judgment was granted. 'rhe Plaintiffs have moved for summary judgment as to liability on two additional counts of the complaint. Though a judgment for damages cannot he granted in response to these motions, these two counts seek damages i• the principal amount of $17.4 million. At a hearing held before the trial judge the court ruled that it would stay ruling o theCouplrulesfonsthe�CittYj M,ition, `or Summary Judgment until the APP „f Miami's interlocutory appeal of the .previously entered summaryj meat. . ted The City maintains in this action that its allocation of monies CouTeC pursuant to its levy of property taxes for "pension or relief" ty purpose was proper. Counsel has advised that, in their opinion, the Is one. defenses to this action, and that itsappeal an al cannot sabeltorioidetermined at this ever, the City's ultimatt• liability, y, time. (b) City of Miami vs EEC The City is involved in a "Quick Take" Eminent Domain action to acquit*. 32.64 acres of bayfront land owned by the Florida East Coast Rai1vN. Company (EEC). The property is located in Downtown Miami, between B• q' 6th and N. W. 9th Streets, and bounded on the West by Biscayne Boprdett4• In March, 1978, a Trial Court entered an Order of Taking and an to Necessity, vesting title to said property in the City, subject Stipulation entered between the parties. In accordance with the order i (Conti C-22 CITY OF MIAMI, FLORIDA Notes to Financial Statements Taking, and the Stipulation, the City deposited $14,500,000 of certifi- cates of deposit with a local depository. On March 30, 1978. FEC and certain other defendants appealed. On June 12, 1979, the Third District Court of Appeal issued its opinion affirming the Order of the Trial Court. The FEC asked for a rehearing before the Third District Court of Appeal which was denied; and FEC filed both a Notice of Appeal and Petition for Certiorari in the Supreme Court of Florida. The last jurisdictional brief was filed in that Court on September 26, 1979. Those cases are presently pending. In a separate proceeding filed before the Interstate Commerce Commission, (ICC), FEC challenged Florida's and the Federal courr's r*ght to deter- mine the nature of the railroad track located on the property and ruled that the FEC track is a line of railroad" requiring a certificate of abandonment from the ICC. The City has appealed that ruling to the United States Circuit Court of Appeal, Fifth Circuit. If the City continues to be successful in upholding the Order of the Trial Court, this case will be returned to the Circuit Court for a jury trial to determine the ultimate amount which the City must pay FEC and other defendants for the property and damages they may have sustained, includ- ing defendants' attorneys' fees and court costs. This amount, however, cannot be determined at this time. (c) P TrnerPPS Suit for Contributions to its Pension Plans The Board of Trustees of each of the pension plans has filed a petition for Writ of Mandamus, seeking to require the City to contribute an additional $4.2 million over and above the amount actually appropriated by the City for fiscal year 1980. The plaintiffs in each action contend that the City is required to contribute the amount that the pension boards certify in accordance with actuarial reports prepared for the boards. This amount for 1980 totals approximately $21 million. The plaintiffs assert that the City's pension ordinances required the board of each pension plan to file with the City Manager, a certification of the amount of the appropriation necessary to pay the plan's normal and accrued liability contributions, and provide that such appropriation "shall be included in the appropria- tion ordinance." The plaintiffs contend that the amount appropriated for fiscal 1980 by the City falls short of the amount certified and these two actions seek to require the City to appropriate an additional $4.2 million dollars. The City Commission in September of 1979, adopted a policy limiting the increase in the pension contribution to five percent of the preceding year's amount. It is the City's position that it is fiscally sound to limit its budgeted contribution, that the budgeted amount is actuarially sound, that the City is not automatically required to appropriate and contribute the amount certified by the pensions boards, and that if the City were automatically required to do so, the City Commission would be defaulting on its responsibility for government of the City. (Continued) C-23 CITY OF MIAMI, FLORIDA Notes to Financial Statements This litigation is in its preliminary stages and the outcome is not present- ly determinable. (d) Other ainst the City resulting princi- There are a number of claims and lawsuits ag pally from personal injuries incurred C ro ert In the opinion of City a claims• could result in a City officials and the City Attorneyy,, which is reflected in liability to the City of approximately $2,400,000, the Self Insurance Fund. ami relies primarily on its legal department acting under th! The City of Mi direction the City Attorney for legal advice. The foregoing opinions (under the heading "Other") are based solely on the opinion of the City Attorney. Outside counsel has been retained to represent the City in the litigation referred to in (a), (b) and (c) above. (10) Federally Assisted Grant Programs The City participates in a number of Federal and State grant programs which are subject to financial and compliance audits by the grantors or their representa- tives. In December of 1978, an audit report was issued by the Dade County Internal Audit Department representing the South Florida CETA Consortium. This report covered the financial and compliance activities of the City subgrantee of CETA funds from tune 1, 1974 to September 30, 1977, of costs disbursed by the City during that period. questioned $1,717,000 Based upon the City's response to the questioned costs, the Consortium has reduced the amount to approximately $137,000 and has given the City the opportunity to respond further. ,Management believes that no material liabil- ity will ultimately result from this or any similar audit. (11) Commitments and Contingencies (a) Employee Benefits The City has certain contingent liabilities relating to earned employee benefits. The amount of benefits earned and accumulated is governed by Civil Service regulations and administrative policy. These earned bene- fits are summarized below: Type Description mount — vacation Normal vacation earned $ 1,482,000 Earned Time Additional time off earned by nourly employees for overtime hours worked 1,871,000 Sick Leave Normal sick leave accumu- lated 1.2 $ 16,0549000 (Contim ed) C-24 j` i CITY OF MIAMI, FLORIDA Notes to Financial Statements The full amount of vacation time, if not used by the employee, is payable upon separation of service, subject to the following limitations: for employees in service at December 31, 1973 - all accumulations to that date, plus a maximum of 160 additional hours. . for employees employed since December 31, 1973, a maximum of 160 hours. Earned time payable at separation is limited to 200 hours. Sick leave payable upon separation is limited to a maximum of 960 hours, and is paid only if the employee has ten or more years of service. In the case of sanitation workers, there are various limits based on years of service ranging from fifteen to twenty-five years. Due to uncertainties relating to the timing and amount of payments to be made, the above liabilities are not recorded. (b) Housing Bonds In February, 1976, the Commission passed an ordinance which approved the issuance of $25,000,000 General Obligation Housing Bonds of the City, for the purpose of providing housing for families and persons, including the elderly, of low and moderate income. In addition, and pursuant to agree- ments between the City and Dade County, the proceeds of such bonds, as they are issued from time to time, will be deposited in trust in a reserve fund to provide additional security for certain housing revenue bonds to be issued by Dade County. In the event the housing projects do not generate sufficient funds to service the County's debt, the proceeds of the City's Housing Bonds will be used to pay principal and interest. If, however, the Dade County Housing Bonds are self-liquidating, all amounts remaining in the trust account will be returned to the City for purposes set forth above. At September 30, 1979 and 1978, $1,500,000 of such City Housing Bonds were sold and approximately $213,000 had been transferred to the trust account. A receivable and an allowance for this amount were recorded at the balance sheet date. (c) Revenue Bond Projects Convention Center During 1978, the City of Miami commenced construction of a Convention Cen- ter, officially designated the City of Miami/University of Miami James L. Knight International Center. The total estimated cost of the Convention Center, including a related parking garage, is approximately $82,000,000. I� The City has entered into an agreement with the University of Miami to lease space in the Convention Center for a term of 30 years, including two 30-year renewal options, for the sum of $2,500,000, payable as advance s rent. The City has also entered into a lease and agreement for develop- ment with a private developer, of certain air space over a portion of the C-25 (Continued) CITY OF MIA.MI, FLORIDA Notes to Financial Statements Convention Center for a hotel. In addition, the City has agreed with separate private developer, to lease air space over a portion of parking garage for a 30-story world trade center. The City intends to issue, in the Spring of 1980, $60,000,000 in reveaft bonds for its share of the project s cost. A lien on and pledge of 1) the net revenues of the Convention Center; 2) telephone and telegraph utili-.l ties service tax revenues (after certain bond ordinance debt serviee- requirements are met); and 3) other non -ad valorem tax revenues, secure payment of the bonds. j In connection with the project, the City has awarded approximately' $30,000,000 of construction contracts, of which approximately $25,000,000• is contingent upon the sale of the ponds. Additionally, the lease and agreement f,ir development with the hotel developer calls for the City to complete certain phases of the project by specified dates. In the event of delays by the Citv in completing the facilities, the City is liable for the additonal interest expense payable by the hotel developer to its mortgage holder, as well as other reasonable costs incurred by the devel- oper attributable to such delays. Watson Island Theme Park In May, 1979, the Citv Commission passed a resolution authorizing the City ?tanager to execute sn investment banking agreement with certain under- writers for the salt- and issuance of S55,000,000 of revenue bonds to finance the development of Watson Island as an amusement and recreation theme park. in Jun,-, 1o79, an Investment Banking Agreement was executed for $55,000,000 of rev, -nut! bonds. Of such bonds, $20,000,000 will be secured by revenues from the Watson Island Theme Park, together with a pledge of the Citv's electric franchise fees. The remaining $35,000,000 of the revenue bonds will bt secured only by revenues from the theme park - The date of the sale of the bonds has not yet been established. (12) Other Matters A statement was filed by two interested parties with the Securities and ExchOW Commission (SEC) in October, 1979 claiming that an Official Statement relat- ing to an offering of the City's general obligation bonds omitted or *is - stated a number of material facts. The City has responded to the complaint and has been advised that no further investigation is contemplated by the S60 staff. However, under applicable SEC rules, such advice may not be construed as indicating that the City has been exonerated or that no action may ulti- mately result from the staff's investigation. (13) Maintaining the Current Level of Services and Liquidity The City is experiencing difficulty in providing the current level of services with existing available resources. Revenue curtailments and operating Cost V, C-26 F � (continued) r,, CITY OF MIAMI, FLORIDA Notes to Financial Statements increases have resulted from many conditions. Some of the more significant conditions affecting the City's resources are: . Property taxes for general operating purposes have reached their maximum allowable millage (see note 3). • Limitations have been placed on the maximum increase allowed in assessed valuation from year to year. . Anti -Recession Fiscal Assistance Funds have been discontinued. . Federal Revenue Sharing Funds available for general operating purposes are, decreasing. . Comprehensive Employment Training Act Funds and other sustaining grants are decreasing (see note 10). . Anticipated pension contributions and related expenses are increasing (see note 4). . The amount of vested benefits under the City of Miami Retirement Plan and System exceeding fund assets is increasing (see note 4). General operating costs are suffering from the continuation of double digit inflation. The liabilities for vacation, illness and earned time continue to increase (see note 11). In addition to the above, the following situations and/or contingencies exist which could place additional strain on the City's financial condition: Penalties may have to be paid if construction of the Convention Center is not completed within specified time limits (see note 11). . Judgments against the City or demands upon the City to pay in excess of budgeted amounts may result from pending litigation (see note 9). . Certain revenues, particularly telephone utilities service taxes and elec- tric franchise revenues, heretofore principally used for general operating purposes may be required to pay debt service or maintain reserve require- ments of certain revenue bonds (see note 11). The City's ability to continue to provide the current level of services in the future and/or pay the amounts, if any, that might be required by the unfavor- able resolution of the contingencies noted above is dependent upon further expansion of revenue sources and containment of expenditures. C-27 THIS PAGE INTENTIONALLY LEFT BLANK C-28 CITY OF MIAMI, FLORIDA General Fund Balance Sheet September 30, 1979 Assets Equity in pooled cash and investments Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $377,773) General accounts receivable (net of allowance for doubtful accounts of $32,171) Other Liabilities, Encumbrances Outstanding, Reserves and Fund Balance Accrued liabilities (principally salaries) Accounts payable Deferred revenue Claims payable Total liabilities Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balance - appropriated Fund balance - unappropriated C-29 $ 49064,077 720,106 454,451 43,186 $ 5,281,820 1,062,555 1,534,385 1,071,860 375.000 4,043,800 342,695 231,259 272,173 391,893 $ 5,281,820 w O CITY OF MIAMI General Fnnd Statement of Revenues, Fspenditures, Encumbrances and Transfers - Budget and Actual Year ended September 30, I1119 Revenuel: Tax, (,,rt. t tx Penalt Hu'Im", I,i,en��•• .te•1 p"rmtl,. Hu•t•i���., Itcrn�,... .tr,t �rr�,r c,.ntitruct t�•n I•,rmtr •. 1nt,.r,• .r'--nt.tl r Fr•I, r.,I ,•r tut Stat Fr inl� It!.. , lnt r.,,•,.v�rnnn nt tl nc.t,.•: Fn,•in,rt•e .,r vt,t t har,"" t••r s.•r•: I'uhli, .tt.ty Re( rent i,tn (It her Mtsiellaneous revenuer: luterest Sale of land Rents Other (including General Fund budget item of $1,000,000 for anticipated salary savings) Total revenues Transfers from other funds Total revenues and transfers F'xpenditures Revised or budget transfers Fncumbrances Actual S n,461,971 - - 39,116,411 271,124 I,R I3,257 - - 20,0501193 59,437,728 "t,`,(17,OR) - - 3,762,963 111S ()On - --. ..-- _..-_.-_-._ IZ030,161 4,t17,OR1 - 4,793,124 5Gr,,71/8 - - - 12,n4t,306 - - 12,650,084 2,840,933 1/,1174,1W. - - 15,4919017 5H0,0nn - - 1,662,968 292,000 - - 488,871 350,236 - - 128,757 294,722 - - - — 224,114 936.958 - - 841,742 1,177,000 - - 944,711 500,000 - - 892,176 572,446 - - 534,913 2,967,024 - - 2,064,691 5,216,470 - - 4,436,491 90,405,043 - - 86,663,070 13.079.374 - —T 9.171.N3 10i.4M,417 - - 93,834,733 CITY OF MIAMI, FIORIUA General Fund Statement of Revenues, Expenditures, Encumbrances and Transfers - Budget and Actual Expenditures Revised or budget transfers Encumbrances Actual Expenditures and encumbrances: General government: S 285,811 259,249 22 259,271 Mayor and commission 803,323 774,711 8,031 782,742 City manager 260,328 235,392 5,465 240,857 City clerk 839,842 734,142 14,394 748,536 Management and budget 1,482,395 1,442,134 29,532 1,471,666 Finance 827,723 703,391 4,357 707,748 Legal Civil service 222,728 193,434 1,723 195,157 976,617 749,512 17,860 767,372 Human resources 583,323 566,633 5,398 572,031 Community development 1,276,215 127,851 127,851 Conferences and conventions 1,370,605 1,151,598 9,682 1,161,280 Tourism and promotion Computers and communications _2,580,372 2,291,369 30,072 2,321,441 11.509,282 9,229,416 126,536 9,355,952 Public improvements: Public works 8,576,103 8,286.231 7,966 8,294,197 Building 1,722,762 1,627,164 7,834 1,634,998 Planning and zoning boards 770,961 701,132 6,633 707,765 11,069,826 10,614,527 22,433 10,6 ,96 Public safety: Police 30,082,699 28,539,503 47,081 28,586,564 Fire 22,045,388 21,583,426 35,824 21,619,250 52,128.087 50,122,929 82,905 50,205,834 Solid waste 14,514,757 14,297,802 13,985 14,311,787 Parks and leisure services 6,885.393 6,845,152 24,678 6,869,830 Uncollectible delinquent property taxes - 319,923 - 319,923 Other: Employee benefits 2,348,340 1,599,354 - 1,599,354 Special programs 1,071,565 966,602 - 966,802 Miscellaneous 1,149,337 670,683 72,158 742,641 4,569,242 3,236,839 72,158 3,308,997 Total expenditures and encumbrances 100,676,587 94,666,588 342,695 95,009,283 Transfers to other funds 1,807,830 1,807,830 1,807,830 Total expenditures, encumbrances and transfers 102,484,417 96,474,418 342,695 96,817,113 (Deficiency) of revenues and transfers over expenditures, encumbrances and (982,380) transfers t S - ems. CITY OF MIAMI, FLORIDA General Fund Statement of Changes in Fund Balance Year ended September 30, 1979 $ 1,474,525 Fund balance, October 1, 1978 546,921 7-quity transfers from other funds (Deficiency) of revenues and transfers over (982,380) expenditures, encumbrances and transfers Transfer of current portion of long-term (375,000) judgment payable $ 664,066 Fsnd balance, September 30, 1979 C-32 j7yy�� �I 9 CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Balance Sheet September 30, 1979 Assets Receivables from other governments w w Liabilities, Encumbrances Outstanding and Fund Balances Deficit in pooled cash and investments Accounts payable Encumbrances outstanding Fund balances - appropriated Fund balances - unappropriated _ Special Tax Levy Funds Federal Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 2,062,204 _ - - 2,062,204 $ 2,062,204 - - - 2,062,204 1,900,281 - - - 1,900,281 4,761 - - - 4,761 3,888 - - - 3,888 150,000 - - - 150,000 3,274 - - - 3,274 $ 2,062,204 - - - 2,062,204 I I I V I It 041 Aft , r I I Ip 1 IIA too. I.. 1 .1 1 ►11, 1.1 flo,1.• 1• lfll.0" I'lowll III111r fit .II r+11U•111 •11 ►Il• «1,11111•.. , I! «I,•-lr.I I I .II ••.• .114.1 1 1 .111" 11.1 h We. "1 ••11.1••.) tie.1.1 r•1/11.r 1 141, I'I I'1 Dr of S.t,; , 1r ►Y."'C.►rrrAr I.tnl ►uvr.n,rr. o•fll of lo•rrro fll Y/ fir.• i, r ,/r•1'. 7•.fn1 r�prn•lrlorr. n nfl.l 1lrurnlo 1h Or1 11 • 1t•flo / I o.l r' v4 floe@ n wwI .•O1.rllolII $of (1 r111.1 llfill alr•Ito �.1„ o o l 1 1•• I r•� l on••1 1. ,1.•r rl 11, 'hll,lll • • '1,1111',11'.11 •1' '1 1 11 1;1 , 11 I" 1 I 'i I r , k1 1 •, \ h 4F: CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Statement of Changes in Fund Balances Year ended September 30, 1979 Fund balances, October 1, 1978 Equity transfers (to) other funds (Deficiency) of revenues over expenditures and transfers Fund balances, September 30, 1979 Special Tax Levy Funds Publicity and Street Total Pension Tourism Lighting $ 1,643,173 108,943 5,908 541,013 (655,864) (108,943) (5,908) (541,013) (834,035) - $ 153,274 Federal Revenue Sharing Fund 987,309 (834,035) 153,274 CITY OF MIAMI, FLORIDA Debt Service Funds Combining Balance Sheet September 30, 1979 Assets Equity in pooled cash and investments Receivables: Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $121,780) Assessment liens receivable Liabilities. Reserves and Fund Balances Accounts payable Reserve for noncurrent delinquent taxes receivable Fund balances - appropriated Fund balances - unappropriated General Orange Utilities obligation Bowl Incinerator service Total bonds bonds bonds tax bonds $ 8,182,077 6,534,337 710,479 274,073 663,188 316,070 316,070 - - 3,138 3,138 - - - $ 8,501,285 6,853,545 710,479 274,073 663,188 3,474,614 3,474,614 - - - 100,097 100,097 - - - 1,152,892 - 710,479 250,000 192,413 3,773,682 3,278,834 - 24,073 470,775 $ 8,501,285 6,853,545 710,479 2749073 663,188 CITY OF MIAMI, FLORIDA Debt Service Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Year ended September 309 1979 Revenues: General property taxes Interest Assessment liens collections Total revenues c� w Transfers from other funds Total revenues and transfers Expenditures: Bond principal Bond interest Uncollectible delinquent property taxes Fiscal agents' fees and administrative charges Other Total expenditures Transfers to other funds Total expenditures and transfers Excess of revenues and transfers over expenditures and transfers General obligation Total bonds $ 17,547,314 17,547,314 950,317 804,930 571,523 5719523 19,069,154 18,923,767 560,360 - 19,629,514 18,923,767 10,326,000 9,860,000 7,294,501 7,202,016 139,668 139,668 8,144 6,870 22,117 22,117 17,790,430 17,230,671 20,762 - 17,811,192 17,230,671 1,818,322 1,693,096 3,108,252 1,585,738 Fund balances, October 19 1918 $ 4,926,574 3,278,834 Fund balances, September 309 1979 Orange Bowl bonds 62,309 62,309 176,135 238,444 150,000 26,035 25 176,060 176,060 Incinerator bonds 24,048 24,048 185,475 209,523 166,000 19,200 555 185,755 185,755 Utilities service tax bonds 59,030 59,030 198,750 257,780 150,000 47,750 -694 197,944 20,762 218,706 62,384 23,768 39,074 648,095 710,479 250,305 274,073 624,114 663,188 ^.'t, ,"...,..'.`,�.°.^="..~...,, '.^^..`~.'.~. ^./^.� ' -'''.`.,/. � .m,,".AM/. ".mA . ~"~/�^ _ °~ --'__---'--_'� qb ^.. ^.^.. ^.o,... ,~�. ,.....~ ".*.. "~~.^.. ,". x".`~g o*.."/ ~'^' .^''.'-f .� f.,1 1-,.z ~/-~lk� H,z.nj �� ,sse�wu� /�~~// '�' . `."~..r ^.°°.°/ ..~m.,w ^.~w.()P. v.n" /.m./It, 'S4.414 2.734,913 ^^u.n, n.w/ ' n^ ' *�e. ' `./*.°" ^.°°.�/ n.n^ /.=/* n2�n m.p*�m It, '.imp "^./" u I ' ' /..n /.,n M C,,"S c, 4� ��z��_ u,z� 1���6 -1l��1 _�^��2� ..',',^. /.^~...` '.� .� ,."^.^., ^.~w.p/ 5.248.740 ^.~w.w/ n.no //o'./n n,/u, 10.746,628 Revenue u Sal! of bonds Franchise revenue■ Interest Crante Sale of land ri Other W .O Total revenues Transfers from other funds T,,tal revenues and transfers Project expenditures Transfers to .lher funds Total expenditures and transfer• Excess (deftcienry) of revenues and transfers over Pspend,t---40 and transfers Fund balances, October I, 1978 Fund balances, September 30. 1979 CITY OF MIAMI. FLORIDA Capital Projects Funds Combining Statement of Revenue a. Expenditure., Transfers and Chang" in ►und Balances Year ended September 30, 1979 Cenral Obligation Spat let Forks and Obli4atioo Storm Sanitary Pollution Police recreation Highway Convention Fire Revolving Capital Total severe selters . mtrol tau ilities facilities improvements center facilities Sidewalks Mousing fund isprovemonts S 18,2SO.000 5.000,000 6,000,00f) - - - 5,000,000 - 2,250,000 - - 1,528,946 - _ _ _ _ - - 1,526,946 5,647,187 737,215 1,499,451 196,151 IS3,690 674,354 644,526 401,097 668,495 3,729 I24,6M 21.302 320,531 3,760,381 - - - - 123,048 - 1.584, M4 2,052,889 - - 8,000,000 - _ 8,000,000 v.4,n81 - ------ ---- - -.-- 5,311 533 - 1,791 136,446 17,330,S95 5.737,W 7,499,45. 198,IS2 351,690 797.402 5,644,526 1,990,8S2 4,971,917 3,729 124,644 23,093 9.98S,923 3,240,000 - - _. __- - 3,240,000 - - 40j_5'0�595 5,737 ,115 _1449L52 _ _ 198,151 - 357,690 797,407 5,644,526 5,270 ,852 4,971,917 7,729 124,644 23.097 9.943.923 °1,450 ,047 1, 118,245 7,558,641 763,192 363,571 900,172 2,587,799 3,679.326 4,170.752 49,705 - - 239,693 364Is115 - - - - - - - - - - 225,000 3,416,135 1510911 f_ 1iIfN,245 7-,A M,641 763,192 161,572 900,172 2,587,799 3,679,326 4,170,752 49,705 - 225,000 3,655,629 V, 479, 761 4,598,970 (54,IR4) (S65,040) (4,881' (102.770) 3,056,727 1,552,526 801,165 (45,976) 124.644 (201.907) 6,330.095 4N ,.19S]v4 1, 5y 1, 960 I2L550, 068 2,47UL344 7_, 7_41,157 7,20g ,616 3,203,327 3,S76,941 5,750,961 63,694 1,296,492 374,332 4,416,477 $ 63,774,757 8,190,910 12,490.979 1,405,f04 f,781,275 7,105,846 6,260,054 S,129,467 6.SS2,146 17.718 1,421,136 172.425 10,746.372 Assets Equitv (del is it) in pooled cash and i nvestmonl, Accounts r,,, Iva 1, l.• Inv! alI'w,1111 l��f douhtfnl n„„unt rt c"-,Opp) Prop.rty, plant .Ind „In,p..u'nt: I Ind in M1, hi n.-r l qni pm. nl 1 A lnnst n, ti.•n in I'I �•'r r..... 0 t•;1 p'tli' ,•,•! u. t., Ir''1 I.rinine..I A„r,,••i ll., ,. �,., sally •:alarirs, A, , Hilts l,.I Tn[al I, ehilil ie� Contributed cal•,tai and retained varninF+•s- appropriatcd Contributed capital and retained earninRs- unappropriated CITY of MIAMI, FLORIDA Enterprise Funds Cnmbininh Balance Slit -it S.•ptembrr 30, 1979 Marino Miami otanvv Rowl Marinas Auditoriums Warehouse Golf property special properties T•tal 'stadium titadiur•. tit adium S I,o11,41u ,i•P' �'.':"'i ^11,5oh 4u,,476 I55,R2: 245,828 60,855 130,692 - ,171) "0.111: `v,:r ! I:'n,r)I1n i',244 41,692 17,960 - 1,878 8Af I,'.,,un �I' ;n'1,'IR: I:n,290 5no,n00 1,844,h70 15,00t1 I11f,i,601 - 444,344 95,000 1,420,000 hn'. ,1"0."1.' x.i`'-. .. ,156 IUH,417 i7,024 - 3.454 , i,,.• _ x,'. lu!i,'.71 I, W4 S,'tHl.l11 _2_94 ..-_---- '---____ x,r.14, .,. I,f,14,717 505,749 1,651,024 n,''ll t,h4f, h,"0" - 488 .00 --1-7,664 11,49', N..':h :x.,it,7 574 2",72H 1= 347 249,000 -- 488 51R,711 - - "28,989 - - 9,722 - 28,603,861 2,280,422 ILlJR,61_ 4,498-,110 3,508,576 8,615,514 1,665,370 246,527 1,650,536 $ 29,790,247 2,291,916 1,146.818 9,782,617 4,093,144 8,639,742 1,679,717 505,249 1,651,024 _.. -� ... ��y.J.$dY'J �iy"{{,Jl i•iew.�.'4s'ih #+/ '.x..w�4A y s+.�.h �,•,.-. {, .., ::.... '::.: 'ti:i ' 1 •' .. +.• X 'F n�Y,�+1M-':il/iAiY.ti•Ly.d�4"a.'•L+S"_. ...._-.a_._.^a�.a•�+....--�s— CITY OF MIAMI, FLORIDA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings Year ended September 309 1979 Revenues: Revenue from operations Interest Transfers from other funds Total revenues and transfers Operating expenses Transfers to other funds Total expenses and transfers Net income (loss) Contributed capital and retained earnings, October 19 1978 Contributions from other governmental agencies Contributed capital and retained earnings, September 30, 1979 Marine Miami Orange Bowl Warehouse Special Total Stadium Stadium Stadium Marinas Auditoriums Golf property properties $ 3,888,108 78,492 118,114 1,558,058 1,004,016 228,215 785,226 36,178 79,809 131,309 - - 40,204 22,877 - 62,916 5,312 - 647,179 _ 227,484 163,154 - - 256,541 - - - 4,666,596 305,976 281,268 1,598,262 1,026,893 484,756 848,142 41,490 79,809 4,165,363 305,104 333,987 1,479,993 816,071 556,768 657,732 15,535 173 75,000 - _ - 75,000 - - - - - 4,240,363 305,104 333,987 1,554,993 816,071 556,768 657,732 15,535 173 426,233 87? 529719) 43,269 210,822 (72,012) 190,410 25,955 19,636 28,468,493 2,279,550 1,191,331 9,449,694 3,826,743 8,445,320 1,474,661 230,294 1,570,900 247,852 - - 5,347 - 242,206 299 - - $ 29,142,571' 2,280,422 1,138,612 9,498,310 4,037,565 8,615,514 1,665,370 256,249 1,650,536 -T1 CITY OF MIAMI, FLORIDA Internal Service Funds Combining Balance Sheet September 10, 1979 Public City Motor Property Print Stationery Total properties garage pool maintenance !Lol stock Assets Equity (deficit) in pooled cash and investments $ 2,048,921 (18,793) 1,888,460 445,199 (247,455) (36,402) 17,912 Accounts receivable 12,105 - - 421 11,684 - - Inventories 392,422 - 164,092 99,638 89,699 8,067 30,926 A NO Property, plant and equipment: Buildings and improvements 727,346 - 390,545 244,934 90,258 1,609 - Machinery and equipment 8,928,956 24,698 6,038,245 2,717,317 96,997 61,699 - - Construction in progress _2,838,906 - 29838,906 - $ 14,948,656 5,905 11,320,248 3,507,509 31,183 34,973 48,838 Liabilities, Contributed Capital and Retained Earnings Accrued liabilities (principally salaries) 50,462 3,411 16,408 11,732 17,692 1,008 211 Accounts payable 212,228 1,251 99,054 61,308 22,191 5,587 22,837 Contributed capital and retained earnings (deficit) - unappropriated 14,685,966 1,243 11,204,786 3,434,469 (8,700) 28,378 25,790 $ 14,948,656 5,905 11,320,248 39507,509 31,183 34,973 48,838 ON CITY OF MIAMI, FLORIDA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings Year ended September 30, 1979 A p Revenue from operations w Transfers from other funds Total revenues and transfers Operating expenses Net income (loss) Contributed capital and retained earnings (deficit), October 1, 1978 Contributions from other governmental agencies Contributed capital and retained earnings (deficit), September 30, 1979 Public City Motor Property Print Stationery Total properties garage pool maintenance shop stock $ 7,411,594 367,536 3,380,230 1,853,584 1,517,554 135,064 157,626 316,602 - - - 316,602 - - 7,728,196 367,536 3,380,230 1,853,584 1,834,156 135,064 157,626 7,100,710 409,202 2,814,524 1,790,127 1,779,052 155,455 152,350 627,486 (41,666) 565,706 63,457 55,104 (20,391) 5,276 13,037,277 36,649 9,645,348 3,349,801 (63,804) 489769 20,514 1,021,203 6,260 993,732 21,211 - - - $ 14,685,966 1,243 11,204,786 1,434,469 (8,700) 28,378 25,790 CITY OF MIAMI, FLORIDA Trust and Agency Funds Combining Balance Sheet September 30, 1971) Total Asset s :In(l ht -I It- Do1)i t s Taxes receivabI- - It, litit urnt (less ,,IIt-II fnt estiMate, l III r„IIt, tit, lv ;nn,um[/+,,:,.� Acr„unts recriV;Ihl, (n't ' t all'""'- t„r doubtfl .1,c„untr: „I `Ifo,,(l'; ,'7/,'° u Comunity Other Development CETA EDA LEAA grants Pension 42,449 237,283 u,•,, i%.jI,It It.,, 1 fwn •-t;wt I• %•, rn,n•nt 1n, t ,t 11rc,w:111,I for •„-101: 11',ur I W, 2,667,231 2,026,618 226,912 14,369 239,064 AIr,,,nnt „t 2,669,427 2,026,618 226,912 14,369 239,064 279,732 1.i.4f''Ii! H' ,I'., Ie,! icI'd 14I1.1'1,, I. I '. ••tr,•.n, h 1,290,365 1,656,533 (11,638) (156,997) (676,792) 543,536 'ey,iity) in p" , i .,n'! .n✓. n1+A Iidu'iIiIir fprin, l lii 1i::ci,,.l !;'f',I 15,817 145,919 1,858 3,368 7,851 1,313 AcLowitS payahlr, I,KiN,.'1• 1,339,566 164,524 165,087 82,418 41,503 45,137 Deposits refun4l;,l'I,. 71119 iF - - - - 75,938 - Due to othez governments 12,077 - - - - 12,077 - Due to other funds 1)0'000 - - - - 350,000 - Reserve for noncurrent delinquent taxes receivable 13,806 - - - - - 13,806 Fund balances (deficit) 344,933 23,679 59,642 71,605 85,580 424,487 (32=) $ 5,456,122 2,K99427 2,0269618 226#912 14,2N 2"OU4, •i`i}i�ik'f,�7i�H"fi�t`Mx ,�p'x'i:4 A "; ,,:_. :, ;.:<: i�✓ b r - E :.R"-� 44 rimer.,,. s.„.; awa�s's - ast� - __ - - - �j __- _ oy�"rl�lrrrriri` - __ CITY OF MIAMI, FLORIDA Trust and Agency Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances Year ended September 30, 1979 Revenues: Intergovernmental grants Inteagovernmental charges Other Total revenues a. Transfers from other funds v, Total revenues and transfers Expenses: Grant and related expenditures Pension expense Uncollectible delinquent property taxes Other Total expenses Excess (deficiency) of revenues and transfers over expenses Fund balances, October 1, 1978 Equity transfers from other funds Fund balances (deficit), September 30, 1979 Total 0 23,347,822 15,056,396 1.128.348 39,532,566 684,822 40,217,388 24,672,449 15,093,031 90,207 564.391 40,420,078 (202,690' 438,680 108,943 $ 344,933 Community Other Development CETA RDA LEAA grants Pension 9,688,512 11,192,368 1,152,085 417,328 $97,529 - - _ _ - - 15,056,396 _ - - - $70,118 258,230 9,688,512 11,192,368 1,152,085 417,328 1,767,647 15,314,626 - - 200,000 - 484,822 - 9,688,512 11,192,368 1,352,085 417,328 2,252,469 15,314,626 9,682,557 11,153,503 1,282,305 333,075 2,221,009 - - _ - - - 15,093,031 90,207 _ _ _ _ - 564,391 9,682,557 11,153,503 1,282,305 333,075 2,221,009 15,747,629 5,955 38,865 69,780 84,253 31,460 (433,003) 17,724 20,777 1,825 1,327 397,027 - _ 108,943 23,679 59,642 71,605 85,580 428,487 (324,060) THIS PAGE INTENTIONALLY LEFT BLANK C-46 CM OF WAIU, FLORA Financial Report Year ended September 30, 1976 Table of Contents Accountants* Report Part I - Financial Statements: Combined Balance Sheet - All Fond Types and Account Groups Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Find Types Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Changes in Financial Position - Enterprise Funds Notes to Financial Statements Part II - Supplementary Data General Fund: Balance Sheet Statement of Revenues, Expenditures, Encumbrances and Transfers - Budget and Actual Statement of Changes in Fund Balance Special Revenue Funds: Combing Balance Sheet Combining Statement of Revenue and FundBalancesCombining Statement of Changes in Debt Service Funds: Combining Balance Sheet Expenditures. Combining Statement of Revenues.� Transfers and Changes i C-47 Page C-49 C-51 C-53 C-54 C-55 C-56 C-57 C-75 C-76 C-78 C-79 C-80 C-81 C-82 C-83 CITY OF MIAMI. FLORIDA Financial Report Table of Contents Continued page Capital Projects: C-84 Combining Balance Sheet Combining Statement of Revenues, Expenditures C - 8 5 and Changes in Fund Balances Enterprise Funds: C-86 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes C- 8 7 in Contributed Capital and Retained Earnings Intragovernmental Service Funds: C - 8 8 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes C - 89 in Contributed Capital and Retained Earnings Trust and Agency Funds: C-9 0 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes C - 91 in Fund Balances C-48 1■ h i PEAT, MARWICK, MITCIIELL tic Co. CERTIFIED PUBLIC ACCOUNTANTS I/xw BRICKELL AVENUE k MIAMI. FLORIDA 331-11 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida We have examined the financial statements of the various funds and account groups of the City of Miami, Florida as of September 30, 1978 and for the year then ended, as listed on the accompanying Table of Contents. Our examination was made in accordance 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. The Department of Off Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City of Miami, Florida. The financial statements of these entities for the year ended September 30, 1978, are not included in the accompanying financial statements. As described more fully in note 14 to the financial statements, the City is experiencing difficulty in maintaining the current level of services with existing available resources. The City has levied the maximum property tax millage for operating purposes and has determined that future intergovernmental revenues will be decreasing and that anticipated contributions in support of the pension plan will be increasing significantly over the next few years. The ability of the City to continue to maintain the level of current services in the future will depend on the City's ability to maintain or expand existing revenue sources while containing costs. As described more fully in note 1 to the financialastand tements, the City the does not provide depreciation on property, plant governmental Service Funds as required by generally Enterprise and Intea as describe accepted accounting principles. Also, d more fully in note 6 to the financial statements, the City, -insured for a variety of which is self risks, does not record claims payable in the Self Insurance Fund for all losses incurred as required by generally accepted accounting principles. i i i :t E i C-49 The Honorable Mayor, City Coamissioners and City Manager City of Miami, Florida Page Two As described more fully in note 12 co the i:iaaacial statements the City participates in several Federally -assisted grant programs Which are subject to financial and compliance audits by the grantors or their repre- sentatives. The amount of reimbursement, it an;-, which may be required as the result of such audits is subject to final determination by the granting agencies and cannot be determined at this tire. In our opinion, except for the effects on the financial statements of the failure to provide depreciation on property, plant and equipment of the Enterprise and Intragovernmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund and, subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies, all as discussed in the two preceding paragraphs, the financial statements present fairly the financial position of the various funds and account groups of the City of Miami, Florida at September 30, 1978, and the results of operations of such funds and the changer in financial position of the Enterprise Funds for the year then er.ded, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The examination referred to above was directed primarily toward formulating an opinion on the financial statements of the various funds and account groups of the City of Miami, Florida. The supplementary data included in the schedules listed in the Table of Contents are presented for supplementary analysis purposes and are not necessary for a fair presenta- tion of the financial position and results of operations of the various funds and account groups, and changes in financial position of the Enterprise Funds of the City of Miami, Florida. The supplementary data have been subjected to the auditing proced!jres applied in the examination of the basic financial statements and, in our opinion, except for the effects of the failure to provide depreciation on property, plant and equipment in the Enterprise and Intrago--:nmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund, and subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies all as discussed in the preceding paragraphs above, are stated fairly in all material respects only when considered in conjunction with the basic financial statements taken as a whole. Miami, Florida July 31, 1979 ��- 711 czz<.c�1.c� 71�a�v-�• C-50 CITY Of MIAMI, FLORIDA Combined balance Sheet - All Fund Types and Account Groups September 309 1978 Governmental Fund Typaa Proprietary Fund Type- crY Fund Types Account_ Groff Total -- --- - --- -- ----- - — ►idu(aSelf General General Special Debt capital Intra- Trust and Insurance fixed long-term (Memorandum Assets and Other Dr ebits General revenue service p ojects Enterprise 8nvrrnm-'tat �j�n,y FunJ assess debt only) Equity in pooled cash and investments - _ (note 1) 3 7,204,549 - 2,941,675 50,973,176 773,848 1,197,802 4,614,979 67,706,270 Receivables$ Taxes receivable - delin4uent (less allowance for estimated uncollectible amounts of $2,116,406) 642,746 173,962 242,606 - - - - - - - 1,OS9,Sl6 General accounts receivable (net of allowance for doubtful accounts of $77,662) 502,246 - 615 - 4tl4,889 12,525 - 197,914 - - 1,796,189 Assessment liens receivable (note 1) - - 1,186 19,120 - - - - - - 20,706 ' Other governments (net of allowance 009,477 - - - - 9,414,660 - - - 11,4",,I77 for doubtful accouucs of $110,000) - 2, _ Deposits and prepaid insurance - - - - - - - 148,097 _ - 146,092 Inventories, and other (note 1) 39,120 - - - - 291,564 330,684 Property, plant and equipment (note 1)s _ _ Land - - - - 1,820,107 - - 16,667,666 18,487,)7I Buildings and improvements - - - - 2t,121,652 724,489 - _ 15,007,005 = 36,853,146 Machinery and equipment - - - - 785,439 9.093,556 - - 6,763,986 - 16,642,981 312 Improvements other than buildings (note 10) - - - - - - _ - 49.681,504 - 55,681,333 Contruction-in-progress (note 10) - - - - 4,104,915 1,838,914 49,686,504 SS,670,777 Amount available for retirement of bonds: General obligation - - - - - - - _ _ 1,5, ntl ,S, Special obligation - - - - - - - 1,522,514 1,522,S14 14 Amount to be provid••d for retirewent of bonds and judgment payable: _ _ Gene-1 obligation b� ds - 12tl,089,262 12e,089,262 Special of 1, g.tt ion b, •Is - - - - - - - 1,124,486 1,124,486 Judgiii• a and oth. payable,. _ _ _- _ - __ _.- - _ _ _.. _ _ 1,107,201 1,107t201 (note 1) $ 8,7AA,662 2,183,439 3,186,782 50,992,498 29,040,850 17,158,850 9,414,660 5,160,985 178, 504t413 177,429,201 yj 3151j,900 r- CITY Of NIANt, /I.ONIOA Cambinrd Salsn,e Sheet At ►un,l Types and A . . oaut Cr,-ps Cnvrrnm.•nl al /and Tyl— I., shI l it I.- ern, r.tl N.•v, nn, srrvur 1'r o�e,-1• Def tr It in paole•1 ronh and lavr,hm nt� r,yl,ll/', (note 1) Ar.1—d luhtltttr•v (pl luu 11'.'1 lv sa l AT ie-) 1,1114.; 1'J ' rw., 'hn h ',a : ,t'4I.tiNu A... unts paYahlr Dnfened inr,.me (—I. R--- honda pavahlc lu,•t.• l D.'n—i is re fundah lr flu.• to other Auvetnna•nt� Claimv paYable (u,.trn h em1 11 Ir'�"IM Generel nhltgat ion h,:nds y.ry.r'•L (note 4) Sp.•, tal ohlignt lnn brn.-I• p.1Y:041r• (note 4) .I-f,T—nt end other pa ynr•I, (note 7) 7"isI Itat•rl tr,.., F.numhr arr .•r, nut ntan•I, ng Im•t I1 I,nl': ,',;: N.•serve for nnm lr nnt drum{::. i,r tear+ rr,e ivablo 'llr.•y:a Fund Ralame. C... it•nteA C-V-tal and Retained f:arnrnor. FunA halanr --s a{-yrnpr iat e.l (nr�t •• I'. I,4 14,57'r I,O/h,Rit, 1,114,7'P, GN,! , 144 Fund halanres - w.apyrnyr Lrt,,,1 - 566, 141 1,g71,4SI Contributed capital and rete111-1 earnings - appr„prtat-t Cnntributed capital and retatm-d earnings - unappr upr i at r•d - Investment in general fined A-01 Cuntingencies and eormnitments (notes 9 and 11) .. - - S 8,198,662 2,183,419 11186t782 50,992,498 See accompanying notes to financial statements, Vr apr in sry Fnt er l•r l.r ►unA Typ,'• guts go et mru...t nl ►t d4, urn Fund Tt ust and ng. any Tyr— lasnr.n,.. Inrr.l A. amr TM al Itn•1 L'n� 1.•r n, lMrmnVr,,lnm .�,.•t, dr l't .:nl 111,/1: ', :' :NI h4,: vri 1: ,h1-, I. ''4,111 I, ,�Ir 1 I: 1, '!:• 1 , 1: 1 , �, 1'• h,N,11, ,:,4 :;h,hnl Ilr,N 1� •Iu,Nl.l 1In 1.,• :. IR, hN(' 655,45n - 1•e 11, 4.n 171,884 - 41,I17,RN1 28,140.604 11,011,711 - _ _ 118,506,471 - 11S,N0t,.41) 29r040t850 11t158t850 9,414,660 5,160t965 178t506,473 133,429,201 411011t900 CITY OF MIAMI, FLORIDA Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types Year ended September 30, 1978 Total Special Debt Capital (Memorandus General revenue service projects only) Revenues: Taxes (notes 2 and 10) $ 37,937,203 - 11,819,882 - 49,757,085 Licenses and permits (note 2) 4,476,690 18,784,170 - 8,037,906 _ - 1,618,505 4,476,690 28,440,581 Intergovernmental revenue 1,525,513 - - 1,525,513 Intragovernmental revenue 718,514 - - - 718,514 Charges for services - - - 14,040,000 14,040,000 Sale of bonds (note 4) - - 358,917 - 358,917 Assessment lien collections (note 1) - 15,442,625 4,853,025 20,295,650 Franchise and utility service tax revenue 1,049,282 228,467 505,781 3,654,854 5,433,384 Interest Other 1 198 635 93177 - 14 966 4,1 1, S0 1,306,778 126,334,112 Total revenues 65:690:007 29.996.667 8,359:550 - 2 ,127,20 191,700 - 30.18 367 Transfers from other funds Total and transfers 95,686,674 8,359,550 28.318,905 24,181,350 156. 46.479 revenues Expenditures and encumbrances (note 6): 8,494,669 - - - 3,494,669 General government Public improvements 9,149,199 - - - 9,149,199 Public safety 36,891,170 - - - - - 36,891,170 14,410,208 w Sanitation 12,022,064 14,410,208 - - - - 1,410,08 Pension (note 3) 5,103,662 - - - 5,103,662 Parks and recreation Intragovernmental charges 1,546,357 - - - _ 1,546,357 4,290,990 Other 4,290,990 - - - - 26,923,332 26,923,332 Project expenditures Debt service (note 4)i - - 8,726,000 8,726,000 Bond principal - - 6,709,502 _ 6,709,502 Bond interest Fiscal agents' fees and administrative charges - 91,908,319 - - 96,179 15,53L,681 - 26,923,332 96179 . 134,363,332 Total expenditures Transfers to other funds 1,803,688 11,037=215 15,240,175 3,5069537 31,587,615 Total expenditures, encumbrances and transfers 93,712,007 11,037,215 30,771,856 30,429.869 165.950,947 Excess (deficiency) of revenues and transfers over expenditures, encumbrances and transfers 1,974,667 (2,677,665) (2,452,951) (6,248,519) (9,404,468) Fund balances (deficit), October 1, 1977 (61,377) 3,776,980 5,575,618 54,543,913 63,835,134 Reclassification of encumbrance outstanding (note 8) - 500,000 - - 500,000 (Increase) decrease in reserve for noncurrent (63,765) 43,858 (14,415) - (34,322) delinquent taxes receivable Transfer of current portion of judgment (375.,000) - payable (note 7) _ _(375i000) Fund balances, September 30, 1978 $ 1 74,525 Is643073 -3,108,2S2 48,295,394 _54,5211344 See accompanying noteq to financial statements. CITY OF MIAM1, FIARIOA Comhinrd Statement u( Revrnuen, Espenditnr.•s, F.nrnmbranu•v and Changes in Fund Malan(es - 8udg,•t and Altnnl Crneral and Spe+ial Revenue Fund Type., Year ended September '10, 1918 Revenue : Tax— f,-1. 1) Li. ,n •.��• p. u.ur•. .m�1 ,er vl�. lax•. I nl .•r,;, ��,•. nc. n1 .,I r�•v.nu�� (n�,r.� 12, I ntraw:vel ,u nr.rl r.ve,nn lut ere,t Of het 11u, Iml,n •:en. r.,l Fnn'l 1'.elg, I of 51,. III, Off 1... .u,l 'l •..,I n y •..:�, ,. 1"t el rev. n:.. . llan•.I. r f .,I „th. 1 I ..0 T„1.II 1.'v......... (.xl•.•u,ll t,ne•, and ,.:. :::.,L,.u:,. (n��t ,� 6): Ceuerdl F,nv,, I'uhll. nnpt ev. �:.�nl �• f'nhl„ e..l.�ly Int r.,,;•.., u.., ur ,1 h.0 ,�, , (It h. r I n, .1.ah." f... Tnt..l rxl,. :�;,tnr.••, .nnl tr.rntilrr4 hx•.. Id,l„i,mvl nl n•>, :nu .nnl tt.m }. I•• ,'v.I exp.vnl,tnl���. :n,J [r.m •. h•I �, Fun'l bnl,:m. (d.•fuit), 0,t,J—, I, 1911 (Ill�r.•�r', •'1 d,. re I,- in re eer v,• f„r nwan nl rant .L•l, iiq, tax., r.••eiv.,ble Re, Ifi IJum u( (wo. M) Tr.... •fer ut current p„ I Iu❑ of Inny term judy,::mnt Fuel h.tlam.•, September 30, 1978 See accompanying notes to financial statements. C-f. , iI For„I Mud;. l A, tnnl $ 11 M45,091 11,911,2n1 4,W.1,41.1 4,1.16,640 II IM,/M,,I/U MI I,/4i 71 M,'>I. 4IY,, ow I,tl4'I, 2M: I ,9h',, If, I, I')M,b IS 6H,4111, if)I f. 6,10 01)1 M, i",I,',', II tn:al 8nddoe t Actual )/,845,091 37,931,203 4,043,941 4,470,690 21,654,431 26,822,016 1,626,317 1,525,513 890,761 718,514 900,000 1,211,749 1,969,11"1 1,291,817 68,'+fl I, IUI P.,01.9,55/ 2M,: 11.,413 2'1,996,667 20.., 120 1W.,046, 224 4!1 M, 1.44,hay 4,418,911 M, 49.,669 4,'l ,4101 9,I1.",14'+ - 9,454,'.r,i '),149,1'19 1M,II/,/Ih 1h,M''I,I iU SM,II1,114 36,914 170 it, - 17, 551, r4n 17,U2: ,064 14.h11,M,1 14,410,70K ,Iv, ;,4 ,Illl,l✓,, - S,'1'1,9,'. S,IIIs,662 1..9u'1 .91 1., 190, 990 4h, '• ,',1: 41,4Ux, +14 - - 91,,"1, `, ,', I:+ 41,408,319 1,541.t 17,8'.0,901 II,rI+I,11'. 9M,I0M,4kn 104,749,272 1,974,bh1 - (I,bll,6h',1 (404,264) (702,998) (61,1/1) 3,IIIt, ,9MU 3,715,603 (61,7b',) 43,858 (19,907) - 500,00(I 500,000 (31S,000) - _ (375,000) S _I,474,S1S -1.643,173 c 3,II.7J58 713 rr CITY OF MIAMI, FLORIDA Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary fund Types and Similiar Trust Funds Year Ended September 30, 1978 Proprietary Fund Types Intra- Enterprise governmental Fiduciary Fund Types Self Trust Insurance 6 Agency Fund Revenue a: Revenue from operations S 3,701,319 - 6,364,097 _ 4 O11 626 r Intrrgovernmental charges _ 26,074,069 -+ Intergovernmental grants (note 12) - - 2,4, Contributions from employees and retirees 58,638 80,765 - 56,31417 Interest _ 0 191.310 Other 3,759,957 6,444,862 26,074,069 6,757,912 Total revenues - 1,657,248 213,000 - Transfers from other funds c� v+ Total revenues and transfers u+ 3,759,957 8,102,110 26,287,069 6,757,912 Expenses: 3,073,538 6,187,850 - 6,465,714 Operating expenses 25,713,271 Grant expenditures (note 12) 3,07J,538 6,187,850 25,713,271 6,465,714 Total expenses • 44,644 435.000 - Transfers to other funds I,073,538 6,232,494 26,148,271 6,465,714 Total expenses and transfers 686,419 1,869,616 - - Net incwue Excess of revenues and transfers over - _ 138,798 292,198 expenses and transfers Contributed capital and retained earnings, 24,491,574 10,434,847 299,882 - fund balances, October 1, 1977, Fund (note 10) _ (1,169,258) - 1 169 2S8 + Reclassification of Self Insurance 3,290_,500 1,902,072 -+ Contributions from uther funds Contributed capital and retained earnings, $ 28,468t493 1�037_L 1,461,456 fund balance , September 30, 1978 _438,680 _ See accompanying notes to financial statements. CITY OF MIAMI, FLORIDA Enterprise Funds Combined Statement of Changes in Financial position Year ended September 30, 1978 Funds provided: }' Net income $ 686,419 Item not using funds - disposition of machinery 55,485 and equipment Funds provided from operations 741,904 Contributions from other funds 3,290,500 Increase in accounts payable and other liabilities 40,435 4,072,839 Funds used: Retirement of revenue bonds 18,000 Increase in receivables 87,644 Additions to property, plant and equipment 3,622,044 Decrease in accrued liabilities 9.206 Increase in equity in pooled cash and investments 335,945 S 4,072.839 See accompanying notes to financial statements. C-56 CITY OF MIM I, FLORIDA Notes to Financial Statements September 30, 1978 (1) Summary of Significant Accounting Policies The City of Miami in the County of Dade was incorporated in 1896 and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under a Commission - City Manager form of government and provides the following services as authorized by its charter: public safety, public works, sanitation, recreation and community development. The County is a separate governmental entity and its financial statements are not included in this report. (see note 11) The accounting policies of the City of Miami, Florida conform to generally accepted accounting principles as applicable to governmental units except for the nonrecognition of depreciation on fixed assets of the Enterprise and Intragovernmental Service Funds and except for the failure to provide for all losses incurred in the Self Insurance Fund. The following is a summary of the more significant policies: (a) Basis of Presentation - Fund Accounting The accounts of the City are organized on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The Department of off -Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City. The financial statements of these uped by entities are not included hcrein. statements— The follow following funds e typesanoaccount type groups are used by the City: GENERAL GOVERNMENTAL FUNDS General Fund - The General Fund is tt;e general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are acounted for in this fund. From the fund are paid the general operating expenses and the fixed charges that are not paid through other funds. l Revenue Funds are used to account for the proceeds Special Revenue Funds - Specia of specific revenue s s p8rate°Claccountinger than pebecause assessmentscial oflegal r or regulatory projects) requiring provisions or administrativaction. BndthEt Ce eral Fund. (See tnote n10)esente since all resources are appropriated C-57 CITY OF MIAMI, FLORIDA Notes to Financial Statements Debt Service Funds - Debt Service Funds are used to account for the annual payment of principal, interest and expenditures oil long-term general obligation debt, other than bonds payable from the operations of an enterprise. Capital Pro;ect Funds - Capital Project Funds are used to account for financial resources segregated for the acquisition or construction and financing of public improvements. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that provide a service to citizens financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capita'_ maintenance, public policy, management control, accountability or other purposes. Intragovernmental Service Funds - '_ntragovernmental Service Funds are used to account for the financing of goods or services by a department of the City on a cost reimbursement basis. FUDICIARY FUNDS Trust and Agency Funds - ':rust and Agency Funds are used to account for assets held in trust or as an agent by the Citr _or others. These funds are used to account for revenues and expenditures relating to most Federal and State grants. For the year ended September 30, :978 approximately $13,600,OOO of expenditures were reported in the Trust and Agency Funds which benefit other funds. The amount of benefit provided to other funds is not individually readily accessible, although the r.a;ority is in support of general governmental services. Self Insurance Fund - Self Insurance Fund is used to account for losses incurred by the City for a variety of ris{s for which it is self insured. The Fund also accounts for employee and en:,:over contributions for certain health coverages. GROUPS OF ACCOUNTS General Fixed Assets Group of Accounts - This group of accounts is established to account for a'_1 fixed assets of the City, other than those accounted for in the Enterprise and Intragovernmental Service Funds. General Long -Term Debt Group of Accounts - This group of accounts is established J to account for all 'long-term debt, not accounted for in the Enterprise Funds. W Basis of Accounting The modified accrual basis of accounting is followed by the General Governmental Funds. Under the modified accrual basis of accounting# revenues are recorded when received in cash unless susceptible to accrual, i.e. measurable and available to finance the City's operations or of a material amount and not received at the normal time of receipt. . (Continued) C-58 CIW OF Mimi, FLORIDA Motes to Financial Statements Expenditures, other than interest on liability is incurred. The accrual Proprietary and Fiduciary Fund Types. (c) Encumbrances long-term debt, are recorded when the basis of accounting is utilized by Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the general governmental funds. Included in encumbrances outstanding in the General Fund is $120,854 relating to prior years. (d) Investments Investments are stated at cost, which approximates market. Investments consist of U. S. government obligations and time deposits with financial institutions. (e) Inventories Inventories are priced at cost on a first -in, first -out basis. Inventory in the Intragovernmental Service Funds consists of expendable supplies held for consumption. (f) Property, Plant and Equipment -Enterprise and Intragovernmental Service Funds Property, plant and equipment owned by the Enterprise and Intragovernmental Service Funds is stated at cost. Depreciation has not been provided as required by generally accepted accounting principles. The amount of accumulated depreciation at September 30, 1978 and the related depreciation expense for the year then ended is not susceptible to determination at this time. (g) General Fixed Assets General Fixed Assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the general governmental funds and capitalized at cost in the General Fixed Assets Group of Accounts. In the case of gifts or contributions, such assets are recorded in General Fixed Assets at fair market value at the time received, except for the Olympia building which houses the Maurice Gusman Cultural Center for the Performing Arts which was donated in 1975 but for which a fair value has not yet been determined. General Fixed Assets include certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, and lighting systems. (Continued) C-59 CITY OF mum', FWRIDA Motes to Financial Statements No depreciation has been provided on general fixed assets. (h) Vacation Earned Time and Sick Leave Under terms of Civil Service regulations and administrative policy, City employees are granted vacation and sick leave in varying amounts. Additionally, certain overtime hours can be accrued and carried forward as ng earned payment to be made,tthehaboveertainties liabilitiesearelnotto the timing recorded (seeand noteamount3. of payment t (i) Pooled Cash and Investments During 1977, the City implemented a new accounting system in which all cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All cash and investments, including accrued interest and interfund transfers, are reflected in the equity or deficit in pooled cash and investments. Interest income is allocated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments. A summary of pooled cash and investments and equity in pooled cash and investments follows: Short term investments, including accrued interest $ 65,026,389 32,182 Petty cash and other $ 65,058,571 $ 3,127,097 Bank overdrafts 1,272,273 Liability for payroll deductions 150,178 Other Equity (deficit) of Funds: 7,204,%$ General Fund (451,075) Special Revenue Funds 2,941,675 Debt Service Funds 50,973,378 Capital Projects Funds 773,80 Enterprise Funds 1,197,802 Intragovernmental Funds (6,746,132) Trust and Agency Funds 4,614,979 Self Insurance Fund $ ,0- 88 71 65 The liability for payroll deductions shown above represents employee salary deductions for FICA, credit union, bond purchasers etc. This liability is not reflected in the accompanying financial statements since each funds' equity in pooled cash and investments amount has been reduced for its respective portion. (Continued) C-60 CITY OF MIAMI, FLORIDA Notes to Financial Statements (j) Allocation of Administrative Expenses The General Fund incurs certain administrative expenses for other funds, including accounting, legal and engineering services. An administrative charge is levied against these funds to defray a portion of these expenses. The General Fund also contributes toward certain costs of the Intragovernmental Service Funds, including pension cost, social security and group insurance charges. These costs are recorded in the Intragovernmental Service Funds, with the General Fund transfering sufficient funds to cover the expenses. W Appropriation of Fund Balances The 1978-79 budget for the General and Special Revenue Funds include appropria- tion of the September 30, 1978 fund balances of $2,427,000 and $1,077,000 respectively for purposes of funding general operating expenses. (1) Deferred Inco:re Deferred income at September 30, 1978 represents collections made in advance for which the use or service will not be provided until the subsequent year. Included in the General Fund amount is a $580,000 payment received in 1978 pursuant to an agreement made in 1975 for the sale of certain assets to the Dade County Water and Sewer Authority. The payment was received in advance of the scheduled date and is being deferred until the next fiscal year to coincide with the period in which it is appropriated. (m) Debt Service Funds Activities Included in the operations of the debt service funds are collections of utilities service taxes and collections of assessment liens. These revenues have been reported in the Debt Service Funds because they are restricted for the payment of principal and interest on certain bond issues. Excess receipts over current debt service and reserve requirements are transferred to the General Fund for general operating purposes. (2) Real and Personal Property Tax The City's real and personal property tax is levied each January 1 on the assessed value listed as of the prior September 30, for all property located in the City. Assessed values are established by the Dade county b Assessor f Property at just values. The assessed value of property at he 1977-78 levy was based was $3,828,200,000. (Continued) C-61 CITY OF MIAMI, FLORIDA Notes to Financial Statements The City is limited under Article 7, Section 8 of the Florida Constitution to a maximum tax levy of 10 mills per $100 ($10 per $1000) of assessed valuation and for general governmental services. Taxis levied for the payment of principal interest on long-term debt are not subject to this limita ipayment• of a tax principal nd finance general government services. `eendedthan September 30, 1978 was $10 per interest on long-term debt, for the year $1000 of assessed valuation which means that the city exhausted its taxing capability to finance general government services. An additional $3.20 per $1000 of assessed valuation was levied for the purpose of debt service. Total taxes levied, therefore, for the year ended September 30, 1978 aggregated $50,532,000 of which $38,282,000 was designated for general government service and $12,250,000 for debt service. All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of slick „otice, with discounts at the rate of four percent if paid in the month of '40vetrber, three percent if paid in the month of December, two percent if paie. in the month of January and one percent if paid in th_� month of February. Taxes paid during the month of March are w;thout discount. All unpaid !axes 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 deli�.eied to the 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 intern ,t rate Shall be as bid by the buyer of the certificate. (3) Retirement Plans The City has contributory pension plans covering substantially all employees. Total pension expense for the current fiscal year, incluling amortization of prior service costs over 35 years was approximately $14,650,0:`,,_). Of this amount $14,410,000 was funded by the General Fund, and the remainder by various other funds, principally Enterprise. The actuarially computed value of vested benefits under the plans exceeded the pension funds' net assets by approximately $76,211,000 at September 30, 19789 the date of the last valuation. The pension expense and the excess of vested ;enefits over fund assets, for the year ended September 30, 1978 increased substantially from the amounts reported for the year ended September 30, 1977 (approximately $11,200,000 and $69,700,000, respectively). This increase was principally due to changes in actuarial assumptions, the most significant being anticipated future salary increases. The anticipated aggregate contribution for the fiscal year ending September 309 1979 is approximately $16,100,000. (Continued) C-62 CITY OF MIAMI, FLORIDA Notes to Financial Statements (4) Bonds Payable (a) Bond Issuances During 1978 the City issued $14,040,000 of General Obligation Bonds. The proceeds are restricted as to use as follows: Parks and recreational facilities $ 11,540,000 Fire facilities 1'000'000 1,500,000 Housing $ 14.040.000 (b) General Long -Term Debt General obligation bonds, 1/JOZ to 7-1/229 maturing in various years through 2008, current principal maturities of approximately $9,8609000 backed by the full faith and credit of the City and its $ 129,675.000 taxing power. Special obligation bonds, 3% to 4-1/10Z9 maturing in various years through 1988, current principal $ 2,647,000 maturities of approximately $466,000. (c) Enterprise Funds Revenue bonds, 6,5%, maturing in various years through 1989, current principal maturities of approximately $ 249,000 $20,000. (d) Debt Service Requirements General Oligation Bonds d by an d tax levy on nonexempt perty Debt service is provideassessmentnliensefrom projects financed by proceeds value proceedsof and collections on such bonds. Special Obligation Bonds (1) Incinerator revenue rvedof $2 0,000 must be being- Debt service is providedby General Fund transfers. A rose purchase of electricity, gas, water and (2) Utilities service tax bonds - Debt h service rvice is provided by utilities service taxes imposed by the City local telephone and telegraph service. A reserve must be maintained utilities r equal to the maxi= annual debt service reserveemreequirementscan be tax revenues exceeding for any lawful purpose. (Continued) C-63 CI'_Y OF u vl, FLORIDA I otes to Financial Statements (3) Orange Soul Special 0b__9at= _:n _:nds - Sill -=- is :rovided by electric annaal debt service franchise revenues. i rec._ze�eat _�st be=a:--a---=• -= -==-= - t ere were sufficient ;r funds reserved to-- Enterarise Revenue Sonds Rental income from t`.e :ease :_ •=-- -=_ =_- --=cs ?'edged to provide debt service or. :'.-ese lids. (5 Land Transactions X:ring 1974 the :n:er-A-_er_:an---=--- "- ==__ a = :e_ of land from the City known as _-e _raves _-_=- _-•---•- -- _---. had agreed to pay the amc:..__ of _-e _-de`__ _-=ss. :-___-._" ----. _ . _-..._a_ _.._e:es:, in equal seuianr..;a_ instal =eats ._ _i= 3 - -_". _:-.. in 1975 the Author_--v was diss:_vec. a= -_ _ - -=. -- -- -- -_--?b-edness are in arocess. _ e _:ale r:_:__a __:3=- _--- __-_- 'ea" _.mains a line aem that gives _-e _--a:e _-e ===_- -- --- _ - -erect in the property for ec,---•---• _ -- - -_- _ _--._�_ec for projects related to tours: de:e__--e-_. __ -a= -.__ _- a=_:.-_- -e terms of the State's provosa'_ and __;e .c_erta_-_ _: __ ___:-_ a.._ ____=ate collection of this amount, nc re:e:lab:e -as lee-- -___--_- a_ _._ __._-__ �`.eet _ate. At September 3C, 1-578 _a�e :as _.--__-_= -- _ -- azproximately $836,^�- relating to _-e sale -- -_-__ -_- S.:ant to terms of the original agreement, :he a3zre_=_e ,_-=-.�_e :- --•-- was to be received by the City after an_ :a-:== --- -- .aunty's Seaport Revenue Dords. During _y _-e _-_=_-a- a-en.e: tc.provide for earlier pav;ent. Inc__dc= _n retie..__ :_: _ _= a ap?roxixately S580,C_`0 irc_.;d:ng a:_r:e: infer:::. : = -=-:_ - _. _ _ . _ - . - - - is ..__ considered ava__ab_e tc finance -- _ :'=.a__=.._. _-._ _-._____:_ - lee^ recorded at the balance sheet �a:e. (6) Self *nsurance on October 1975 the City estab__s::ec a Self _ns_ra-:e _ --d to provide insurance against certain _lab___ty r_s-:s. 7e -.a. :_,.__.-__ to purchase outside coverage for certain e=aures .mere _-e = is =...a.. in relation to the coverage provided. In _ _:_ vears _`.ese se.. insurerisks were limited to rstosobile liability a.- per_ da= Vie, zn: zenera_ liability for slips, falls and torts (hereinafter referred __ as genera_ cc-vera3e'. During 1978 the City expanded the types of risk for w::ic.. is self _ns::red to include group accident and health and a_sc r•cd:::ed its accounti :._ w3r;2rs coWpenaation. The City's accounting policv and amount of _^paid c_a:=s a- September 30, 1978 for the various coverage is explained below: y (Continued) CITY OF MIAMI, FLORIDA Motes to Financial Statements A. General Coverage - Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims j are reported, claims personnel investigate each !� claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not reported. The amount of this liability is not susceptible to determination at Ethis time. E B. Group Accident and Health - Employees participating in the City's group coverage E contribute through payroll deduction and departments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability for this coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liability. All claims paid subsequent to this date have been expensed as paid. C. Workers Compensation - In prior years, workers compensation claims were recorded on a pay-as-you-go basis in the General Fund. In 1978, all departments of the City were charged for their respective share of claims paid. Effective October 1, 1979 all workers compensation costs will be included in the Self Insurance Fund with all departments of the City being assessed a charge for this coverage. At September 30, 1978 there is no claim liability for wor%ers compensation recorded. The amount of this liability is not susceptible to determination at this time. Total claims payable C-65 Amount included in claims payable $ 1,884,025 1,690,727 Usm $ 31574,752 (Continued) x r �# I I'iF�rt4s CITY OF MIA!MIq FLORIDA Notes to Financial Statements The charges made by the Self Insurance Fund !,, t-her funds are not determined oall, due to "It' "I"'I , of data. The accuracy of.., an actuarially sound basis . . expenditures recorded in other funds 'or coverage depends on the. s ability of the self Insurance' Fun,! to 'Iccur.-It. .�-tI 111att, the claim losses; incurred by the insured -111 01.1 C, 1.1iM liabiilty recorded.1 "xt' in the Self Insurance Fun,'. is or to the extent t!:,- fund balanca represents charges to Ot,!.'r jzincl,, in cxc­­ 0Iact" " expend itures' of other funds would Ci!V (!(1,*S 110t believe such a• refinement in the claim impact on any. fund expenditures for tho vo,ir t, n (7) Claims, Judgment and Other Paya_''Ies_ Claims Pavabje - General Fl:.­! In April 1978, th,e City, as deten,'ant, :!n snit which alleged . .1 -!;,, t it,•, cniployees in certain irregularities Jr. P,-jV prior years. rie t v avrec,' to n�-!V covorini,, all back wages, attorney's fees, court$187,500 was charged to exnon,l , t urk,,; )i,n w: i ; charged to expenditures in 1977, !wIli ;:- the Concra' L,jj,,1 The City disbursed S350,000 (Iurin,4 '47S rom 1:, n­:gild has accrued as part of claims rava','o 17:,.1110. A corresponding charge to fund Ic-'I".." for the fiscal 1978-79 accrual. 37�,' made during fiscal 1979-89 and "s pava)les in the General Long 1 e rM Pk-') t AL [:!I r k) I I n s I Judgments and Other Pay,!Yt­; - General Long lorm. A-COV'rIt Cro!in During the fiscal v,-.-!r V_,, Ian(,! and avr.-t-L'. t 0 r unpaid balance of tit - varying amounts through C;,v P,ircl,.ased a parcel Of At ..... )I ­nl)er 30, .,,78 the �!,'A! 1 0(1 tr, he paid in The remaining $375,000 in judgments and other payahl,-, represent the fiscal 1979- 80 payment on the judgment described above. (Continued) Ik C-66 CITY OF MIAMI, FLORXDA a Notes to Financial Statements (8) Federal Revenue Sharing Fund - Reclassification of Encumbrance Outstanding During 1978 the City cancelled an encumbrance outstanding in the Federal Revenue Sharing Fund for $500,000 and appropriated the monies for the 1978-79 operating budget. Due to the significance of the amount involved and the fact that the original encumbrance was never supported by an executed purchase order the amount is being shown as an addition to fund balance for the year ended September 30, 1978. (9) Litigation (a) City of Miami vs. FEC The City is involved in a "quick take" eminent domain action to acquire 32.64 acres of bayfront land owned by the Florida East Coast Railway Company.(FEC) The property is located in downtown Miami between NW 6th and NW 9th Street and bounded in the west by Biscayne Boulevard. In March, 1978 a trial court entered an Order of Taking and an Order of Necessity, vesting title to said property in the City subject to a Stipulation entered between the parties. In accordance with the Order of Taking and the stipulation, the City deposited $14,500,000 of certificates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. In June 12, 1979 the Third District Court of Appeal issued its opinion affirming the Order of the trial court. The FEC has asked for a rehearing before the Third District Court of Appeal. If the City continues to be successful in upholding the Order of the trial court, this case will be returned to the Circuit Court for a jury trial to determine the ultimate amount which the City must pay FEC and other defendants for the property and damages they may have sustained including defendant's attorney's fees and court costs. This amount, however, cannot be determined at this time. (b) Gates et al vs The City of Miami The City of Miami is involved in a lawsuit filed by several contributors and retired members of the Miami City Employees' Retirement System primarily challenging the legality of certain expenditures made by the City from revenue raised pursuant to a Special Act which authorized the City to levy ad valorem real property taxes for the relief and pension of City employees. The alleged improper expenditures are as follows: . City's Social Security contributions $ 8,771,929 . City's required portion of premiums on 239 Group Health and Life Insurance Policies 861,62727,239 Payment of Judgments on pension related cases 60,182 City's Workers' Compensation obligations 566,810 Reimbursement to City of expenses for City 2.460,233 Departments' services rendered to pensions $ 22,086,393 (Continued) C-67 CITY OF MIAMI, FLORIDA Notes to Financial Statements In the opinion of the City Attorney, the lawsuit will not ultimately result the City of Miami having to actually pay any money judgment. (c) Other The City is currently appealing a $400,000 Judgment that arose out of automobile accident involving a policy vehicle. In the opinion of the C Attorney the City liability is either Sjo,),000 or $400,000 depending on outcome of the appeal. The City is defendant in a case which arose out of an alleged police brut& incident. A verbal demand for $300,009 has been submitted and in the opi of City counsel the case will be settled. There are a number of claims and lawsuits against the City resu principally from personal injuries incurred on City property. In the op of City officials and the City attorney, these claims together with mentioned above could result in a liability to the City of approxis $1,900,000. The liability for outstanding claims is recorded in the Insurance Fund (see note 6). The City of Miami relies primarily on their legal department acting under tba- direction of the City Attorney for legal advice. The foregoing opinions ars based solely on the opinion of the City Attorney. (10) Changes Affecting Comparability (a) Reclassification of Self Insurance Find As discussed in note 6, the Self Insurance Fund was reported as at; Intragovernmental Service Fund for the year ended September 30, 1977 but has' been reclassified and is being reported as a Fiduciary Fund Type for the 7W ended September 30, 1978. This reclassification, in managements' opinio% ' more properly presents the activity of the Fund. The amount reclassified of, $1,169,258 represents fund balance at October 1, 1977. { (b) Special Tax Levy Funds For the year ended September 30, 1977 general property taxes aggregatif' $14,099,000 were levied and reported as revenue in the Special Revenue Ft, in support of Pension, Publicity and Tourism and Street Lighting. Tot&1; expenditures reported in the Fund were $15,959,000. Pursuant to Citl. Commission action, these activities and the related revenue and expenditurM are reported in the General Fund for the year ended September 30, 1978. (Continued) C-68 1 A ,q inn 16 F CITY OF MIAMI, FLORIDA Notes to Financial Statements (c) Group Insurance and Workers' Compensation Costs Prior to June 1, 1978 the General Fund absorbed certain costs relating to Group Insurance and Workers' Compensation costs. Subsequent to that date, each department is charged their respective portion of actual claims coverage. Aggregate costs charged for the year ended September 309 1978 was $5,012,000 of which $4,341,000 was recorded in the General Fund and $671,000 was recorded in other funds, principally Intragovernmental, Enterprise and Trust and Agency Funds. The aggregate costs recorded in the General Fund for the year ended September 30, 1977 were $4,927,000. (d) Federal Revenue Sharing Fund Prior to 1978 certain expenditures were budgeted and paid for directly by the Federal Revenue Sharing Fund. For the year ended September 30, 1978 all disbursements previously reported in this Fund were budgeted and disbursed by the General Fund. Total expenditures reported for the year ended September 30, 1977 for activities currently reported in the General Fund were $2,747,000. (e) Transfer of General Fixed Assets to Dade County Water and Sewer Authority As of September 30, 1978 the City recorded the transfer of approximately $49,000,000 of sanitary sewers to the Miami -Dade Water and Sewer Authority in accordance with an agreement dated March 1975 between the City, Dade County and the Miami -Dade Water and Sewer Authority. The transfer was recorded, although most of the assets were being used by the Miami -Dade Water and Sewer Authority since 1976, by reducing improvements other then buildings by $48,842,186 with a corresponding decrease in investment in general fixed 96,690 of similar assets recorded as part assets. There is an additional $8,8 of construction -in -process that will be transferred when the respective projects are completed. (11) Relationship with Metropolitan Dade County The Florida Legislature in 1955 approved and submitted to a general election, a Constitutional Amendment designed to give a new form of government to the County of Dade. The Amendment was approved in a state-wide general election in 1956. A Dade County Charter Board was constituted and in 1957 and drafted a charter which established a form of Metropolitan County governmenL. The charter was adopted in a county election on July 20, 1957. The electors of Dade County are granted power to revise and amend the a c arter from time -to with govertime nmental by county -wide vote. The County is in effect,municipality rs effective upon twenty-seven cities and unincorporated areas incluJing the City of Miami. It has not displaced or replaced 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 County Commission, or (2) with the consent of the governing body of the City. (Continued) C-69 CITY OF MIAMI, FLORIDA Notes to Financial Statements Since its inception, the Metropolitan County Government has Sssumed responsibility oata County -wide service basis for a number of functions, including County -wide police services, cr,c,iplen,enting the municipal police service; uniform system of fire protection conlplementing the muncioal fire protection; consolidated two-tier couit system; creation of the Miami -Dade County Water and Sewer Authority; coordination of the various surface transportation programs; installatio,► cf a "•utral tratfic control computer system; merging all public transportation syIt":ms into a County system; effecting a combined public library systta,; and ,entralization of the property appraiser and tax collector functions. (12) Federally Assisted Grant Programs The City participates in a number of Fedc,ta'1y-assistrd grant programs, principally of which are General Revenue Sharing, C,,:j,,,,:r.ity Development Block Grant, Comprehensive Employment and Training Act (Ct:TA) and Local Public Works programs. These programs are subject t,, financial and .ompliance audits by grantors or their representatives. In December of 1978 an audit report was issurd I- t', !1,!• C( ity Irternal Audit Department representing the South Florida t!�!A Conr,ort i im. ".'his report covered the financial and compliance activities of the City as ;u`k-rantee for CETA funds from June 1, 1974 to September 30, 1977 a!,.,: c�u,-,' i,m,•d ; ! , 717,(100 of costs disbursed by the City during that periu,,. A:t! !, :hc City has responded defending specific items of auestior.e,.' C-)st', !ina! d,•termination of the amount, if any, of monies to be reimbursed to '.:1. ut!i Florida CE"IA Consortium cannot be determined at this time. At September 30, 1978, the audits of certain other programs including the Comprehensive Employment Training Act for tho period sin..e October 1, 1977 have not been conducted. Accordingly, the City's compliance with applicable grant requirements will be established at some future c!ate. '!1c,• amount, if any, of expenditures which may be disallowed by the dift,•rvnt grdnting agencies cannot be determined at this time. (13) Commitments and Contingencies At December 31, 1978, the City had certain earned employee benefits. The amount of governed by Civil Service regulations and benefits are summarized below: contingent liabilities relating to benefits earned and accumulated is administrative policy. These earned (Continued) �° C-70 CITY OF MIAMI, FLORIDA Notes to Financial Statements Type Description Amount Vacation Normal vacation earned $ 1,223,405 Earned time Additional time -off earned by hourly employees for over- time hours worked 1,812,i00 Sick leave Normal sick leave accumulated 1294389021 The full amount of vacation time, if not used by the employee, is payable upon separation of service subject to the following limitations: • for employees in service at December 31, 1973 - all accumulations to that date plus a maximum of 160 additional hours. . for employees employed since December 31, 1973 - a maximum of 160 hours. Earned time payable at separation is limited to 200 hours. Sick leave payable upon separation is limited to a maximum of 960 hours and is paid only if the employee has ten or more years of service, or in the case of sanitation workers, fifteen years service is required and limited to $3,000 or twenty-five years service and limited to $5,000, or forty years of service and limited to 960 hours at the pay rate at separation date. Due to uncertainties relating to the timing and amount of payments to be made, the above liabilities are not recorded. In February 1976 the Commission passed an ordinance which approved the issuance of $25,000,000 General Obligation Housing Bonds of the City for the purpose of providing housing for families and persons, including the elderly, of low or moderate income. In addition, and pursuant to agreements between the City and Dade County, the proceeds of such bonds, as they are issued from time to time, will be deposited in trust in a reserve fund to provide additional security for certain housing revenue bonds to be issued by Dade County. In the event the housing projects do not generate sufficient funds to service the County sdebt, the proceeds of the City's Housing Bonds will be used to pay principal nd interest. If, however, the Dade County Housing Bonds are self-liquidating, all amounts remaining in the trust account will be returned to the City for purposes set forth above. At September 30, 1978, $1,500,000 of such City Housing Bonds were sold and approximately $213,000 has been trnsferred to the trust account. te turn of the Due to the u uncertainty no receivable was ras to timing or ecorded aorded at the balanceusheetnt adate. to the trust (14) Maintaining the Current Level of Service The City is experiencing difficulty in providing the current level of services with existing available resources. Revenue curtailments and operating cost increases have resulted from many conditions. Some of the more significant conditions affecting the City's resources are: Property taxes for general operating purposes have reached their maximum allowable millage (see note 2). . Limitations have been placed on the maximum increase allowed in assessed valuation from year to year. (Continued) C-71 Ass CITY OF MIAMI, FLORIDA Notes to Financial Statements . Anti-Recessioa Fiscal Assistance Funds have been discontinued. . Federal Revenue Sharing Funds available for general operating purposes are decreasing. Comprehensive EmpioymenL Training Act Funds and other sustaining grants are decreasing (see note 12). Ar.ticip3ted pension contr:butions a,ad relatee expenses are increasing (see General operating costs are suffering fro^: the continiation of double digit ne amount of vested benefits u„der the City of viami Retirement Plan and system exceeding fund assets is increasing (see not,: 1. -e Citv :s c:ntinua!ly assessing alternatives t, ail i to the above conditions and has succes.`ul'_} avoi::ed ary reducti3a in services. Its agility to continue to provide the curre t level of services in t-.e :::tune is dependent upon expan _nt existi::d revenue sources w^.i_e cor.ta:r._nz c sts. ! 5 s sec _ ^'- rcents an-' Other `otters s :once 'r `:�:e=:der !9;8, the City offared fir sale 513,250,00 of General Obligation Sal:tar-, Sewer ponds cc, street and Highway T:nprovemer,t Bands --,---,^_•r- re Fighting, Fire Prevention and -.eserve rac:l=t:es Bonds _ Z.:Zr Storms sewer Improvement 3onds Ordinances a-thcr_zing the issuance of these bonds were previously adopted by t!,e C;,=, a^preved by the electors. The bonds bear interest at rates between =`- and 7.57. and were sold at a small premium. Bond Reso'_ution In May of 1979 the Commission passed a resolution authorizing the City Manager to execute an investment banking agreement with certain underwriters for the sale and issuance of $55,000,000 of revenue bonds to finance the development of Watson island as an amusement and recreation complex (the Project). In June 1979 an Investment Banking Agreement was executed whereby the (Continued) C - 7 2 t __ _ CITY OF MIAMI, FLORIDA Notes to Financial Statements 04 underwriters agreed to underwrite the $55,000,000 principal amount of the revenue bonds. Of such bonds, $20,000,000 will be secured by revenues from the Project together with a pledge of the City's franchise fees and mon- ad valorem taxes or revenues not otherwise pledged, and $35,000,000 of revenue bonds will be secured only by Project revenues. State Reporting Requirements On June 15, 1979, the Governor of the State of Florida approved the "Local Government Financial Emergency and Accountability Act." The Act is effective October 1, 1979, and requires local governmental entities to complete their financial statements within 90 days after the close of their fiscal year. Additionally, financial statements are to be included in a financial report examined by a certified public accountant and submitted to the State Department of Community Affairs within 180 days after the close of the entities' fiscal year. Failure to comply with these requirements may result in the witholding by the state of funds payable to the entity until the required report is received. C-73 t Al�lii�Fe P-1 THIS PAGE INTENTIONALLY LEFT BLANK C-74 Schedule I CITr OF MIAMI, FLORIDA General Fund Balance Sheet September 309 1978 Assets Equity in pooled cash and investments Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $1,292,407) General accounts receivable (net of allowance for doubtful accounts of $18,677) ocher Iiabilities. Reserves,_ and Fund Balance Accrued liabilities (principally salaries) Accounts payable Deferred income Claims payable Total liabilities Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balance - appropriated C-75 $ 7,204,548 642,748 502,246 39,120 $ 8,388,662 $ 1,019,739 2,094,269 2,202,797 375.000 5.691.805 1,015,512 206,820 1,474,525 $ 8,388,662 CITY OF MIAMI General Fund Statement of Revenues, Expenditures, Encumbrances and Transfers, Budget and Actual Year ended September 30, 1978 Expen- ditures Revised or Encum- budget transfers brances Actual Revenues: Taxes: Geiwia l property tax 17,207,692 _ = 36,996,791 226,257 Penalties and interest 700 647,199 - 714-? 55 Business and exi ise taxes '37,8452091 - 37,937,203 Licetlse9 and petuti t s: 3,57, - _ 7,545,153 Businesr: licenses and permits; 472,500 931,537 Cnnstructiun permits 4,043041 - -4_?476_,690 Interguvernmrntal rov nu•: 4,477,384 - _ 3,052,684 Federal grants 17,895,052 - _ 12,101,588 State grants 4,336,998 31629,898 Other 21,654,431 181784,170 Intragovernmental revenue: 1,676,317 - - 1,525,513 Engineering service•; - - - — Charges for service,;: 879 Public safety 246,650 _ - 1 4,065 Recreation 246,650 154,065 Other i 128,208 _ - - 149,570 _- 890,163 718, 514 Miscellaneous revenues: Interest 900,000 - - 1,049,282 112,574 - - 310,658 Rents Other (including General Fund budget item of $1,500,000 for 128571193 - - 887,977 anticipated salary savings) - - 2,869,767 2,247,917 Total revenues 68,930,307 - - 65,690,007 Transfers from other funds 28,274,413 - - 29*"6,667 Rest . w e.®r..�.-a�c�:�ta.�n.•...s.�v ----:Sf+sW t+4:iuc:;;r.Ed7.-'radi�+wcaapSiiQ?..,�:.R,+.,..ra+;ar:uw��iR,R�:tF;J'+'d�A•.[�rR7ht 4elb zro��??1 �_-__ - -�.��. w .ik. CITY OF MIAMI, FLORIDA General Fund Statement of Revenues, Expenditures, Encumbrances and Transfers, Budget and Actual Expen- ditures Revised or Encum- budget transfers brances Actual Expenditures and encumbrances: General government: S 240,341 230,486 1,031 231,517 Mayor and commission 555,682 545,794 1,113 546,907 City manager City clerk 295,321 298,507 10,096 308,603 Management services 543,347 1,260,883 478,013 1,168,629 57,634 10,102 535,647 1,178,731 Finance Legal 745,783 716,949 222 717,171 Civil service 161,255 852,363 140,542 630,700 10,225 161,228 150,767 791,928 Human resources Citizen 148,757 238,887 6,039 244,926 services Conferences and conventions 675,934 1,214,331 110,661 1,038,791 - 101,539 110,661 1,140,330 Tourism and promotion Computers and communications 2,784,816 2,537,481 2,537,481 8,494,669 91478,813 8,135,440 359,229 Public improvements: Public works 7,946,812 7,357,610 8,898 7,366,508 v Building 1,435,412 1,264,856 8,158 1,273,014 Planning and tuning boards 572,244 9,954,468 483,040 9,105,506 26,637 43,693 509,677 9,149,199 Public safety: Police 22,113,187 21,469,148 170,465 21,659,613 Fire 16,004,547 15,139,353 92,204 15,231,557 38,117,734 36,628,501 262,669 36,891,170 Sanitation 1205519290 12,019,413 2,651 12,022,064 Pension 14,6211841 14,410,208 - 14 410 208 5,1 Parks and recreation 5,239,978 5,036,650 67,012 Intragovernmental charges: 701,085 646,985 - 646,985 Property maintenance 877,714 826,686 - 826,686 Self insurance Print Shop 114,092 721686 - 72,686 1,692,891 1,546,357 - 1,546,357 Other: Employee benefits 2,297,564 1,489,015 - 1,489,015 Special programs 182,700 2�428,233 100,859 2i541,712 - 159,404 100,859 2,701,116 Miscellaneous 4,908,497 4,131,586 _ 159,404 4,290,990 Total expenditures and encumbrances 96_L565i512 91,013,661 894,658 911908,319 Transfers to other funds 1,543,472 1803,688 - 1L803,688 Total expenditures encumbrances and transfers 98,108,984 92:817,349 _ 894� 628 93_L712,007 Excess of revenues and transfers $ (904,264) over expenditures, encumbrances and transfers _ -1,974,667 CITY OF MIAMI, noRIDA General Fund Statement of Changes in Fund Balance Year ended September 30, 9 Fund (deficit), October 1, 1977 Excess of revenues and transfers over expenditures, encumbrances and transfers (Increase) in reserve for noncurrent delinquent taxes receivable Transfer of current portion of long-term judgment payable Fund balance, September 30, 1978 C-78 $ (61,377) 1,974,667 (63,7651 (375.0001 $ 1r474,525 err CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Balance Sheet September 30, 1978 Assets Taxes receivable - delinquent (less allowance for estimated r7 uncollectible ai:iounts of $370,868) i V `o Receivables from other government Liabilities, Encumbrances Outstanding, Reserves and Fund Balances Deficit (equity) in pooled cash and investments Accounts payable Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balances - appropriate Fund balances - unappropriated Special Tax Levy Funds Federal Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 113,962 148,280 13,203 12,479 - 2,009,477 -_ __ 2,009,477 $ 2Z1831439 1481280 L3 203 _12,479 2s009i477 $ 451,075 (6,773) 3,226 (532,602) 987,224 6 - - - 6 34,938 - - - 34,938 54,247 46,110 4,069 4,068 - 1,076,826 - 2,725 527,OL5 547,086 566j_347 108_L 3 3,183 13,998 440,223 $ 2Ll83,439 148 L280 13�203 12,479 2 LOO91477 7V CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Statement of Revenues and Transfers Year ended September 30, 1978 Spec ia_1_T_a_ x Funds _Levy Federal ' Publicity Revenue o and Street Sharing Total Pension Tourism Lighting Fund Revenues: Intergovernmental revenue - entitlement payments g 8,031,906 - - - 8,037,906 Interest 228,467 - - 8,298 220,169 Other -- 93,177 -- _ ---- — 93,177 Total revenues 8,359,550 - - 8,298 8,351,252 Transfers to other funds 11,_0371_215 -_ = 418,474 10,618,741 (Deficiency) of revenues over transfers $ (216711665) - - (410,176) (2,267,489) CITY OF MIAMI, FLORIDA Special Revenue funds Combining Statement of Changes in Fund Balances Year ended September 309 1978 e� 00 Fund balances, October 1, 1977 (Deficiency) of revenues over transfers Reclassification of encumbrances outstanding Decrease in reserve for noncurrent delinquent taxes receivable Fund balances, September 30, 1978 W, im cial Tax Levy Funds _ '—S e� federal Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 3,776,960 73,970 2,725 945,487 2,754,798 (2,677,665) - - (410,176) (2,267,489) 500,000 - - - 500,000 43,858 34,973 33,183 5,702 - $ 1.643,173 108,943 5,908 541,013 987,309 CITY OF MIAMI, FLORIDA Debt Service Funds Combining Balance Sheet September 30, 1978 General Orange Utilities obligation Bowl Incinerator service Assets Total bonds bonds bonds tax bonds Equity in pooled cash and investments $ 2,941,675 1,419,748 648,095 249,957 623,875 Receivables: Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $473,133)- _ Assessment liens receivable 1.1�16 - - - General accounts receivable (less allowance for ro doubtful accounts of $37,720) 61 `, 348 V--267 $ 1,740 649,095 250,305 624,142 Liabilities, Reserves and Fund Balances Accounts payable 5n 7 - 28 Reserve for non -current delinquent taxes receivable 77,98n 77,98u - - - Fund balances: Appropriated 1,134,795 - 648,095 250,000 236,700 Unappropriated 1,973,457 1,585,738 _ __ _ _ 305 387,414 Total fund balances 3,108,252 1,585,738 648,095 250,305 624,114 $ 3j186,282 1L663,740 648,095 250,305 624LI42 _. M® CITY OF MIAMI, FLORIDA Debt Service Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance Year ended September 30, 1978 Revenues: General property taxes Interest Assessment liens collections Franchise and utilities service tax Total revenues Transfers from other funds 0o Total revenues and transfers Expenditures: Bond principal Bond interest Fiscal agents' fees and administrative charges Total expenditures Transfers to other funds Total expenditures and transfers Excess (deficiency) of revenues and transfers over expenditures and transfers Fund balances, October 1, 1977 (Increase) in reserve for noncurrent delinquent taxes receivable Total $ 11,819,882 505,781 358,917 15 442 625 28:127:205 191.700 18,318,905 8,726,000 6,709,502 96,179 15,531,681 15,240,175 30,771,856 (2,452,951) 5,575,618 (14,415) General obligation bonds 11,819,882 505,781 358,917 12,684,580 12,684,580 8,270,000 6,600,252 95,320 14,965,572 14,965,572 Orange bowl bonds 140,000 31,775 50 171,825 171,825 (2,280,992) (171,825) 3,881,145 819,920 (14,415) - Incinerator bonds 1912700 _ 191,700 166,000 25,425 232 191,657 191,657 43 250,262 Utilities service tax bonds 15Z442 L61 15,442,625 15,442 , 62 5 150,000 52,050 577 202,627 15t2401175 15,442,802 (177) 624,291 Fund balances, September 30, 1978 $ 3,108,252 1,585,738 648,095 250,305 624,114 °. All ..".~.w ..'.../,.".�.`,~^ .+....,"^/~�' ^.. , . . ..,''.. ..^..^� . ^ �'.. `. .. ...'.,. Models I CITY OF MIAMI, FLORIDA Capital Projects funds Combining Statement of Revenues and Expenditures and Changes in Fund Balances Year ended September 30, 1978 General Obli ' ion Special Orlit. Parke and Storm Sanitary Pollution Police facilities recreation facilities Highway improvements Convention center Fire facilities Sidewalks Mousing [revolting ►sad Capital iaeroteinse Total severe severe control Revenues: Sale of bonds 9 14,040,000 - - - Il,S10,000 - _ 1,000,000 - - 1.500,000 Franchise revenues Interest 4,653,025 3,654,854 281,571 1,109,361 177,134 268,199 566,476 304,932 265,543 364.290 6,061 M.475 23,070 222.934 Grants 1,619,505 - - - - 435,000 - 437,300 746.205 - - - - i� Other _ _ 14,966 - _. "_ . _ .. ._ 9V-6A ---- -- - -- -- — - ---�200 --- ---- _ - - a u Total revenue. 74,181,150 _ 281,577 1,119,129 _.1771114 268,199 121541,416 _ 710.172 __702,843 2,130,495 6,061 1.%4.475 23,670 507! Project expenditure• 26,923,332 1,095,931 5,916,740 374,519 304,005 13,591,006 2,059,974 1,540,204 1.427,092 50'"7 247.963 - 215,426 Transfers to other funds 3,506,537 - - - Total project expenditures and 10,429,669 1,095,937 774,518 304,005 17.591.006 1059.974 1.590.204 1.427.092 1p,44) 247e983 3 721 ] transfers _St976,740 _ _ Excess (deficiency) of revenues over expen- ditures (6,248,519) (814,360) (4,857,611) (197,364) (35,806) (1,049,530) (1,749,842) (677,361) 703,403 (44.386) 1,296,492 23,870 1• r and transfers fund balances, October 1, 1971 54,543,913 4,406,320 17,407,679 2 661 733 3,827,963 8,258,146 4,957 169 4,454,302 5,047,578 106,090 - 350,462 3,062,461 Fund balances, September 30, 1978 S 48,295t394 71591,960 12 SSO 068 2,470,349 7 792 157 7,208,616 ],203.)27 7,576.941 5 )50.981 g3 N4 1.296.N2 ]74 732 • 416 1 CITY OF MIAMI, FLORIDA Enterprise Funds Combining Balance Sheet September 30, 1978 Marine Miami Orange Bowl Wat-house Special Assots Total Stadium Stadium Stadium Marinas Auditoriums Golf R-ropertr Properties Equity (deficit) in pooled cash and investments S 773,848 (100,386) 41,442 214,238 142,981 289,821 80,787 54,900 50,065 Accounts receivable (not of allouin;e for doubt- ful account, of $21,269) 484,SS9 14,561 58,581 170,070 208,195 22,958 8,056 - 2,466 Propertv, plant an,] ey.ri p^t";Ir : Land 1,820,107 4,836 375,000 704,981 120,2140 50U,000 15,000 - 95,00o n r Buildings and 2,.>.,0.'rr 68v,01)/ d,0;�,835 393V4,972 3,802,928 1,156,406 444,394 1,420,000 improvr ..nts 21,121,hi2 Ma;hinery an oy,rl,, mrnt 785,43y llh,985 34,ti;3 25:,8:-i 4�„ ':: loo,l56 230,454 - 3,454 Construct ior: in 0-.,�15 26:. 185 35I,05, 7.�i8 3,.`+,61? - _ _-- prv,n•xs 5 01+,i,8',r 2.:" r, Nu 1,19�,1hn 9,71,,r),, 3,K�,:.;v 8,4,i,',35 1,'.90,703 4999294 _ 1,5/0,98. Lial,i I It les, Cont r i!,i teal Capital art,] Ret IInod Earnings Accounts pavatle 65,248 3,222 5,120 31,38k, 9,308 3,990 10,222 - _ Acerued liabilities (principally salnri.•s% 30,772 1,508 709 1U,717 9,403 2,470 5,820 - 85 Def,rred income 277,337 6,000 29000 21',1.6 - 16,436 - 13,755 - - - 20,000 249 000 - Re Von le bonds payable 249,000 22 Total liabilities 6,357 _ - 10,730 7,829 2h3,30a 35,147 20i215 _ _ 16,042 _ 2699000 85 Contributed Capital and retained earnings - unappropriated 28,140,604 2,279,550 1,191,331 9,449,694 3,508,576 8,445,320 1,474,661 220,572 1,570,900 Contributed capital and retained earnings - - 318.167 - - 9,722 _ appropriated 327,889 $ 29,090,850 - 2,290,280 - h199,160 9t713,003 _3,861,890 8,465,535 1L490,703 _ 499,294 1,570,985 CITY OF MIAMI, FLORIDA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings For the year ended September 30, 1978 Revenues: Revenue from operations °D Interest V Total revenues Operating expenses Net income (loss) Contributed capital and retained earnings, October 1, 1977 Contributions from other funds Contributed capital and retained earnings, September 300 1978 In Orange Marine Miami Bowl Warehouse Special Total Stadium Stadium Stadium Marinas Auditoriums Golf property properties 9 3,7( 11,II1) 236,032 253,163 961,978 901,695 472,550 708,746 35,445 131,710 58.6 0 4,370 14,550 14,633 14,224 2,441 3,980 4,440 3,7`-9,957 236,032 257,533 976,528 916,328 486,774 711,187 39,425 136,150 3,673,538 275,556 248,488 _ 811,243 680,900 280,591 614,580 17,560 144,620 686,419 (39,524) 9,045 165,285 235,428 206,183 96,607 21,865 (8,470) 24,491,574 2,319,074 1,182,286 9,280,399 3,591,315 4,952,647 1,378,054 208,429 1,579,370 3t190,500 _ 4,910 ___ 3,286,490 -_ - - $ 281468,493 2_,279255U 1,191,331 9 449,694 3,826,143 8,445,320 11474,661 230,294 1,570,900 T 00 00 CITY OF MIAMI, FLORIDA Intragovernmental Service Funds Combining Balance Sheet September 30, 1978 Assets Equity (deficit) in pooled cash and investments Accounts receivable Inventories Property, plant and equipment: Buildings and improvements Machinery and equipment Construction in progress Public City Motor Property Print Shop Stationery stock Total properties garage ool k_. maintenance _----- $ 1,197,802 24,109 1,176,259 286,978 (282,868) (24,183) 17,507 _ 12,525 - - 12,525 - ' 291,564 - 116,052 75,350 , 72,519 7,307 20,336 724,489 16,003 390,545 6,154,805 244,934 2,768,800 87,401 86,998 1,609 66,950 - - 9,093,556 - _1 838 914 - 1,838,914 --- - $ 13,158,850 _ 401112 _91676,575 3,376t062 (23,425) 51,683 _ 37,843 Liabilities and Retained_ -Earning Accrued liabilities (principally 52,283 2,180 15,907 12,028 20,611 771 1 86 salaries) 69,290 683 15,320 14,233 19,768 2,143 17,143 Accounts payable Contributed capital and retained 13,037,277 36,649 9,645,348 3,349,801 (63,804) 48,769 20,51 earnings (deficit) - unappropriated $ 13.158.850 40,112 9,676,575 3,376,062 (23,425) 51,683 37,843 -rags; CITY OF MIAMI, FLORIDA Intragovernmental Service Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings For the year ended September 30, 1978 Revenue from operations Transfers from other funds i Total revenues and transfers 00 Operating expenses Transfers to other funds Total expenses and transfers Net income (loss) Contributed capital and retained earnings (deficit), October 1, 1977 Contributions from other funds Contributed capital and retained earnings (deficit), September 30, 1978 Public City Motor Property Print Stationery Total properties garage pool maintenance shop stock S 6,444,862 159,066 3,031,140 1,880,899 1,062,463 122,611 168,683 1,657,248 - 498,501 531,619 622,418 49017 693 8,102,110 159,066 3,529,641 2,412,518 1,684.881 126,628 189,376 6,187,850 161,864 2,392,440 1,904,464 1,436,227 141,580 151,275 44,644 40,827 3,817 - _ - - - 6,232,494 202,691 2,396,257 1,9049464 1,436,227 141,580 151,275 1,869,616 (43,625) 1,133,384 508,054 248,654 (14,952) 38,101 9,265,589 80,274 6,609,892 2,8419747 (3129458) 63,721 (17,587) 19902,072 - _ _1�902,072 __ __ - - _ $ 13L0371277 36,649 9,6459348 3,3499801 (63,804) 48,769 20,514 CITY OF MIAMI, FLORIDA Trust and Agency Funds Combining Balance Sheet September 30, 1978 Community Assets and Other Debits Total Devrlolmx•nt CETA EDA LEAA Other Receivables from other governments (net of 304 234 allowance for doubtful accounts of $110,000) $ _9,414,660. 1,.533,255 69767L - _ 8-__Aq _ $ 9,414i600 1,533,255 6,7671163 _ 8101008 _ _ 304,234 Liabilities and Fund Balances Deficit (equity) in pooled cash and investments Accrued liabilities (principally salaries) Accounts payable Deposits refundable Due to other governments Fund balances 6,746,132 766,127 6,301,140 28,175 (7,763) (341,547) 212,614 6,724 195,511 - 5,283 5,095 1.759,731 742,680 201),254 780,008 1,153 26,636 226,693 - 40,481 - - 186,212 30,810 - - - - 30,810 438,680 17,724 _ __2017.7-7 _ 1,825 ___-1,-327 397,027 $ `914141660 -1,533,255 _6,767,163 _— 810'008 - 304,234 -''' CITY OF MIAMI, FLORIDA Trust and Agency Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances September 30, 1978 en Community Development CETA EDA LEM Other 42 Fund balances (deficit), October 1, 1977 $ 299,882 2,732 (13,850) - 14 S09 + 296,491 Revenues - intergovernmental grants 26,074,069 7,420,380 11,931,863 4,591,276 475,246 1,655,304 Transfers from other funds 213,000 - - - - 213,000 25,713,271 6,970,388 11,897,236 4,589,451 488,428 1,767,768 Grant expenditures Transfers to other funds 435,000 435,000 - - - - Fund balances, September 30, 1978 $ 438,680 17,724 20,777 1,825 1,327 397,027 APPENM D _t . MUNICIPAL BOND GUARANTY INSURANCE POLICY ROMMrniekw Bond hmranee Assoeistion White Plains, New York 10601 PohcyNo.: .............................. ................. Tbt isuaaDce oompies eomprisit�{ the hlrDicipl dad IDsntatDce AssocisioN lie "Aaocisiort"1. each d whici ptticipmspaatt/�� bereasda sesesaMy has loll the teyectire pe; I II I I I set (oA apposite is sane. m casiderriam d doe pytwat dd tiYee mab�ra7 to tit tans d dta policy. hem* aDooDAnd ditioNaMy asd waroably pasDtee so =y holder m AneiosAee defies 1. a1Yer ILo lit bmaer of drc tpboys. dw fii ay canpka pymem tegoind t0 k met by or an beWf of she Issoa to a is sNccessor lie "tiymi Apes") d at nooses egad to the plieipsl d all inex>t ae. as >ncb poyoeots y s berate dre bM spar w1 to so ist mat it even of my aoodaaroDdie dw dome such p>mcipsl. for pynan pttaaotad hereby ahaY bs Nn.de is mach alloaDs ad Asechtimes s sorb pymmm of psiacipsl wmM bare been dta bell iae Na butt arty weebutiool. tie forourieg boys fit "RoaOs" 1: SPEcBm The jammam compsa m co-mmumg the nremben d The Association arc as follows: The Etna Casualty and Surly ConpanY FDetNaN's Fad IDmaralloe Company &tam Insurame CmNpNy UNisd States Fwe bnurance Company 49r4 30ri 1 Sri IS r Upon receipt of lelepboDic of I I I phic Douce. s b notice sabsegremly aos6Dsd in wry by mpttead or anified mail. or ntp teaiN of a and Dmil. bl llreGeDaal Mnsperef da AssadmI NI W is daipw ftoa da PWwg APO of ANY balder d8 Rond written notice by ntpiMesd IAs mad ngaisad �� ha Dot been ■de bit M'M Apat, the AaaciatioN or coupon the pymw for.rbscb isths meet to the hyittp Ap. d.otioe month Nonpyneas. wbncbera is lace. a briar d is mmbm an the der dote of mach pym" a wiin am bnsiDea dry aAer mce*1 m dw boillm of will msYead00"afinds.isAmacoamwibC'Miieab.N.A..inNewYab.NewYYab.aitsmaooenor.>dRc'MfattbepydmeDt d ary OoDds a empon whim at then doe. Up pteaeDsme land >tsaeDtla d mach �a tht eonpoes. a ri m as shell o�Naiip of Sods mv, I wool riDeipl a s to ptiacgtl a� m pmd itaett to/etbet ns�y tp/ra/ritte Aiiab.N.A.�diiaeetomacbheYelsatbehyrtpA/entptyaendthe6oeaasDmdmachmarmdad uDcaDoeYdY ieys ell atDptDt lasaDy aDODm bd/ by the pp�ayyiirst�� ��yyeeaDtt ter ie pnyaeDt die IriDcipd d a mans aD the Reye ad kptlly available iaetm. Up mach iaitttem ad>raDaI of mach owswedbd Dds asd ascasoeMd compm a opp epttte mwumems of wlpwem a Ciibsalt. N.A., ID dolir by she heldns a the hyiD� Mtn• the members d the Assaciaima shar baaomt tic o ht1r amy � paw of �aciptDOD ceder iit poky. 'liu policy does Da inns spine butt many ptepymeDt paairm With WW" 10 sty as As teed haem. she tan " botch" rill owm d e bema d tsny OaDd Da reptterd as y pr Arm and she saiaend owner d any My aepstae010 to principal a as so priDciptl ay Wl mot as bhcmd iD dot boobs omimand by it tiymp N� tNch pmr� and. who Need wilt atersNoe to a comm. shell awns tie bean of she coapn- ADy salvia d prooew a0 tie members d she Asswe"en may be ado a ie Aneciaima. ae d she meDias of tbt Amwnum a ie cimmal WpmunmMowowaf�Masicipsi bmaees Service Company Will AmWWM so s do Gmaersl man d ad is affias ae es Soei Srasdway While pbm. New Va1b 10601- This polity a noDeModWk for any lemon. The prnv m oN the pobq a Not mfnyable for any reawn Nnclod 49 tht pymam prig to mat>rwy of llONds. IN WITNESS WHEREOF. each of doe IDenhers OfIbt Anocolme has awed tha poho to be eaectntd sNd attested oN its behalf by the V0081 maDW OW apm of the Aaoaistiat. this ........................... day of ............. _......... ....... .. . _................ 19 ............. _..... � laeN rae..e twee ar woes A7~ MUNICIPAL BOND INSURANCE ASSOCIATION The &tNa Casualty New Suml CoMany Founds Fad hts wsm COOP" Moo IDswaam Company Umwd States Fwe INswamm Contp■y or hvp4cmM. ImlRRi Sol ►1Ci courm Y S E, ART OFFICIAL STATEMENT DATED JUNE 23, 1980 NEW 13SVE $6090009000w- e- The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Dated: July 1,1990 (.-- t M t A as •� M 4 0 sa ,, f G tM ��,�, Duet January 1, as sbown below Interest on the Bonds is payable semi-annual)theT anuary 1 and July 1, commencing January 1, 1981. The Bonds are issuable as coupon bonds in the denomination of $5,0h or as bonds registered as to both principal and interest, in denominations of $5.000 or any integral multiple theroupon bonds and registered bonds are interchangeable at the corporate trust office of , ustee, upon the terms and conditions provided in the Trust Inds ture. Coupon bonds are payable, at the of the holder, at any office of the Trustee, or at CInt&%4e.AbAA alor at �K pKe+..t AJ QW. orpat orahete topt office of :holder. Registered bonds are payable at the ♦ 1 The Bonds are subject to redemption prior to maturity as more fully described herein. 0aw -4,a )4/ V YAK In the opinion of Bond Counsel, Interest on the Bonds Is exempt from Federal income taxes under existing statutes nod e(mrt decisions and from taxation under the laws of the Slate of Florida, except as to estate taxes and taxes Imposed by Chapter 220, Florida Statutes, on Interest, Income or profits on debt obligations owned by corporations, banks and sating: associations. Serial Bonds 1990 $ 100,000 6.50% loot'. 1996 $1,32n,000 8 00% 1991 1992 330,000 6.75 10e' 1997 1,425,000 8.10 Ion 1993 640,000 1,060,000 7.00 7.25 too 1998 IoJ 1999 1,540,000 1,665,000 E..20 8.30 t� 1994 1995 1,140,000 7.50 00 2000 11805,000 8.35 too lam*► 1,225,000 7.75 iod 2001 1,720,000 8.375 /oo 544NOPWO ? is Term Bonds due January 1, 2015 % 4444 OJD� 000 (accrued interest to be added) The Bonds are special obligations of the City payable exclusively from the special fund provided therefor to be funded from Net Revenues one Convention Center -Garage, certain telephone and telegraph excise tax revenues and certain other monies, as described herein. The payment of principal of and interest on the Bonds is also secured by a guarantee by the Municipal Bond Insurance Association, as more fully described herein. Neither the faith and credit nor the taxing power of the City to levy ad valorem real or tangible personal property taxes is pledged to the paymen ft the Bonds. The Bonds are odered/kh,,, at and if issued and received by the Undtrwriters subject to approval of legality by Messrs. Brown, Wood, Its! Mitc:ull do Pett), New York, New York, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the City by the City Attorney. Certain legal matters will be passed upon for the Underwriters by Messrs. Mudge Rost Guthrie & Aterander, New York, New York. The Bonds are expected to be delivered in New York, New York on or about August S, I980.00-_ - 's Smith Barney, Harris Upham & Co. Incorporated 0 Subject to the pt. r closing of the financing for the Hotel. /D �1C 101 S'4 -'eId4 f" daft d Svrc 30 14 t0 1 IMs Official Statement does not coadluk n offer to ae0 or the solleltodom of on oiler ft boy, nor there be any sale of the Bonds, In my jurbdictloo lo which it Is oulawful to make web oiler, edleloodm a Bob. No deeler, broker, solemom or other person has been modmized to give any Inforoastim or 0 adto soy reprosentedoes, other than those costalied hs dds Offichd Smumad, in e0amtko with the of"* of The BORdSt Sod 9 flvfm W 11112410, Such id0illakdoo or nPresentodons, most not be idled " as b@Vl authorized by the City or the Vodetwrltem The Idurvesdom and ezpreaskm of opinion heroin ang4row choop without notice, mod oeltber the delivery of this Officid Stolmeal not any gde Mal hereunder d" wader Buy chcomstfisicas Creole my Implicadon dud there has been no cbaqp In the offoln of the City doeo 11ho dell bered. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER -ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS L=-1 INTRODUCTION ....... I ...... I ................................... I TheCity .... ................................................................. I Purpose of Issue .... .......................................................... I The Convention Center-Garap ................. I .... .............................. I Construction ................................................................... 2 Municipal Bond Guaranty Insurance ................................................ 2 Securt for the Bonds ........................................................... 2 Rate Covenant .................. .................................... . I .... 2 Additional Bonds ............................................................... 3 OtherParties .................................................................. 3 FINANCIAL FEASIBILITY STUDY .. ......... ................ ........................... 3 CITY'S PRESENT INVESTMENT IN CONVENTION CENTER-GARAOR ............................... 4 ESTIMATED APPLICATION OF BOND PROCEEDS ................................... ......... 4 ESTIMATED SOURCES AND Usts OF FUNDS ................................................ 4 Sources of Funds ........ ........ .. ......................................... 4 Uses of Funds ....................................................... ......... 5 UDAGGrant ................... .................................... d ...... I . 5 EDAGrant .................................................................... 5 THECOMPLEX ..................................................................... 5 General Description ............................................................ 5 City of Miami Convention Center .................................................. 6 Conference Center .............................................................. 6 ParkingGarage ................................................................ 6 Hotel................................................................. ..... Trade Center 7 . . . ............................................................... 7 Approvals..................................................................... 7 Construction ................................................................... I Architects.... ................................................................ a Management ................................................................... 8 DESCRIPTION OF THE BONDS .......................................................... 9 General Terms ................................................................. Mandatory Redemption .................................................... ..... 9 9 Optional Redemption ............................................................ 9 Municipal Bond Guaranty Insurance Policy .................. ...................... 9 Security for Bonds .............................................................. Covenant 10 Rate ................................................................. 12 Additional Bonds ... .... ................................... .................. 13 Collection and Disposition of Revenues .............................................. 13 TELEPHONE AND TELEGRAPH UTILITIES TAX .............................................. 14 PROPOSED BOND ISSUES .............................................................. is RECENT BOND ISSUES ............................................................... is BONDS AUTHORIZED BUT NOT ISSUED ................................................... THECITY ......................................................................... 16 TheCity ...................................................................... 16 TheClimate . .......................................................... ...... 16 Government of Miami ........................................... ............... 16 The City Commission ............................................................ 16 City Management .......................................... .................... 17 ProjectDirector ................................................................ 17 Department of Off-street Parking ................................................... 17 Principal Services Performed by the City ............................................. 17 Principal Facilities of the City ..................................................... is Capital Improvement Plan .......................................... ............. 18 EmployeeRelations ............................................................. is Population and Demographics ..................................................... is Transportation................................................................. 19 Local Mass Transit ............................................................. 20 Building Activity ............................................................... 20 Convention Activity ............................................................. 20 CITY FINANCIAL INFORMATION ........................................................ 21 Procedure for Tax Levy and Tax Collection ........................ ................. 21 Tax Limitation for Municipal Purposes Excludes Debt Service ............................ 26 General Descijption of Financial Practices ........................................... 27 City Pension funds ............................................................. 32 RISKMANAGEMENT ................................................................. 34 CONTINGENT LIABILITIES ....... ..................................................... 34 Pending Legal Proceedings ...... .. ....... ....... ......................... 34 DADECOUNTY ..................................................................... 35 Government of Dade County ...................................................... 35 Business and Industry ........................................................... 36 Agriculture.................................................................... 37 Financial Institutions ............................................................ 38 Education..................................................................... 38 Medical Facilities ............................................................... 38 Recreation.................................................................... 38 Tourism...................................................................... 38 Miscellaneous .................................................................. 39 UNDERWIUTINO .................................................................... 39 VALIDATION OF THE BONDS ............................................................ 39 LITIGATION........................................................................ 39 TAX EXEMPTION................................................................... 39 APPROVAL OF LEGAL PROCEEDINGS .................................................... 39 MISCELLANEOUS ................................................................... 40 FINANCIAL FEASIBILITY STUDY ftNUMV-0 ....................................... Appendix A SUMMARY OF THE LEGAL DOCUMENTS ............................................ Appendix B FINANCIAL STATEMENTS OF THE CITY FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1978 AND 1979 ............................................... Appendix C FORM OF MUNICIPAL BOND GUARANTY INSURANCE POLICY ............................ Appendix D Foevv% 0,; %0T*'b C_C��kvkce\ ameNINNOV\ . - - - - - . .. AvverAA E OFFICIAL STATEMENT $6090009000W— The City of Miami, Florida Convention Center and Parking Garage Revinue Bonds 'the purpose of this Official Statement is to set forth certain information concerning the issuance by The City of Miami, Florida (the "City") of its C nvention Center and Parking Garage Revenue Bonds in the aggregate principal amount of $60,000,OOO*7the "Bonds"). The Bonds are authorized to be issued pur- suant to the Municipal Home Rule Powers Act, constituting Chapter 166, Florida Statutes Annotated, as amended and the Charter of the City, constituting Chapter 10847, Special Laws of Florida, as amended (collectively the "Act"), the Trust Indenture, dated as of July 1, 1980, by and between the City and , as Trustee (the "Trust Indenture") and certain ordinances, resolutions and other proceedings of the City. Pursuant to the Trust Indenture, all bonds issued under the Trust Indenture are equally and ratably secured by the pledges and covenants contained therein. Certain provisions of the Trust Indenture are summa- rized below. Words and terms defined in the Trust Indenture are used herein as so defined unless otherwise defined herein. INTRODUCTION The City The City is located in southern Florida and has a land area of approximately 34.3 square miles. The 1978 Bureau of the Census estimate of the City's population is approximately 348,700. The City is a home rule city chartered under the Constitution and laws of the State of Florida. Certain financial, economic and demographic information concerning the City is set forth under the caption "The City." Purpose of issue The City, pursuant to the Tru Indenture, will issue its Bonds to finance a portion of the cost of com- pleting construction of a convention and conference center officially designated as the City of Miami/University of Miami James L. Knight International Center (the "Convention Center") and the construction of a parking garage (the "Parking Garage") (sometimes collectively called the "Convention Center -Garage" 1. The Convention Center -Garage The site of the Convention Center -Garage is located in the downtown area on the north bank of the Miami River. The City will own and operate the Convention Center -Garage. The Convention Center will consist of approximately 410,000 square feet including circulation spaces and support facilities. The Parking Garage will consist of approximately 1,450 parking spaces, space for a pedestrian mall and retail space and spice for a Downtown People Mover station. The University of Miami (the "University"), pursuant to an agreement dated April 1, 1977 between the University and the City (the "University Agreement"), has agreed to enter into a lease with the City for approximately 30,750 net square feet of space in the Convention Center in which it will operate a conference center. In connection with the development of the Convention Center -Garage, a 627 room (608 unit) hotel (the "Hotel") and a 600,000 gross square foot trade center and office building (the "Trade Center") will be constructed and operated by parties other than the City, as more fully described herein. Best 4he Hotel will be privately financed, owned and operated. Pursuant to the Lease and Agreement for Development (the "Hotel Agreement") dated September 13, bt fi�a+�ct�i, owlntd a.nd Da de -SG etw 4,nd 1979, as amended, between the City and iami Center Associates, Ltd., a Florida limited partnership (the "Hotel Developer"), the City has agreed o lease to the Hotel Developer air space over a portion of the Con- vention Center and the site thereof, and within part of the Convention Center, and to grant certain easements and other rights in and around the Convention Center. The Hotel Developer will construct, own and operate the Hotel and 26,000 square feet of retail stores. The Hotel is expected to be managed by the Hyatt Cor- potation. Pursuant to the Lease Agreement (the "TC Agreement") by and between the i nd Do Savings and Loan Association, a state jehartered savings and loan association (the "TC ") dated as L•C . o u y 1, 1950, the T'VQ&o as will lease from the City air space over a portion of the area comprising the Parking Garage in which the Trade Center, comprising approximately 600,000 gross square feet of space (500,000 square feet leaseable), will be constructed. The estimated total cost of the development of the Convention Center -Garage is approximately of which approximately $33,750,000 has been or is being provided from sources other than Bond proceeds; including: (1) a $4,994,000 Urban Development Action Grant (the "UDAG Grant") from the United States Department of Housing and Urban Development; (2) a $4,373,000 Economic Development Administration Grant (the "EDA Grant") from the United States Department of Commerce; (3) $4,147,065 of proceeds of general obligation bonds approved by the voters and sold by the City in 1969 plus investment earnings thereon; (4) proceeds from the sale of land to Dade County in the amount of $5,300,000; (5) investment earnings on certain funds and accounts to be held pursuant to the Trust Indenture; (6) a $2,500,000 payment made by the University; (7) a $2,900,000 base rent payment made by the Hotel Devel- oper; and (9) a capital contribution to be made by the City. \one C.ty kti cr'�e� N % C o— ao►ns o n Construction 4, y Isie,'I a e Convention Center. The City initiated construction of the Convention Center on January 2, 1978. Contracts have been entered into for salvage excavation, sitework, foundations and part of the superstructure required for the commencement of the construction of the Hotel. , . T T ontract with Frank J. Rooney, Inc. for the completion of the Convention Center at a fixed price of $28,201,359. As of June 30, 1980 the City expects to have expended $15,320,258 of which $2,499,481 will have been paid pursuant to the contract for completion with Frank J. Rooney, Inc. Parking Garage: The City has entered into a turnkey contract with Miami Center Associates, Inc. for the design and construction of the Parking Garage for a price of $15,000,000, subject to increases caused by certain unanticipated subsurface conditions or changes requested by the City. The cost of construction of the Parking Garage will be paid in part from the proceeds of the Bonds. The cost of construction of the foundations, platform, utilities, elevators and stairwells in the Parking Garage necessary for the development • of the Trade Center will bypaid from the proceeds of the UDAG Grant. (See "UDAG Grant".) Municipal Bond Guarantee Insurance The payment of the principal of and interest on the Bonds is unconditionally and irrevocably guaranteed pursuant to the Municipal Bond Guaranty Insurance Policy. (See "Municipal Bond Guaranty Insurance Policy" and "Appendix D". ) Security for the Bonds The Bonds and any additional bonds issued pursuant to the Trust Indenture are special obligations of the City payable exclusively from the special fund provided therefor to be funded from Net Revenues of the Convention Center -Garage and certain telcpl%ne and telegraph excise tax revenues and certain other monies. (See "Description of the Bonds —Security for the Bonds".) Rate Covenant The City has covenanted to fix, charge and collect, to the extent possible, rates, fees and charges for the use and occupancy of, and for the services furnished by, the Convention Center -Garage which will be at least OVW 1979, as amended, between the City and iami Center Associates, Ltd., a Florida limited partnership (the "Hotel Developer"), the City has agreed o lease to the Hotel Developer air space over a portion of the Con- vention Center and the site thereof, and within pert of the Convention Center, and to grant certain easements and other rights in and around the Convention Center. The Hotel Developer will construct, own and operate the Hotel and 26,000 square feet of retail stores. The Hotel is expected to be managed by the Hyatt Cor- potation. Pursuant to the Lease Agreement (the "T Agreement") by and between the and Savin and Loan Association, a state hartered savings and loan association (the "TC ") dated as L•C . o u y 80, t e will lease from the City air :pace over a portion of the area comprising the Parking Garage in which the Trade Center, comprising approximately 600,000 gross square feet of space (500,000 square feet leaseable), will be constructed. 1a. The estimated total cost of the development of the Convention Center -Garage is approximately of which approximately $33,750,000 has been or is being provided from sources other than Bond proceeds, including: (1) a $4,994,000 Urban Development Action Grant (the "UDAG Grant") from the United States Department of Housing and Urban Development; (2) a $4,373,000 Economic Development Administration Grant (the "EDA Grant") from the United States Department of Commerce; (3) $4.147,065 of proceeds of general obligation bonds approved by the voters and sold by the City in 1969 plus investment earnings thereon; (4) proceeds from the sale of land to Dade County in the amount of $5,300,000; (5) investment earnings on certain funds and accounts to be held pursuant to the Trust Indenture; (6) a $2,500,000 payment made by the University; (7) a $2,900,000 base rent payment made by the Hotel Devel- oper; and (8) a capital contribution to be made by the City. Construction 4, y 16'k*'1 a o Convention Center: The City initiated construction of the Convention Center on January 2, 1978. Contracts have been entered into for salvage excavation, sitework, foundations and part of the superstructure required for the commencement of the construction of the Hotel. , the cost of dd3 postion T ontract with Frank J. Rooney, Inc. for the completion of the Convention Center at a fixed price of $28,201,359. As of June 30, 1980 the City expects to have expended $15,320,258 of which $2,499,481 will have been paid pursuant to the contract for completion with Frank J. Rooney, Inc. Parking Garage: The City has entered into a turnkey contract with Miami Center Associates, Inc. for the design and construction of the Parking Garage for a price of $15,000,000, subject to increases caused by certain unanticipated subsurface conditions or changes requested by the City. The cost of construction of the Parking Garage will be paid in part from the proceeds of the Bonds. The cost of construction of the �.� foundations, platform, utilities, elevators and stairwells in the Parking Garage necessary for the development • of the Trade Center will bypaid from the proceeds of the UDAG Grant. (See "UDAG Grant".) Municipal Bond Guarantee Insurance The payment of the principal of and interest on the Bonds is unconditionally and irrevocably guaranteed pursuant to the Municipal Bond Guaranty Insurance Policy. (See "Municipal Bond Guaranty Insurance Policy" and "Appendix D".) Security for the Bonds The Bonds and any additional bonds issued pursuant to the Trust Indenture are special obligations of the City payable exclusively from the special fund provided therefor to be funded from Net Revenues of the Convention Center -Garage and certain telepeone and telegraph excise tax revenues and certain other monies. (See "Description of the Bonds —Security for the Bonds".) Rate Covenant The City has covenanted to fix, charge and collect, to the extent possible, rates, fees and charges for the use and occupancy of, and for the services furnished by, the Convention Center -Garage which will be at least 2 .a 7. 0 sufficient to produce Gross Revenues of the Convention Center -Garage in each fiscal year in an amount not less than Current Expenses of the Convention Center -Garage, 125% of Principal and Interest Requirements for such fiscal year and the amount necessary, if any to make up any deficiencies in the Bond Service Account, the Reserve Account, the Renewal and Replacement Fund and the Supplemental Reserve Fund, as provided in the Trust Indenture. Additional Bonds In order to provide additional funds for completing the payment of the cost of the Convention Center. Garage, additional bonds may be issued under and secured by the Trust Indenture on a parity as to payment wit:n the Bonds. Such additional bonds are required to be of the same maturity date as the latest maturity date of the term bonds initially issued under the Trust Indenture and may be authorized in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars ($5,000,000). Other Pardes Hole! Developer �. qLawww+rd�.i Miami Center Associates, Ltd., a Florida limited partnership will be the developer and o er of the Hotel. Miami Center Associates, Inc. and ihnsl . Silverman Associates, Inc. are the general pa ers of Miami Center Associates, Ltd. Miami Center Associates, Inc., a Florida corporation, is ,jwsip owned by Worsham Brothers Company, Inc. and Turner Development Corporation, a wholly -owned subsidiary of Turner Con- struction Co. Miami Center Associates, Inc. is also the turnkey developer for the Parking Garage. 4hmy4ir Silverman Associates, Inc., a Delaware corporation, is wholly owned by Henry R. Silverman. \ Trade Center Owner —Z�0.ka Saa.�•r�S 0`+� `.op►v� �frSe:G�0.�tOV1 Dade Savings and Loan Association, a state chartere cSavi'nill gs and loan association with assets of approxi- mately $1.9 billion, will be the owner of the Trade Centc; occupy all or a portion of 150,000 square feet of the office space of the Trade Center and will lease the remainder thereof. University of Miami The University of Miami, founded in 1925, is a non -denominational, coeducational institution of higher learning with its main campus located in Coral Gables, Florida. The University has a student enrollment of approximately 18,000 during the academic year and is comprised of ten schools offering academic programs in the humanities, social sciences, natural sciences and the professional fields of engineering, education, business administration, law and medicine. These programs are presently staffed by approximately 1,296 full-time and 180 part-time faculty. 1 \ FINANCIAL FEASIBILITY STUDY The City has retained Laventhol do Horwath, a nationally recognized certified public accounting firm srecializin in the hotel and hospitality industry, to prepare a financial feasibility study of the Convention enter-Garag . The estimates, projections and conclusions expressed in the Financial Feasibility Study are based and conditioned upon certain assumptions, calculations, ratipnales and qualifications contained therein. Ama. ar-efTe Financial Feasibility Study is attached hereto as Appendix A and should be read in its entirety to order to evaluate such estimates, projections and conclusions. The projections contained in swsh-w—o- �-of the Financial Feasibility Study should not be construed as statements of fact. The accuracy of the projections v is dependent upon the occurrence or non-occurrence of future events which cannot be assured and the actual results achieved during any projection period may vary from the projection. N CITY'S PRESENT INVESTMENT IN THE CONVENTION CENTER -GARAGE As of June 30, 1980 the City expects to have expended approximately $15,320,258 in the planning, construction and development of the Convention Center -Garage, as follows: Land Acquisition .......................... $ 6,611,170 Architects Fees .......................... 2,078,590 Consultants .............................. 329,544 Administration ........................... 709,834 Archeological Diggings Costs .......... ... 358,016 Construction Management Fees ....... ...... 921,394 Site and Foundation Work .............. .. . 4,311,710 $15,320,258 Such expenditures have been made from (i) $4,147,065 of proceeds of general obligation bonds approved by the voters and sold by the City in 1969, (ii) $5,300,000 of proceeds of the sale of land on Virginia Key to Dade County, (iii) approximately $700,000 of interest earnings on (i) and (ii) prior to disbursement, (iv) the EDA Grant in the amount of $4,373,000, and (v) a capital contribution by the City of $3,240,000. ESTIMATED APPLICATION OF BOND PROCEEDS Construction Account' .. .................. $48,999,61 " • i-2 9 Reserve Account 6.,960-0 •, 6 �! oy • sO Bond Service Account 9,895l'.199 y .7 1 a. j P, Cost of Issuance 4 -,& ;. 8• 6,40, u MBIA Insurance Premium .. +R"A 3 •• t I qP.%' yoo Total Bond Issue ............. .... ' Upon deliver, of the Bonds, the City will make a deposit in the Construction Account. Available proceeds from the UDAG Grant will be deposited as received to the Construction Account. Such monies to be deposited in the Construction Account, together with the investment earnings on undisbursed funds in the Bond Service Account and the Reserve Account are estimated to meet construction costs of the Convention Center of $46,006,576 and bf the Parking Garage of $15,000,000(pf which the City expects to have expended S50,009— )D b N ....& 3 0, x°,,,,(so) Ij loll 0 ESTIMATED SOURCES AND USES OF FUNDS Sources of Funds Convention Center and Parking Garage Revenue Bonds ........ ....... ..... $60,000,000 Payment by the University of Miami(1)................................. 2,500,000 Base Rent Payment by Hotel Developer(2) ..... I ...... .. ...... 2,900,000 Urban Development Action Grant Funds .. .......................... 4,994,000 General Obligation Bonds, Series 1964.................................... 4,147,065 Saleof Land ........................................................ 5,300,000 Economic Development Authority Gran Miami Capital Contribution 4,373,000 ?.1.-,I'81 40 514 SV — City of - ........ Interest Earnings During Con traction Period on:}� Construction Account( ) .. ?$logo 1 Bond Service Account or Capitalized Interest �j Reserve Account(S) 6&6446 99ir'i�9�7 i'6 60 407 ... Supplemental Reserve Fund(4.. .................... University of Miami Payment( I) (.................................. $i8•" 200,000 ,9 A 4 � 6i Total Sources of Funds ............................. .............. .... $93;441,6?9 9y, IPA,• (1) Available upon commencement of operation of the Convention Center -Garage and the Hotel. (2) Available upon the commencement of operation of the Hotel. The Hotel Developer will provide a I etter of credit in the amount of $2,900,000 upon delivery of the Bonds. 1 Estimated at*%r— 7.It010 �i -AKodr'i T6L'0"Y Estimated at 8.25%. � Estimated at 9.5%. hAs A tab flu s'0� �'y� 4 AT'Tbep.�ltwt •� c�a4�r1 TM #_ c.r us►Lt. �►p •t' A}cc1061d Tdrea.t:i 1;132t.o. AJA"X%o"1a'Li1,�►'" t Usa of Fond Site Acquisition Costs .................................................. S 6,611,170 Construction Cost of Convention Center and Development Costs ................ 39,729,664 Construction Cost of Garage(1)......................................... 14,950,000(2) Contingency for Changes ............................................... 2,500,000 Pre -Opening Expenses ............................................. 500,000 Furniture, Fixtures and Equipment ...................................... 2,000,000 Reserve Account .................................................... *9691999■ fay /iO" 4o• Supplemental Reserve Fund(3) , ....... 9,,�999,44 Capitalized Interest on Bonds (4) M�► ` !� �� ....... �;9T 5!` I fbr Cost of Issuance ..................................................... df,4 01640 a We�sa• MBIA Insurance Premium ............................................. 1,9:it446 I, PS Total Uses of Funds ................................................... 7'yi (1) Part of the construction cost of the garage will be paid from the UDAG Grant of $4,994,000. (2) The City expects to have expended $50,000 of the $15,000,000 construction costs of the Parking Garage. (3) Amount required at the commencement of operation of the Convention Center -Garage and the Hotel. CO) S"Ti u •t prc\ 4t' C3o..at is c c.Q'.��,s!? a ...apt.\ �,,_l►�\ � �� Y Z . UDAG Grant 44 The United States Department of Housing and Urban Development ("HUD") has entered into a preliminary agreement to grant the UDAG Grant in the amount of $4,994,000 to the City for the payment of a portion of the cost of the Parking Garage. The City will receive a letter of credit secured by the proceeds of the UDAG Grant upon entering into a final agreement with HUD. The City expects that such an agreement will be executed prior to the delivery of the Bonds. The Bonds are not secured by the proceeds of the UDAG Grant and holders of the Bonds do not have any right or interest with respect to such funds. EDA Grant The City has received a grant from the United States Department of Commerce, Economic Development Administration ("EDA") in the amount of $4,373,000 under the Public Works Program administered by the EDA. The proceeds of this grant have been expended on the cost of construction of the Convention Center. THE COMPLEX General Description The Complex will consist of the Convention Center and the Parking Garage with a connecting walkway, and t e wi Hotel and the Trade Center o!f'iee r. The Convention Center -Garage will be located on two sites connected by a walkway in the downtown area on the north bank of the Miami River. The major portion of the property was purchased by the City in 1975 with its own funds at a cost of $4,000,000. The remaining portion was purchased by the City at a cost of $2,611,170, of which $750,000 is to be reimbursed to the City from the proceeds of the UDAG Grant and deposited in the City's Enterprise Fund for the Convention Center -Garage. The Convention Center and the Hotel will be located on an approximately 4.5 acre site in the Miami central business district. Although there will be separate outside entrances to the Convention Center and the Hotel, these facilities will be interconnected and not readily distinguishable as separate entities, having been designed as a totally integrated mixed use development. To the north, the Parking Garage with the Trade Center will be located on a site of approximately 1.5 acres connected by a walkway to the site of the Convention Center. The total 6 acre site is bounded to the east by S.E. 2nd Avenue, to the west by S.E. 1st Avenue, to the north by S.E. 2nd Street and to the south by the Miami River. The DuPont Plaza Hotel is to the east, the Bauder Fashion College is to the west and the Howard Johnson's Plats Motor Lodge is to the north, of the site. Across the Miami River to the south a 600 room s cr 41 Holiday Inn is under construction. the north of the site. Fla v ler Street a major retail street of downtown Miam; +` g j , : 4we blocks to The most direct access to the site is provided by the S.E. 2nd Avenue exit off I-93, the major north -south route in southeast Florida. East -west access is provided by State Road 836, the most direct route to Miami International Airport, as it intersects North I-95 approximately one mile north of the site. Travel time from the site to the airport is approximately twenty minutes. Secondary access is provided by Biscayne Boulevard, Brickell Avenue (U. S. Route 1) and S.E. First Avenue. City of Miami Convention Center The Convention Center is to be housed within a 4-story structure of approximately 410,000 square feet which will be owned by the City�of which approximately 97,000 square feet will be leased to the Hotel Developer and approximately 30,750 square feet will be leased to the University. Within these four stories will be located a 5,000 seat auditorium, of which 4,000 will be fixed seats in a tiered configuration and approximately 10,000 square feet of flat floor area in which various size stage facilities and/or 1,000 additional seats can be set. Seating in the flat floor area will be elevated in a tiered configuration to fit with that of the fixed seating. The auditorium will be divisible into three sections with seating for 1,250, 1,750 and 2,000 persons, respectively. It will be equipped with facilities having audio-visual and mixed media presentation, as well as simultaneous translation capability. The Convention Center will also include two major meeting rooms. One will be 2,250 square feet with a seating capacity of 225 and the other will be 966 square feet with a seating capacity of 96. The first meeting room will be divisible into three sections, two of which will accommodate 85 persons each and one of which will accommodate 55 persons. The second meeting room will be divisible into two sections with seating capacities of 48 each. There will also be four other smaller meeting rooms of 483 square feet with seating capacities of 48 each. The utility and delivery spaces for the Hotel and the Convention Center (including the conference center) will be housed in the first floor of the Convention Center structure. The Convention Center will also include office space for the management personnel. It is intended that the Convention Center will be primarily programmed for conventions with advantage being taken of the facility's unique ability to augment the latest arts and techniques available in the communi- cations media. This ability will be enhanced by the technological capabilities being provided on a full time basis by the staff of the University of Miami's School of Continuing Education. In addition, the facility is intended to provide ticketed cultural and entertainment events to satisfy both the community and tourist market demand. Conference Center The University of Miami will lease approximately 30,750 square feet of net working space within the third and fourth floors of the Convention Center's four-story structure. The facilities contained within this space will be operated and maintained by the University as a conference center (the "Conference Center"). The Conference Center will be used for seminars, conferences and continuing education programs sponsored by the University. The Conference Center will consist of a 500 scat auditorium, a 150 seat lecture hall, a large class- room with a seating capacity of 204 that will be divisible into two sections, three smaller classrooms with seating capacities of 70 each, a 1,363 square foot library, a 4,255 square foot pre -function facility and office/ audiovisual/support spaces of 7,123 square feet. The Conference Center will be equipped with sophisticated audiovisual equipment, including closed circuit television and facilities permitting simultaneous translation. Parking Garage The Parking Garage, consisting of approximately 1,450 spaces, will be connected to the Convention Center by a pedestrian walkway and will house a pedestrian mall and retail commercial space on the ground floor totaling 37,600 square feet and 20,000 square feet, respectively. Approximately 17,500 square feet in the Parking Garage will be used to accommodate a station for the proposed "Downtown People Mover" transit loop 6 f��,,.,•fWp e�} �-s � ' tt�Ms O � Jt' �� Co.�i�t.a.eY� q gym% A �.ax�a �-Y TV4,0- �,��c O q,%% .,�i�c,.n`', ao r G►�,oe.t! �. t 'fig '1'A\►L�: o, .eC►e , A\\fit: vc h e—C���.ow � e�� < �e�.ann no �w Q< roc _1�ro 40 cie\ tQo t o� ��—i�s o-c•��ti . U around downtown Miami. The Parking Garage will be owned and operated by the City. The garage structure will be designed and constructed to suppo Hotel � f Over the eastern portion of the Convention Center the Hotel Developer will construct, own and cause to be R, operated a 627 room (608 unit) hotel. The Hotel is expected to be operated as The Hyatt Regency Miami by a the Hyatt Corporation under a management contract with the Hotel Developer. The Hotel will occupy approxi- o matcly 97,000 square feet within the four-story Convention Center structure providing the following facilities: $� a ballroom of approximately 11,700 square feet with a seating capacity of nearly 1,200 that will be divisible into two sections of 3,476 square feet and two sections of 2,370 square feet, and with seating capacities of 348 and 237 respectively; kitchen space and hotel offices; a prefunction room of 3,700 square feet with a seating capacity of 370, divisible into two sections of 1,100 square feet with seating capacities of 110 each and two sections of 750 square feet with seating capacities of 75 each; three food and beverage outlets of 3,582, 6,217 and 1,000 square feet; a swimming pool; and approximately 26,000 square feet of retail space. Additional meeting room requirements of the Hotel will be met by City owned meeting rooms in the Convention Center on a rental basis. The 19-story tower will contain the 627 rooms (608 units), consisting of typical rooms of approximately 400 square feet in area and two, three, four and five bay suites, to provide a desirable and marketable room mix. . The Hotel Developer has entered into an agreement with the Worsham Development Group, a joint venture between Turner Development Corporation and Worsham Brothers Company, Inc., for the develop. ment of the Hotel. The Hotel will be financed privately with a construction loan from Continental Illinois National Bank and Trust Company of Chicago. The conditions and requirements of the construction loan include, among other things, that the completion of construction of the Convention Center -Garage and the Hotel occur on or before February 1, 1982. The Hotel Developer has received a long term mortgage loan commitment from Massachusetts Mutual Life Insurance Company. The mortgage loan commitment from Massachusetts Mutual Life Insurance Company is subject to certain conditions, including among other things, the completion of construction of the Convention Center -Garage and the Hotel by April 13, 1982. Thp failure to comply with these requirements may result in. delay of the completion of the Convention Center -Garage and the Hotel and additional costs related Trade Center �� T C %9,#XVw^,- The Trade Cent a tow ed above a portion of the Parkin Gara a is a cted to consisJ 600, gross square feet of space. The Tra a en er willfinanced an owned by the w will retain for its purposes approximately one-third of the available office space and lease the remainder of snare. The structural support and other facilities for the Trade Center will be built 'n 440vi"j So age. ny changes or additions to the ar ng arage required byte will be paid by the Tce".�t� �LvQ.�aPii� er �s e e ice, 'egUi� b%*J6 TC. A%reta,4V#. Approvals Construction and operation of the Convention Center -Garage requires a variety of governmental permits and approvals. Under Florida law, a project approaching this scale might be considered a development of regional impact and in such event the City would have to file an impact statement ("DRI") with the South Florida Regional Planning Council for review and recommendation for issuance of a development order. The City received a "binding letter of no impact" from the State Department of Administration in August, 1975 in connection with the Convention Center -Garage and the Hotel. The`RI for the Trade Center P 6p"" - h" been C_*"Itfied - In connection with the Parking Garage the City will need to acquire approval in a timely fashion from a she Florida D -rtment of Environmental Regulation. Additionally the City will need to acquire building >� 7 permits to be issued by the City. Delays in the DRI process for the Trade Center or litigation over required permits or approvals could have an adverse impact upon the construction schedule of the Convention Center- Garage, the Hotel and the Trade Center. Construction Convention Center: The City Initiated construction of the Convention Center on January 2, 1978. Contracts have been entered into for salvage excavation, sitework, foundations and part of the superstructure required for the commencement of the construction of the Hotel. The City has entered into a construction contract with Frank J. Rooney, Inc. for the completion of the Convention Center at a Axed price of $28,201,359. As of June 30, 1980 the City expects to have expended $15,320,258 of which $2,499,481 will have been paid pursuant to the contract for completion with Frank J. Rooney, Inc. The City estimates that construction of the Convention Center will be completed on or before February 1, 1982. Frank J. Rooney, Inc., headquartered in Ft. Lauderdale, Florida, is a subsidiary of Centex Corporation. Headquartered in Dallas, Texas, Centex is a general conglomerate engaged in real estate, home building and general construction. Frank J. Rooney, Inc. is one of the largest general construction contractors In the State of Florida, with a business volume in excess of $100 million during its fiscal year ended March 31, 1979. Parking Garage: The City has entered into a turnkey contract with Miami Center Associates, Inc. for the design and construction of the Parking Garage for a price of $15,000,000 subject to contingencies as set forth in the contract. The turnkey contractor will provide a payment and performance bond in the amount of $15,000,000. Construction on the foundation is expected to commence by October 1980 and irnated to be completed on or before February 1, 1982. ►uty 41r, �ontt Miami Center Associates, Inc., the turnkey developer for the Parking Garage, is a FI 'da co;wra owned by Worsham Brothers Company, Inc. and Turner Development Corporatio a wholly -owned subsidiary of Turner Construction Co. Miami Center Associates, Inc. is also a general partner of the Hotel Developer. Hotel: The Hotel will be constructed by Frank J. Rooney, Inc. who will act as general contractor for the Hotel Developer. Construction of the Hotel is expected to be completed on or before February 1, 1982. Trade Center: The structural support and other facilities for the Trade Center will be built in es"j"Me win he-Parlrivil Ge ega. No contracts have been entered into for the construction of the Trade Center. ( sed`�tre. w%* *-'L +"" ti of ale, -f C. ^ tt A twat '. Architects Convention Center and Hotel: Ferendino/Grafton/Spillis/Candella, Architects, Engineers, Planners, Inc. ("F/Q/S/C") was established in '1926. F/G/S/C headquarters are located in Coral Gables, Florida. F/G/S/C provides services in planning, architecture, engineering, interior design, landscape architecture and construc- tion administration. F/G/S/C has won several design awards in the U. S. and abroad. From its Florida headquarters, F/G /S/C has provided its professional services in Latin America, the Middle East, and Europe. Parking Garage and Trade Center: Development plans for the Parking Garage and the Trade Center. have not yet been finalized. - Management �lW, O^ `aa Convention Center -Garage: Although the City has not yet appointed a management star for the Con- vention Center, contractual agreements of the City with other parties requir the City to retain a professional management consultant of national reputation to manage the operatioq the Convention Center. The University may provide its own management staff for the Conference Center School of Continuing E ucation. ►e coo has been building a conference program without its own facilities by utilizing available on -campus facilities and major hotels in Dade County. The Parking Garage will be managed by the Department of Off -Street Parking of the City. Hotel. The Hotel is expected to be operated under a management bontract with Hyatt Corporation. Trade Center: The Trade Center management will be determined by the TC os e�•�w. 8 ... ... ... •. Sri r. The tom. duA% y I, WOOFst ect to mandatory. redemp- Lion or retirement, y t e from funds available in the Redemption Account in the Z. principal amounts, and•on� set forth in the schedule be��'. in part and by lot, at 100rr I a� of the principal amount thereof p accrue interest an without re emptton premium. cr, _( DESCRIPTION OF THE BONDS General Terms The Bonds will bear interest at the rates and will mature on the dates and in the amounts set forth on the cover page of this Official Statement. Interest on the Bonds win be payable semi-annually on January 1 - and July 1 of each year commencing January 1,1981. The Bonds will be issued as coupon bonds, in the denomination of $5,000 each, or as registered bonds without coupons in denominations of $5,000 or any integral multiple thereof. Coupon bonds and registered bonds are interchangeable at the corporate trust office of the Trustee upon the terms and conditions provided in the Trust Indenture. 1 Mandatory Redemptooa l�'-he "term bond are su lect to mandatory redemptionj in pan by lot on each January Ion rJanuary 1, 2001 at the principal amount thereof plus accrued interest to the date of redemption, from monies which are reppired to t1P 1'A^^c;tPd in the Redemption Account in amounts sufficient to redeem on January 1 / Fiscal Fiscal Year Year (Ending Principal (Ending Principal September 30) Amount September 30) Amount 2002 $1,870,000 2009 $3,365,000 2003 2,035,000 2010 3,660,000 2004 2,215,000 2011 3,980,000 2005 2,410,000 2012 4,050,000 2006 2,620,000 2013 4,410,000 , 2007 2,850,000 2014 4,720,000 2008 3,095,000 2015* 4,750,000 - �'• Maturity. a r OIN Optional Redemption f The Bonds will be subject to redemption prior to aturity f 8t18ble�or the G-ity either in who15, &Fe" ""e, on and after Januan 1, 1990, or in part in inverse order of maturity on any interest payment date , at the redemption prices (expressed as a percentage of the principal amount to be redeemed) set forth below, plus interest accrued to the "redemptionL, aa,4,�, Redemption leried A�� ( Dates beludwe) January 1, 1990 through December 31, January 1, 1991 through December 31, January 1, 1992 through December 31, January 1, 1993 through December 31, January 1, 1994 through December 31, January 1, 1995 through December 31, January 1, 1996 and thereafter ...... Redempdoo *rice 1990 ................ 103 % 1991 ................ 102% 1"2 ................ 102 1"3 ................ 10114 1994 ................ 101 1995 ................ 1004 ...................... 100 Municipal Bond Guaranty Insurance Policy Delivery of the Bonds is subject to the issuance of a Municipal Bond Guaranty Insurance Policy ("Policy'l from the Municipal Bond Insurance Association ("MBIA") under which MBIA guarantees unconditionally 9 .jai».:. ,._ -� ;.i,, � ;x�• :y �rwu and irrevocably the payment of an amount equal to the principal of and interest on the Bonds becoming due and payable. MBIA has issued a commitment to the City for such insurance. The Policy (a form of which is attached hereto as Appendix D) is noncancellable for any reason and is fully paid for at its inception. Upon notification of the City's failure to deposit full payment for the principal of and interest on the Bonds, then maturing and becoming due, with the paying agent on the date required, MB1A's members are obligated to deposit funds promptly with Citibank, N.A., New York, New York, as Fiscal Agent for MBIA, sufficient to cover fully the deficit in the paying agent's account. If, under the terms of the Trust Indenture, any acceleration of the due date for the payment of the principal of all the Bonds occurs, MBIA is not required by the terms of the Policy to pay the Bonds in accordance with such accelerated maturity schedule. MBIA is required only to pay in accordance with the original maturity schedule. MBIA will be responsible for such payments, less any amounts received by the holders of the Bonds from the City and from any other sources other than MBIA. These funds will be applied to the payment of the Bonds and the interest coupons then maturing and becoming due upon surrender thereof together with an appropriate instrument of assignment. Normally, notice of an impending default will be received in advance of the payment date of the Bonds allowing MBIA time to make the funds available for payment on the due date of the coupons or Bonds. If notice of nonpayment is received on or after such date, MBIA will provide for payment on the business day following receipt of the notice. Upon payment by MBIA of any Bonds or coupons, MBIA becomes the owner thereof. MBIA is a joint venture of the following insurance companies whose respective percentage liability is as follows: The Aetna Casualty and Surety Company, forty percent (40% ); Fireman's Fund Insurance Company, thirty percent (30%); Aetna Insurance Company, fifteen percent (15%); and United States Fire Insurance Company, fifteen percent (15%). The Policy is a several and not a joint obligation of the participating insurance companies. Security for Bonds The Bonds are special obligations of the City payable from the Sinking Fund provided therefor to be funded from Net Revenues of the Convention Center -Garage (see Summary of the Trust Indenture) and certain other money, as set forth in the Trust Indenture. The Bonds are not a debt of the City payable, and the City is not obligated to pay the Bonds, from any ad valorem real or tangible personal property tax revenues and the full faith and credit of the City are not pledged to the payment of the principal of, the redemption premium, if any, or the interest on, the Bonds. In the Trust Indenture, the City has pledged to the payment of the Bonds the Net Revenues of the Convention Center -Garage, consisting of all gross revenues derived in such period by or on behalf of the City from its ownership, lease, use, operation or possession of, or in connection with, the Convention Center -Garage, or any part thereof, including rent received pursuant to the Hotel Agreement, the TC Agreement and the University Agreement and other revenues derived from leases, subleases and contracts, less the amount of current operating expenses in such period in connection with the Convention Center -Garage "Current Expenses"). cts �"A*S r The Bonds are also secured by a 20 lien on and pledge of Pledged Telephone and Telegraph ExciseT,,tiff Tax Revenues (see Summary of the Trust Indenture). 5lh"� The City has covenanted that if Gross Revenues of the Convention Center -Garage (see Summary of the Trust Indenture) are not sufficient to pay when due Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts created under the Trust Indenture at their required levels, the City shall cause to be deposited in the Revenue Fund or Supplemental Reserve Fund, as required by the Trust Indenture, Pledged Telephone and Telegraph Excise Tax Revenues or such other %h available revenues of the City, exclusive of ad valorem real or tangible personal property tax revenues, an amount sufficient to pay Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts at their required levels. A Reserve Account will be established by the Trust Indenture and will be required to be maintained in an amount equal to the maximum Principal and Interest Requirements for the current or any succeeding fiscal year as a reserve for payment of principal of and interest on the Bonds in the event money held in the E Q 't�v..rrrt� xQ.es.etf ar.a Orb r %w*,, �a.�e..,�s '*u v-.. ^ k 0►-4. ltk Bond Service Account or the Redemption Account shall be insufficient for such purpose. The Reserve Account will be initially funded from the proceeds of the Bonds. The Trust indenture requires that the money in the Reserve Account not be used until money in the Surplus Fund, the Supplemental Reserve Fund and the Renewal and Replacement Fund has been expended. A Supplemental Reserve Fund will be established by the Trust Indenture and will be required to be main- iaiued as a reserve for the payment of Current Expenses and principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts created under the Trust Indenture at their required levels. Upon the delivery of the Bonds the City will deposit in the Supplemental Reserve Fund S 4 At the time of commencement of operation of the Convention Center -Garage and the Hotel, the City will deposit in the Supplemental Reserve Fund (i) $2,500,000 received by the City from the University together with investment earnings thereon, or, alternatively, $2,500,000 of levolvity available monies of the City, and (ii) $2,900,000 received by the City from the Hotel Developer. Money held for the credit of the Supple- mental Reserve Fund shall be applied for the following purposes: (a) to pay Current Expenses if at any time money held for the credit of the Revenue Fund shall not be sufficient to pay Current Expenses then due and payable, and (b) under certain conditions, to make deposits to the Bond Service Account, the Redemption Account, the Reserve Account and the Renewal and Replacement Fund in an amount sufficient to make up any deficiencies therein. The Supplemental Reserve Fund shall be maintained in an amount at least equal to 25rc of the maximum Principal and Interest Requirements for the current or any succeeding fiscal year. In the event there is a deficiency in the amount of Gross Revenues of the Convention Center -Garage e availab , the City shall make deposits into the Revenue Fund or the Supplemental Reserve Fund as required by the Trust Indenture from (a) Pledged Telephone and Telegraph 1 'Excise Tax Revenues, and (b) other lawfully available revenues of the City to the extent necessary. Certain 10 of the alternative sources of available revenues of the City are pledged to other outstanding bonds of the City 3 and may be pledged by the City for other lawful purposes. Hotel Agreement: The Hotel Agreement provides for an initial lease term of forty-five (45) years from the commercial operation of the Hotel and an option for a renewal term of forty-five (45) years. The Hotel Developer has agreed under the Hotel Agreement, among other things, to pay to the City upon commence- ment of the commercial operation of the Convention Center and the Hotel, rent consisting of Base RentSqual to $2,900,000 and Additional Rent rate calculated as shown below. The Hotel Developer's contribution under the Hotel Agreement to the cost of the Convention Center in the amount of $1,200,000 shall be made in five equal annual installments commencing fifteen months after the Hotel first opens for business. "Gross Sales" shall mean, on an annual basis, the sum of (1) gross room rentals, charges or other revenue therefrom; and (2) gross food and beverage sales or services in the Hotel and the Convention Center. Excluded from Gross Sales shall be commissions paid on room rentals at a rate normally paid in the operation of a first-class hotel. '.40 Additional Rent equal to a percentage of annual Gross Sales will be calculated as follows: Dollar Volume of Grose Sales 0420,000,000 ............ . 20,000,001— 22,000,000 22,000,001— 24,000,000 ........ ....... 24,000,001— 26,000,000 ................ 26,000,001— 28,000,000 ............... . 28,000,001— 30,000,000 ............... . 30,000,001— 32,000,000 ..... - .......... 32,000,001— 34,000,000 ................ 34,000,001— 36,000,000 ................ 36,000,001— 38,000,000 ................ 38,000,001— 40,000,000 ............... . 40,000,001— 41,666,667 ................ Additional Rent as a Fercenter of Grose Sales 0% 1.6 2.2 d, a 2.5 �- 2.7 0 3. 3.2 3.3 3.43.5 3.6 t? de ■ Upnsd1V4r of *A.PJ� (o�41 L Go►1 •krvl*t on tf + Tmdf, C MW- In 044 GrAM66 Wi* +M44MAS af-'#. TC. A%p"a t If Gross Sales exceed $41,666,667 the Developer shall pay Additional Rent to the City In the amount of $1,500,000 subject to upward adjustment for equivalent increases in the Consumer Price Index for the City of Miami, or such other comparable index which may be in effect from time to time if said Consumer Prim Index is unavailable, using the index for the first year in which Gross Sales exceed $41,666,667 as a base year. Payment of Additional Rent shall be deferred if there are no funds available to the Hotel Developer after the payment of (i) principal, interest and participation interest under the Hotel Developer's first mortgage, (ii) operating expenses and certain reserves and (iii) priority return to equity capital investors, provided the sum of (i) and (iii) shall not exceed $5,300 per hotel guest room per annum. That portion of the deferred Additional Rent shall accrue with interest equal to 'A % above the rate on the Bonds. The aggregate amount of such accruals of unpaid Additional Rent shall be due and payable by the Hotel Developer to the City at the end of each third year and at the end of the forty-fifth year after the Hotel first opens for business. If there are any funds available to the Hotel Developer after payment of (i), (ii) and (iii) and there exists unpaid accrued Additional Rent for any prior year or years, such funds available shall be applied to the payment of said unpaid accrued Additional Rent. TC Agreement: The V440wmwL has agreed under the TC Agreement, among other things, to make air space lease payments of $150,000 annually commencing one year after certification by the architect that the Parking Garage is sufficiently completed to commence construction of the Trade Center. Such lease payments shall be subject to an annual increase or decrease based on_70% of the change in the Consumer trice Index for the City (the "CPI"), but in no event shall the payment be less than $150, n a itton, t e has agreed to make air space lease payments based upon the achievement of specified levels of occupancy of the Trade Center. This payment shall increase to $150,000 in the fifth full calendar year of lease payments, and is thereafter subject to an annual increase or decrease based on 70% of the change in the CPI. uc t payments -aff unconditional and not subject to the construction of the Trade Center. Certain other lease payments are required to be paid after the fifth year of operation if a certain amount of rental space is not used for Trade Purposes as defined in the TC Agreement. The initial term of the TC Agreement will be for 35 years, with an option to ext:nd for an aggregate lease term of 90 years. University Agreement: The University and the City have agreed to enter into a lease for space in the Convention Center to be used by the University for the Conference Center which will be for an initial term of 30 years from the completion of -construction of the Convention Center -Garage and an option for two renewal terms of thirty (30) years each. The University has agreed under the University Agreement, among other tmngs, to deposit the sum of $2,500,000 in escrow during the period of construction of the Convention Center -Garage which, with the earnings thereon, will be paid by the University to the City as advance rent for the initial 30 year term, upon commencement of operation of the Convention Center -Garage and the Hotel and the execution and delivery of a lease agreement. In the event that a lease agreement is not executed and delivered by such time, the City has agreed under the Trust Indenture to deposit $2,500,000 into the Supplemental Reserve Fund within six months of the commencement of operation of the Convention Center -Garage and the Hotel. Rate Covenant The City has covenanted in the Trust Indenture that, prior to the date any portion of the Convention Center -Garage is ready for use and occupancy, the City will fix, charge and collect, or cause to be fixed, charged and collected, reasonable rents, rates, fees and charges for the use or occupancy of, and for the services furnished or to be `urnished in connection with, the Convention Center -Garage then completed, upon considera- tion of the schedule of rents, rates, fees and charges recommended by theconsultant retained for such purpose. The City also covenants in the Trust Indenture that commenc' with the fiscal year preceding the fiscal year in which substantially all of the Convention Center -Gars s ready for use and occupancy, and in eacb fiscal year thereafter, the City will put in effect, on Octobero6f each fiscal year, an ordinance which shall fix rents, rates, fees and charges, the sum of which will be at lea-:t sufficient to produce Gross Revenues of the Convention Center -Garage, in the ensuing fiscal year, in an amount not less than (a) the Current Expenses of the Convention Center -Garage; (b) 125% of the Principal and Interest Requirements for said fiscal year; (c) the amount necessary, if any, to provide for deposits to the credit of the Renewal and Replacement Fund; and (d) the amount necessary, if any, to make up any deficiencies in the Bond Service Account, the Reserve Account • Renewal and Replacement Fund and the Supplemental Reserve Fund, wbicb cannot be made up from any ether funds available therefor. 12 L-G If 4. The City also covenants and agrees that it will not reduce the rates, rents, fees and charges for any fiscal year below those in effect at the end of the preceding fiscal year unless either (i) the consultant retained for such purpose estimates that by reason of any such reduction, the Gross Revenues of the Convention Center - Garage for such year shall be at least five percent (5%) in excess of the Gross Revenues of the Convention Center -Garage for such preceding fiscal year or (ii) the Gross Revenues of the Convention Center -Garage in any fiscal year are lower than the Gross Revenues of the Convention Center -Garage in the preceding fiscal year and such consultant determines that such reduction was substantially caused by the City's inability under the requirements described in this paragraph to reduce the rates, rents, fees and charges. if the City shall comply with all recommendations of said consultant with respect to said rents, rates, fees and charges, it will not constitute an event of default under the Trust Indenture if the Gross Revenues of the Convention Center -Garage shall be less than the amount stated above. Rates, rents, fees and charges are to be fixed upon the basis of reasonable classifications, to prevent unlawful discrimination, and are to be of uniform application. No free use of the Convention Center-Garag5will be permitted. Additional Bonds In order to provide additional funds for completing the payment of the cost of the Convention Center - Garage, additional bonds may be issued under and secured by the Trust Indenture on parity as to payment with the Bonds. Such additional bonds are required to be of the same maturity date as the latest maturity date of the term bonds initially issued under the Trust Indenture and may be authorized in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars ($5,000,000). Collection and Disposition of Revenues Pursuant to the Trust Indenture, all Gross Revenues of the Convention Center -Garage received are deposited in the Revenue Fund and used to pay the Current Expenses of the Convention Center -Garage. On or before the 25th day of each calendar month, after the delivery of the Bonds, the Trustee is required to withdraw from the Revenue Fund all money held for the credit of said fund on the last day of the preceding month and deposit the sum so withdrawn to the following accounts or funds in the following order: First, to the Bond Service Account, an amount equal to the sum of (i) commencing in June 1982, an amount (or the entire sum so withdrawn if less than the required amount), equal to one -sixth (1/6 ) of the interest payable on all outstanding bonds on the next ensuing interest payment date, provided that there shall be allowed as a credit toward such deposits to the credit of the Bond Service Account any money deposited to the Bond Service Account pursuant to the Trust Indenture, and (ii) commencing 1, 19 an amount (or the entire sum so withdrawn if less than the required amount), equal to one -twelfth (1 / 12) of the next maturing installment of principal of all serial bonds; provided that ii in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Bond Service Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Bond Service Account pursuant to this provision shall be increased by the amount of such deficiency; %h "b. Second, to the Redemption Account, commencing JfiwA y4 preceding the first fiscal year in which any term bonds are required to be redeemed in satisfaction of the Amortization Requirements therefor, an amount (or the entire sum so withdrawn if less than the required amount) equal to one -twelfth (1/12) of the principal amount of the term bonds required to be retired on the next succeeding January 1 in satisfaction of the Amortization Requirements therefor; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Redemption Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Redemption Account pursuant to this provision shall be increased by the amount of such deficiency; Third, to the Reserve Account, such amount, if any, of any balance remaining after making the required deposits in the Bond Service Account and the Redemption Account (or the entire sum so with- drawn if less than the required amount), as may be required to make the amount then held for the credit of the Reserve Account equal to the maximum Principal and Interest Requirements on all bonds then outstanding for the current or any succeeding fiscal year; 13 - C.,L►�►x.�\.� �eo �.�,� a ^ CkXXQ^rA•r -lea. �nwaew►"^t'1- taa�uJ�s � rrrs•�••�t � Qe�...'�� b., \coif Fourth, to the Renewal and Replacement Fund, commencing in June 1982, one -twelfth (1 /12) of $100,000 and one -twelfth (1/12) of such additional amount, if any, which the consultant retained for such purpose in its latest written report prepared pursuant to the Trust Indenture shall have recommended be deposited for the credit of such fund in the then current fiscal year (or the entire sum so withdrawn if less than the required amount), so long as the balance in the Renewal and Replacement Fund shall be less than (i) the greater of One Hundred Thousand Dollars ($100,000) or one and one -quarter percent 0.25%) of the Gross Revenues of the Convention Center -Garage for the preceding twelve (12) month period, or (h) such larger amount which the consultant retained for such purpose in its latest written report, shall have recommended be held for the credit of such fund in the then current fiscal year; Fifth, to the Supplemental Reserve Fund, such amount, if any, as may be required to make the amount in the Supplemental Reserve Fund equal to Two Million Five Hundred Thousand Dollars ($2,500,000) (or the entire sum so withdrawn if less than the required amount), and Sixth, to the Surplus Fund, the balance, if any, of the amount so withdrawn. TELEPHONE AND TELEGRAPH UTILITIES TAX The City presently levies and collects utilities service taxes pursuant to Section 167.431, Florida Statutes, on the purchase of certain utilities services including but not limited to, water, gas, electric and telephone and telegraph services. The City has pledged under the Trust Indenture a portion of such utilities service taxes, the utilities service tax upon the purchase of telephone and telegraph services, to make up any deficiency in Gross Revenues of the Convention Center -Garage in the event such revenues are insufficient to pay when due Current Expenses and the principal of and interest on the Bonds and to maintain the respective balances in the funds and accounts established under the Trust Indenture at the required levels. 1 The telephone and telegraph excise tax revenues are subject to the prior lien of and pledge to the City's outstanding Utilities Ser�c�Tax Hands and anv bonds issued to refund such Utilities Service Tax Bonds;. The City has covenanted in the Trust Indenture that it will not vtoeF pledge these telephone and telegraph excise tax revenues to payer secure the payment of any bonds or obligations or indebtedness other than the outstanding Utilities Service Tax Bonds, bonds issued for the refunding thereof &A the Bonds and any addi- tional bonds issued pursuant to the Trust Indenture. The City may, however, use said revenues for any a u vtlm purpose if tin exceed the amount necessary to pay the Utilities Service Tax Bonds, bonds issued for the refunding there and the Bonds and any additional bonds issued pursuant to the Trust Indenture. The City has covena� n in the Trust Indenture that it will increase the utilities service tax upon the pur- chase of telephone and telegraph services, within the limits and restrictions fixed by applicable law, as may be necessary to satisfy the City's obligations under the Trust Indenture. Revenues derived from the utilities service tax upon the purchase of telephone and telegraph services for the fiscal years 1975-1979 is as follows: Telephone and Telegraph Utilities Tax Revenues Fiscal Yew Ended September 30 1979 $5,274,287 1978 .......................... 5,257,913 1977 4,632,457 1976 4,498,147 1975 3,985,362 The annual debt service on the outstanding Utilities Service Tax Bonds for the fiscal years ending September 30, 1980 to 1988 ranges from $152,550 to $192,412. There can be no assurance, so long as the Utilities Service Tax Bonds and bonds issued for the refunding thereof shall remain outstanding, that any of the telephone and telegraph excise tax revenues will be available for making up such deficiencies 14 PROPOSED BOND ISSUES I. The City intends to issue and sell in the future $35,000,000 Public Improvement Senior Revenue Bonds, Series 1979 A (Watson Island Project) (the "Series A Bonds") and $20,000,000 Public Improvement Revenue Bonds, Series 1979 B (Watson Island Project) (the "Series B Bonds") for the purpose of financing a theme and amusement park located on Watson Island in Biscayne Bay in the City. The Series A Bonds will be payable from and secured by a first lien upon and pledge of the net revenues derived from the park. The Series B Bonds will be payable from and secured by a junior lien upon and pledge of said net revenues derived from the park and a first lien on and pledge of the City's Guaranteed Entitlement Revenues, being the revenues received by the City as its portion of the State of Florida's revenue sharing trust funds pursuant to Chapter 218, Part 11, Florida Statutes. 11. On October 26, 1979 a statement was made to the Securities and Exchange Commission claiming that the Official Statement dated October 15, 1979 used in connection with the proposed sale of $6,750,000 General Obligation Bonds omitted or misstated a number of material facts. After the City cancelled the sale of said bonds, it submitted to the Securities and Exchange Commission (the "SEC") a revised form of Official Statement correcting such alleged misstatements and omissions of facts. The SEC staff has advised the City that it has concluded its investigation and has determined that it will not recommend the commencement of any enforcement proceedings against the City. Under the pertinent SEC rules, such advice may not be construed as indicating that the City has been exonerated or that no action ultimately may not result from the stairs investigation. Ill. The City presently expects to offer public improvement general obligation bonds in an amount not as yet determined after the expiration of not less than 90 days from the date hereof. IV. The City presently expects to submit for the approval of the electorate in October 1980 a proposal to issue its general obligation bonds in the principal amount of $75,000,000 for sanitary sewers and highway improvements. RECENT BOND ISSUES The City, acting through the Department of Off -Street Parking, on April 21, 1990 issued $8,725,000 of revenue bonds for ine purpose of constructing a parking garage, acquisition of parking meters and improvements to existing parking facilities. BONDS AUTHORIZED BUT NOT ISSUED Of the $81,475,000 bonds approved by the electorate on June 30, 1970 all of such bonds have been issued except $2,375,000 of Streets and Highway improvement Bonds and $4,000,000 of Pollution Control Bonds. The $35,000,000 bonds approved by them- =112 o - September 28, 1976 and the amounts of such bonds unissued are as follows: tnN Se m 1F'iandag Authorised ............... $25,000,000 $10,000,000 Previously Issued .......... 16,000,000 8,250,000 Balance Unissued .......... 9,000,000 1,750,000 At an election held on March 7, 1978, the electorate approved the issuance of $15,000,000 of Storm Sewer Improvement Bonds. $5,000,000 of said Storm Sewer Improvement Bonds were previously issued. The principal amounts issued and unissued of the $25,000,000 General Obligation Housing Bonds approved by the electorate on March 9, 1976 and validated on February 17, 1977, are as follows: Previously Issued ................... $ 1,500,000 Unissued .......................... 23,500,000 Total Authorized $25,000,000 Q.4PcL" %t�s G.� Se V,. -:E. r, Is 7u City The City of Miami, the largest city in the State of Florida, was tint settled in 1836 and was incorporated in 1896. It is located in Dade County on the lower east coast of Florida along the western shore of Biscayne Bay. It comprises 34.3 square miles of land and 19.5 square miles of water. The 1978 U. S. Bureau of the Census estimate of the City's population is approximately 348,700, representing 23% of the total population of Dade County. The Climate The temperature of Miami is essentially subtropical marine, characterized by long, warm summers, with abundant rainfall, followed by mild, dry winters. The average temperature in the summer is 81.4' and 69.1 ° in the winter, with a yearly average of 75.3 °. Government of Miami The City of Miami 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 pass ordinances, adopt regulations and appoint a chief administrative officer known as the City Manager. City elections are held in November every two years on a non -partisan basis. At each of these elections a Mayor is elected for a two year term. Candidates for Mayor must run as such and not for the Commission in general. At each election two members of the 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 Commission appoints the City Clerk, the City Attorney, the City Manager, the members of the Off -Street Parking Board and the members of the Planning and Zoning Board. The City Manager acts as the administrative head of the municipal government and is responsible for the proper administration of all affairs of the City. The Charter of the City of Miami places considerable responsibility upon the City Manager. He is authorized to appoint and remove all departmental directors, prepare the annual budget, investigate the affairs of the City or of any City department, reorganize the administrative structure and recommend to the City Commission any policies which will benefit the health, safety or welfare of the community. The Cite Commission MAURICE A. FERRE, Mayor, was first elected Mayor in November 1973 and reelected in November 1975, November 1977 and November 1979 for two-year terms respectively. Mayor Ferre is a graduate of Lawrence- ville School in New Jersey and holds a Bachelor of Science degree in Architectural Engineering from the University of Miami. He is a prominent businessman and corporate consultant with interests in both the United States and the Caribbean. JOE CARot.Lo, Commissioner, was elected in November 1979, for four-year term. Commissioner Carollo is 24 years old and is a graduate of Miami Dade Community College and Florida International University. He holds a Baccalaureate of Arts Degree in International Relations and a Baccalaureate of Science Degree in Criminal Justice. He is presently Vice -President of Export for International Trading and Shipping Corporation. THEODORE P. GIBSON, Commissioner, was appointed a Commissioner in April 1972 and was elected in November 1973 and reelected in November 1977 for four-year terms respectively. Father Gibson was graduated from St. Augustine's College in Raleigh, North Carolina and from Bishop Payne Divinity School, now a part of the Virginia Theological Seminary. Father Gibson has been the Rector of the Christ Episcopal Church, Miami, for 32 years. 16 Is ARMANDO E. LAcASA, Commissioner, was appointed a Commissioner in January 1979. Commissioner Lecasa is a graduate from Villanueva University School of Law, Havana, Cuba and of Florida State University School of Law. He is presently a member of the law Arm of High, Stack, Lazemby, Bender, Pallahach, and Lacasa. He belongs to the Florida Bar and Dade County Bar Associations. He is Vice -President of the Latin Festival of the Orange Bowl Committee. J. L. PLUMMER, JR., Commissioner, was appointed a Commissioner in October 1970, and was first efccted Commissioner in November 1971 and reelected in November 1975 and November 1979 for four -you terms, respectively. Commissioner Plummer is a graduate of Miami Senior High School and the Cincinnati College of Mortuary Science. He is Chairman of the Board of Abern-Plummer Funeral Home, Miami. City Management JOSEPH R. GRASSIE, City Manager, was appointed by the City Commission to the City's top administrative post on July 30, 1976. He served as City Manager of Grand Rapids, Michigan from 1970 to 1976 and as Deputy City Manager of Grand Rapids from 1968 to 1970. City Manager Grassie is a graduate of the University of Chicago with both a Bachelor of Arts degree and a Master's degree in Political Science/Eco- nomics. He is an active member of the International City Management Association. VINCENT E. GRIMM, JR., Assistant City Manager, a City employee since September of 1950, was graduated from the University of Miami with a degree in Civil Engineering in 1950. He Is a registered engineer in the State of Florida. Prior to coming to the City Manager's Office approximately three and a halt years ago, be was Director of the City of Miami's Department of Public Works. JAMES E. GUNDERSON, Director of Finance, joined the City in November, 1976. He has experience in both the private and governmental sectors of the economy. Prior employment includes the University of Washington, Boeing Airplane Company, Pierce County, Washington and the City of Grand Rapids, Michigan. He was a former School Board Director in the State of Washington and also served as a Commissioner on the Governor's Crime Commission for the State of Michigan. GEORGE F. KNOx, JR., City Attorney, heads the legal staff representing the City. He assumed the post of City Attorney in October, 1976, Mr. Knox was graduated from the Michigan State University and University of Miami, Florida School of Law. Prior to becoming City Attorney, Mr. Knox was Assistant Professor of Law at the University of Arkansas. He is a member of the Association of American Law Schools. Project Director JAMES J. CONNOLLY, Project Director, who joined the City in December, 1975 to direct the development of the Convention Center -Garage, was graduated from the Engineering School of Cooper Union in New York City. He has extensive experience in the development of public facilities, having been employed in the development of Lincoln Center for the Performing Arts in New York City and the Inter -American Center Authority (Interama) for the State of Florida' Department of Off -Street Parking All parking within the City of Miami is under control of the Department of Off -Street Parking. The Department is a special Department of the City vested with the authority to manage and control on -street and off-street parking facilities of the City. The City exercises control of the Department through the control of its budget and the control of the sate of the revenue bonds which are sold in the name of the City. There are presently 10,675 parking spaces operated by the Department. 1,675 spaces are in 3 garages; 4,800 are in 41 off-street parking lots. The remainder is comprised of on -street parking. The Department has 37 employees and operates, an annual budget slightly in excess of $2,000,000. The Department on April 21, 1980 issued $8,725,000 Parking Facility Revenue Bonds of the City for the purpose of constructing a parking garage, acquisition of parking meters and improvements to existing parking facilities. Principal Services Performed by the City Services performed by the City include fire and police protection; parks and recreation operation; garbage collection; sanitary sewer, storm sewer, and highway construction; tourism, trade and commerce promotion; planning; and building and zoning inspection. 17 4 The Police Department is the largest department of the City. In addition to law enforcement, it provides personnel training, information and computer systems, and criminal investigations. The City's Fire Department, in addition to its traditional fire fighting and prevention services, provides emergency medical and rescue services. The Department also provides training, enforcement of fire and budd- ing codes, and emergency communication services. Principal Facilities of the City The City maintains 87 parks having an area of 836 acres, and two golf courses. It operates and maintains the Orange Bowl Stadium; the Miami Baseball Stadium; the Marine Stadium; four City -owned marina facilities providing 685 berthing facilities; the newly renovated Dinner Key Exposition Building; and the Bayfront Park Auditorium. The Downtown Government Center is a 30-acre joint development among the City, County, State and Federal governments. Facilities at the Center include the City of Miami Police Headquarters, the City of Miami Administration building, a County Administration building presently being constructed, a County Court building, a Central Library, a Museum of Art, a Museum of Science, a City Parking Garage and four State buildings. Space is reserved for future construction of a Federal Building. Capital Improvement Plan The 1978-1984 Capital Improvement Program of the City includes 175 projects totaling $243,704,000 in value. There has been an increase in programmed spending for storm, sanitary sewer and street projects scheduled in the latter years of this program. Watson Island, 87 acres in size and located one mile from downtown Miami, is projected as a planned development which will include entertainment, cultural, marine, shopping and dining facilities. (See Paragraph I under "Propused Bond Issues".) Employee Relations The City has negotiated multiple -year agreements with all its labor organizations. Three separate labor agreements fraternal Order of Police, Lodge No. 20, the International Association of Firefighters, Local 587, and the American Federation of State, County & Municipal Employees, Local No. 1907 expire on October 1, 1981. The Sanitation Employees Association and the City have recently entered into a 3-year agreement ter- minating October 1,1982. All of these agreements provide for increases not to exceed 6% on the second and third years of the contract, and there are neither cost -of -living escalator clauses nor any economic reopener clauses. Further negotiations are precluded by a waiver clause (the waiver precludes reopening the contract), and all the employee organizations enumerated above specifically waived the right to request negotiations until the termination of these contracts. The City Manager's Office has a professional labor relations staff dedicated solely to labor negotiations and contract administration during the term of these agreements. Population and Demogrep6ks While the Miami Economic Region, comprised of Dade, Broward and Palm Beach Counties, experienced a rapid increase in population in the 1970's attributable primarily to immigration, the City experienced a much slower growth rate due primarily to substantial prior development and increasing suburbanization. The average annual population increase, from 1970 to 1978, in the City was 1,200, in Dade County 28,300 and in the M: imi Economic Region 90,200. 18 Is Popubdon Trends Avenge Annual Popubdon Growth Miami, Dade County, and the Miami Economic ROOM lfi0.107ti 1t+d�.1�e 1��•1rn T W Omo Total Told d Daft Reonealk Dade de0000le Area Numtnr County Re" Nueher County tteaia Cit_y.- f Miami .................... 4,317 13.0 192 4.2 1.3 Balance of Dade County ............ 28,957 87.0 39.2 27,119 95.8 30.0 Total Dade County ................ 33,275 100.0 45.0 28,311 100.0 31.4 Broward County ................... 28,615 38.7 38,686 42.9 Palm Beach County ................ 12,054 16.3 23,225 Z� 25.7 Total Miami Economic Region ...... 73,944 100.0 90,222 100.0 Source: U. S. Bureau of the Census (1960-1970); University of Florida, Bureau of Economic and Business Research (1970-1978). The U. S. Bureau of the Census figures for 1970 show that the working group, ages 20 through 64, com- prises 57.6% of the City of Miami's population, compared to 52.3% for the entire United States. The percent of population 65 and over exceeds the national average by 4.5%. Age Group as a Percent of ToW Populadon Ap Unked 1"0 Cky of Group stater perclotap Miami percestop 0-4 17,154,337 8.4 20,920 6.3 5-9 19,956,247 9.8 24,770 7.4 10-14 20,789,468 10.2 24,227 7.2 15-19 19,070,348 9.4 23,872 7.1 20-24 16,371,021 8.1 23,523 7.0 25-34 24,907,429 12.3 40,222 12.0 35-44 23,097,805 11.4 43,760 13.1 45-54 23,219,957 11.4 43,759 13.1 55-59 9,973,029 4.9 21,418 6.4 60-64 8,616,784 4.2 19,906 5.9 65-74 12,435,456 6.1 30,463 9.1 75 and over 7,630,046 3.8 19,020 5.4 Total 203,211,926 100.00 334,859 100.0 Transportadoo Port of Miami: Eight terminals accommodate the seven cruise lines which dock their 16 permanent and five seasonal ships in the Port of Miami. The Port's contribution to the community is not soley economic in nature. The Port also strengthens Miami's role as the Gateway of the Americas. This is evident by multinational companies locating overseas offices in the area, supported by the foreign banking departments of local banks and 14 Edge Act banks, thus establishing Miami as a major international center. Miami International Airport: Miami International Airport experienced a 20 percent increase in passenger traffic during 1978, averaging more than 45,000 passengers per day through the terminal and its seven concourses. 19 0% 4 The Airport's facilities include three runways, a 5,000 car parkin` complex, approximately two million square feet of warehouse and office space, and maintenance shops. Approximately 30,000 individuals are employed at the airport. Local Mass Trawk Metropolitan Dade County Rapid Transit System: One of the most important developments affecting Dade County in general, and downtown Miami in particular, is the recent start of construction of a rail rapid transit system. Construction has begun on the development of a 21-mile, elevated rail system to extend from Kendall Drive, in southwest Miami, to Hialeah, north of Miami International Airport. The system will pass through the western portion of Miami's Central Business District (CBD) and have 21 stations. Construction was begun in May 1979 and is expected to extend through 1984. Downtown People -Mover System: Efforts are also underway to secure funding for the development of a separate rail transit system in Miami's Central Business District. This project, the Downtown People -Mover System, is planned to consist of a two-way, elevated rail line extending around the CBD core with spur lines extending north and south to the outer portions of the downtown area. The project would be developed and operated under the auspices of Metropolitan Dade County's Transportation Authority and is projected to cost approximately $186 million. Dade County and the City of Miami have committed $24 million to the project and an application has been filed with the Urban Mass Transit Administration (UMTA) for the balance of funds required to develop the system. Building Activity The dollar value of building permits issued in the City since 1971, are as follows: CUy of Mlaasl Tar (OWS) 1971 ...... $156,239 1972 241,967 1973 190,026 1974 .............................. 113,619 1975 .............................. 60,750 1976 .............................. 80,744 1977 .............................. 97,151 1978 .............................. 105,064 1979 .............................. 201,667 Convention Activity The City, as reflected in the table below, is one of the major convention centers in the United States. City of Miami Convention Activity Coaveadm Tear Held Delegate f VAN 1971 .............. 361 101,241 $14,173,740 1972 .............. 220 83,075 11,630,500 1973 .............. 212 84,740 11,863.600 1974 .............. 192 83,927 16,S85,400 1973 .............. 255 81,720 16,344,000 1976 .............. 191 93,600 18,720,000 1977 .............. 202 86,120 17,224,000 1978 .............. 214 105,820 23,280,400 1979 .............. 212 93,640 24,346,400 NOTE: The dollar value figures are based on guidelines provided by the International Association of Convention and Visitors Bureaus. 1971 to 1973 figures provide for a $35 per day per delegate; 1974 to 1977 provide for $50 per day; 1978 provides for $55 per day; 1979 provides for $60 per day per delegate. SOURCE: City of Miami Convention Bureau. 20 A Is CITY FINANCIAL INFORMATION Frocedure for Tax Levy and Tax Codectim Real and personal property valuations are determined at just value each year as of January 1 by the Dade County Assessor of Property. 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 W appeals so filed. All taxes are due and payable on November I of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll notice of the taxes levied. Taxes may be paid upon receipt of such notice, with discounts at the rate of four, three, two and one percent if paid in the months of November, December, January and February, respectively. Taxes paid during the month of March are without discount. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by 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. Ten Largest Taxpayers is the City of Miami 1"9 Name of Taxpsysr Nalm of Atd ty Assewsd value Southern Bell Telephone do Telegraph Co... Telephone Utility $230,587,174 Equitable Life Assurance (Omni) ........ Hotel and Retail Sales 73,312,973 Florida Power & Light Co............... Electrical Utility 66,516,920 First Federal Savings & Loan Co.......... Bank 42,661,571 One Biscayne Association ............... Office Rentals 36,385,979 Miami Herald .... . ................. Newspaper 34,970,266 International Business Machine Co....... Retail Sales 30,795,094 St. Joe Paper Co ...................... Paper Manufacturer 25,157,156 Massachusetts Mutual Ins. Co. (Four Ambassadors) . . ........... Hotel 24,888,445 New York Life Insurance .............. Insurance 19,751,681 Total Assessed Valuation of top ten taxpayers which is 13.39% of total 1979 assessed valuation ...... .................. $585,027,259 21 City of Miami, Fled& Principal and Interest Requirements on all Outstanding General Obliptlon and Special ObOp don Bonds F" Veer Ewen 30 Prlad IM~ Total 1980 ......... S 8,299,000 $ 7,721,879 S 16,020,879 1981 ......... 11,411,000 7,075,542 18,486,542 1992 ......... 11,240,000 6,419,690 17,659,690 1983 ......... 10,089,000 5,785,011 15,874,011 1984 ......... 9,651,000 5,184,552 14,835,552 1985 ......... 9,647,000 4,613,191 14,260,191 1986 ......... 9,527,000 4,066,794 13,593,794 1987 .. ... 8,733,000 3,587,788 12,320,788 1988 .... ... 8,340,000 3,158,207 11,498,207 1989 ......... 7,241,000 2,759,615 10,000,615 1990 ...... .. 7,057,000 2,419,323 9,476,325 1991 ..... .. 6,385,000 2,097,587 8,492,587 1992 ......... 5,700,000 1,782,884 7,482,884 1993 ......... 5,320,000 1,486,685 6,806,685 1994 5,010,000 1,215,853 6,225,853 1995 5,065,000 986,318 6,051,318 1996 .. .... 4,545,000 775,506 5,320,506 1997 .. .... 4,305,000 576,330 4,881,330 1998 3,135,000 380,965 3,515,965 1999 2,010,000 255,835 2,265,835 2000 970,000 181,481 1,151,481 2001 .... 1,000,000 126,743 1,126,743 2002 ......... 795,000 70,356 865,356 2003 .... .... 555,000 30,100 585,100 2004 .. ...... 75,000 17,500 92,500 2005 ......... 95,000 14,100 I09,100 2006 ....... , . 95,000 10,300 105,300 2007 ......... 100,000 6,400 106,400 2008 ......... 110,000 2,200 112,200 $146,505,000 $62,809,737 $209,313,737 22 . . . . . . . . . . . . .. ...... . . . . . . . . life# 1 1 General Obllpatloa Bonds Oubteadlat oa September 3011979 Geaent ObUjstloa hm Fire Fighting Facilities ..................... Coconut Grove Incinerator .................. Refunding Sewage Disposal Bonds ........... Dinner Key Marina ..................... . Land Acquisition Bonds ................ . Bayfront Recreational Facilities Recreational Facilities Storm Sewer Improvements .. Recreational Facilities Storm Sewer Improvement . Sanitary Sewer ........ Convention Center ........... . Sanitary Sewer Fire Fighting Facilities ...... Police Headquarters Pollution Control Facilities ............... . Sanitary Sewers Highway Improvement Storm Sewer Improvement .. . ........... Highway Improvement Sanitary Sewer Fire Fighting Sanitary Sewer ......... Police Headquarters ........ Storm Sewer Improvements Street and Highway Improvements .... Public Park and Recreation Facilities Storm Sewer Improvements Police Headquarters Storm Sewer Improvements . ........... Sanitary Sewer Improvements ............... Police Headquarters I ..... I ...... . Street and Highway Improvements ............ Sanitary Sewer Bonds .. ......... Police Headquarters .............. Sanitary Sewer . . ....... Street and Highway Improvements . .. . .. . Fire Fighting ........... Police Headquarters .. .......... ..... Storm Sewer Improvement Fire Fighting Public Park and Recreation Facilities .. ...... . Housing . . ................. Street and Highway Improvements . .......... Sanitary Sewer Fire Fighting Prevention and Rescue Facilities . Storm Sewer Improvement .................. Dared 3- 3- 1- 6- 6- 8- 8- 8- 7- 7- 7- 5- S- 10- to- 10- 10- 2- 2- 9- 9- 6- 6- 6- 6- 6- 10- 9- 9- 3- 3- 3- 3- 10- 10- S- S- s- s- 5- 12- 12- 12- 12- 12- 12- 12- 23 1-58 1-58 1-62 1-65 1-65 1-67 1-67 1-67 1-68 1-68 1-69 1-69 1-69 1-70 1-70 1-70 1-70 1-71 1-71 1-71 1-71 1-72 1-72 1-72 1-72 1-72 1-72 1-73 1-73 1-75 1-75 1-75 1-75 1-75 1-75 1-77 1-77 1-77 1-77 1-77 1-77 1-77 1-77 1-79 1-78 1.78 1-78 Fled Mar 1989 1989 1990 1985 1985 1987 1987 1987 1988 1988 1988 1989 1980 1990 1990 1990 1990 1982 1991 1991 1991 1992 1992 1992 1992 1992 1997 1993 1993 1995 1986 1995 1986 1995 1995 1997 1989 1997 1997 1997 1998 2003 2008 1998 1998 1998 1998 Aaeoaar $ 850,000 1,100,000 14,565,000 2,370,000 700,000 2.250,000 1,000,000 11000,000 11500,000 11500,000 5,000,000 4,500,000 3,000,000 1,000,000 11500,000 3,000,000 7,000,000 3,000,000 11500,000 2,000,000 5,000,000 1,100,000 51000,000 1,500,000 3,000,000 2,000,000 28,350,000 2,000,000 4,000,000 3,000,000 51000,000 8,000,000 3,000,000 51000,000 2,000,000 13,000,000 5,000,000 5,000,000 3,000,000 2,000,000 1,000,000 11,540,000 1,500,000 5,000,000 6,000,000 2,250,000 51000,000 Aaswo 370.000 485,000 6,490,000 745,000 210,000 930,000 400,000 400,000 720,000 720,000 11050,000 2,350,000 300,000 560.000 860,000 1,720,000 2,440,000 900,000 943.000 1,230,000 2,235,000 760,000 2,450,000 1,020,000 2,040,000 1,070,000 21,260,000 1,475,000 2,950,000 2,520,000 3,500,000 6,710,000 2,100,000 3,935,000 1,680,000 12,260,000 4,500,000 4,735,000 2,855,000 1,895,000 11000,000 11,540,000 1,500.000 5,000,000 61000,000 2,250,000 51000,000 $138,065,000 A Revenue and Special! Obligation, Bonds Outstanding on September 30, IM tlpeoW and Revenue Hood Oblieatloa Incinerator Revenue ...................... Utilities Service Tax Series A ................ Orange Bowl Special Obligation .............. Orange Bowl Warehouse Revenue ............ Orange Bowl Warehouse Revenue ............ Off Street Parking Revenue Series A and B ....................... Series C ............................... ltad Y_= _ of 10M Iwo" OoatooME 7- 1-51 1981 3,330,000 346,000 2- 1-63 1988 3,125,000 11350,000 3- 1-67 1982 1,900,000 485,000 12- 1-69 1982 105,000 44,000 12-20-74 1989 225,000 185,000 4- 1-66 1994 4,800,000 2,925,000 4- 1-73 2002 3,150,000 3,105,000 Total $ 8,440,000 Utilities Service Tax Bonds Principal and Interest Maturities as of September 30, 1979 Fbcal Yew Eadift Utilitks Service Tax Bonds !ie L FrIsebw bterest Tod 1980 .......... ....... $ 150,000 $ 42,412 $ 192,412 1981 ......... ... .... 150,000 37,537 197,537 1982 .................. 150,000 32,625 182,625 1983 .................. 150,000 27,675 177,675 1984 .................. 150,000 22,725 172,725 1995 ............. .... 150,000 17,775 167,775 1986 .................. 130,000 12,750 162,750 1987 .. .............. 150,000 7,650 157,650 1988 .................. 150,000 2,550 152,550 $1,350,000 $203,699 S1,553,699 Statement of Direct and Overlapping Debt* Ape plka lets CIO slime Name Net Debt to Ciry•• et Debt City of Miami, September 30, 1979 ............ $138,065,000 100.00% $138,065,000 Dade County, September 30, 1979 .............. 336,605,000 18.68 63,352,995 $476,670,000 $201,417,995 • Debt as used in this table refers to general obligation debt. •• Percentage applicable to City for Dade County based on January 1, 1979 assessed valuation. Ratio of Net General Bonded Debt To Net Assesed Value sad Net Bonded Debt per Capita Fhcal Ratio of Vow Not t1 Eo Awemed Nomemead s Atoeed 3loedd go tioodd Debt September 30 Populations Value Elem Value Debt Asened Video Pa Cali 1979 345,000 $4,227,17:,027 $196,708.033 $4,030,466.994 $133,065.000 3.43% $400.19 1978 343.000 4,023,847,098 195,664,076 3,828.183.022 129,673,000 3.39 375.87 1977 .... 342.000 3,938.270,393 198,358,652 3,739,711.741 103,826,694 2.78 303.59 1976 .. . 340,000 3,796,881,240 199,947,752 3,396,933,488 94,523,990 2.63 278.01 1975 ..... 338,000 2,541,205,760 196,797,718 3,344.409,042 83,933,263 2.51 248.32 • Estimated on basis of added electric and water connections and new dwelling units constructed, except it those ears for which a Federal census was available. 24 Statement of Assessed Valuedon and 1*0 Debt Margin Flacal Year Ended September 30,1979 Assessed Valuations Total Assessed Valuation .................................. Homestead Exempt Valuation ............................... Net Assessed Valuation ................................... Legal Debt Margin Debt Limitation for Bonds (15% of $4,030,466,994)e Present Debt Application to Debt Limitation: General Bonded Debt ..................... $139,065,000 LEss: Sinking Fund ....................... $3,319,000 $4,227,175,027 196,708,033 $4,030,466,994 $604,570,049 134,746,000 Legal Debt Margin ...................... $469,824,049 *Section 58 of the City Charter limits voted bonds of the City to 15% of the assessed valuation of all real and personal property within the city limits as shown by the last preceding assessment roll of the City and provides that bonds for street, sewer, sidewalk and other public improvements which are paid from special assessments, shall not be sub'ect to such limitation of amount not be considered when computing the amount of general obligation bonds gat may be issued. Tax Data Fiscal Year Ended September 30,1979 Assessed Value Total Net Assessed Value ............................ $4,030,466,994 Tax Rates 1978-79 (Dollars per Thousand of Assessed Value) Ad Valorem Funds Tas Millsae Tas Lou General Operations* ................................ 10.000 $40,304,670 Debt Service ...................................... 4.487 18,084,705 Total Millage k Ad Valorem Tax Levy ............. 14.487 $58,389,375 ' Ten Mill Limit. (See 'Tax Limitation for Municipal Purposes Excludes Debt Service".) Record of Tax ColKdous TOW TOW De Fbeal Aded Collection Percent Conecdon Collections Ta:M Yewas of Current Of of Total As Percent Ontstanila0 Ass percent Ended Levy Year's Levy Delinquent Tax of Current Ddtoquesk of Current lka. 30 All Funds Uses Cdbeted Tenee Collections ;M Tenses Lot"" 1979 $58,389,375 $57,323,297 98.18% $430,947 $57,756,234 98.92% $1,559,3600 2.67% 1978 50,532,016 49,095,263 97.16 523,373 49,618,636 98.19 3,195,919 6.32 1977 43,854,070 42,969,232 97.99 650,775 43,620,007 99.47 2,282,539 5.20 1976 38,508,055 37,280,660 96.81 633,860 37,914,520 98.46 2,048,476 5.32 1975 34,923,276 33,833,693 96.88 1,583,714 35,417,407 101.41 1,454,941 4.17 Net of $614,028 (charge to current year expenses) and $1,655,672 (write down of prior years' receiv- able and reserve). e • Rates of delinquencies are based upon the cumulative amount of delinquent taxes for past years. 25 • • Estimate of Ad Valorem Taxes levied for the City of Miami on the average home ($24,000 assesed value for the 1979 tax year), exclusive of Dade County and other taxes. (WNb ilia" (TAlbb" Homestead iHomaNM F1em0011) E:em Average Total Tax ............................ $265.24 $335.04 Specific Purposes: Administration ....................... 20.60 26.02 Public Works ......................... 13.56 17.14 Sanitation ......... .................. 23.45 29.62 Parks and Recreation ................. 10.41 13.15 Police and Fire Protection ............... 82.10 103.71 Miscellaneous ..... ................... 9.29 11.74 Pensions ... ......................... 25.48 32.19 Street Lighting ............ .......... 5.11 6.43 Debt Retirement ...................... 75.24 95.04 Tax Limitation For Municipal Purposes Excludes Debt Service Article 7, Section 8 of the Florida Constitution provides that municipalities in the State may not levy ad valorem taxes in excess of ten mills upon the assessed value of real estate and tangible personal property having a situs within the taxing city, when the tax is being imposed to generate monies for municipal purposes. Taxes levied for the payment of bonds are not, however, limited by this ten mill maximum. For the fiscal years 1977-78 and 1978-79 the City's tax rate, exclusive of that attributable to bonded indebtedness, reached the ten mill maximum. Consequently, while the City is not limited in the taxes which it may impose to discharge its bonded indebtedness, it may not generate additional revenues to meet increased annual operating expenses or to finance new construction by increasing the tax rate. Tax Rate Per $1,000 of Assessed Valuadoa Fiscal Years Ended September 30, Fbcal Geoeral UEbHydrant Debt Year operaflos CItt Service Funft readom Ubrwks 8"Aft Told 1979 ............ 10.000 — — — — — 4.487 14.487 1978• ......... 10.000 — — — — — 3.200 13.200 1977 ............ 5.683 .541 — .239 3.129 — 2.311 11.903 1976 ............ 5.553 .374 — .171 2.521 — 2.311 10.830 1975 ............ 4.959 .242 — .304 3.064 — 2.311 10.880 The 1977-78 Millage Ordinance consolidated th-� Lighting City, Publicity and Pensions into the General — Fund. Tax Levks Fiscal Years Ended September 30, Fiscal Gerard Itifthilm Year 01W Pubes Pemlom Servke Told 1979 .. $40,304,670 — — — $18,084,705 $58,389,375 1978• .. 38,281,830 — — — 12,250,186 50,532,016 1977 ........ 21,252,782 $2,023,184 $ 993,791 $11,701.558 8,642,474 44,513,789 1976 .. ..... 19,973,772 1,345,253 615,076 9,067,869 8,312.513 39,314,493 1975 ........ 16,594,919 809,347 1,016,700 10,247,266 7,728,927 36,397,159 • The 1977-78 Millage Ordinance consolidated the Lighting City, Publicity and Pensions into the General Fund. 26 17, �1 • G*wml Descrlpdoe of FisancW lnedess The City Charter requires the City Manager to submit a budget estimate not later than one month before September 30 of each fiscal year for the ensuing 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 is required to adopt the budget not later than October l of such ensuing fiscal year. The City's budgetary funds (General, Special Revenue, and Debt Service Funds) follow the modified accrual basis of accounting, under which expenditures, other than interest on long -tetra debt, are recorded when the liability is incurred and revenues are recorded when r:ceived in cash unless susceptible to accrual, i e., measurable and available to finance the City's operations, or of a material amount and not received at the normal time of receipt. The accrual basis is utilized (with minor exceptions) by all other funds. The accounts, books, records and financial transactions of the City are audited annually by a firm of independent certified public accountants. The opinions of such independent certified public accountants are included in the Annual Reports of the Director of Finance. During fiscal 1979, the City experienced difficulty with its accounting records, primarily resulting from the relocation of computer facilities, as well as from changes both in its computer hardware and its computer software. The City has made and continues to make substantial modifications to its data processing system and believes that it has substantially solved these problems. ` ���� � v � J o \ -� 1.a �b��aoss �t�t�-C=�C.o. i�o+r.�.s�a�.d► -tD 4ANr 020 c�oG C4gZ-83 ec ch tCL p� V -sL \t-L J e— U Xs G-�oVe �w'' o� \e ��.► a c k ct�o �, a `c`o-ia.ao � v.�.�a.�t�lo�.�o Y't�o •n ac��� o �' �� , ,o�.QQ V- wv..�.e )Q_" � ° O� ot mac- a �1�...o era. cti_T�wc �.,.�ds �_.��v.aa►,,.�� t '.,o lnoo, a6 �a �Q•w.! 9 f I The tables bereinbelow set forth present certain financial information respecting the City and eWdence the financial capacity of the City respecting the payment of its obligations. Revenue: Ad Valorem Taxes (Net) — General Operating Fund .... . Special Tax Levies Fund ..... Debt Service Fund ......... . Other Income — Operating ................. Debt Service ............. Debt Service Fund Balance .... Expenditures: Revenues and Egws►MWu Genital Find Special Ta: Levy Funds and Bond and Interest Retirement Funds Fiscal Year Ended September 30 1980 11179 1978 Budget• Actual Actual** $ 42,179,807 $ 39,116,411 $ 36,996,791 16,703,774 17,547,315 11,819,882 62,649,592 57,900,999 59,689,883 — 1,376,457 864,698 991,956 — — $122,525,129 $115,941,182 $108,371,254 Actual $ 20,515,729 14,076,087 8,321,806 54,073,641 238,496 $ 97,225,759 General Operations ..... . $104,829,399 $ 97,985,196 $ 93,712,007 S 72,946,790 Special Tax Levy Fund ........ — — — 15,959,621 Debt Service — Principal and Interest ........ 17,695,730 17,121,745 14,970,252 13,516,195 Other ..................... — 146,559 95,320 437,473 $122,525,129 $115,253,500 $108,677,579 $102,860,079 Surplus of (Deficiency of) Revenue over Expenditures ............. $ — $ 687,682 $ (306,325)•••S (5,634,320)4•• • The 1980 Budget does not include the Operating Fund Balance as a resource because the City did not feel it appropriate to estimate this figure in view of the difficulty it experienced with its accounting records during fiscal 1979. The City did include the Operating Fund Balance as a resource in budgets for prior fiscal years. •• 1978 Budget consolidated the General Operating Budget and the Special Tax Levies Budget. • • • The deficiencies of revenue over expenses in 1978 and 1977 were mainly in the debt service funds. These deficiencies were offset by using accumulated fund balances from prior years. It should be noted that all debt service payments were met as scheduled in those years. 28 6 aty of Nbw Geeenl Find Unaudited Statement of Revenues, Expenditures, Encumbrances and Traesten Actual 1979 and Estimated 1M AchN 741100W Actual 1979.1m 19794"s 1978•1979 7 Ma. RavzNuls: Taxes: General Property Tax ................. $ 42,179,807 $ 39,116,411 $42,180,076 Penalties and Interest ................. - 271,124 - Business and Excise Taxes ............. 21,903,145 20,050,193 11,109,027 64,084,952 59,437,728 53,289,103 Licenses and Permits: Business Licenses and Permits .......... 3,015,600 3,762,963 3,171,939 Construction Permits ................. 1,243,723 1,030,161 285,272 4,259,323 4,793,124 3,457,211 Intergovernmental Revenue: Federal Grants ...................... 1,039,000 - - State Grants ........................ 13,455,371 12,650,084 7,944,321 Other .............................. 852,500 3,885,609 710,449 15,346,871 16,535,693 8,654,770 Intergovernmental Revenue: Engineering Services .................. 1,500,000 1,662,968 772,971 Charges for Services: 1,689,157 488,871 Public Safety ........................ 1,165,615 Recreation ................... ....... 89,800 128,757 38,053 Other ............................. 4,544,834 1,448,023 1,158,564 6,323,791 2,065,651 2,362,232 Miscellaneous Revenues: Interest ................. • .......... 1,086,900 944,711 839 Rents .............................. 846,428 552,906 323,056 Other ............................. 3,125,184 563,582 461,980 5,058,512 2,061,199 785,975 Total Revenues 96,573,449 86,556,363 69,322,162 Transfers from other funds ............ 8,255,950 10,461,047 5,505,797 Total Revenues and Transfers .. 104,829,399 97,017,410 74,927,959 EXPENDITURES AND ENCUMBRANCES: General Government: Mayor and Commission ............... 278,962 259,271 178,751 City Manager ........ .............. 983,913 782,742 489,861 City Clerk .......................... 406,264 240,857 298,769 Management and Budget .............. 1,147,653 722,679 587,501 Finance ............................ 1,426,929 1,471,667 847,951 Legal ............................. 823,002 707,748 426,929 Civil Service ........................ 148,714 195,156 66,590 Human Resources .................... 1,086,019 767,372 915,414 Community Development .............. 681,039 490.102 321,856 Conference Center ................. 1,182.067 127,851 48,014 Tourism and Trade ...w............... 700,424 1,161,290 442,492 Computers and Communications ........ 2,398,119 3,322,428 1,336,641 11,253,105 10,249,153 5,960,768 (Continued on following page) 29 d S 6 i aty at Wattle General Fod Unaudited Statement of Revenues, Expenditures, Encumbrances and Traasfen Actual 1979 and Estimated 1980—(Continued) Ad ed EAtlmat*A Ached 1979-IM 1979.1900 1970.1979 7 Mos. Public Improvements: Public Works ........................ $ 8,915,854 $ 8,294,197 S 4,605,532 Building ............................ 1,920,050 1,634,998 1,014,837 Planning and Zoning Boards ............ 766,164 707,765 436,459 11,602,068 10,636,960 6,056,928 Public Safety: Police 30,842,574 29,850,564 16,157,202 Fire 23,150,688 21,619,250 12,861,895 53,993,262 50,469,814 29,019,097 Solid Waste 15,421,454 14,311,787 9,216,781 Parks and Leisure Services ..... 6,852,598 6,629,116 3,960,063 Other: Employee Benefits . 2,304,511 1,631,679 991,920 Special Programs 1,144,313 1,328,619 — Miscellaneous .... .. .. .. ...... 865,458 826,431 2,627,538 4,314,284 3,786,729 3,619,458 Total Expenditures and Encumbrances 103,436,771 96,082,559 57,832,995 Transfer to other funds ................ 1,392,628 1,902,637 523,057 Total Expenditures, Encumbrances and Transfers ..................... 104,829,399 97,985,196 58,356,052 Deficiency of Revenues and Transfers over Ex- penouures, Encumbrances and Transfers .. — 967,786 — RED Er4uL ST1tVCTME The following is a description of the City's revenue structure. See Appendix B for a detailed statement of revenues for the fiscal years ended September 30, 1978 and September 30,1979. General and Special Tax Levy Funds Ad Valorem Taxes —Described elsewhere in this Official Statement. Business License do Permits —The City levies a license tax for business privilege licenses which is collected by the City's Treasury Management Division. License taxes vary according to the type of business. The exceptions to this are the contractors' licenses, which are collected only by the Dade County Tax Collector. There is a set contractor's fee for all contractors within the County. After collection, Dade County returns to each city its pro rate share of revenue collected. The pro rata share due each city depends on the number of contractors doing business within each cty's limits. Utilities Service Tal—The City imposes a 10%b tax on each purchase of electricity, metered gas, bottle gas, water and local telephone and telegraph services. The revenue is pledged for debt service on Udlities Service Tax Bonds. The excess over the debt service is transferred to the general fund.* ( See "Telephone and Telegraph Utilities Tax'.) 30 0 s Telephone and Telepapb UNdes Taz Revmn P*d Yar Wed $Weotwr 36 1980 (Budgeted) ................ S 6,202,722 1979 .......................... 3,274,287 1978 .......................... 5.237,913 1977.......................... 4,632,457 1976.......................... 4,498,147 1973 .......................... 3,985,362 Federal Revenue Sharing The revenues derived from the Federal government are appropriated by the Commission for various social service program$ throughout the City as well as the City's improvements to the fire rescue service, recreation programs and the continuation of the City's pay plan. The City's receipts of federal revenue sharing funds since fiscal year ended September 30, 1973 are as follows: Federal Revenue Sharing Receipts Fbcal Year Ended September H 1979 .......................... $ 8,248,815 1978 .......................... 8,351,251 1977 .......................... 8,893,709 1976. ........................ 8,775,313 1975 .. . ..................... 8,935,551 1974 .......................... 8,075,539 1973 .......................... 10,360,577 Total received to date ........................... $61,640,755 Stare 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. The City has received the following revenue sharing funds from the State: Final Year Ended September H 1979 ....................... $11,561,380 1978 ....................... 11,005,477 1977 ....................... 11,070,719 1976 ....................... 10,880,405 (See "Proposed Bond Issues".) Fines and Forfeitures —The City receives a pro rata share of fine and forfeiture revenue from Dade County. Since the year ending September 30, 1976 the City has received the following amounts from the County: Fecal Year Eaded September H 1979 ....................... $19304,381 1978 ....................... 1,299,509 1977 ....................... 1,125,302 1976 ....................... 1,162,597 Internal Service —There are five internal service funds that are self-supporting because their revenues are derived from charges for services to other City Departments. These funds and their uses are: City Garage Fund: For purchase and maintenance of all heavy equipment used by the City. Motor Pool Fund: For purchase and maintenance of the automobile fleet. 31 0 i Maintenance Property Fund. For regular building maintenance, and a limited amount of building alterations and additions. Print Shop Fund. For W of the City's printing needs. Stationery Stock Fund: For purchase and storing of office supply items consumed in quantity in the City's operations. Enterprise Funds —Monies for these funds are generated by self-supporting activities which render services on a user charge basis to the general public and contributions from the general fund. These activities include operation of the Convention Center -Garage, Orange Bowl Stadium, the Marine Stadium, the Miami Baseball Stadium, various marinas, Dinner Key Auditorium, golf ranges, and warehouse property in which floats for the annual Orange Bowl parade are built and stored. City Pension Funds The City has two separate pension funds, the Retirement System (Police and Firemen) which went into effect on February 1, 1940 (the "System" or "Retirement System") and the Retirement Plan (General Employees) which went into effect on July 1, 1956 (the "Plan" or "Retirement Plan"). The actuary for the Retirement Plan is E. H. Friend do Co., Washington, D.C. and for the Retirement System, the actuary is Alexander do Alexander, Atlanta, Georgia. With respect to the System and the Plan, the principal actuarial assumptions are: (1) As to funding method: System —Entry Age Normal Cost Method with Frozen Initial Liability modification. Plan —Entry Age Normal Cost Method, modified to result in level funding by City as a per- centage of payroll, taking into account lower City costs for employees hired after October 1, 1974. (2) As to interest rate: System and Plan-7%. (3) As to assets: System and Plan —Market Value taken into account to some degree (5-year average). (4) As to retirement aSe:- System and Plan have adopted, as of October 31, 1979, the use of probabilities by age, rather than a single retirement assumption. Prior to October 31, 1979, the System used age 53 and the Plan used age 62. Membership in the System or the Plan is compulsory for classified employees, optional for unclassified employees and not open to temporary employees. The City's contribution is determined annually by the City Commission. The Board of Trustees of the Retirement System and the Retirement Plan provide the City with a certificate of the recommendations of actuaries based upon the assumptions adopted by each Board. The Boards take the position that the City is required to contribute the amounts so certified. The two actuaries determine pension benefits to reflect cost of living adjustments for all retirees. Also, they calculate separate cost studies whenever new benefits are being considered. Through December 1976, the Retirement System and the Retirement Plan were reported on a calendar year basis. The City's required contribution was made on a fiscal year basis, commencing October 1st. Subsequent to January 1977, the Retirement System and the Retirement Plan began reporting on a fiscal year basis. The table below sets forth in summary form certain essential data respecting both the Retirement Plan and the Retirement System for the calendar years 1973 through 1976 inclusive, and for the fiscal years ending September 30, 1977, 1978 and 1979. The unfunded liability reflected was determined upon the basis of data as of January 1st of each year. For the year 1979-1980, the unfunded liability was determined with data as of January 1, 1979 for the System, and October 1, 1978 for the Plan. 32 City lsesioa F=6 Fiaaacial Data for Fevillon Flaw CeaMbr M vetoll d 1� i I" ds GoaMb�atl~ia jnisca � �Yub !�• Fheal Year Eadiag September 30,1979 ,.;*ami Emp'oyees' Retirement System ... $10,960,543 $ 89,741,198 $ 7,430,813 $2,358,418 $5,353,645 Miami Employees' Retirement Plan ..... $ 4,452,053 $ 72,010,327 $ 6,887,022 $2,579,139 $4,027,786 $15,412,596 $161,751,525 $14,337,835 $4,937,557 $9,381,431 September 30, 1978 Miami Employees' Retirement System*** $10,400,013 $ 81,000,000 $ 6,364,922 $2,346,232 $3,007,515 Miami Employees' Retirement Plan" ... $ 3,309,064 $ 56,000,000 $ 6,198,957 $2,462,769 $1,985,234 $13,709,077 $137,000,000 $12,563,879 $4.809,001 $4,892,749 September 30, 19770" Miami Employees' Retirement System ... $ 6,229,299 $ 81,177,566 S 4,182,323 $1,791,842 $3,033,058 Miami Employees' Retirement Plan ..... $ 2,465,716 $ 46,290,391 $ 4,377,429 $1,888,139 $2,344.190 Total ...................... $ 8,695,015 $127,467,957 $ 8,559,752 $3,679,981 $5,377,248 Calendar Year Enift December 31,1976 Miami Employees' Retirement System ... Miami Employees' Retirement Plan ..... $ 6,527,501 $ 3,097,787 $ 90,554,826 $ 54,652,564 $ 4,876,775 S 4,706,876 $2,339,785 $2,563,735 $2,974,713 $2,215,597 Total ...................... $ 9,625,288 $145,207,390 $ 9,583,651 $4,903,520 $5,190.310 December 31,1975 Miami Employees' Retirement System ... $ 5,184,668 $ 89,276,761 $ 4,468,664 $2,192,304 $2,555,907 Miami Employees' Retirement Plan ..... $ 2,936,983 $ 56,203,346 $ 3,862,404 $2,463,447 $2,018,482 Total ............. I ........ $ 8,121,651 $145,480,107 $ 8,331,068 $4,655,751 $4,574,389 December 31, 1974 Miami Employees' Retirement System ... Miami Employees' Retirement Plan ..... $ 4,271,823 $ 1,786,752 $ 99,000,000 -- $ 4,483.326 S 2,667,295 $2,187,051 $2,027,594 $4,571,531 Total ...................... 76,058,575 $ 99,000,000 $ 7,150,621 $4,214,645 $4,571,531 December 31,1973 Miami Employees' Retirement System ... Miami Employees' Retirement Plan ..... $ 2,900,408 $ 1,842,092 $ 65,000,000 -- $ 3,914,596 $ 2,749,837 $1,789,515 $1,705,526 $3,212,809 Total ............ ......... S 4,642,300 $65,Ooo,000 $ 6,664,433 $3,495,041 $3,212,809 • Earnings for Plan and System were combined prior to 1975. In 1975 all General Employees were transferred to Plan. • • Figures adjusted to include Cost of Living increase to retirees. • • For the nine months ended September 30, 1977. The fiscal year was changed to end September 30, thereafter. The anticipated aggregate contribution for the fiscal year ending September 30, 1980 was projected to rise by $5,672,119. The City Commission has adopted a policy limiting the increase to 5% of the contribution for the fiscal year ending September 30, 1979. The Trustees of the Retirement Plan and the Retirement System have sued the City to force it to pay the $4,200,828 increase. These suits are presently pending. Counsel for the City, Paul, Landy do Beiley have entered a motion to dismiss. (See "Contingent Liabilities".) 33 4 9 RISK MANAGEMENT It became apparent through past experience that measures had to be taken to halt the spiraling costs of insurance premiums. A charter amendment was successfully voted on 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 is a Self -Insurance Committee, appointed by the City Manager, to administer the plan. The City is self -insured for all vehicular accidents, Police Torts and Premises Liability up to $50,000 per accident and $100,000 per occurrence in accordance with Florida Statutes, Section 768.28, waiving sovereign immunity in tort claims. The City of Miami is self -insured for all other exposures with the exception that coverage by outside insurance purchase is made where it is found available at acceptable rates. Coverages currently purchased include accidental death and property damage, excluding burglary. Group Life and Accident Disability and Death benefits have been purchased. Group Health benefits are self -funded. CONTINGENT LIABILITIES Pending Legal Proceedings (a) Board of Trustees v. City of Miami, Case No. 79-395 EX (Circuit Court, IIth Judicial Circuit, Appellate Division, Dade County, Florida); Board of Trustees v. City of Miami, Case No. 79-396 EX (Circuit Court, I lth Judicial Circuit, Appellate Division, Dade County, Florida): The Board of Trustees of the Miami City General Employees' Retirement Plan ("Plan") and the Board of Trustees of the Miami City Employees' Retirement System ("System") have each filed a Petition for a Writ of Mandamus, seeking to require the City to contribute a total of an additional $4.2 million over and above the amount actually appropriated by the City for the fiscal year 1980 as its contribution to the Plan and System. The Plaintiffs in each action contend that the City is required to contribute the amount that the Pension Boards certify in accordance with the Actuarial Reports prepared for the Boards. The Plaintiffs contend that the amount appropriated for fiscal 1980 by the City falls short of the amount certified, and these two actions seek to require the City to appropriate an additional $4.2 million. In Case No. 79-395 EX, the City has moved to dismiss the Petition on the grounds that, as a matter of law, the City's Pension Ordinance provides the City Commission with discretion as to funding the pension trust funds. It is the City's position that it was fiscally sound to limit its budgeted contribution, that the budgeted amount is actuarially sound, and that the City is not automatically required to appropriate and contribute the amount certified by the Pension Boards because to do so would constitute a default of the City Commission's responsibility for government of the City. The Court has not as yet ruled on the City's Motion to Dismiss the Petition. In Case No. 79-396, the City is not yet required to respond to the Petition. It is anticipated, however, that Case No. 79-396 will be consolidated with Case No. 79-395, that the City will assert the same position in the latter case as it has asserted in the former, and that both cases will be decided at the same time. (b) Gates v. City of Miami is a class action on behalf of present and former employees of the City seeking to require the City, for the years 1957-1975, to retroactively make additional deposits to its pension plans totalling $22,960,393.00, plus interest.* The Plaintiffs claim that the City levied property taxes for • The Complaint prays for an award of interest in an unspecified amount. U the plans are successful on all Counts, interest, if awarded, could aggregate as much as $8 million. The Court may or may not award interest. Summary judgment on liability has been entered against the City on two of the seven counts of the Gates Complaint, upon a finding by the Court that tax revenues for pension or relief purposes were improperly used by the City to pay off two judgments against the City and for contributions toward workmen's com- pensation obligations. Though judgment has not been rendered on the issue of damages, Plaintiffs seek damages on these counts in the amount of $2.2 million, plus interest. The City has filed an interlocutory appeal from the Court's ruling on the two counts as to which summary judgment was granted. In response to the plaintiffs' motion for summary judgment as to liability on two additional counts, the Court stayed decision of this motion pending the Appellate Court's determination of the City of Miami's interlocutory appeal of the previously entered summary judgment. 34 4 0 "pension or relief" purposes and was required to, but did not, deposit all such revenues into the pension funds. instead, a portion of these tax monies was used for the City's social security contributions, the City's required portion of premiums on group health and life insurance policies, and payment of judgments on pension -related cases, the City's workmen's compensation obligations, and reimbursement to the City of pension -related expenses. The City maintains that its allocation of the monies collected pursuant to its levy of property taxes for "pension or relief" purposes was proper. (c) City of Miami v. FEC. The City is involved in a "Oulck Take" Eminent Domain action to acquire 32.64 acres of bayfront land owned by the Florida East Coast Railway Company (FEC). The property is located in Downtown Miami, between N. Ir 6th and N. 6. 9th Streets, and bounded on the West by Biscayne Boulevard. In March, 1978, a Trial Court entered an Order of Taking and an Order of Necessity, vesting title to said property in the City, subject to a Stipulation entered between the parties. In accordance with the Order of Taking, and the Stipulation, the City deposited $14,500,000 of certificates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. On June 12, 1979, the Third District Court of Appeal issued its opinion affirming the Order of the Trial Court. The FEC asked for a rehearing before the Third District Court of Appeal which was denied, and FEC filed both a Notice of Appeal and Petition for Certiorari in the Supreme Court of Florida which was denied. The case is presently awaiting trial on the issue of valuation. (d) Other Pending Actions. With respect to pending tort actions for which the City may have liability, reserves have been set aside as follows: There are presently 104 claims pending. involving various types of automobile accidents, includ- ing all Departments of the City. These claims have been recorded and reserved in the Self - Insurance Fund, including the Rosen Case of $400,000 .............................. $1,063,717 The City is involved in 63 police civil liability matters which have been recorded and reserved in the Self -Insurance Fund ........ ........... 876,495 The City is involved in 156 general liability matters of various types which have been recorded in the Self Insurance Fund ..... ...................... 445,931 Group Insurance claims processed in September by City's Claims Administrator but unreported to the City are accrued in the City's Self Insurance Fund 345,850 TOTAL. .....................................................I......1 $2,731,993 zz=_a In the opinion of the City Attorney, there is no pending litigation that may have any materially adverse effect on the financial condition of the City of Miami, other than the claims and actions above, all of which have been budgeted by the City. DADE COUNTY Government of Dade County The following information and data concerning Dade County are relevant to the City of Miami by reason of the City's status as the largest municipality in Dade County. A constitutional amendment designed to give a new form of government to Dade County was approved by the Florida Legislature in 1953 and by the voters in a state-wide general election in November, 1956. A Dade Charter Board was constituted and in April, 1957 it completed a draft of a Charter for the County. The proposed charter, which established a form of Metropolitan County government, was adopted in a county election in May, 1957 and became effective on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time to time by county -wide vote. Since its adoption the charter has been amended in 1961, 1962, 1963, 1966, 1967, 1969, and 1972. The County now enjoys home rule powers subject only to the limitations of the Florida Constitution and general state laws. The County is, in effect, a municipality with governmental powers effective upon the twenty-seven cities in the County and the unincorporated areas. It has not displaced nor replaced the cities, but supplements them. The County can take over particular activities of a city's operations 0) if the services fail below minimum standards set by the County Commission, or (2) with the consent of the governing body of the city. 35 Since its inception, the Metropolitan County Government has assumed responsibility on a County -wide service basis for a number of functions, including: a County -wide police system, complementing the 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, oomph menting the municipal fire protection services within ten municipalities and providing full service fire protection for seventeen municipalities which have consolidated their Are departments with the County's fire depart- ment; a consolidated two-tier court system conforming to the revision of Article V of the Florida Statutes which became effective on January 1, 1973; creation of the Miami -Dade County Water and Sewer Authority with the responsibility for developing and operadr* a County-widf water and sewer system under a single body composed of seven members appointed by the Board of County Commissioners; coordination of the various surface transportation programs and planning for the development of a unified rapid transit system; installation of a central traffic control computer system which will computerize traffic management; regula- tion of all taxicabs within the County; a combined public library system of the County and eighteen muni- cipalities, which operates the main library, seventeen branches and six mobile units serving forty-four county- wide locations; centralization of the property appraiser and tax collector functions; the furnishing of data to municipalities. Board of Public Instruction and several state agencies for the purpose of budget preparation and for their respective governmental operations; collection by the Dade County Tax Collector of all taxes and distribution directly to the respective governmental entities according to their respective tax levies; and the prescription of minimum acceptable standards adopted by the Board of County Commissioners and enforceable throughout the County in such areas as environmental resources management, building and zon- ing, consumer protection, health, housing and welfare. Business and industry Dade County in recent years has begun to shift from a tourist -oriented economy to one with a more varied economic base. While the County's share of Florida's tourist trade remains one of the major economic forces, the County's attractiveness as a residential area to skilled labor and its selection as the site for major and smaller light industrial activities have combined with tourism to produce a more diversified economic base. Dade County, in addition to being Florida's tourist capital, is also the industrial center of the State, having more than twice as many employed in manufacturing as any other county in the State. 36 'I'be ten largest private employers in the County ara: Eastern Air Lines .................. 12,500 Southern Bell Telephone Co........... 10,158 National Air Lines Co . .............. 5,300 Southeast Banking Corp .............. 5,285 Burdines .......................... 4,880 University of Miami ................ 4,805 Florida Power A Light Co............ 4,398 Sean ......I ....................... 31059 Delta Air Lines .................... 2,700 Mount Sinai Medical Center .......... 2,407 Adding to the County's diversified economic base is its growth as the location for many national and international firms doing business in Latin America. Among firms having substantial properties in Dade County are such corporations as Dow Chemical Company, Gulf Oil Corp., Owens-Corning Fiberglas Corp., American Hospital Supply Corporation, Coca-Cola International Corp., and Ocean Chemicals, Inc., a sub- sidiary of Rohm do Haas Co. Other national firms which established international operations or office locations in Dade County are Alcoa International, Ltd., Atlas Chemical Industries, Inc., Bemis International Sales Corp., Dymo Industries, Inc., International Harvester Co., Johns -Manville International Corp., Minnesota (3-M) Export, Inc., Pfizer Latin American, Royal Export and United Fruit Co. United Brands Co. Per Capita Personal Income Dade County and Other Areas 1973 U.S.A. .... ............ 5,023 Southeast . . ..... 4,308 Florida 5,041 Miami area 5,862 Miami/USA ...... 1.17 Sourtcv Dade County Planning Department. (Greater Miami) 1"4 171 1976 it" 5,486 5,903 6,"1 7,026 4,740 5,054 5,544 6,057 5,406 5,640 6,109 6.697 6,375 6,455 6,931 7,755 1.16 1.09 1.08 1.10 Avenge Labor Force Summary 1"s 1"G 1f77 Civilian Labor Force .......... 691,000 672,000 681,700 Employment ................... 613,000 609,000 621,100 Unemployment ............... . 78,000 63,000 60,600 Unemployment Rate ........ • .. • 11.3% 9.4% 8.9% • As of April 1979. Sourtcz: Florida Department of Labor and Employment Security. Agriculture 1"I 688,034 639,847 48,187 7.0% It"* 697,500 650,800 46,700 6.7% A significant factor of the Dade County economy is its agricultural production. Dade County leads Florida in the production of limes, avocados, mangos, tomatoes and pole beans for fresh market. The mild climate allows crops to be grown and harvested during winter months. An average of more than 100 million dollars of agricultural products are produced annually, with a total retail value of these products estimated at approximately 300 million dollars. In addition, millions of dollars are generated each year in the marketing and distribution of these products. 37 i llsaaciallmdtu M There are approximately 70 commercial banks located in Dade County which together have a total of over $7,000,000,000 in deposits. Aggregate savings deposits in Dade County savings and loan institutions exceed $10,500,000,000. Dade County continues to grow as an international financial center. This has resulted from the location in the County of such major northern and western banks as Bank of America, Bank of Boston, Bankers Trust Co., Chase Manhattan Bank, Citizens and Southern Bank, First National City Bank, Irving Trust Co., Northern Trust Co. and The Wells Fargo Bank. The Federal Reserve System has located a branch office in Dade County to assist the Atlanta office with financial transactions in the South Florida area. Such branch received full branch status on July 1, 1975. The Federal Reserve Edge Act amendment, adopted in 1919, permits banks to open international banking subsidiaries outside their home states. There are 13 major overseas Edge Act banks that have moved to Miami. Education Dade County provides educational facilities at the primary, secondary and college levels. Colleges and universities located within the area are: University of Miami Miami -Dade Community College Florida International University Barry College Biscayne College Public school enrollment, including both primary and secondary levels, since 1971 is as follows: School Enrollment Public School System 1975 ........ 243,444 1976 ........ 239,806 1977 ........ 235,123 1978 ........ 228,592 1979 ........ 226,155 Medical Facilities There are approximately 42 hospitals located in Dade County. Recreation The Miami area is known for its sailing, deep sea fishing and hunting in the Everglades. Athletics for the spectator sportsman include professional football, baseball and basketball competition, university competition, open golf tournaments, and professional exhibition games. There are approximately twenty public and eight private golf courses in Dade County. There are approximately 297 public parks and playgrounds which have a total area of approximately 408,710 acres in Dade County. Tourism Tourism is, and will be for the near future, an important economic force in both the County and the City as a result of the combination of favorable climate, together with excellent recreational opportunities — theatres, ballet, symphony orchestras, famous entertainers, parks, public beaches, yacht basins, fishing, golf, outstanding restaurants, racing, spectator sports, historic sites, and other land and water recreational facilities. 38 1r0actWaeora Data which reflect the growth of the economy of Dade County since 1950 are presented in the following table. Growtb Factors Relative to Dade County, Florida water Electrkkr Number Comumptioo KWH Telelbooft Motor Pat 11oleaTas of M1111006of som CommercW Reddeow io Vehicle Olsa ColkcMor Yatr N'aterllleters Galloae (900'el Customers Customers Swvtce Registratba Rece le (NO'e1 1975 ..... 122,870 69.437 12,416,964 53,334 494,269 1,235,015 1,040.047 St 71,088.591 $218.347 1976 ..... 126,500 70.770 12.388.600 35.200 31I'm 1,251,390 1,200,212 78,807,661 224.801 1077 ..... 130,500 71.774 13,032,"0 37,600 537,200 1.328.413 1,268,632 77,378,596 259,119 1978 ..... 145,000 72,409 13,060,000 39,300 546,000 1,368,634 1,081,224 99,873,393 298.316 1979 ..... 167,000 76,363 14 280,000 612,400 572,200 1,472,631 1,058,734 111,173,015 566,670 Souttce: Economic Society of South Florida. UNDERWRITING The Underwriters have jointly and severally agreed, subject to certain customary conditions to closing, to purchase the Bonds from the City at an aggregate discount of $ from the initial public offering prices set forth on the cover page of this Official Statement. The Underwriters will be obligated to purchase all such Bonds if any such Bonds are purchased. The Bonds may be offered and sold to certain dealers (in- cluding Underwriters and other dealers depositing such Bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Under- writers. The representative of the Underwriters is Smith Barney, Harris Upham do Co. Incorporated. VALIDATION OF THE BONDS The Circuit Court in and for Dade County entered a final judgment validating the Bonds on Octobrr 22, 1979. Such juagment %as appealed to the Supreme Court of Florida and affirmed on January 24, 1980. LITIGATION No litigation is pending or threatened in any court, questioning the official existence of the City or the title of the officers thereof, or the validity of the Bonds, or to restrain or enjoin the issuance or delivery of the Bonds or the validity of the Hotel Agreement, TC Agreement, or the University Agreement or the power of the City to pledge Net Revenues from the Convention Center -Garage and to pay the Bonds. For a description of pending litigation affecting the City, see Contingent Liabilities on p. 34. TAX EXEMPTION In the opinion of Messrs. Brown, Wood, Ivey, Mitchell & Petty, interest on the Bonds is exempt from Federal income taxes under existing statutes and court decisions and from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. APPROVAL OF LEGAL PROCEEDINGS All of the legal proceedings in connection with the authorization and issuance of the Bonds are subject to the approval of Messrs. Brown, Wood, Ivey, Mitchell do Petty of New York, New York and Counsel. A copy of the unqualified, approving opinion of Bond Counsel will be delivered with the BondsCertain legal matters with regard to City will be passed on by George F. Knox, Jr., City Attorney. 39 1 la "1 1 Certain legal matters in connection with the Bonds are subject to the approval of Messrs. Mudge Roan Guthrie do Alexander, New York, New York, Counsel to the Underwriters. MISCELLANEOUS Brief descriptions of the Bonds, the Trust Indenture, the Hotel Agreement, the TC Agreement, the Univer.. city Agreement and the Financial Feasibility Study and information about the City, including financial state. ments relating thereto, are included in this Official Statement. Such descriptions do not purport to be eom. prehensive or definitive. All references herein to the Trust Indenture, the Hotel Agreement, the TC Agreement, the University Agreement and the Financial Feasibility Study are qualified in their entirety by reference to such documents. References herein to the Bonds are qualified in their entirety by reference to the forms thereof included in the Trust Indenture, and the description and information with respect thereto included in the aforementioned documents, copies of which are on file at the offices of the City and the Trustee. Any statements made in this Official Statement involving matters of opinion or 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. 1500 ity Clerk 40 CITY OF MIA , §LOIUDA By. .................. Mayor Is E CITY OF MIAMI CONVENTION CENTER AND PARKING GARAGE FINANCIAL FEASIBILITY STUDY SUMMARY JUNE 1980 1 APPSNDIX A Mr. James J. Connolly Project Manager City of Miami Convention Center - Garage Miami, Florida We have completed the feasibility study for the City of Miami Convention Center - Garage (the "Project") to determine the potential of the Project to meet debt service and other financial requirements in connection with $60#000#000 of bonds ("The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds" or "the Bonds") to be issued by the City of Miami to finance, with other available funds, the cost to develop the Project. The accom- panying summary report presents, among other items, a description of the Project, a summary of projections of funds available for debt service and debt service coverage from the operations of the Project for the period from July 30, 1980, the date of the issuance of the Bonds, through December 31, 1992, and a brief explanation of the bases of the projections. The full report of our findings, conclusions and bases of projections will be contained in the Official Statement and should be read in its entirety. In the course of our study, we analyzed general economic and demographic characteristics of the Miami area, the supply of and demand for convention, conference and lodging facilities in Miami's central business district and the advantages and disadvantages of the site of the Project. We also reviewed other studies and financial projections for the parking garage and retail elements of the Project. Our analyses involved discussions of the Project with representatives of the City of Miami, the University of Miami, prospective users of the Project, the private development group associated with the hotel portion of the Project, operators of competitive facilities and others. 16 4 IV Mr. James J. Connolly Page Two We have not ascertained the legal or regulatory requi ments applicable to this Project, including zoning, other local o state regulations, permits or licenses. Further, no effort has b made to determine the possible effect on this project of present future federal, state or local legislation, including any environ or ecological matters or interpretations thereof. The report and projections presented herein are based estimates, assumptions and other information derived from our res and knowledge of the industry. Because such estimates and assump are inherently subject to uncertainty and variation, depending up evolving events, we do not represent the projections as results w will necessarily be achieved. Based upon our study and assumptions, the financial p tions indicate that, with the Supplemental Reserve Fund, sufficie funds can be generated during the projection period to meet the projected operating expenses of the Project and the projected deb service requirements of the contemplated Bond issue. The terms of this engagement are such that we have no gation to update or revise our study in the event of any invalids of our assumptions, estimates or projections resulting from event transactions or any other occurrences subsequent to June 19, 1980 June 19, 1980 CONTENTS Page PROJECT DESCRIPTION g CONSTRUCTION PERIOD AND DATE OF OPENING 6 SOURCES AND APPLICATIONS OF FUNDS 6 DESCRIPTION OF THE BONDS 7 SUMMARY OF FINANCIAL PROJECTIONS 10 BASES OF PROJECTIONS 11 Revenue 11 Convention Center 11 Main Theatre/Auditorium Rentals 11 Meeting Room Rentals 13 Hotel Promotional Contribution 14 Parking Garage 14 Additional Rent - Hotel 16 Gross Room Sales 17 Commissions 17 Net Room Sales 18 Food and Beverage Sales 18 Concession Sales 19 Total Specified Sales 19 Additional Rent Percentage 19 Additional Rent 19 Rent - Trade Center 20 OPERATING EXPENSES 21 Convention Center 21 Payroll and Related Expenses 21 Marketing 22 Utilities 22 Repairs and Maintenance 22 Supplies 23 Telephone 23 Management Fees 23 Insurance 23 Miscellaneous expenses 24 CONTENTS (Continued) Pag Parking Garage 24 RESERVE FOR RENEWAL AND REPLACEMENT 24 NONOPERATING REVENUE 25 Incremental Cost Payment by Hotel Developer 25 Interest Income 26 INTEREST FUNDED IN THE BOND ISSUE 2E DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND 2E FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND 2E DEBT SERVICE 27, DEBT SERVICE COVERAGE INCLUDING DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND 27, ,,BALANCE OF THE SUPPLEMENTAL RESERVE FUND 2' FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING BALANCE OF THE SUPPLEMENTAL RESERVE FUND 2' DEBT SERVICE COVERAGE INCLUDING BALANCE OF THE SUPPLEMENTAL RESERVE FUND 21 EXHIBIT 1 Statement of Projected Funds Availi for Debt Service PROJECT DESCRIPTION The Project is located in the Miami central business district at the intersection of Southeast Fourth Street and Southeast Second Avenue. It will consist of a Convention Center complex con- taining a 5000-seat theatre/auditorium, a 500 seat auditorium, 15 meeting rooms ranging in seating capacity from 35 to 400, approximately 50,000 square feet of lobbies, offices and other supporting facilities and a parking garage with not less than 1,450 parking spaces. The parking garage will also contain approximately 20,000 square feet of space for retail stores. The 500-seat auditorium, nine meeting rooms and certain other facilities will be leased by the University of Miami ("the University") and operated as the University of Miami Knight Conference Center in accordance with an agreement executed on April 1, 1977 by send between the University of Miami and the City of Miami, which is to be supplemented by a lease agreement when the construction of the Convention Center is completed. in conjunction with this project, a 627-room (608 rental units) Hyatt Regency Hotel ("the Hotel") is planned for development on air rights above the Convention Center and within certain areas of the Convention Center, and a Trade Center office building with 500,000 square feet of leaseable space (net) is planned for development on air rights above the parking garage and within certain areas of the garage. The Hotel will be developed by Miami Center Associates, Ltd., a limited partnership ("the Hotel Developer"), in accordance with the terms of a lease agreement by and between the Hotel Developer 5 t and the City of Miami ("The Hotel Agreement"). The Trade Center office building will be developed by Dade Savings and Loan Associa- tion in accordance with the terms of a lease agreement by and between the City of Miami and Dade Savings and Loan Association ("the TC Agreement"). CONSTRUCTION PERIOD AND DATE OF OPENING The City of Miami ("the City") projects that, assuming tht proceeds of the Bonds are received by the City on or about July 30, 1980, construction of the Project will be completed as of February 1, 1982. However, for the purposes of this analysis, it has been assumed that the Project will not open for business until July It 1982. This assumption has been made at the request of the City to demonstrate the ability of the Project to meet debt service require- ments on the Bonds, given the proposed financial structure of the Project, in the event that opening of the Project is delayed for any reason until July 1, 1982. SOURCES AND APPLICATIONS OF FUNDS The Bonds are being issued to provide funds to finance, with other available funds, the cost to construct the Convention Center - Garage, to fund the Reserve Account, to fund capitalized interest and to pay the costs of issuing the Bonds. 6 .. .............•.• •.......... 1INI For the purpose of preparing the financial projections presented herein, the following sources and applications of funds were assumed: Sources of funds: The City of Miami, Florida Convention Center and Parking' Garage Revenue Bonds $60,000,000 Sale of land 5,300,000 General Obligation Bonds, Series 1964 4,147,065 Economic Development Authority Grant 4,373,000 Urban Development Action Grant 4,994,000 City of Miami capital contribution 5,216,781 Prepayment of rent by the University of Miami 2,500,000 Base rent payment by Hotel Developer 2,900,000 Interest earnings during construction period 4,311,824 Total sources of funds $93,742,670 Applications of funds: Land $ 6,611,170 Furniture, fixtures and equipment 2,000,000 Construction and development costs 54,679,664 Reserve Account 5,960,000 Funded interest 91875,139 Supplemental Reserve Fund 7,787,449 Preopening expenses 500,000 Cost of issuance expense 2,043,501 Contingency 2,500,000 M.B.I.A. insurance premium 1,785,747 Total applications of funds $93,742,670 As of June 30, 1980, the City projects that it will have expended approximately $15.3 million in the planning, acquisition of land for and construction of the Project. DESCRIPTION OF THE BONDS The Bonds are assumed to be dated July 1, 1980 with interest payable on nuary 1, 1981 and on each July 1 and January 1 thereafter. 7 v -A The Bonds are assumed to bear interest at an average coupon rate of Be! percent and to mature in the prinicipal amounts per annum as set forth in the following schedule: The City of Miami, Florida Convention Center and Parking Garage Revenue Bonds Bond year ending Bond principal Total annual January 1 maturities interest debt service 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 200,000 495,000 910,000 990,000 1v075,000 1,165,000 1,265,000 1,370,000 1,485,000 1,615,000 1,750,000 1/9000000 2,060,000 2,235,000 2,425,000 2,635,000 2,855,000 3,100,000 3,365,000 3,650,000 3,960,000 4,295,000 4,660,000 5t055,000 5,485,000 $60,000,000 $ 2,550,000 5,100,000 5,100,000 50100/000 5,100, 000 51100,000 5,100,000 5/100/000 5,100,000 5,100,000 5,100,000 5,083,000 5,040,925 4,963,575 4,879,425 4,788,050 4,689,025 4,581,500 4,465,050 4,338,825 4,201,550 4,052,800 3,891,300 3,716,200 3,526,225 3,320,100 3,096,125 2,853,450 2,589,950 2,303,925 1,993,675 1,657,075 1,292,000 895,900 466,225 $136,235,875 $ 2,550,000 5,100,000 5,100,000 50100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,300,000 5,578,000 5,950,925 5,953,575 5,954,425 5,953,050 5,954,025 58951,500 5,950,050 5,953,825 51951,550 5,952,800 5,951,300 5,951,200 5,951,225 51955,100 5,951,125 5,953,450 5,954,950 5,953,925 5,953,675 5,952,075 5*952,000 51950,900 5,951,225 $196,235#875 8 .....................&......ram.. 0 Various Funds and Accounts to be held by the Trustee are to be established under the terms of the Trust Indenture pursuant to which the Bonds are being issued. Those Funds or Accounts pertaining to these projections include the Revenue Fund, Bond Service Account (Interest Account and Principal Account), the Redemption Account, the Reserve Account, the Construction Fund, the Supplemental Reserve Fund, the Renewal and Replacement Fund and the Surplus Fund. These Funds are described below: . Revenue Fund - Pursuant to the Trust Indenture, all Gross Revenues from the Project will be deposited into the Revenue Fund. Amounts in the Revenue Fund will then be used to pay the current operating expenses of the Project. Bond Service Account (Interest Account and Principal Account) - These accounts are established for the purpose of accumulating the monthly interest on the Bonds and to accumulate the monthly deposits for the annual principal payment of the serial Bonds. Redemption Account - This account is established for the purpose of accumulating the monthly deposits for the annual principal payment of the term Bonds. . Reserve Account - The amount deposited in the Reserve Account will be $5,960,000. This account is to protect the bondholders and to provide for payment of principal and interest in the event of unforeseen financial difficulties. All interest income earned on any investments held in the Reserve Account shall accrue to and become part of the Princi- pal Account. . Construction Fund - The Depository Agent will hold and maintain the Construction Fund. 9 . Supplemental Reserve Fund - The amount deposited to the Supplemental Reserve Fund by the City at the time of the issuance of the Bonds will be $1.816.588. Prior to or at the time of comple- tion of construction of the Project, the City will deliver to the Trustee for deposit to the credit of the Supplemental Reserve Fund the sum of $2,500,000, plus interest accrued thereon, to be paid by the University to the City pursuant to the University Agreement and the sum of $2,900,000 to be paid to the City by the Hotel Developer pursuant to the Hotel Agreement. This account is to provide for payment of current operating expenses and/or principal and interest requirements of the Bonds and/or Renewal and Replacement Fund requirements in the event that Gross Revenues, as defined in the Trust Indenture, are insufficient to do so. The amount held in this account must at least be equal to 25 percent of the maximum principal and interest requirements on the then outstanding Bonds in the current or any succeeding fiscal year. • Renewal and Replacement Fund - The amount to be deposited to this fund will be $100#000 annually plus an additional amount if determined to be necessary by a consultant to the Project pursuant to the Trust Indenture securing the Bonds. • Surplus Fund - This Fund is established to accumu- late monies, if any, in excess of current operating expenses, debt service on the Bonds, and monies re- quired in any and all funds and accounts pursuant to the Trust Indenture securing the Bonds. SUMMARY OF FINANCIAL PROJECTIONS Exhibit 1, on pages 30 and 31, presents a summary of pro- jected funds available for debt service and debt service coverage foi the Project for the period from July 30, 1980 through December 31, 1: Debt service coverage is calculated by dividing annual debt service requirements into projected funds available for debt service. The projections indicate that, with the proposed Supplemental Reserve Fug sufficient funds can be generated to meet projected operating expens- of the Project and projected debt service requirements during the pro. -lion period. It I jhdmc..1 r� � .. _ _ — . m (THIS PAGE INTENTIONALLY LEFT BLANK) 0 0) 00 p",F1� V[IL�pPYS i� 19� t 2;;5 Y— 'fir an �r 1 li 1Ti "*3 ion 2 C 117 Otte t r, ��- 11 11? 22-- 52 1T5 6vera6e Ottie 2 `f 44 42 f 1� t69 f s ° 2100 t5 1_59 32 33 36 T..keted emits %ODD 16 30 60 32 24 12 ' 0 subtotal 55 26 21 2227 30 11 20 t 12 . c 12 25 12 10 2 21 9 18 1 1 r 52 1112 ?� tides events 1 9 3 2 46 103 221 291 2,51 r9 151 - 262 --- 9 _- 35 2U6 16-- ',ri �r r 76 Sotptalp 'ma, ZVOTr I emits (11 Six ���� ley •ems' � VA similar es" (2i rpt,ee�s, F I i T 0 BASES OF PROJECTIONS Except as noted, all projections of revenues and expenses were prepared first in 1979 dollars and then inflated to the appropriate calendar year at a rate of seven percent compounded annually. Following are summary explanations of the assumptions upon which the projections are based. REVENUE Convention Center Revenue from Convention Center operations would be derived from the rentals of the main theatre/auditorium and the six meeting rooms operated by the City and from charges made for equipment rental and the provision of ancillary services (electrical service hookups, telephone installations and similar services). Also included in this category are a contribution from the Hotel Developer for the purposes of marketing and promoting the Convention Center. Main Theatre/Auditorium Rentals: Revenue derived from theatre/auditorium rental is based upon projected utilization of the facility by convention groups and for locally attended events such as concerts, commencements, lectures and similar events. The table on the facing page presents a summary of projected utilization. 11 C N It has been assumed that rental for use of the facility by convention groups and for locally attended events for which no admission would be charged (nonticketed events) would be based upon a flat rate. The rate schedule for rental of the facility in its various seating configurations was assumed to be as follows (expresst in 1979 dollars): Projected Rental Rates Main Theatre/Auditorium Section Total 1 2 3 1 and 3 combined 2 and 3 combined (1979 ooiiars) Seating capacity 5,000 1,250 1,750 2,000 3,250 3,750 Rental rate per event -day $1,750 450 600 700 1,150 1,300 Revenue derived from use of the facility for events for which admission would be charged (ticketed events) was projected bast on the assumption that rental revenue would be the greater of the fle rental rate or ten percent of ticket sales per event. it was assumef that ticket prices would average $10 (1979 dollars) for events rangir in attendance of up to 2,100 persons and $15 (1979 dollars) for largt events. 12 N Meeting Room Rentalss Revenue derived from the rental of other meeting rooms is based upon projected utilization multiplied by a rental rate of five cents per square foot of meeting space utilised. Utilisation was pro- jected to be 30 square feet for each guest room in the Hotel occupied by a member of a convention or meeting group. This ratio is based upon an analysis of the facility requirements of various size conventions as determined from data obtained from SM Databank, a research division of Successful Meetings Magazine, a leading trade journal, and from interviews conducted with the convention service managers of several existing Hyatt Regency Hotels. The number of rooms occupied in the Hotel by convention or meeting groups was projected to be 50 percent of total occupied rooms based upon our market study. A summary of projected Hotel occupancy is presented on page 17. Revenue derived from charges for equipment rental, the pro- vision of ancillary services and other miscellaneous charges is assumed to be equal to five percent of revenue derived from rental of the main theatre/auditorium and other meeting rooms. This is based upon an analysis of the proportion of total income derived from these sources at existing civic and convention centers. 13 Hotel Promotional Contributions The Hotel Agreement between the City and the Hotel Develop states that the Hotel will contribute an amount not to exceed $100,000 annually to the Convention Center for the purpose of promoting cultura- civic or other events at the Center. This must be matched by the City It has been assumed that the Hotel would contribute $50,000 for this ' purpose in 1982 (six months of operation) and $100,000 in each full calendar year thereafter. The financial projections incorporate the City's matching expenditure in the form of the excess of total expenditures for marketing over the Hotel's contribution. Parking Garage Projected parking garage revenue, including revenue derive from the rental of retail space, is based upon projections prepared by the firm of Slack, Slack a Roe, Inc., Members of the Appraisal Institut (M.A.I.), Miami, Florida, ("the Slack Projections") for an appraisal of the value of the air rights and shell spaces to be leased for the development of the Trade Center office building. The Slack Projection• are presented in a report submitted to the City of Miami, dated June 22, 1979, entitled "World Trade Center - Appraisal 479146". A separate M.A.I. appraisal on the air rights and shell space value for the Trade Center development was prepared by Leonard A. Bisz, M.A.I., Miami, Florida entitled "Air Rights - World Trade Center Site - June 22, 1979" ("the Bisz Projections"). Both reports are based upon the assumption that the garage will contain 1,500 parking spaces. 14 1 We have not conducted a market study for the parking garage; however, with the exception of the items discussed in the following paragraphs, we believe the projections presented in both the Slack report and the Bisz report are reasonable. This assessment is based upon our general knowledge of the supply of and demand for parking facilities in downtown Miami at present, our market study for other elements of the Convention Center project and our review of a feasibility study prepared by Conrad Associates, Chicago, Illi- nois, for a 988-space garage which was planned for the Project prior to the inception of the Trade Center proposal. The Slack Projections have been utilized as the basis for this analysis because they yield the lower (more conservative) projec- tion of net operating cash flow. It should be noted, however, that the differential between the projected net operating cash flows pre- sented in the Slack Projections and the Bisz Projections is not substantial. The Slack Projections assume that the garage will achieve a stable level of utilization and revenue (expressed in constant 1979 dollars) in the fifth year of operation. Parking revenues in the first year of operation, expressed in constant dollars, are projected to equal 50 percent of those projected for the stabilized year= rev- enues in the second, third and fourth years of operation, expressed in constant dollars, are projected to equal 70, 80 and 90 percent, res- pectively, of those in the fifth, or stabilized, year. Based upon a comparison of these projections with the projections for a 988-space garage, presented in the report prepared by Conrad Associates, it has We have not conducted a market study for the parking garages however, with the exception of the items discussed in the following paragraphs, we believe the projections presented in both the Slack report and the Diaz report are reasonable. This assessment is based upon our general knowledge of the supply of and demand for parking facilities in downtown Miami at present, our market study for other elements of the Convention Center project and our review of a feasibility study prepared by Conrad Associates, Chicago, Illi- nois, for a 988-space garage which was planned for the Project prior to the inception of the Trade Center proposal. The Slack Projections have been utilized as the basis for this analysis because they yield the lower (more conservative) projec- tion of net operating cash flow. It should be noted, however, that the differential between the projected net operating cash flows pre- sented in the Slack Projections and the Bisz Projections is not substantial. The Slack Projections assume that the garage will achieve a stable level of utilization and revenue (expressed in constant 1979 dollars) in the fifth year of operation. Parking revenues in the first year of operation, expressed in constant dollars, are projected to equal 50 percent of those projected for the stabilized year= rev- enues in the second, third and fourth years of operation, expressed in constant dollars, are projected to equal 70, 80 and 90 percent, res- pectively, of those in the fifth, or stabilized, year. Based upon a comparison of these projections with the projections for a 988-space garage, presented in the report prepared by Conrad Associates,.it has 15 M lASNMIr . C PM rOO° t� 1982 1"2 of io la�i�} to effete 3t9 549 -veo r t0�+stian 9 yeeoc e�i � 18 $25.g10 $2I,b1Z ` 5 $22r53b $Z�r� > 03't �-- $ A " 964 —f� 26y08 �— $19rEi91 901 " $,Ir321 787 23, 5A Z4• $13,8 $ '13� �� 20.223 2�r 860 4-6 5,16b 619 �' 90'i 2g5 ` 261 sales 296 $ 221 � � s 16r590 18r 2p �p 22_�� � !,� AJA 5?r� �ocylu ✓� 2 16r� 19 +IBA 233 56• Gross �issi� 5,�5 12r 14 `63 16�� 204- �� 6+ 163 47r2� 50r $ des 1y 1bb � 36 61,2$1 rg6fi t J� ana wverege� 5� 33r655 •035 7t_— $ 1 r117 $��'� foodes 25,60b x ,032 =R� A tsw $� OOKsw salmi j1r0� x •0?� 1, � $ #496 1.;.; � OA9 Ae�►t 1p� 559 vant itianail dl des �, INO • � ified 5"'_ $t rgo,000 s of �t i to a� an e• Coal Igoe is vo CS is i�'� zr,a1e7c• this �"'' x is Si �iti s� putt of II s s�41 le�wi tie in f.uaY aregot s st ��� fit► $01666r ire thi aoas�i°a tia+s .................. • been concluded that while the revenues projected for the stabilized year are reasonable, greater revenues in the early years of operation could be anticipated, given the assumptions upon which the projections are based. Accordingly, the Slack Projections of parking revenues have been adjusted to take into account stabilization of revenues, expressed in constant dollars, to occur in the fourth year of opera- tion; revenues in years 1 through 3 are projected to equal 70, 80 and 90 percent, respectively, of projected revenues in the stabilized year of operation when expressed in constant dollars. Projected revenues from the rental of retail space in the garage walkway and lobby are as presented in the Slack Projec- tions. Expressed in 1979 dollars, projected revenues are based upon an annual rental rate of $17.50 per square foot for 20,000 square feet of occupied space. Additional Rent - Hotel Additional Rent to be paid by the Hotel is based upon the schedule of percentages of specified Hotel sales set forth in the Hotel Agreement between the Hotel Developer and the City applied to specified sales as projected on the basis of our market study. The schedule on the facing page presents a summary of projected specified sales and the calculation of projected Additional Rent based thereon. The bases of the projections are as follows: 16 Gross Boom Sales: Gross room sales consists of revenue derived from the rental of hotel guest rooms. Projected gross room sales are calcul- ated by multiplying the projected number of occupied room nights for each year, as presented below, by the projected annual average rate per occupied room night (average room rate) of $65 (expressed in 1979 dollars). Projected annual room sales are then increased by seven percent compounded annually (from 1979) to adjust for the effects of inflation. Projected Annual Average Occupancy Hyatt Regency Hotel Year (1) 1982 1983 1984 1985 1986 - 1992 Projected annual average occupancy 65% 70 75 80 85% (1) Six months only Commissions: Projected occupied room nights 72,717 155044 166,440 177,536 188,632 Deductions from gross room sales consist of commissions paid to travel agents, the University and other parties for room sales achieve) from bookings derived from these sources. Commissions paid to the University are projected on the basis of 15 percent of projected room sales from conferences held in the University's Conference Center. Such room sales are projected by multiplying the projected number of occupied room nights annually from this source by the projected average room rate of $65 (expressed in 1979 dollars). Other commissions are projected to be one-half of one percent of room sales other than those derived from the University's Conference Center. commissions. Net Room Saless Net room sales represents gross room sales reduced by Food and Beverage Sales: Food and beverage sales consists of all revenue derived from the sale of food and beverages in the Hotel, including banquets. Food sales have been projected based upon projections of the number of customers served by meal period and projected average sales per customer. Beverage sales have been projected to be 47 percent of food sales in the first full calendar year of operation, increasing to 48 percent by the fourth year and stablizing as a percentage of food sales thereafter. 18 % A Concession Saless Concession sales consists of revenue derived by the Hotel from the sale of food and beverages in the Convention Center. This is in accordance with the Hotel Agreement between the City and the Hotel Developer whereby the Hotel is granted exclusive rights to provide foc and beverage service in the Convention Center. Sales are projected tc be an average of $.17 per person attending theatre events (1979 dollar Total Specified Sales: Total specified sales represents the total of projected no room sales, food and beverage sales and concession sales. Additional Rent Percentages Additional Rent percentage is the appropriate percentage t be applied to total specified sales as stipulated in the Hotel Agreeme Hotel. Additional Rents Additional Rent is the amount projected to be paid by the It should be noted that the Hotel Agreement provides that payment of Additional Rent by the Hotel Developer shall be deferred to the extent that funds available to the Hotel Developer from the revenues of the Hotel are insufficient to pay such Additional Rent after the payment of (i) debt service on the mortgage of the Hotel, 19 .. ..................�.�.......-•mow (ii) all operating expenses and cash reserves required of the Hotel Developer under the Hotel Agreement, and (iii) a priority return to the equity capital investors of the Hotel, provided that the sum of (i) and (iii) shall not exceed in the aggregate $5,300 per Hotel room per annum. That portion of the deferred Additional Rent shall accrue with interest equal to 1/2 percent above the rate paid by the City on the Bonds. The aggregate amount of such accruals of unpaid Additional Rent shall be due and payable by the Hotel Developer to the City at the end of each third year and at the and of the forty- fifth year after the Hotel first opens for business. If there are any funds available to the Hotel Developer after payment of items (i), (ii), and (iii) above, for any calendar year and there exists unpaid accrued Additional Rent for any prior year or years, such funds available shall be applied to the payment of said unpaid accrued Additional Rent. Rent - Trade Center As provided in the TC Agreement between the City and Dade Savings and Loan Association, rental revenue to be derived by the City from the Trade Center has been projected based on the terms of the TC Agreement and the assumptions summarized below: 1. Payment of the First Rent Component will commence on March 1, 1983 and will be $124,950 for calendar year 1983 based upon $150#000 annually pro rated for ten months. I 20 0 a 2. The First Rent Component will be increased by 4.9 percent compounded annually beginning in 1985, the second full calendar year following the commence- ment of rent payment. This rate of increase is based upon 70 percent of an assumed rate of increase of 7.0 percent annually in the index set forth in the lease agreement to be used to compute increases or decreases, as the case may be, in the First Rent Component. 3. Payment of the Second Rent Component will commence in the amount of $150#000 annually on January 1, 1988, the fifth full calendar year following the commencement of the payment of the First Rent Component. 4. The Second Rent Component will be increased by 4.9 percent compounded annually beginning in 1989. This rate of increase is based upon 70 percent of an assumed rate of increase of 7.0 percent annually in the index set forth in the lease agreement to be used to compute increases or decreases, as the case may be, in the Second Rent Component. 5. in the case of both the First and Second Rent Com- ponents, the rent paid in any given calendar year will be based on the rental amount calculated for the previous calendar year and any additional rent due as a result of increases in the index set forth in the lease agreement will actually be paid in the following calendar year. OPERATING EXPENSES Convention Center Payroll and Related Expenses: Payroll and related expenses have been projected on the basis of staffing requirements as determined from an analysis of existing civic and convention centers, and salary and wage scales .. `� .. ._ . • . .................. �A1.... yr........ . in effect in the Miami area. Overtime payroll expenses have been projected to be ten percent of full-time expenses. Payroll related expenses (employee benefits) have been projected to be 25 percent of total salaries and wages. Marketing: Marketing expenses consist of expenditures for advertising, sales and promotional programs for the Convention Center. Projected expenses are based upon the experience of comparable convention centers. Utilities: Utilities expenses consist of all expenditures for elec- tricity, water and sewerage services and are projected to be one dollar per square foot of public space in the Convention Center in 1962 (six months only) and $2 per square foot in 1983, the first full calendar year of operations. This expense is projected to increase to $2.10 per square foot per year by 1985 and stabilize thereafter (expressed in 1979 dollars). Repairs and Maintenance: Repairs and maintenance expenses consist of all expendi- tures for ongoing maintenance of the grounds, building and equipment of the Convention Center and are projected to be $.40 per net square foot of public space per year in 1982 (six months only) and $.80 per square foot in 1983, the first full calendar year of operations. This expense is projected to increase to $.93 per square foot per year by 1985 and stabilize thereafter (expressed in 1979 dollars). 22 Supplies: Supplies expenses consist of all expenditures for office, cleaning and other operating supplies and are projected to be $.32 per net square foot of public space in 1982 (six months only) and $.64 per square foot in 1983. This expense is projected to increase to $.75 pal square foot per year by 1985 and stabilize thereafter (expressed in 1979 dollars). Telephone: Telephone expenses consist of all expenditures for telephor equipment rental and local and long distance service and are projected based upon information supplied by Southern Bell Telephone Company. Management Fees: Management fees expenses consist of the fees paid to a professional convention center management company for services rendered in managing the Convention Center and are projected to be ten percent of total revenue excluding the Hotel promotional contribution. Insurances Insurance expenses consist of all expenditures for property comprehensive general liability and business interruption insurance for the Convention Center and are projected based upon information provided by Frank B. Hall Associates, Miami, Florida, insurance underwriters. 23 � A Miscellaneous Expenses: Miscellaneous expenses consist of all expenses not included in other categories such as fees, licenses, commissions, special services and equipment rentals and are projected to be $.33 per net square foot of public space in 1982 (six months only) and $.66 per square foot in 1983. This expense is projected to increase to $.77 per square foot by 1985 and stablize thereafter (expressed in 1979 dollars). Parking Garage As in the case of parking garage revenues, the projected parking garage operating expenses presented herein are based upon pro- jections prepared by Slack, Slack i Roe, Inc. for an appraisal of the value of the garage air rights and shell spaces to be leased by Dade Savings and Loan Association. The Slack Projections present garage operating expenses in the first year of operation, expressed in constant 1979 dollars, to equal 72 percent of projected expenses in the stabilized years expenses in the second, third and fourth years of operation, expressed in con- stant dollars, are projected to be 79, 82 and 89 percent, respectively, of those projected for the fifth, or stabilized, year. The Slack Projections have been adjusted to present garage operating expenses, expressed in constant dollars, stabilizing in the third year of operation; expenses in years one and two have been adjusted to equal 24 13 Ej 80 and 90 percent, respectively, of expenses in the stabilised year when expressed in current dollars. All expenses have than been increased to take into account the effects of inflation at a rate of seven percent compounded annually. RESERVE FOR RENEWAL AND REPLACEMENT In accordance with the Trust Indenture for the Bonds, it ha been assumed that a reserve for renewal and replacement of furniture, fixtures and equipment would be funded in the amount of $50#000 in 1982 (six months only) and $100,000 each year thereafter. It has further been assumed that these monies and the interest earned thereon would be used exclusively for renewals or replacement of assets from time to tim, and would not be available for debt service. NONOPERATING REVENUE Incremental Cost Payment by Hotel Developer In accordance with the Hotel Agreement between the City and the Hotel Developer, the Hotel Developer will pay the City $240#000 per year for five years, beginning in the fifteenth month following the date on which the Hotel first opens for business, representing the costs to the City of constructing and equipping certain portions of the Convention Center so as to enable the construction and operation of the Hotel. It has been assumed these payments would begin in 1983. 25 El Interest Income interest income represents the income earned on the Reserve Account. This is assumed to be 9.5 percent compounded annually. INTEREST FUNDED IN THE BOND ISSUE This amount represents the capitalized interest, funded from the Bonds, to be paid during the calendar year. DEPOSITS TO THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND These deposits represent the projected funds to be with- drawn from the Supplemental Reserve Fund and deposited to the Revenue Fund based upon the amount required to meet the annual debt service requirements on the Bonds after all operating expenses and deposits to the Renewal and Replacement Fund have been paid from the Revenue Fund. FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING DEPOSITS THE REVENUE FUND FROM THE SUPPLEMENTAL RESERVE FUND Funds available for debt service including deposits to the Revenue Fund from the Supplemental Reserve Fund represents pro- jected Gross Revenues, as defined in the Trust Indenture, less pro- jected operating expenses of the Convention Center and Parking Garage and deposits to the Renewal and Replacement Fund plus deposits to the Revenue Fund from the Supplemental Reserve Fund. This amount re- presents projected total funds available for debt service exclusive of 26 C a the remaining balance of the Supplemental Reserve Fund and of monies held in the Reserve Account. DEBT SERVICE Annual Debt Service represents the annual interest and principal due on the Bonds for each calendar year in accordance with the schedule presented on page S. DEBT SERVICE COVERAGE INCLUDING DEPOSITS Debt service coverage including deposits to the Revenue Fund from the Supplemental Reserve Fund represents the extent to which projected funds available for debt service including deposits to the Revenue Fund from the Supplemental Reserve Fund meet debt service requirements on the Bonds. BALANCE OF THE SUPPLEMENTAL RESERVE FUND The balance of the Supplemental Reserve Fund is the amount in the Supplemental Reserve Fund after withdrawals for the Revenue Fund. FUNDS AVAILABLE FOR DEBT SERVICE INCLUDING BALANCE OF THE SUPPLEMENTAL RESERVE FUND These funds represent projected total funds available for debt service exclusive of funds held in the Reserve Account. 27 C a DEBT SERVICE COVERAGE INCLUDING BALANCE F THE SUPPLEMENTAL RESERVE FUND Debt service coverage including the balance of the Supplemental Reserve Fund represents the extent to which projected total funds available for debt service, exclusive of monies held in the Reserve Account, meet annual debt service requirements of the Bond a. For the purpose of determining compliance with the Rate Covenant as set forth in the Trust Indenture securing the Bonds, debt service coverage is to be calculated based upon funds availa- ble for debt service exclusive of funds held in the Supplemental Reserve Fund and other Funds or Accounts established under the Trust Indenture. The Rate Covenant states that rates, rents, fees and any other charges for the use or occupancy of the Convention Center and Parking Garage must be set in accordance with the recommenda- tions of a consultant to be retained by the City, which recommenda- tions shall be intended to set rates, rents, fees and other charges so as to be sufficient to produce Gross Revenues, exclusive of monies held in any and all Funds and Accounts established under the Trust Indenture, in an amount at least equal to the sum of current operating expenses of the Convention Center and Parking Garage, deposits to the Renewal and Replacement Fund and 125 percent of debt service on the Bonds in the current fiscal year. 28 The projections presented herein indicate that for the first seven years of operation, it will be necessary to utilise monies in the Supplemental Reserve Fund to meet the annual debt service requirements of the Bonds since Gross Revenues, as defined in the Trust Indenture, will be insufficient to meet the annual debt service requirements. For this reason, the Supplemental Re- serve Fund is to be established. The Trust Indenture further provides that it shall not constitute a default of the Rate Covenant if rates, rents, fees and other charges are not set so as to produce sufficient Gross Revenues, as defined in the Trust Indenture, so long as such rates, rents, fees and charges are set at the maximum level obtainable as recommended by the consultant to be retained by the City to make this determination. Therefore, while the projections presented herein indicate that Gross Revenues, exclusive of the Supplemental Reserve Fund, will not be sufficient to meet the total of current operating expenses, deposits to the Renewal and Replacement Fund, and 125 percent of debt service on the Bonds for the projection period, this shall not constitute a default under the Rate Covenant. 29 (THIS PAGE WfENTIONALLY LEFT BLANK) i 1 CITY or MIAMI COMVCMt100 CENTER - GARAGE i STATEPWWr Or PROJECTED FUNDS AVAILABLE /oR 11E01' SERVICE (Consideration given to effects of inflation) j (Thousands) Revenues Convention Center: Main theater/auditorium rentals Meetinq room rentals Miscellaneous operating income Hotel promotional contribution parking garage: Parking rentals Store rentals Additional Rent - Hotel Rent - Trade Center Total revenue Operating expenses: Convention Centers Payroll and related expenses Marketing Utilities Repairs and maintenance Supplies Telephone Management fee Insurance Miscellaneous expenses Parking garage Total operating expenses Excess of operating revenues over operating expenses (carried forward) Tears ends December 31 0#I IOPf 1 Few Iof2 U $ 2!2 S 701 S 902 S1,00S $1,160 $1,201 $1,320 $1,021 S1,S21 $1,627 $1,701 72 153 175 200 232 240 26S 201 300 32S 3" 10 17 •56 60 70 70 00 OS 91 90 100 SO 100 100 see too too too 100 1" 100 1" 032 1,009 1,273 1,00! 1,S62 1,663 1,773 1,0l0 2,01 2,1" 2,2l3 651 1,090 1,011 2,166 2,000 2,611 2,793 2,909 3,190 3,022 3,662 160 309 070 507 S00 503 623 667 712 761 0/S sit 1,003 2,20S 2,673 2,900 3,190 3,016 3,6S6 3,910 0,103 0,071V 210 sse 791 1,077 1,3S1 1,006 1,500 1,60S 1,717 1,030 I't Us 1S0 ISO 1S7 16S 323 332 300 36S 393 1,05J 3,6S6 0,0!! 5,30! 6,OS4 6,500 7,012 7,003 7,"1 0,S36 9,110 200 370 396 023 03 004 S10 SSS 590 63S 601411 100 200 207 21S 223 231 200 2S0 261 272 7" 70 166 /00 202 210 231 247 260 203 303 320 31 67 77 09 is 102 109 116 12S 133 103 2S SO 62 72 77 02 00 90 101 1N 116 0 17 22 29 3S 30 00 63 k 09 S3 30 99 117 135 106 iS6 167 179 192 20S 219 06 100 197 210 22S 201 2SO 276 2!S 316 330 26 SS 64 70 79 OS 91 -T. 97 104 -I.-M 111 119 -, it ___M _T_.M -T.-M -T.-T; 1.1sis 7.-M M 3.132 1406 005 S32 S!! _641 606 730 70S 001 B!! 962 799 1,6S! HOBO 2,048 2,190 2#336 21092 2r6S! 2�,0/2 3,031 3,239 66S 1,997 2,601 3,301 3,060 0,/72 4,S26 0,020 S,109 S,SOS 9,001 3 i • 3 4S S. e 90 �� 4 ! l00 p S. 100 - 1164 4.1T2 4' 100 4.0100� ��- J— 997 2.441 3. 0,IGO 3�100 •p72 .420 T2 S64 6fis1. . 01 76i 6 tin9 -So s47 S41 , s ovef opera 615 1.100 40 •240 240 S66 —r S66 ratiMl re'K^ue 240 240 566 566 ,96 ht forvar+� cePlaeeKnt 56 ,00 .570 rest^s a �o reMval 642 ) for 0 Loss reserve pevelopec '27 '— newenta cos Ibtel 2.225 222 11� 0 f5.61S $SA f6� S 30 �- - ) 00 S rOnaPerio i 1 t Dy 5.100 7S3 1.0�3 SS. S� 57i SS•SS1 2.540 21]9� ly !' � vaTba tr S� SSA S� 35,300 S latorest i^cam the go�1"ental t00 SS.100 SS.100 SSA fSr ��- J to the 0pnds S S SSA,. " r� SS�100 S5 �.�' [ones noe rood fcoa� deposits SSA in0aits Fund a �� ite tnelndin9 f 55,100 SS.100 �,..- reserve Fund fS,1o0 1.9" fl p4 f1,f21 the ��lewentai 52.550 SS.100 �..�. �- ��' Aesecve r..� fl 50► i1 N Jonas available for debt sehe 1 ;1 4f1 t0 the K�^oe fund Eraw -01"S2,020 S f q.210 Oevenue l OOs fN 77 f7,]07 i7 service its to the ��� 442 $$432 S_ y� ;6,Sf� Sim .r�� cOneraoe incl'�iM eC Tuna fl`1 S� f'.s S7. $6� s6�� J_ 1.5� M 1.71a ;ecvice a intal 12f Debt the so" 203 $1•S32 ff '�� �'�'� rand Eros ` 1eaental Ile [und s4.4'1 57+� sll`� �� l 40a ! �s 1.30t of the ' �' Balance tea inelaund balance of Copp ^debt ��besec+e rood 1 r wda �dtathe SU cpv+cage iMledin9 balance of the � fwcvegental Raaecve rind repact tin eo owttiodot*t" w'ssthis ctofiproit The 1teycal pa are a" is r ik APPENDIX d SUMMARIES OF LEGAL INSTRUMENTS Fuur basic legal instruments to be delivered by the City on the date of the delivery of the Bonds are (1) the Trust Indenture, (ii) the Hotel Agreement, (III) the TC Agreement, and (iv) the University Agreement. Some of the provisions of each of the foregoing instruments are summarized below. Reference is made to said instruments on file with the Trustee for the complete provisions thereof. SUMMARY OF THE TRUST INDENTURE Summaries of certain provisions of the Trust Indenture are Included in this Official Statement under the caption "Description of the Bonds". Definitions of Certain Terms The following is a summary of certain definitions used in the summary of the Trust Indenture. "Amortization Requirements" shall mean, for the term bonds, for any fiscal year the principal amount (which shall be in a multiple of S5,000) of such bonds required to be redeemed or otherwise retired on January I of such fiscal year. "bondholder" shall mean the holder or registered owner, as the case may be, of any bonds then outstanding. "bondholders of record" shall mean the registered owners or the holders of bonds, who shall have filed with the Trustee within the period of two (2) years immediately prior to any time when such term has appli- cation, a request in writing setting forth his name and address and the particular documents which he desires to receive and which are required to be mailed to him under the Trust Indenture. "bonds" shall mean the bonds then outstanding issued under the Trust Indenture. "Commission" shall mean the governing body of the City. "Convention Center" shall mean the convention center being completed in the City in conformity with the plans, drawings, specifications and other contract documents therefor prepared by the architect with respect to the Convention Center. "Convention Center -Garage" shall mean, collectively, the Convention Center and the Parking Garage, and a connecting walkway, including machinery, equipment, fixtures, furniture, improved and unimproved land, landscaping and other facilities appurtenant or incidental thereto. "Current Expenses" for any particular period shall mean the reasonable and necessary current expenses incurred during such period by the City for the operation, repair, maintenance, management and administration of the Convention Center -Garage, as determined in accordance with generally accepted auditing standards except as modified. "fiscal year" shall mean the fiscal year of the City, being the period commencing on the first day of October of any year and ending on the last day of September of the following year. "Government Obligations" shall mean direct obligations of, or obligations the principal of and the interest on which arc unconditionally guaranteed by, the United States of America. "Gross Revenues of the Convention Center -Garage" for any particular period shall mean (subject to provisions of the Trust Indenture which require that certain amounts received by the City pursuant to the Hotel Agreement and the University Agreement be deposited to the credit of the Supplemental Reserve Fund and not the Revenue Fund) (i) all revenues, rents, fees, rates, charges and other income and receipts derived in such period by or on behalf of the City from its ownership, lease, operation or possession of, or in connec- tion with, the Convention Center -Garage, or any part thereof, including rent derived under the Hotel Agreement, the TC Agreement and the University Agreement and other revenues derived from leases, subleases and contracts, (ii) proceeds of any use or occupancy insurance, and of any other insurance which insures against business interruption, relating to the Convention Center -Garage and (iii) interest on any money or securities held under the Trust Indenture and required to be paid into the Revenue Fund. B-1 "Hotel Agreement" shall mean the Lease andZAement for Development between the City and the Miami Center Associates, Ltd., dated as of Septem, as amended by the First Supplement to the Lease and Agreement for Development, dated as of0, as amended from time to time. "Investment Obligations" &ball mean Government Obligations and, to the extent from time to time permitted by law, direct obligations of the Federal Financing Bank, Federal Home Loan Banks, Federal Land Banks, Federal Banks for Cooperatives, Federal National Mortgage Association, Government National Mortgage Association, Federal Intermediate Credit Banks, Export-import Bank of the United States, Farmers Home Administration and International Bank for Reconstruction and Development, and negotiable or non- negotiable certificates of deposit or time deposits of any bank, branch of any bank, trust company or national banking association (including the Trustee and any bank or trust company acting as Depositary), which is a member of the Federal Deposit Insurance Corporation, such certificates of deposit to be secured as provided in the Trust Indenture and, to the extent permitted by law, repurchase agreements covering any of the fore- going; provided, that no such obligations or certificates of deposit shall be included within such term unless the same shall be payabl4 in United States dollars in the United States of America. "Net Revenues of the Convention Center -Garage" for any particular period shall mean the excess of all Gross Revenues of the Convention Center -Garage over all Current Expenses for such period. "Parking Garage" shall mean the parking garage which is part of the Convention Center -Garage. "Pledged Telephone and Telegraph Excise Tax Revenues" (i) shall mean during the period that there remain outstanding any Utilities Service Tax Bonds, including Utilities Service Tax Refunding Bonds (collec- tively called the "Utilities Tax Bonds") pursuant to the provisions of Ordinance No. 7066 (adopted by the Commission on November 21, 1962), only that portion of such tax revenues derived from the levy and collection of the utilities service tax upon the purchase of telephone and telegraph services which each month remain to the credit of the Miami Utility Tax Fund (defined in said Ordinance No. 7066) Immediately after the withdrawal therefrom and the deposit by the City with the trustee to the credit of the sinking fund under said Ordinance No. 7066 of the respective amounts as required under clauses (a), (b) and (c) of Section 402 of said Ordinance No. 7066 and (ii) shall mean, when no Utilities Tax Bonds shall be outstanding, all of the tax revenues derived from the levy and collection of the utilities service tax upon the purchase of telephone and telegraph services. "Principal and Interest Requirements" for any fiscal year as applied to the bonds, sball mean the sum of: (1) the amount required to pay the interest on the bonds and the principal of all serial bonds then outstanding which is due and payable in such fiscal year, and (2) the amount of the Amortization Requirements for such fiscal year. "serial bonds" shall mean the bonds, other than term bonds, authorized to be issued as serial bonds, which are stated to mature by their terms in consecutive annual installments. "term bonds" shall mean the bonds, other than serial bondu authorized to be issued as term bonds which are stated to mature by their terms on Ao67_ c.. =1.4 "Trade Center" shall mean that certain trade center and office building, to be constructed, operated and maintained pursuant to the TC Agreement. "TC Agreement" shall mean the Lease Agreement between the City and Dade Savings and Loan Association ("Dade Savings"), dated as of July 1, 1980, as amended from time to time. "University Agreement" shall mean the agreement between the City and the University of Miami, dated April 1, 1977, as amended from time to time. lTCr "utilities service tax" shall mean the tax levied and imposed by the City i; the purchase of certain utility products and services, including local telephone and telegraph services, within the corporate limits of the City, as provided in Section 166.231 of Florida Statutes, the Code of the City and ordinances adopted by the Commission, including particularly Ordinance No. 3143, adopted July 26, 1946, Ordinance No. 4914, adopted October 26, 1953, Ordinance No. 5272, adopted April 11, 1955, Ordinance No. 5829, adopted December 10, 1956 and Ordinance No. 7066, adopted November 21, 1962. B-2 00 k V "Hotel Agreement" shall mean the Lease and A ement for Development between the City and the Miami Center Associates, Ltd., dated as of Septembe 13, 1979, as amended by the First Supplement to the Lease and Agreement for Development, dated as of 1990, as amended from time to time. "Investment Obligations" shall mean Government Obligations and, to the extent from time to time permitted by law, direct obligations of the Federal Financing Bank, Federal Home Loan Banks, Federal Land Banks, Federal Banks for Cooperatives, Federal National Mortgage Association, Government National Mortgage Association, Federal Intermediate Credit Banks, Export -Import Bank of the United States, Farmers Home Administration and International Bank for Reconstruction and Development, and negotiable or non- negotiable certificates of deposit or time deposits of any bank, branch of any bank, trust company or national banking association (including the Trustee and any bank or trust company acting as Depositary), which is a member of the Federal Deposit Insurance Corporation, such certificates of deposit to be secured as provided in the Trust Indenture and, to the extent permitted by law, repurchase agreements covering any of the fore- going; provided, that no such obligations or certificates of deposit shall be included within such term unless the same shall be payable in United States dollars in the United States of America. "Net Revenues of the Convention Center -Garage" for any particular period shall mean the excess of all Gross Revenues of the Convention Center -Garage over all Current Expenses for such period. "Parking Garage" shall mean the parking garage which is part of the Convention Center -Garage. "Pledged Telephone and Telegraph Excise Tax Revenues" (i) shall mean during the period that there remain outstanding any Utilities Service Tax Bonds, including Utilities Service Tax Refunding Bonds (collec- tively called the "Utilities Tax Bonds") pursuant to the provisions of Ordinance No. 7066 (adopted by the Commission on November 21, 1962), only that portion of such tax revenues derived from the levy and collection of the utilities service tax upon the purchase of telephone and telegraph services which each month remain to the credit of the Miami Utility Tax Fund (defined in said Ordinance No. 7066) immediately after the withdrawal therefrom and the deposit by the City with the trustee to the credit of the sinking fund under said Ordinance No. 7066 of the respective amounts as required under clauses (a), (b) and (c) of Section 402 of said Ordinance No. 7066 and (ii) shall mean, when no Utilities Tax Bonds shall be outstanding, all of the tax revenues derived from the levy and collection of the utilities service tax upon the purchase of telephone and telegraph services. "Principal and Interest Requirements" for any fiscal year as applied to the bonds, shall mean the sum of: (1) the amount required to pay the interest on the bonds and the principal of all serial bonds then outstanding which is due and payable in such fiscal year, and (2) the amount of the Amortization Requirements for such fiscal year. "serial bonds" shall mean the bonds, other than term bonds, authorized to be issued as serial bonds, which are stated to mature by their terms in consecutive annual installments. "term bonds" shall mean the bonds, other than serial bond,, authorized to be issued as term bonds which are stated to mature by their terms on aOGZ c"=1.i "Trade Center" shall mean that certain trade center and office building, to be constructed, operated and maintained pursuant to the TC Agreement. "TC Agreement" shall mean the Lease Agreement between the City and Dade Savings and Loan Association ("Dade Savings"), dated as of July 1, 1980, as amended from time to time. "University Agreement" shall mean the agreement between the City and the University of Miami, dated April 1, 1977, as amended from time to time. !! "01\ "utilities service tax" shall mean the tax levied and imposed by the City Oar the purchase of certain utility products and services, including local telephone and telegraph services, within the corporate limits of the City, as provided in Section 166.231 of Florida Statutes. the Code of the City and ordinances adopted by the Commission, including particularly Ordinance No. 3143, adopted July 26, 1946, Ordinance No. 4914, adopted October 26, 1953, Ordinance No. 5272, adopted April 11, 1955, Ordinance No. 5829, adopted December 10, 1956 and Ordinance No. 7066, adopted November 21, 1962. B-2 ............. Additional Bonds Additional bonds may be issued under and secured by the Trust Indenture, of the same maturity date as the latest maturity date of the term bonds , in an amount sufficient for completing the payment of the cost of the Convention Center -Garage but not in any event to exceed a total principal amount of Five Million Dollars (i3,000,000). Collection and Disposition of Revenues The Trust Indenture provides for the establishment, with the Trustee, of the Revenue Fund, the Sinking Fund, the Renewal and Replacement Fund, the Supplemental Reserve Fund and the Surplus Fund. There are created in the Sinking Fund three separate accounts designated the Bond Service Account, the Redemption Account and the Reserve Account. 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; provided that 0) Base Rent amounting to $2,900,000 derived by the City pursuant to the Hotel Agreement and (ii) Advance Rent, in the amount of $2,500,000 plus the earnings thereon, derived by the City pursuant to the University Agreement (or if not fully paid by the University when due, to be provided by the City) shall not be deposited to the Revenue Fund but shall be deposited to the credit of the Supplemental Reserve Fund. All money in the Revenue Fund shall be held by the Trustee in trust and applied as provided in the Trust Indenture and, pending such application, shall be subject to a lien and charge in favor of the holders of the bonds and for the further security of such holders until paid out or withdrawn as provided in the Trust Indenture. The Trustee shall withdraw from the Revenue Fund on or before the 25th day of each calendar month, after the delivery of the bonds issued under Section 208 of the Trust Indenture, all money held for the credit of said fund on the last day of the preceding month and deposit the sum so withdrawn to the following accounts or funds in the following order: %^ koks-g (a) to the Bond Service Account, an amount a to the sum of (i) commencing in June 1982, an amount equal to one -sixth (r/a ) of the intere ayable on all the outstanding bonds on the next ensuing interest payment date; and (ii) commencing , an amount equal to one -twelfth (1/12) of the next maturing installment of principal of all serial bonds; provided that if in any calendar month there shall be a defirip"ry ;n the amount that is required to be deposited to the credit of the Bond Service Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Bond Service Account pursuant to this provision shall be increased by the amount of such deficiency; ,r O W C (b) to the Redemption Account, commencing a36;; nary 1 preceding the first fiscal year in which any term bonds are required to be redeemed, an amount equal to one -twelfth (1/ q) of the principal amount of the term bonds required to be retired on the next succeeding January 1 in satisfaction of the Amortization Requirements therefor; provided that if in any calendar month there shall be a deficiency in the amount that is required to be deposited to the credit of the Redemption Account pursuant to this provision, the amount otherwise required to be deposited in the next ensuing calendar month to the credit of the Redemption Account pursuant to this provision shall be increased by the amount of such deficiency; (c) to the Reserve Account, such amount, if any, of any balance remaining after making the deposits under the two preceding provisions, as may be required to make the amount then held for the credit of the Reserve Account equal to the maximum Principal and Interest Requirements on all bonds then outstanding for the current or any succeeding fiscal year; (d) to the Renewal and Replacement Fund, commencing in June 1982, one -twelfth (1/1 z) of $100,000 and one -twelfth NO 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, so long as the balance in the Renewal and Replacement Fund shall be less than (i) the greater of One HundreJ Thousand Dollars ($100,000) or one and one -quarter percent (1.25%) of the Gross B-3 Ork Revenues of the Convention Center -Garage for the preceding twelve (12) calendar month period, of (h) such larger amount, if any, which the Consultant retained for such purpose in its latest written report, shall have recommended be held for the credit of such fund; (e) 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 Two Million Five Hundred Thousand Dollars ($2,500,000); (f) to the Surplus Fund, the balance, if any, of the amount so withdrawn. Money in the Revenue Fund shall be used for the payment of the Current Expenses of the Convention Center -Garage under a requisition procedure set forth in the Trust Indenture. Money in the Bond Service Account shall be applied to the payment of the interest on all the outstanding bonds and the principal of all serial bonds. Money in the Redemption Account shall be applied to the purchase, redemption or retirement of term bonds, if any, in compliance with the Amortization Requirements, and otherwise as provided in the Trust Indenture. Money in the Construction Account shall be applied to the payment of the cost of the Convention Center - Garage, subject to the filing of requisitions and certifications in connection therewith, as provided in the Trust Indenture. Any surplus in the Construction Account shall be deposited to the Sinking Fund. Money in the Reserve Account shall be used to pay interest on the bonds and maturing principal of the bonds, whenever and to the extent that the money held for the credit of the Bond Service Account or the Redemption Account shall be insufficient for such purpose; provided that money in, first, the Surplus Fund, second, the Supplemental Reserve Fund and, third, the Renewal and Replacement Fund shall be applied to make up any such deficiency in the Bond Service Account or the Redemption Account before any money in the Reserve Account is disbursed for such purpose. Excess money in such account shall be transferred to the Revenue Fund; provided, however, that prior to the completion date of the Convention Center -Garage, such earnings shall be deposited in the Construction Account. Money in the Renewal and Replacement Fund (i) shall be transferred to the Bond Service Account or the Redemption Account to make up deficits therein, provided that money in first, the Surplus Fund and, then, the Supplemental Reserve Fund shall be applied to make up any such deficiency before any money in the Renewal and Replacement Fund shall be disbursed for such purpose; and (ii) except to the extent necessary to supplement proceeds of insurance in the event of any damage or loss of property and subject to the require- ments of the Trust Indenture, may be disbursed for the payment of the costs of unusual or extraordinary mainte- nance or repairs, renewals, replacements, and engineering and architectural expenses incurred in the expenditure of renewal and replacement funds or for paying the cost of any capital improvement exceeding $25,000 in any fiscal year. Any obligation payable from the Renewal and Replacement Fund in excess of $50,000 must be approved by a consultant. Insurance proceeds must be applied first to the payment of such obligations before the application of money in the Renewal and Replacement Fund. Excess money in such fund shall be trans- ferred to the credit of the Revenue Fund. Money held for the credit of the Supplemental Reserve Fund shall be applied for the following purposes: (i) if at any time money held for the credit of the Revenue Fund shall not be sufficient to pay Current Expenses then due and payable, the Trustee shall then transfer to the credit of the Revenue Fund an amount sufficient to make up any such deficiency; and (ii) if at any time money held for the credit of the Bond Service Account shall not be sufficient to pay the interest on all the outstanding bonds and the principal of all serial bonds then due, or the total money held for the credit of the Redemption Account shall be less than the amount required to pay the principal of all term bonds (including retirement thereof in accordance with Amortization Requirements) then due, the Trustee shall then transfer to the credit of such accounts an amount sufficient to make up any such deficiency; and (iii) if at any time money held for the credit of the Renewal and Replacement Fund shall be less than the maximum requirement therefor, the Trustee shall then transfer to the credit of the Renewal and Replacement Fund an amount sufficient to make up any such deficiency; provided, however, that B-4 money held for the credit of the Surplus Fund shall be applied to make up any deficiencies described in provi- sions (i), (ii) and (iii) before any money in the Supplemental Reserve Fund shall be disbursed for such purpose. Money held for the credit of the Supplemental Reserve Fund may be used for the purposes and in the same manner as money held for the credit of the Renewal and Replacement Fund, provided: (1) there shall remain on deposit for the credit of the Supplemental Reserve Fund after the withdrawal of any money for such purposes, an amount at least equal to the greater of twenty-five percent (25% ) of the maximum Principal and Interest Requirements for the current or any succeeding fiscal year; (ii) Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years immediately preceding the fiscal year in which such withdrawal is proposed shall have been at least one hundred and twenty-five percent (125%) of the Principal and Interest Requirements for each of said fiscal years, respectively; and (iii) a consultant certifies in writing to the City and the Trustee that such expenditure of money is necessary and desirable. The Trust Indenture also provides that money held for the credit of the Supplemental Reserve Fund may be transferred by the Trustee from such fund for deposit to the credit of the Surplus Fund provided: (i) there shall remain on deposit for the credit of the Supplemental Reserve Fund after the transfer of any money, an amount at least equal to Two Million Five Hundred Thousand Dollars ($2,500,000); (ii) Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years immediately preceding the fiscal year in which such transfer is proposed shall have been at least one hundred and twenty-five (125 %) of the Principal and Interest Requirements for each of said fiscal years, respectively; and (iii) a consultant certifies in writing to the City and the Trustee that Net Revenues of the Convention Center -Garage for each of the three consecutive fiscal years next succeeding the fiscal year in which such transfer is proposed will be at least one hundred and twenty-five percent (125% ) of the Principal and Interest Requirements for each of said fiscal years, respectively. Money held for the credit of the Surplus Fund shall be applied to make up, in the order of priority as follows, any deficit in, first, the Bond Service Account and the Redemption Account, second, the Reserve Account, third, the Renewal and Replacement Fund, and fourth, the Supplemental Reserve Fund. Subject to the foregoing, money held for the credit of the Surplus Fund may be used by the City, in conformity with applicable law, for any lawful purpose. Custody and Application of Bond Proceeds The proceeds (including accrued interest) of the bonds shall be applied by the Trustee as provided in the Trust Indenture, simultaneously with the delivery thereof, to the credit of the Bond Service Account, the Reserve Fund and the Construction Account and to the payment of the premium for the municipal bond insurance. Investment of Funds Money held for the credit of the accounts and funds under the Trust Indenture, as nearly as may be practicable, shall be continuously invested and reinvested in Investment Obligations which shall mature, or be subject to redemption by the holder thereof at his option, as provided in the Trust Indenture. Investment Obligations purchased as an investment of money credited to any fund or account shall be deemed to be a part of such fund or account, and any interest or profit thereon shall be credited to the respective fund or account (except for certain excess earnings) and any loss shall be charged to such fund or account; provided, however, that prior to the completion date of the Convention Center -Garage, any interest accruing on obligations purchased with money credited to the Bond Service Account and the Reserve Account shall be deposited to the credit of the Construction Account. Insurance The City covenants that during the construction of the Convention Center -Garage it will cause the Convention Center -Garage to be insured against such risks as are customarily insured against in connection B-5 with the construction of comparable facilities. Each insurance policy shall contain a loss payable clause in which any loss with respect to the Convention Center shall be paid to the City and to the Hotel Developer, the Hotel Mortgagee, and the University, as additional insureds, as their respective interests may appear, and any loss with respect to the Parking Garage shall be paid to the City and to Dade Savings, as an additional insured, as their respective interests may appear. The City further covenants that it will cause all improvements in or constituting pan of the Convention Center -Garage at all times to be insured against such risks as are customarily insured against in connection with the operation of convention center and parking facilities of comparable type and size and that the City will carry and maintain at least the following insurance, In the respective amounts specified in the Trust Indenture, when and as such insurance is commercially available: (a) fire, with Uniform Standard Extended Coverage Endorsements, and vandalism and malicious mischief insurance, with the broadest all risk coverage endorsements; (b) war risk insurance, when obtainable from the United States of America; (c) coverage for sprinkler leakage, boilers, pressure vessels or similar apparatus, auxiliary piping and selected machinery objects; (d) comprehensive general liability insurance; (e) comprehensive automobile liability Insurance; (f) work- men's compensation insurance as required by the laws of Florida; and (g) use and occupancy or business interruption insurance covering the loss of revenues by reason of the suspension of, or interruption in, the operation of the Convention Center -Garage caused by damage to or destruction of any part of the Convention Center -Garage, caused by any peril insured against, covering a period of suspension or interruption by reason of such damage. Damaged or Destroyed Property Immediately after any substantial damage to or destruction or loss of any part of the Convention Center - Garage, the City shall cause to be prepared plans and specifications for repairing, replacing or reconstructing the damaged, destroyed or lost property (to conform with the approved plans and specifications for the Con- vention Center or the Parking Garage, as the case may be, as they existed immediately preceding the date of loss or damage, unless otherwise agreed to by the Hotel Developer and the University with respect to the Con- vention Center and the Hotel Developer and Dade Savings with respect to the Parking Garage) and an estimate of the cost thereof. The proceeds of all such insurance available for the replacement, repair or recon- struction of the lost, damaged or destroyed property, shall be disbursed by the Trustee for such purpose. If such proceeds are more than sufficient for such purpose, the balance remaining shall be deposited to the credit of the Sink;nv Fiind. If such proceeds shall be insufficient for such purpose, the deficiency shall be provided (i) by the Trustee, upon requisition of the City, from any money held for the credit of the Renewal and Replacement Fund and (ii) by the City, from any other money of the City legally available therefor. Architects, Accountant and Consultants The City covenants to retain an independent architect, an accountant and such consulting, parking, structural or traffic engineers, or feasibility or management consultants, as it deems necessary and appropriate, each having a favorable national repute for skill and experience in such work, to perform the functions of the Architect, the Accountant and the Consultants, respectively, under the Trust Indenture. Modification of Trust Indenture The City and the Trustee may enter into supplemental trust indentures to cure any ambiguity, formal defect or omission, to grant to the Trustee for the benefit of the bondholders additional security and to pledge additional property. The Trust Indenture may be amended in any particular, with the consent of the holden of not less than 51 % of the aggregate principal amount of the bonds then outstanding; provided that no such amendment shall permit (i) an extension of the maturity of principal or interest payment, (ii) a reduction in the principal amount, the redemption premium or the rate of interest of any bond, (iii) the creation of a lien on or a pledge of the Gross Revenues or Net Revenues of the Convention Center -Garage other than the lien and pledge created by the Trust Indenture, (iv) a preference or priority of any bond or bonds over any other bond or bonds, or (v) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental trust indenture. B-6 Remedies of Dandbolden Events of default include, among others: failure to pay principal, interest or redemption premium when due; failure to meet the Amortization Requirements; unreasonable delay in, failure to carry on with reasonable dispatch, or the abandoning of, the construction of the Convention Center -Garage or any substantial part thereof; the City's incapability of fulfilling its obligations under the Trust Indenture; any substantial part of the Convention Center -Garage shall be destroyed or condemned to the extent of impairing the efficient operation or usefulness thereof which shall not be promptly repaired, replaced or reconstructed; the termination of the Hotel Agreement, TC Agreement or the University Agreement except in accordance with the terms thereof; an event of default under the Hotel Agreement, TC Agreement or the University Agreement which shall have continued for 30 days after written notice thereof; insolvency, receivership, bankruptcy or other proceedings affecting certain financial aspects of the Convention Center -Garage or the City; or certain other events, acts or omissions to act; in each case within or for the specified period of grace, if any. Upon the happening and continuance of any event of default the Trustee may, and upon the written request of the holders of not less than l5cl* of the principal amount of the bonds outstanding shall, declare the principal of all the bonds to be due and payable. Such declaration may be rescinded under the circum- stances and requirements specified in the Trust Indenture. No bondholder shall institute any suit, action or proceeding on any bond or for any remedy under the Trust Indenture except as provided in the Trust Indenture. The holders of not less than 15% of the principal amount of the bonds outstanding may institute any such suit, action or proceeding in their own names for the benefit of all holders of bonds. Covenants of the City In addition to other covenants, the City has covenanted under the Trust Indenture that it will not use or pledge any of the Gross Revenues or Net Revenues of the Convention Centcr-Garage to pay or secure obliga- tions that are not secured under the provisions of the Trust Indenture, and that, so long as any bonds authorized under the Trust Indenture shall be outstanding, it will not authorize or issue any bonds secured by any lien on or pledge of the proceeds of the utilities services tax levied and imposed on the purchase of local telephone and telegraph services (other than Utilities Service Tax Refunding Bonds); provided that Pledged Telephone and Telegraph Excise Tax Revenues may be applied by the City for any lawful purpose if such revenues exceed the amount necessary to pay any bonds secured by the Trust Indenture. The City further covenants that so long as any Utilities Tax Bonds shall be outstanding it will not reduce the utilities service tax if such reduction would adversely affect the availability of revenues from the utilities service tax upon the purchase of telephone and telegraph services for the purposes described in the Trust Indenture. The City further covenants that it will not repeal the utilities service tax upon the purchase of telephone and telegraph services while any of the bonds issued under the provisions of the Trust Indenture shall be outstanding and that no reduction in such tax upon the purchase of telephone and telegraph services will be made unless certain requirements of the Trust Indenture are satisfied. The City covenants that 0) if at any time it shall appear necessary, it will increase the utilities service tax upon the purchase of telephone and telegraph services, within the limits and restrictions fixed by applicable law, as may be necessary to satisfy the City's obligations under the Trust Indenture and (ii) if at any time the amount of Pledged Telephone and Telegraph Excise Tax Revenues received by the City from the utilities service tax upon the purchase of telephone and telegraph services shall decrease for any reason then the City shall increase such tax, within the limits of applicable law, or will endeavor to substitute an equivalent amount of other utilities service tax revenues as security for the payment of the City's obliga- tions under the Trust Indenture. The City covenants that it will not create or suffer to be created a lien, encumbrance or charge upon the Convention Center -Garage or any part of the site upon which the Convention Center -Garage is located or upon the Gross Revenues or Net Revenues of the Convention Center -Garage, Pledged Telephone and Telegraph Excise Tax Revenues and other money pledged under the Trust Indenture except the pledge, lien and charge for the security of the bonds created thereby upon said revenues and said other money and except as otherwise provided therein. B-7 0^ n The City also covenants that, except as in the Trust Indenture otherwise permitted, it will not sell, demolish, remove, or otherwise dispose of or encumber the Convention Center -Garage or any part thered, or such air rights, easements, licenses or other similar rights in land necessary for construction, operation or maintenance of the Convention Center -Garage or any part thereof, and that it will not take or fail to take any actions which may result in the termination or cancellation of the Hotel Agreement, the TC Agreement or the University Agreement except in accordance with the terms thereof, and that it will fulfill its obligations and will require the Hotel Developer, Dade Savings and the University, respectively, to fulfill their respective duties and obligations under the Hotel Agreement, the TC Agreement or the University Agreement. Assignment of Hotel Agreement, TC Agreement and Usdverdty Agreement The City has given, assigned and pledged to the Trustee and the holders from time to time of the bonds, as additional security for the bonds, the Hotel Agreement, the TC Agreement and the University Agreement and all the rights, powers, privileges and immunities of the City under the Hotel Agreement, the TC Agree- ment and the University Agreement. Release of Trust Indenture If, among other things, the bonds shall have become due or shall have been duly called for redemp- tion or irrevocable instructions to call the bonds for redemption shall have been given by the City to the Trustee, and the principal, interest and premium, if any, so due upon all the bonds shall be paid or sufficient money or Government Obligations, or both, shalt be held in trust by the Trustee therefor, the Trust Indenture shall be released and the defeasance thereof shall be effected. Otherwise the Trust Indenture shall remain in full force and effect. Miscellaneoas No covenant, stipulation, obligation or agreement contained in the Trust Indenture shall be deemed to be binding upon any officer, agent or employee of the City in his individual capacity, and no officer of the City executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Except as otherwise expressly provided in the Trust Indenture, nothing therein is intended or shall be construed to confer upon any person, firm or corporation, other than the City, the Trustee and the holden of the bonds, any right, remedy or claim, legal or equitable, under or by reason of the Trust Indenture. All obligations, liabilities and expenses incurred by the City in carrying out the Trust Indenture shall be payable solely from funds provided thereunder, and no liability or obligation shall be incurred by the City beyond the extent to which money shall have been provided under the Trust Indenture. The Trustee, the Depositary and any bank or trust company acting as Paying Agent under the Trust Indenture and their directors, officers, employees or agents and any Commissioner or other officer, employee or agent of the City may, in good faith, buy, sell, own, hold and deal in any of the bonds or coupons and may join in any action which any bondholder may be entitled to take. Any amendment of the Hotel Agreement, the TC Agreement and the University Agreement may be approved by the Trustee provided such amendment is in conformity with the provisions of the Trust Indenture and such agreement and the Trustee shall determine that the rights of the bondholders shall not be prejudiced or impaired by such amendment. SUMMARY OF HOTEL AGREEMENT Term The initial term of the Hotel Agreement shall commence on September 13, 1979 and shall expire 4S years after the date on which the Hotel first opens for business. (The Hotel Developer is obligated to complete construction of the Hotel on or before February 1, 1982). The Hotel Agreement may be renewed by the Hotel Developer, upon the same terms and conditions, for an additional 41 years after the expiration of the initial term. H-8 4 Ok 7� I Rat The Hotel Developer covenants to pay rent consisting of a Base Rent and dditional Rent. The Base Rent is $2,900,000, being equal to the average present value f all of the rights of the Hotel Developer under the Hotel Agreement, and is payable on the date the Hotel tint opens for business. Additional Rent is payable semi-annually based upon a percentage of annual Gross Sales increasing from 1.6%r at $20,000,000 of Gross Sales to 3.6% at $40,000,001 of Gross Sales. A definition of Gross Sales and a complete table of percentages and amounts are included in this Official Statement under the caption "Descrip- tion of the Bonds Security for the Bonds —Hotel Agreement". If Gross Sales exceed $41,666,667 the Hotel Developer shall pay Additional Rent to the City in the amount of $1,500,000 subject to upward adjustment for equivalent increases in the Consumer Price Index for the City of Miami, or such other comparable index which may be in effect from time to time if said Consumer Price Index is unavailable, using the index for the first year in which Gross Sales exceed $41,666,667 as a base year. Payment of Additional Rent shall be deferred to the extent that funds available to the Hotel Developer from the revenues of the Hotel are insufficient to pay such Additional Rent after the payment of (i) principal, interest and participation interest under the Hotel Developer's first mortgage loan, (h) all operating expenses and cash reserves required of the Hotel Developer under the Hotel Agreement and Hotel management agree- ment, and (iii) priority return to equity capital investors, provided, that the sum of (i) and (iii) shall not exceed in the aggregate $5,300 per room per annum. Interest is payable upon the deferred Additional Rent at the rate of 1/2 % above the rate paid by the City on its Bonds. Additional Rent may be deferred for three years and is then payable from any funds available to the Hotel Developer in any calendar year after payment of items (i), (ii), and (iii) above. The rent during the renewal tetra shall be as agreed upon at such dme by the parties to the Hotel Agreement. incremental Costs of Construction The Hotel Developer shall pay to the City $1,200,000, representing the costs to the City of constructing certain structural and support elements in the Convention Center in sufficient size and capacity to serve the Hotel. These incremental costs shall be paid by the Hotel Developer to the City in five equal annual install- ments of S2r0,000 each beginning fifteen months following the date on which the Hotel first opens for business. Offset Rent and all other sums payable by the Hotel Developer shall be paid without notice, demand, counter- claim, setoff, deduction or defense and without abatement, suspension, deferment, diminution or reduction except if the Hotel Developer or the Hotel Developer's first mortgagee shall incur any cost or pay any sum anywhere in the Hotel Agreement prescribed to be obligations of the City, then the Hotel Developer or the Hotel Developer's first mortgagee shall have a claim against the City which claim shall bear interest thereon at the rate at which funds are available to the Hotel Developer from commercial sources, and if not sooner paid, may be offset against Additional Rent. Construction of the Hotel The Hotel Developer agrees to promptly begin construction of the Hotel. The Hotel Developer shall construct the Hotel fully equipped, adequately capitalized, and ready to commence business within the time limits and in accordance with the standards provided in the Hotel Agreement. The Hotel Developer must substantially complete the Hotel on or before February 1, 1982 including installation of furniture, fixtures and equipment. Construction of the Convention Center and Parking Gantge The City shall construct the Convention Center, including support elements for the Hotel, the Parking Garage, the public park and the river walk, and the installation of all furniture, fixtures and equipment on or before February 1, 1982. B-9 W UdUd a The City will construct as part of the Convention Center a plant of plants to produce hot and chilled water sufficient for the needs of the Convention Center and the Hotel. The Hotel Developer will pay to the City on a monthly basis the direct unit cost of hot and chilled water delivered to the Hotel. Each of the parties shall pay the cost of utility services to its respective premises or otherwise used by the respective patty. Convention Center Facilities The cost of performing the City's undertakings shall bL paid from proceeds of the Bonds, from the revenues of the Convention Center and Parking Garage, and from such funds of the City as may be lawfully available therefor. The City at its expense shall operate and maintain the Convention Center and Parking Garage as a first- class convention and conference center and parking garage. If the City fails to operate or maintain the Conven- tion Center and Parking Garage, as aforesaid, then, the Hotel Developer shall have the right to perform such operation, maintenance, repair or replacement and the Hotel Developer shall be entitled to an appropriate offset against Additional Rent. The Convention Center (excluding the Conference Center) shall be placed under a management agree- ment with a professional management firm. Thy C.,ucerenve C nter shall be placed under a management agreement with the same professional management firm with regar� to the performance of custodial and maintenance functions. Parking The City has agreed with the Hotel Developer to construct the Parking Garage with parking facilities for not fewer than 1,450 automobiles connected to the Convention Center by means of a pedestrian walkway. The Hotel Developer or its Hotel manager shall have priority to reserve each day up to 24.9% of all the parking spaces in the Parking Garage for use during such day by guests of the Hotel. Hotel ?Management The Hotel Developer shall submit to the City an executed management contract with a nationally recognized hotel management firm for operation and management of the Hotel. The Hotel Developer's trade commissions and discounts shall be only those types normally associated with the operation of a first-class hotel and shall be maintained at competitive price levels. Equlty Investment Capital and Mortgage Financing It shall be the sole responsibility of the Hotel Developer to secure sufficient equity capital and mortgage financing, in any combination thereof, to construct the Hotel in such a manner as to meet its obligations under the Hotel Agreement. The Hotel Developer shall furnish the City with the name and address of the holder of all mortgages against the leased premises and of any other lien or encumbrance which has been created on or attached to the leased premises whether by act of the Hotel Developer or otherwise. Rights of the Hotel Developer's Mortgagees Should the Hotel Developer's first mortgagee succeed to the position of the Hotel Developer, then the payment of Additional Rent shall be deferred to the extent that funds available to the mortgagee from the revenues of the Hotel are insufficient to pay Additional Rent after payment or retention of (i) the debt service which would have been due on the Developer's first mortgage; (ii) all operating expenses and cash reserves required under the Hotel Agreement and the Hotel management agreement; and (iii) any other amounts secured by the Hotel Developer's first mortgagee including, but not limited to, arrearages in debt service and sums advanced by said mortgagee in payment of obligations of the Hotel Developer under said B-10 mortgage or the Hotel Agreement. At the end of each year if there are funds available to such mortgagee as determined in the manner described above, and there exists unpaid Additional Rent which accrued after the Hotel Developer's first mortgagee came into possession of the leased premises, such funds available shall be applied first to the payment of such accrued Additional Rent until paid in full, then to the payment of Additional Rent currently due. If, prior to completion of the Hotel, the Hotel Developer's first mortgagee shall acquire title to the Hotel Developer's leasehold estate, then in such event, the mortgagee, or the mortgagee's nominee, may complete the construction of the Hotel, subject to an extension of the time therefor. If the mortgagee elects to com- plete the Hotel, it shall to be bound by all of the provisions of the Hotel Agreement. The Hotel Developer's first mortgagee shall not be obligated to pay any money or cure any default of the Hotel Developer by the payment of money or otherwise with respect to (i) any indemnity of the Hotel Developer, (ii) deferred Additional Rent or interest thereon, or (iii) the incremental costs of construction described above. The City agrees that no action by the City to declare a default shall be effective to terminate the Hotel Agreement if any leasehold mortgagee shall promptly commence the enforcement of and diligently pursue all rights and remedies legally available to it to correct or cure all defaults (other than defaults which are not within the power of said mortgagee to correct or cure, which defaults shall be deemed waived as to said mortgagee), or if said mortgagee shall promptly commence the enforcement of and diligently pursue all rights and remedies legally available to it to acquire the leasehold estate, and upon acquisition thereof, perform all of the covenants and provisions on the part of the Hotel Developer to be performed during the period of its ownership of the leasehold estate. If the Hotel Agreement shall terminate by reason of the happening of any default, the City shall give notice thereof to the Hotel Developer's first mortgagee. Upon request of the Hotel Developer's first mort- gagee and upon payment to the City of all monies due and payable by the Hotel Developer hereunder (subject, however, to the provisions of and the curing of all defaults hereunder up to the date of such termination which are within the power of such mortgagee to cure and the performance of all of the covenants and provisions hereunder up to the date of such termination which are within the power of said mortgagee to perform) the City shall enter into with, and deliver a new lease of the leased premises to, such mortgagee for the remainder of the term at the same Additional Rent and on the same terms, provisions, and conditions as contained in the Hotel Agreement. Any mortgagee or any person acquiring the leasehold estate of the Hotel Developer shall have the right to assign such leasehold estate. Upon such assignment the assignor shall be forever released and discharged from the obligations of the Hotel Agreement. The liability of any mortgagee, and of any mortgagee successors or assigns, shall be limited to the lease- hold estate created by the Hotel Agreement. The Hotel Developer agrees it shall not amend or terminate the Hotel Agreement without the prior written consent of any holder of any mortgage lien on the leased premises. The City shall not amend or terminate the Hotel Agreement without the prior written consent of the Trustee under the trust agreement securing the Bonds. Indemnification and Insurance The Hotel Agreement includes provisions concerning the allocation of insurance proceeds between the parties thereto in the event of a loss, and the indemnification of employees of both parties respecting actions, claims or demands asserted against them respecting injury to persons or property damage in connection with the construction or operation of the premises. _ The Hotel Developer and the City are each obligated, at their own expense, to carry insurance on the Hotel and on the Convention Center and Parking Garage, respectively, pursuant to the requirements therefor set forth in the Hotel Agreement, which requirements are in substantial conformity with the insurance require- ments summarized under the "Trust Indenture —Insurance." B-11 Resedcdoaa a Uee The Hotel Developer shall use and operate the Hotel a a first-class hotel and the Hotel spaces within the Convention Center for the intended purposes and square footages set forth in the Hotel Agreement. In the event gaming is legalized or authorized within the State of Florida, Dade County and the City of Miami, it is agreed that the Hotel may be used for such purposes. In such event, the City is entitled to renegoti-te the rent provided that any additional rent to the City shall be competitive with industry standards in effect for other similar type facilities where such gaming is permitted. Meiatesance, Repair and Replacesneat The Hotel Developer, at its expense, shall keep the Hotel in good condition and will promptly make all necessary repairs thereof. The Hotel Developer shall establish a reserve for replacements in the minimum amount of $324 per room per year, subject to upward adjustments for any increases in the Consumer Price Index for the City of Miami, to provide funds for replacement and repair so that the Hotel will at all times be kept and maintained in first-class condition. The Hotel Developer shall not, without the prior written consent of the City, demolish all or any part of the Hotel, or change the Hotel so as to make it less compatible with the operation of the Convention Center. Fire or Other Casualty The Hotel Agreement includes provisions concerning the expenditure of insurance proceeds respecting the repair and reconstruction of the Hotel, the Convention Center and the Parking Garage. Condemnation The Hotel Agreement includes provisions concerning the rights and liabilities of the parties under the Hotel Agreement in the event all or part of the Hotel, the Convention Center or the Parking Garage is taken under an exercise of the power of eminent domain. Detauh ' The Hotel Agreement includes provisions which set forth certain events of default including: the failure to pay any installment of rent, the default upon any indebtedness secured by a lien on the Hotel, the failure of the Hotel Developer or the City to comply with any material term or provision of the Hotel Agreement, insolvency, reorganization or other similar relief, the failure of the Hotel Developer to secure sufficient funds to construct the Hotel prior to delivery of the Bonds, and the failure of the City to construct the Convention Center or Parking Garage. Remedies for such defaults include termination of the Hotel Agreement. SUMMARY OF TRADE CENTER AGREEMENT Term The initial term of the TC Agreement shall be for 35 years and shall commence on the date of the TC Agreement with an option to extend for an aggregate lease term of 90 years. Rent and Governmental Charges e t as expressly rovided under applicable law or in the TC Agreement, the amount of Rent, Govern- mental Charges -ind all other sums payable by t e shall not be abated, reduced, abrogated, waived, diminished or otherwise modified in any manner or to any extent whatsoever. The Rent shall be comprised of the First Rent Component, the Second Rent Component, and the Third Rent Component, if any. B-12 ..yam........... Wv The First Rent Component shall be $150,000 per annum, subject to an annual increase or decrease, but shall not be less than $150,000. Beginning with the second full calendar year after the Rent Commence- ment Date and for each year thereafter, the First Rent Component shall be increased or decreased by an amount equal to seventy percent (70%) of the result obtained by multiplying $150,000 by a fraction, the numerator of which shall be the difference in the Consumer Price Index for the City of Miami between the first month of the current year (or the nearest reported previous month) and the first fssonth of the Base Year, hereinbelow defined (or the nearest reported previous month), adjusted on a consistent basis, and the denomi- nator of which shall be the Index number for the first month of the Base Year (or the nearest reported previous month). The Base Year for purposes of the First Rent Component shall be the first full calendar year after the Rent Commencement Date. The Second Rent Component shall hicrebse from zero to $150,000 per annum based upon the achieve- ment of specified levels of occupancy of the Trade Center, provided, however, that the Second Rent , Component shall increase to $150,000 in the fifth full calendar year after the Rent Commencement Date., without regard to occupancy levels. The Second Rent Component shall be subject to an annual increase in the' same manner as the First Rent Component except that the Base Year for the purposes of the Second Rent Component shall be -the fifth full calendar year after the Rent Commencement Date. Should a majority of the Qualified Space (as defined below under the heading " U;;") for any reason not be used for Trade Purposes (as defined below under the heading "Use" in any calendar year after the fifth calendar year from the Rent Commencement Date, the TC Owmeo-shall pay tote City the it ent Component. The Third Rent Component shall be $75,000.50, in the event that less than a majority of the Qualified Space is being used for Trade Purposes, and shall increase proportionately to a maximum of $150,000, in the event that all of the Qualified Space is not being used for Trade Purposes, subject in all cases to adjustments based on the Consumer Price Index. The TC shall pay monthly installments of Rent based upon the Rent, as adjusted, for the previous calendar year. The TC s all pay the total amount of all Governmental Charges. If such Governmental Charges are not separately assessed, the TC OwwLshall pay its fair and eguitable portion of such Governmental Charges. The TC shall pay for all heat, light, water, gas and any and all other services used in connection with the Trade Center. The City shall, at its expense, provide utility, sewer, water and like connections to the service core area of the Trade Center. Use The Parking Garage shall have parking facilities for at least 1,450 automobiles. The TC Ovs w rshall use its best efforts to cause a majority of the Qualified Space (Qualified Space being approximately 60% of the space in the Trade Center) to be used for Trade Purposes, meaning purposes related directly or indirectly to international banking, law, finance, insurance, transportation, communications, govern- ment, technology, trade, tourism, import and e d other international business and activity. 416 The TC w•n rovi a n reports to the City of its leasing efforts, information n s such other information as the City may reasonably request to determine whether Qualified Space has been used 0 for Trade Purposes. _ Constmedon Promptly after the execution of the TC Agreement, the TC shall cause the Architects to develop final plans and specifications for the Trade Center and the City shall cause plans and specifications for the Parking Garage to be developed. The plans and specifications for the Trade Center shall be subject to the approval of the City. The plans and specifications for the Parking Garage shall be subject to the approval of the TC awwq The TC Awnerm y B-13 propose changes or additions to the plans and specifications for the Parking Garage to change the architectural and aesthetic features thereof in order to meet the special needs of any special design of the Trade Center or to harmonize the appearance of the Parking Garage with the appearance of the Trade Center, subject to the approval of the City. fJL• jute City shall complete the construction of the Parking Garage, and the appurtenant facilities for the Trade Center to be constructed by the City within the Parking Garage, not later than February 1, 1982. If the City, by failing to commence or to prosecute the construction, or by failing to complete the construction, shall prevent commencement of the construction or the use and occupancy of the Trade Center, or if the City forAn reason shall fail to fully complete construction of the Parking Garage by the date t at is months subse uent to the Parking ara a com letion da a may elect to prosecute the onstruction o the Parking arage and t e Lily snail reimburse the for all their charges, costs and expenses theretofore or thereafter paid or incurred in connection therewith. if the City has not fully completed the construction -of the Parking Garage for any reason by the date that is 24 months subsequent to said Parking (_ Garage completion ate, an t t e has not elected to complete the construction of the Parking Garage, then the T may terminate the TC Agreement. the nwr shall fail to commence or complete construction of the Trade Center within the respective time required by the United States Department of Housing and Urban Development under its agreement with th it roviding for the UDAG Grant for the Parking Garage, and such failure is not caused y the City, the agrees to pay to the City an amount equivalent to the amount of said UDAG Grant f - that is not paid or that the City must ,refund by reason of the TC ailure to commence or to complete such construction within the respective time required under said agreement. erelo 's Operation and Maintenance of the Trade Center and Parking Gamge -TrKe C'U*A aa. shall operate and maintain the Trade Center in good order, condition and repair, normal wear and tear and damage by fire and other casualty or taking excepted. The City shall operate and maintain the Parking Garage and all facilities therein, including those appurtenant to the Trade Center, in good order, condition and repair, normal wear and tear and damage by fire and other casualty or taking excepted. Y 1 The TC Agreement includes provisions concerning the rights and remedies of the parties thereto respecting the failure of either party to comply with the above -mentioned requirements concerning upkeep and repair of the Trade Center and Parking Garage. Insurance and Indemnification The TC and the City are each obligated to carry insurance on the Trade Center and the Parking Garage, respectively, pursuant to the requirements therefor set forth in the TC Agreement; which requirements are in substantial conformity with the insurance requirements described in this Official Statement under the caption "Summary of the Trust Indenture —insurance". The TC Agreement includes provisions concerning the allocation of insuranet proceeds between the parties • thereto in the event of a loss, and the indemnification of officers, agents and employees of the City and the ' respecting expenses, claims or actions asserted against them in connection with the construction c. and operation of the Trade Center and Parking Garage. Damage The TC Agreement includes provisions concerning the expenditure of insurance proceeds respecting the repair and reconstruction of the Trade Center and the Parking Garage, and the abatement of Rent and other charges due in the event the Parking Garage is damaged by fire or other casualty and such damage interferes with the TC use of the Trade Center. i$.14 e �' LM Coodeoatiou The TC Agreement includes provisions concerning the rights and liabilities of the parties under the TC Agreement in the event all or part of the Trade Center or the Parking Garage is taken under an exercise of the power of eminent domain. Assignment, Subletting, Mortgaging The TC covenants (a) not to assign or otherwise transfer the TC Agreement or the term and estate thereby granted, (b) not to allow the Trade Center to be used, occupied or utilized by anyone other than �TC xcep as pr i ed m e Agreement, an c not o mortgage, p e encum e TC i leasehold interest in the Trade Center or any part thereof, in any manner by reason of any act ity. The —City shall not withhold its consent to (i) a mortgage of the TC Vwoert oleasehold interest by mort- gage to a reputable leasehold mortgagee, or (ii) an assignment, sublease or other transfer to a reputable corporation or other entity, if in the case of either (i) or (ii) above, such leasehold mortgagee or transferee, at the time of making such mortgage or transfer, is reasonably determined by the City to have, after taking into account a reasonable projection of rental income from the Trade Center, net worth sufficient to pay the Rent and operate and maintain the Trade Center, subject to exceptions set forth in the TC Agreement. The TC covenants not to assign, sublet or transfer its interest, until substantial completion of con- struction of the Trade Center unless such transfer is required as a result of regulatory action by an overnmental agency having jurisdiction over savings and loan associations. Further, the TC o enan s not to assign, sublet or transfer its interest after at such time, the TC Gons pays to the City an amount that is the lesser of (a) the Net Proceeds, or (b) $4,1 , with respect to a transfer during the calendar year in which substantial completion of construction occurs, and, with respect to a transfer in any of the next ten years after substantial completion of construction occurs, an amount equal to $4,104,000 less $410,400 for each year that has passed since substantial completion of construction has occurred. All Net Proceeds received by the TC a ter e i asbeen paid such amount shall be retained by the TC OwvfwC I His provision s all not a —to—transfers subsequent to an initial transfer by the TC o ong Ts such initial transfer was made at "arms -length" with a non- affiliated transferee. "Net Proceeds" is a term defined in the TC Agreement. Urban Development Action Grant Provisions Provisions proscribed by the United States Department of Housing and Urban Development with regards to the Urban Development Action Grant made by such Department to the City have been included. Default The TC Agreement includes provisions which set forth certain events of default, including: the failure to pay all or part of the Rent or any other sum of money which shall fall due, or the failure of said Owner to perform any of the other obligations set forth in the certain TC Agreement. Remedies for such defaults include termination of the TC Agreement. Upon such a termination the City may exercise its right to reenter and take possession of the Trade Center, or exercise such other related remedies set forth in the TC Agreement. If the City at any time shall fail to perform any of the City's agreements or obligations and fails to cure or commence the cure of the same within the applicable grace periods provided in the TC Agreement, the TC the TC Agreement. Rights of the TC Ow•nees Mortgagee The City agrees to jcent pe ormance anj compliance by any leasehold mortgagee of and with any term, covenant, agreement, provision or imitation on the part to be kept, observed or performed by the TC ". If a leasehold mortgagee shall acquire the leasehold estate by foreclosure or B-15 otherwise, then, in such event, the TC Agreement shall continue in full force and effect so long as the leasehold mortgagee is not in default thereunder. The leasehold mortgagee shall become liable and be fully bound by the provisions of the TC Agreement; provided, however, that the leasehold mortgagee shall not be bound by or be liable under the provisions of the TC Agreement for the period of time prior or subsequent to the period of time during which it holds the leasehold estate, except as provided below. The City agrees that following an Event of Default it will take no action to terminate the TC Agreement nor to reenter and take possession unless it shall first five each leasehold mortgagee potice specifying such Event of Default and stating the City's intentions. Notwithstanding such notice the TC Agreement shall not be terminated nor shall the City reenter and take possession if (i) such Event of Default can be cured by the payment of a fixed monetary amount and within twenty days after the date such notice is given any leasebOI4 mortgagee shall make such payment, or (ii) such Event of Default can be cured with the exercise of reasonable diligence b) a leasehold mortgagee after obtaining possession and the ieasehold mortgage♦;, within thirty days after the date such notice is given, commences such proceedings as it may deem necessary to obtain such possession and thereafter diligently prosecutes such action and promptly upon obtaining such possession commences (and thereafter diligently pursues) the curing of such default. In the event of the termination of the TC Agreement prior to its stated expiration date, the City shall give all leasehold mortgagees notice of such termination and shall enter into a new lease on the same terms with a leasehold mortgagee or with an assignee, designee or nominee of such mortgagee or, for the remainder of the term effective, provided such conditions therefor set forth in the TC Agreement are satisfied. . The TC Agreement shall not be modified, amended, surrendered, canceled or wholly or partially tcrmin�ed b%t . nor shall any waiver of the TC ng e r any approvallff consent o the T required thereunder be effective, without the written consent of each leasehold mortgagee whose name and address shall have been furnished to the City. Ciq's Obligations Any obligation of 'the City or any liability imposed on the City under or pursuant to the TC Agreement shall be payable solely out of revenues of the City derived by the City from the operation of the Parking Garage and from other revenues of the City lawfully available therefor. SUMMARY OF UNIVERSITY AGREEMENT The Leasehold Property The City under the University Agreement agrees to construct, as a part of the Convention Center, a Conference Center to be used by the University. Term of the Lease The City and University agree to execute and deliver a lease for the Conference Center. The term of such lease shall be for thirty years, with options to renew the lease for two consecutive 30 year periods. The lease + shall commence upon completion of the construction and occupancy of the Hotel, Convention Center and Parking Garage and upon satisfaction of such other conditions as are specified in the University Agreement. Rent The University agrees to pay $2,500,000 to the City as a single payment of rent under the aforesaid lease. Such amount including interest thereon shall be paid to the City upon satisfaction of the abovementioned conditions and the execution and delivery of the lease. No further basic rent is to be paid by the University for use of the Conference Center space for the terms of the two thirty year lease renewal periods. In consider- ation for each lease renewal period, the University agrees that it will modernize its equipment and furnishings for the Conference Center within.one yeaf of the commencement of the lease renewal period, or demonstrate that it has modernized the Conference Center prior to the commencement of the lease renewal term. IJ B-16 Related Facilities The City agrees to cause to be constructed a Hotel, a retail area, and a Parking Garage on the site of the Convention Center. Both the Hotel and retail area are to be completed and the Hotel is to be in operation within sixty days from the date upon which the University occupies the Conference Center. Related Rental and Use Agreements The University may use the City's facilities at the Convention Center on a scheduled priority basis, and the City may use the University's Conference Center space, teaching staff and the associated equipment provided by the University, on schedule priority bases at reasonable rates. The University shall have a priority to use at least 300 of the parking spaces in the Parking Garage upon scheduled request for programmed events, and up to 25 parking spaces to be available on a continuous basis for convenient administrative parking. The University is to have scheduled priority as to all facilities of the Hotel for its conferences and visitors and certain other rights as to the Hotel and the Convention Center. Neither the City nor the University shall solicit conferences or conventions which offer educational or other programs similar to any program or convention theretofore conducted by the other party. The City agrees that at no time during the life of the University Agreement or any renewal thereof will it rent space on a regular and continuing basis to any other institution of higher education for conducting programs which are similar to those which are offered by the University at the Conference Center. Design; Alterations The University is granted certain rights respecting the Convention Center, including the right to approve the design, working drawings and specifications prior to advertising for bids, and review the resulting work product with respect to its compliance with the working drawings and specifications. The University agrees to furnish all movable furnishings and equipment needed in the area covered by the University Agreement, including instructional equipment. In furnishing the Conference Center, the University shall have the right to establish its own interior design. Maintenance; Operation The University has sole responsibility for management, scheduling of events and utilization of the space covered by the University Agreement. The City is responsible for maintaining normal security and public safety and for providing custodial and maintenance services for the Conference Center. The cost of special security or public safety requirements shall be borne by the party programming the event. The cost of custodial and maintenance services for the area covered by the University Agreement will be determined annually, and reimbursed to the City. The University shall be responsible for utility costs for areas covered by the University Agreement, except that the City shall be responsible for all utility, security, maintenance or custodial costs of the common areas. Right to Assign or Sublease The University shall have the right to assign or transfer the University Agreement or to sublease the Conference Center or any part thereof without the prior written consent of the City, provided that the assignee or transferee or subleasee shall be obligated to use the premises for the same purposes for which they can be used by the University under the terms of the University Agreement, and provided further that the City shall have a right of first refusal in the event of a sublease of the entire Conference Center or an assignment of the University Agreement. Insurance The City will obtain property insurance covering the replacement cost of the Conference Center, with the proceeds thereof payable to the University, and the University shall reimburse the City for the cost of such coverage. The University shall provide its own insurance protection on personal property owned by it. The City and the University will each be responsible for providing public liability coverage for the area occupied by it. B-17 /*1 Detnit The University Agreement includes certain default provisions and remedies therefor. If the City defaults under the terms of the University Agreement, the University is entitled to be paid an amount sufficient to repay the University or to replace the facilities covered by the University Agreement and the amount of income lost by reason of the default. B-18 .......... A*A.."----+Yv APPENDIX C CITY OF MIAMI, FLORIDA FINANCIAL REPORT Year Ended September 30, 1979 Table of Contents Page Accountant's Report C- 3 Part 1 - Financial Statements Combined Balance Sheet - All Fund Types and C-5 Account Groups Combined Statement of Revenues, Expenditures, Encumbrances C- 7 and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, Encumbrances C- 8 and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenses and Changes in C-9 Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Changes in Financial Position C-10 - Enterprise Funds Notes to Financial Statements C-11 Part II - Supplementary Data General Fund: Balance Sheet C-29 Statement of Revenues, Expenditures, Encumbrances C- 30 and Transfers - Budget and Actual Statement of Changes in Fund Balance C - 32 Special Revenue Funds: Combining Balance Sheet C - 33 Combining Statement of Revenues, Expenditures and C-34 Transfers Combining Statement of Changes in Fund Balances C- 35 Debt Service Funds: Combining Balance Sheet C- 36 Combining Statement of Revenues, Expenditures, C- 37 Transfers and Changes in Fund Balances C-1 1 CITY OF MIAMI, FLORIDA Financial Report Table of Contents, Continued Capital Projects: Page Combining Balance Sheet C- 38 Combining Statement of Revenues, Expenditures, C-39 Transfers, and Changes in Fund Balances Enterprise Funds: Combining Balance Sheet C-40 Combining Statement of Revenues, Expenses and Changes C-41 in Contributed Capital and Retained Earnings Internal Service Funds: Combining Balance Sheet C-42 Combining Statement of Revenues, Expenses and Changes C-4 3 in Contributed Capital and Retained Earnings Trust and Agency Funds: Combining Balance Sheet C-44 Combining Statement of Revenues, Expenses and Changes C -45 in Fund Balances C-2 I .•..Ir- RPeat.Marvvick,Mitchell &Ca The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida: Cenified public Accountants 1000 Brickell Avenue Miami, Florida 33131 We have examined the financial statements of the various funds and account groups of the City of Miami, Florida as of September 30, 1979 and for the year then ended, as listed in the accompanying Table of Contents. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of tiw accounting records and such other auditing procedures as we considered necessary in the circumstances. As described more fully in note 13 to the financial statements, the City is experi- encing difficulty in maintaining the current level of services with existing avail- iblr resources, and in addition, several contingencies exist which could place addi- tional strain on the City's financial resources. The City is levying the maximum property tax millage for operating purposes and has determined that future inter- governmental revenues will be decreasing and that anticipated contributions in sup- port of the pension plan may be increasing significantly over the next few years. The ability of the City to continue to provide the current level of services in the future will depend on its ability to maintain or expand existing revenue sources while containing expenditures. As described more fully in note 2 to the financial statements, the City does not provide depreciation on property, plant and equipment of the Enterprise and Internal Service Funds as required by generally accepted accounting principles. Also, as described more fully in note 7 to the financial statements, the C t y, which is self insured for a variety of risks, does not record claims payable in the Self Insurance Fund for all losses incurred as required by generally accepted accounting principles. As described more fully in note 9(a) to the financial statements, the City is currently defendant in a lawsuit seeking to require the City to make additional contributions to its pension plans totalling approximately $22 million, plus in- terest. The final outcome of this suit is not presently determinable and no provi- sion has been made in the financial statements for the effect, if any, of such litigation. C-3 L� r V a RPCDLS,3r%ock.Mnchc11&Ca The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida Page Two In our opinion, except for the effects on the financial statements of the failure to provide depreciation on property, plant and equipment of the Enterprise and Internal Service Funds and the failure to provide for all losses incurred in the Self Insur- ance Fund as described in the second preceding paragraph above, and subject to the effect of such adjustments, if any, as might have been required had the ultimate outcome of the matter discussed in the pr+ceding paragraph been known, the financial statements present fairly the financial position of the various funds and account groups of the City of Miami, Florida at September 30, 1979, and the results of operations of such funds and the changes in financial position of the Enterprise Funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The examination referred to above was directed primarily toward formulating an opin- i,.n on the financial statements of the various funds and account groups of the City of Miami, Florida. The supplementary data included in the schedules listed in the fable of Cor.tents are presented for supplementary analysis purposes and are not necessary for a fair presentation.of the financial position and results of operations of tie various funds and account groups and changes in financial position of the Enterprise Funds of the City of Miami, Florida. The supplementary data have been subjected to the auditing procedures applied in the examination of the basic finan- cial statements and, in our opinion, except for the effects of the failure to provide depreciation on property, plant and equipment in the Enterprise and Internal Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund as described in the third preceding paragraph above, and subject to the effect of such adjustments, if any, as might have been required had the ultimate outcome of the matter discussed in the second preceding paragraph above been known, are stated fairly in all material respects only when considered in conjunction with the basic financial statements taken as a whole. March 28, 1980 P.,� rn,,U4 fir/ . C-4 CITY OF MIAMI, FLORIDA Combined Balance Sheet - All fund Types and Account groups September 30. 1979 Assets and Other Debits Equity in pooled cash and investments (note 2) Reeeivable%: Taxes receivable - delinquent (less allowance for estimated uncollectible mmountg of S520035) General accounts receivable (net of allowance for doubtful accounts of $657.114) Assessment liens receivable Other goveroments (net of allowance for doubtful account! of S110.000) t Dep,aite a-d prepaid exprnge* lnventorieg and other (note 2) f>tw, (rnm other funds u Mortgage tootr% and Inane receivable (net o! allowance for egtt%ated mocollectible amounta of s440.mm) .note 2) property, plant and equipment (note 2)= Land Buildings and improvements Machinery and equipment I� Improvements other than buildings Construction in prngreas j� Amount available for retirement of bond%: General obligation Special obligation (� Atsunt to be provided for retirement of bonds and other payable*: General obligation hods Special obligation bonds Otber paya►lee i 'i 1 Governaertal Fund Tes yp p�ietar7 Fund Types Fiduciary ' Fund Types Account Gen" General General Total ----- -- Special Debt capital Internal Trust and Sell Insurance filed Ie or -tern (NeeoraraM General revenue service projects E__nterprise service !ins Fend assets debt —11) - 79.717.% S 4.064.077 - 8.182.077 SR,418,126 1.023.610 2,040.921 - 5.N1.147 - 770.106 - 316.070 - - - 42.449 - - - 1.078,625 454.451 - 8.011.715 295.379 12.10% 237.283 108.016 - - - - 9.118,9" 20.6" 3,1711 17.491 - - - 7.067.204 - - - - - 5,174.194 2.196 _ 156.427 _ - - - 7.236.m 1".1" 43.196 - - 576 _ - - 392.422 - - - - 435.608 350.000 - - - - - - 35e.9" - - 1,820,106 - - - 17.153."G - 10.973."2 _ - 21,741,605 721.3" - - 15.007.000 - 17.4rS.91A 817.068 8.929.9% - - 8,977.617 - 18.623.041 2.87B.906 - - ".115.339 - 101.9%.245 4.092.677 - - - SO.7M.975 - 54.919114 3.278,034 3.278.836 S 5.281,620 2,062,204 8.501.205 66.797.9" 29.790.247 14.9N.656 S.06.122 6.24S."O 190,942.620 140.842.921 470,069,373 i � l c•eK' • � �e L met• ��� 0" OrIir sea t0► cpe•t Grew" 'i—AW µlt a tip -r t7�'te ietet t met late1 dM� **lost*t • K = 10.3225�2j6 t t�*t•t ;t•1 Ewtet rice p0T _ - 1. 2S•� Ge re et CeaP Kra _ 2.µS • 910 - - 2 75.936 S 'ei K Ltd! - iT6.l !22..22s _ 12.pj7 - �r►62 1.570.2yS - - yydr� tel !l.•Ib0 212.22s - _ - 3.146 .1,13.201 � f r 1.1�r�1 Ot .?OM! 2j1.►1► T2, 3s = 1�•KS• 6 110 61• L1a;� •ts�te } - - T61 1.►76r61► S. = 22�►r000 - SiOa� 2.1s1'?Sy - •1 S21 1u e•� 1• g ld 921 cost 1.jy1r - - 1� �i•y0y 921 t�t•c:teill 1rpTl. t tos-fiet - - - 21 e� L;pYilate• _ y6S.i62 6c eclat;eel eta e _ - = - 262.N0 1 �l�beat* IOT ��d t• y15- - �► y.02y.1S1 1y.M► N0•M6 b `gat - •°` Lt t••teowe �'� tis•sie• y�peie ►� y.� 2.�SS.6S1 0i coo is oaliptt� yt2.60S 10p.�1 .Syy 1►5.011 _ ►1. • a s9"01 9 Li,bis y:t:e_ - i - _ - _ 1M. •� Orwc2y1a2S1 :•s t••te 2t qa•e T7►.1S1 - _ - - LN•5►2.02• rce• •yt!uoe•t sel;• • 1.152•�Z sy _ 530.7►1 = '2 ► y s Eat �it•L 150.000 y.113.66- 1►. r�l• 1 se�racerge ;e ile �tt:wt� a 212.j1� y.21 - 2s.py.067 - lM• f� M,vatsiwµ Vim' yq1.� - - r 6.2 L�•� e�cetti•`µ - �J S•►y6.122 :aea Bate;•se 0s,656 took el 11 �lsoc NcMit i•6 `'t•i e+ ��i•s• " L►� t►wt td tetei� �a K•707• ea•►�a capital avA jeeet• �f Itwt Viwa t•1 i:•e• 1. 10. �� ••�Irs�' �l pbOo coot, ;ee �}etse 6• ; s.r 2 1aee+ .d casti•s•" Comm' ,# 12) N to E:••Ki•t et•ter•t•� W-WO" too i CITY OF MIAM1. FLORIPA Combined Statement of Movennes. Fxppndirutes, Fncumbrances and Changes in Fiend Balances - All Covernmental Fund Tvpes Year ended September 10. 1979 I Total Special Debt Capital (Ilaarroodems Ceaeral revenue service projects Mll) Revenues: Taxes (note 31 S 59,47T.72R - 17,547,3i4 - 76,l�S.042 i Licenses and permits 4,793,124 - - - 4,7l3,124 j Inter►overneental revenur 15,491,017 9,743,815 - - 23,739,832 Intragoverntsental rrvenur 1,662,968 Charges for services 641,742 = 041,742 Sate of bonds I = Iff,2i,000 = 00 19,250.0 Assrssuent lien collertiens /note '1 571,523 571,523 i Franchise and utility Service tax rrverim, - - 1,528•946 1,52e,94i Sle of land (note 6) M92,176 - - 8,000,000 M,M92,176 1:tprest 944,711 - 950,317 5.647,187 7,542,215 Grants - - - 3.760.391 3.760,381 Other 2.5" 6" - - 144,OS1 2,743'"S Total revenuues R6,663,070 8.20 ,815 19.069.154 37.330,S9S 151,311.634 Transfers from other funds 9,171,663 - 560,360 7.240.000 12,972.023 +� y Total revenues and trrtnsfrrc 95,834,733 8,248,815 19.629.514 40.570,59S 164,2e3.07 e'r Expenditures and vntrnshrancrc: .e 9.355.952 l,3SS.lS2 Cntt General Rovermrnt Public improvements I0.636.960 - - - 10.636,960 Public safety 50.208,634 - - - 50,205.834 j Solid vasty 14.311,787 14,311,797 Parks and leisure servic". 6.869.830 - - - 6.969,830 Other 3.300.997 - 22.117 - 3,331,114 Project expenditures 6,949 21,450,097 21.457,066 Uneolleetible delinquent property ta+tes 319,973 139,668 159.59! Debt service (note 5): - - 10.326,000 - 10,326.000 Bond principal Mond interest - - 7,294,501 - 7.294.501 Fiscal agents' fees and administrative charges - - Eel" - • 14 Total expenditures and encuuhraoces 95.009,2M3 6.949 17,1",430 21.450,097 134.2 ,R2 Transfers to other funds I 1,907,630 9,075'"1 20,762 3,N1.135 16,545,629 Total expenditures, encumbrances and transfers 96.917•113 9.082.850 17,911.192 25,091,232 I44,002.387 i Excess (deficiency) of revenues and transfers over expenditures, encumbrances and transfers (9A2.380) (834,035) 1.919,322 15,479,363 15,011,270 Fund balances. October 1. 1978 1,474.525 1.643,173 3•108,252 ".295,394 54,521,3K (108,l4]) Equity transfers (to) from other funds (note 2) 546,921 (655,1164) - - Transfer of current portion of judgment payable (375,ow) - - - (37S,M) (note •) Fund balances. September 30. 1979 S 664,066 153,274 4,926,574 63,774,757 N,514.671 Mee accompeayis6 notes to financial statements. �J CITT OF MIAM1. FLORIDA steoent of Revenges. Expenditures. Encumbrances and .nRea in Fund Balances - Modget and Actual Gene ral sad Special Revenue Funds year ended September 30. lg79 I Revenues: Taxes (note 3) Licenses* petmits and service taxes loterRovernmental revenue (note 10) lntragovernmental revenue Charges for service+ Sale of land (note 6) Interest other (isrludirrg General Fund budget item of Sl,no0,n00 for anticipated salary savings? Total revenues Transfers from other f.w.ds Total revenues and transfers A as Expenditures and encumbrances: General Roeernrnt Public improvesents Public safety 1 Solid waste Parks sad leisure services Project expenditures Uncoliectible delinquent property taxes Other Total expenditures and encumbrances Transfers to other funds Total expenditures. encumbrances and transfers j (Oeficienc7) of revenues and transfers over expeoditaresr encumbrances and transfers I Fund balsoces, October 1. 1978 Equity transfers (to) [ram other funds (nete 2) Transfer of current portion of Inag-term judgment payable (note 1) Food balsoces. September 30, 1979 i see accempalime notes to financial statements. Total General Fred Special Revenue Funds (Ilemorandmm Only) Budget Actual Bud_jst Actual �t Aetrri S 61,IR0,47B 59,437.728 - - 61.M,420 Sl.437.720 4,311,0PI 4,713,124 - - 4,317.083 6.793.124 17,074.104 15.491.017 - /,24B,815 17,074.104 23,739.832 I.SR0.rm 1.667.968 - - I.S00,000 1,662,9N 936,9SB 841.742 - - 936,950 041.742 S00,000 892.176 - - "0.000 "1.176 1.177,000 944,711 - - 1,177.000 944,711 3,539,410 2,599.604 - - 3,539470 2.599,404 9o.40S,o43 86,663.076 - /.24/,915 90.405 549 94,911,60S 12,079,374 9,171,663 - - 12,079,374 9,171,N3 102.484,417 95,934,731 - 8.248.915 102,40.417 104.003,140 11.5fM.212 9,155,952 - - 11.509,292 9,35S.9S2 11,069,826 10.636.960 - - 11.0610,826 10.636.%G 57.178,0017 $0,20S.834 - - 52.120.M7 SO.20S.036 14.514,751 16.311.787 - - 14,516,757 14.311,787 6,/85.393 6,669,830 - - 6.NS.3l3 6.80,830 - 319.923 - - - 314.923 4,569.242 3.300.997 - 4,SN.242 3.308.!!7 100.676,S87 95.009.283 - 6.949 100.676.507 9S,016.232 1,807,830 1.807,630 1,007.030 10,093,731 102.484.717 96,817,113 - 9.082,sS0 102,4M.417 IOS.099.963 $ - (902,300) - (836,035) - (1.1116.415) 1,474,525 1."3.173 3,117.690 546.921 (655.964) (109,943) (375,000) - l77S,OM) s 664.066 153.274 0l7.34f 44 44 I Y� II I I+I CITY of MIAMI. FIORIDA I� Cambined Statement of Revenues, Expenses and Changes in Contributed capital and letained Earnings/Fund Balances - All Proprietary Fund Types and Similiar Trust Funds i Tear ended September 30, 19" Proprietary ■idmciary rand_ppea rand Types Self Internal Trust Impotence Enterprise service d rani leveames: Revenme from operations S 3,888.108 - I,411.591 - - lS.OS6.396 _ 7.171.216 lntragovernmental charges - - 23.747.822 Intergovernmental grants (note 10) 427.754 2•515.3N Contributions from employees and retirees - Interest 131.309 - _ 1.128.34S 294.934 Other Total revenues 4,019.417 7.411.594 39.532,566 10,70l,172 Transfers from other funds 647,179 316,602 684,622 - Total revenues and transfers 4.666,596 7,728,196 40,217,308 10.709.17i �o gxpensesz Operating expenses 4,I6S.363 7,t00.710 - I0.759.893 Crant and related expenditures = 449 31 15,.09393.,031 i peasion expense (note 4) - 207 - Uncollectible delinquent property taxes 64,391 other Total expenses 4.165.363 7.100,710 48,420,079 10,759,893 Transfers to other funds 75.000 - Total expenses and transfers 4.240,363 7.100,710 40,420,078 10,7","3 1 yet income 126.233 627.186 - - . (Deficiency) of revenues and transfers over expenses - - (202,6g) (50,721) and transfers Cemtribeted capital and retained earnings/fund balances. 28,468,493 13,037,277 438,N0 1•*61,1#56 October 1. 1978 _ _ 168,943 - tquity transfers from other funds (note 2) - - 1,690,n7 Reclassification of claims payable (note 7) - _ Comtribntioms from other governmental &gem irs 247,852 1,021,203 - ' Contributed capital and retained earnings/fund balances, s 29� N2.S78 14.68S.9i6 344.933 3,101,462 II September 30, H79 see accompanying notes to finaacial statements. i i now s CITY OF MIAMI, FLORIDA Enterprise Funds Combined Statement of Changes in Financial Position Year ended September 30, 1979 Funds provided: Net income $ 426,233 Item not using funds - disposition of machinery and equipment 41,676 Funds provided from operations 467,909 Contributions from other funds 247,852 Increase in accounts payable and accrued liabilities 69,235 Decrease in receivables 189,510 974,506 Funds used: Retirement of revenue bonds 20,000 Additions to property, plant and equipment 681,021 Decrease in deferred revenue 23,923 Increase in equity in pooled cash and investments 249,562 $ 974,506 See accompanying notes to financial statements. C-10 s E CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1979 Governmental Structure (a) The City of Miami, in the County of Dade, was incorporated in 1896, and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under a Commission/City Manager form of govern- ment and provides the following services an authorised by its charter: public safety, public works, sanitation, recreation and community devel- opment. The County is a separate governmental entity and its financial statements are not included in this report. (b) The Florida Legislature, in 1955, approved and submitted to a general elec- tion, a constitutional amendment designed to give a new form of government to the County of Dade. The amendment was approved in a statewide general election in 1956. A Dade County Charter Board was constituted, and in 1957 it drafted a charter which established a form of Metropolitan County Government. The Charter was adopted in a county election on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time to time by county -wide vote. The County is, in effect, a municipality with governmental powers effective upon twenty- seven cities and unincorporated areas, including the City of Miami. It has not displaced or replaced the cities, but supplements them. The County can take over particular activities of a 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, the Metropolitan County Government has assumed respon- sibility on a county -wide service basis for a number of functions, includ- ing county -wide police services, complementing the municipal police ser- vice; uniform system of fire protection, complementing the municipal fire protection; consolidated two-tier court system; creation of the Miami - Dade County Water and Sewer Authority; coordination of the various sur- face transportation programs; installation of a central traffic control computer system; merging all public transportation systems into a county system; effecting a combined public library system; and centralisation of the property appraiser and tax collector functions. (2) Summary of Significant Accounting Policies The accounting policies of the City of Miami, Florida conform to generally accepted accounting principles as applicable to governmental units except for the non -recognition of depreciation on fixed assets of the Enterprise and Internal Service Funds and the non -recognition of certain claim liabilities in the Self Insurance Fund. The following is a summary of the more signifi- cant policiest C -11 (Continued) s CITY OF MIAMI, FLORIDA Notes to Financial Statements (a) Basis of Presentation - Fund Accounting The accounts of the City are organized on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The Department of Off -Street Parking, the Downtown Development Authority and the City of Miami Retirement Plan and System are entities indepen- dent of the City. The financial statements of these entities are not included herein. The various funds are grouped by type in the financial statements. The following fund types and account groups are used by the Cityt GENERAL GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. General operating expenses and the fixed charges that are not paid through other funds are paid from the fund. Special Revenue Funds.- Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments or major capital improvements projects) requiring separate accounting be- cause of legal or regulatory provision or administrative action. Bud- get information has not been presented since all resources are appro- priated in the General Fund. Prior to 1978, the City maintained three Special Tax Levy Funds to account for specific property tax millages levied for (1) Pension; (2) Street Lighting; and (3) Publicity and Tourism. In the current year all property taxes were levied for general operating purposes and therefore recorded in the General Fund. Effective October 1, 1978, the residual fund balances of the Special Tax Levy Funds and subsequent activities were transferred as follows: Special Tax Levy Fund Transferred to Pension Pension Trust and Agency Fund Publicity and Tourism General Fund Street Lighting General Fund Debt Service Funds - Debt Service Funds are used to account for the annual payment of principal, interest, and expenditures on long-term genera' and special obligation debt, other than bonds payable from the opera tions of an enterprise. (Continued z�- C-12 s 6 CITY OF MIAMI, FLORIDA Notes to Financial statements Capital Projects Funds - Capital projects Funds are used to account for financial resources segregated for the acquisition or construction and financing of public improvements. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that provide a service to citizens, financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capital mainte- nance, public policy, management control, accountability or other pur- poses. In certain Enterprise Funds, user charges are not sufficient to support operations and operating deficits are funded by General Fund transfers. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services by a department of the City 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 trust, or as an agent for others. These funds are used to account for revenues and expenditures relating to most Federal and State grants. For the year ended September 30, 1979, ap- proximately $25,000,000 of grant expenditures were reported in the Trust and Agency Funds which benefit other funds. The amount of benefit provided to other funds is not readily determinable, although the ma- jority is in support of general governmental services. Self Insurance Fund - Self Insurance Fund is used to account for losses incurred by the City for a variety of risks for which it is self insured. The fund also accounts for employees and employer contribu- tions for certain health coverages. GROUPS OF ACCOUNTS General Fixed Assets Group of Accounts - This group of accounts is estab- lished to account for all fixed assets of the City, other than those accounted for in the Enterprise and Internal Service Funds. General Long -Term Debt Group of Accounts - This group of accounts is established to account for long-term debt not accounted for in the Enterprise Funds. (Continued) C-13 0 s CITY OF MIAMI, FLORIDA Notes to Financial Statement.*, (b) Basis of Accounting The modified accrual basis of accounting is followed by the General Gov- ernmental Fund Types. Under the modified accrual basis of accounting, revenues are recorded when received in cash unless susceptible to ac- crual, i.e., measurable and available to finance the City's operations, or of a material amount and not received at the normal time of receipt. Expenditures, other than interest on long-term debt, are recorded when the liability is incurred. The accrual basis of accounting is utilized by the Proprietary and Fiduciary Fund Types. (c) Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to re- serve that portion of the applicable appropriation, is utilized in the General and Special Revenue Funds. (d) Investments Investments are stated at cost, which approximates market. Investments consist of U.S. government obligations and time deposits with financial institutions. (e) Inventories Inventories are priced at cost on a first -in, first -out basis. Inventor- ies in .he Internal Service Funds consist of expendable supplies held for consumption. (f) Mortgage Notes and Loans Receivable In February, 1978, the City Commission approved the Great Neighborhoods Program to be funded through the Community Development Block Grant. The Program, designed to operate over a three-year period, will provide low and middle -income families, residing in designated areab, with mort- gages and housing improvement loans at low interest rates. They mortgage notes and loans are payable when the property is sold, or over terms from ten to twenty years, depending on the type of loan made. As of September 30, 1979, the City had extended $440,508 in mortgage notes and loans. A full allowance was established for this amount due to the City's lack of historical data on programs of this nature and the questionable collectibility of the amounts. As funding for the Program increases and more information becomes available, the City will re- evaluate its allowance policy. (Continued) C -14 CITY OF MIAMI, FLORIDA Notes to Financial Statements (g) Property, Plant and Equipment -Enterprise and Internal Service Funds Property, plant and equipment owned by the Enterprise and Internal Ser- vice Funds is stated at cost. Depreciation has not been provided as required by generally accepted accounting principles. The amount of accumulated depreciation at September 30, 1979, and the related depre- ciation expense for the year then ended is not susceptible to determina- tion at this time. (h) General Fixed Assets General Fixed Assets have been acquired for general governmental pur- poses. Assets purchased are recorded as expenditures in the General Governmental Fund Types and capitalized at cost in the General Fixed Assets Group of Accounts. In the case of gifts or contributions, such assets are recorded in the General Fixed Assets Group at fair market value at the time received, except for the Olympia Building, which houses the Maurice Gusman Cultural Center for the Performing Arts, which was donated in 1975, but has not been recorded. The fair market value of the Center at the date of donation is not considered material to General Fixed Assets. General Fixed Assets include certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, and lighting sys- tems. No depreciation has been provided on General Fixed Assets. (i) Vacation, Earned Time and Sick Leave Under terms of Civil Service regulations and administrative policy, City employees are granted vacation and sick leave in varying amounts. Addi- tionally, certain overtime hours can be accrued and carried forward as earned time off. Due to the uncertainties relating to the timing and amount of payment to be made, the above liabilities are not recorded. (see note 11). (j) Pooled Cash and Investments The City maintains an accounting system in which all cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All cash and investments, including accrued interest and interfund transfers, are reflected in the equity (deficit) in pooled cash and investments. Interest income is allocated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments. No interest is charged funds having deficit balances. (Continued) C-15 0 9 CITY OF MIAMI, FLORIDA Notes to Financial Statements A summary of pooled cash and investments, and equity (deficit) in pooled cash and investments as of September 309 1979, follows: Short term investments, including accrued interest $ 78,3469660 Petty cash and other 61,203 $ 78,407,863 Bank overdrafts $ 1,902,040 Liability for payroll deductions 1,331,261 Other 2,092 Equity (deficit) of funds: General Fund 490649077 Special Revenue Funds (1,9009281) Debt Service Funds 8,182,077 Capital Projects Funds 58,418,126 Enterprise Funds 19023,410 Internal Service Funds 29048,921 Trust and Agency Funds (2,6459007) Self Insurance Fund 5,981,147 $ 78,407,863 The liability for payroll deductions shown above represents employee sal- ' ary deductions for FICA, credit union, bond purchases, etc. This lia- oility is not reflected in the accompanying financial statements since each fund's equity in pooled cash and investments amount has been reduced for its respective portion. (k) Allocation of Administrative Expenses The General Fund incurs certain administrative expenses for other funds, including accounting, legal, and engineering services. An administra- tive charge is levied against these funds to defray a portion of these expenses. (1) Deferred Revenue Deferred revenue at September 30, 1979 represents collections made in advance, for which the use or service will not be provided until the subsequent year. (m) Debt Service Funds Activities Included in the operations of the Debt Service Funds are collections of assessment liens. These revenues have been reported in the Debt Service Funds because they are restricted for the payment of principal and interest on certain bond issues. C -16 (continued) CITY OF MIAMI, nORIDA Notes to Financial Statements (3) Real and Personal Property Tax The City's real and personal property tax is levied each January 1 on the assessed value listed as of the prior September 30, for all property located in the City. Assessed values are established by the Dade County Assessor of Property at just values. The assessed value of property at September 30, 1978, upon which the 1978/79 levy was based was approximately $4,0309000,000. The City is limited under Article 7, Section 8 of the Florida Constitution to a maximum tax levy of 10 mills per $100 ($10 per $1,000) of the assessed valuation, for general governmental services. Taxes levied for the payment of principal and interest on long-term debt are not subject to this limitation. The tax rate to finance general government services, other than the payment of principal and interest on long-term debt for the year ended September 30, 1979 was $10 per $1,000 of assessed valuation, which means that the City exhausted its taxing capability to finance general government services. An additional $4.487 per $1,000 of assessed valuation was levied for the purpose of debt service. Total taxes, net after discounts for the year ended September 309 1979, aggregated $55,127,251 of which $38,053,374 was designated for general government service and $17,073,877 for debt service. All taxes are due and payable on November 1 of each year, or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment rolls a notice of 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. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year in which the taxes were levied. All tax collections for the City are delivered to the City of Miami by Dade County. The delinquent real property taxes bear interest at the rate of eighteen -per- cent per year from April I until a tax sale certificate is sold at auction, from which time the interest rate shall be as bid by the buyer of the certifi- cate. (4) Retirement Plans The City has contributory pension plans covering The Pension Fund charges each department of the the actuarially computed contribution which is to the retirement plans. Total pension expense including amortisation of prior service cost o $15,100,000 ($14,650,000 in 1978). Of this amo was funded by the General Fund, and the rema' principally Enterprise, Internal Service, and c C-17 substantially all employees. City its respective share of disbursed by the Pension Fund for the current fiscal year, ver 35 years was approximately unt, approximately $14,400,000 ender by various other funds, ertain grant funds. (Continued) 0 0 CITY OF MIAMI, FLORIDA Notes to Financial Statements At September 30, 1979, the actuarially computed value of vested benefits under the plans as of the date of the last valuation exceeded the pension funds' net assets by approximately $93,885,000 ($76,211,000 at September 30, 1978). (S) Bonds Payable General Long -Term Debt (a) General obligation bonds, 1/10% to 7-1/2%, maturing in various years through 2008, principal payments due in 1980 of approximately $10,160,000, backed by the full faith and credit of the City and its taxing power. $ 138 065,000 Special obligation bonds, 3% to 4-1110%, maturing in var- ious years through 1988, principal payments due in 1980 of approximately $478,000. $ 2,181,000 (b) Enterprise Funds Revenue bonds, 6.5%, maturing in various years through 1989, principal payments due in 1980 of approximately $21,000. $ 229,000 (c) Debt Service Requirements General Obligation Bonds - Debt service is provided by a tax levy on non- exempt property value and collections on assessment liens from projects financed by proceeds of such bonds. The total general obligation debt outstanding cannot exceed fifteen percent of the assessed non-exempt pro- perty value. Special Obligation Bonds (1) Incinerator revenue bonds - Debt service is being provided by General Fund transfers. A reserve of $250,000 must be maintained. (2) Utilities service tax bonds - Debt service is provided by utilities service taxes imposed by the City on each purchase of electricity, gas, water and local telephone and telegraph service. A reserve must be maintained equal to the maximum annual debt service requirement. The utilities service tax revenues exceeding debt service and reserve requirements, can be used for any lawful purpose. During the year ended September 30, 1978, $15,442,625 of utilities ser-: vice taxes was recorded in the Utilities Service Tax Bonds debt ser= vice fund and $15,240,175 was transferred to the General Fund, whict represented amounts in excess of debt service and reserve require- ments. Effective October 1, 1978, all utilities service taxes wort recorded directly in the General Fund (under the caption "Taxes") on. on amount sufficient to provide debt service and maintain resery requirements was transferred to the Debt Service Fund. t� C-18 (Continued ---- _ 0 0 CITY OF MIAMI, FLORIDA Notes to Financial Statements (3) Orange Bowl special obligation bonds - Debt service is provided by electric franchise revenues. A reserve equal to the maximum annual debt service requirement must be maintained. At September 30, 1979, there were sufficient funds reserved to fully pay the amount out- standing. (4) Enterprise Fund revenue bonds - Rental income from the lease of the warehouse facilities is pledged to provide debt service on these bonds. (6) Land Transactions (a) During 1974, the Inter -American Authority (which was dissolved in 1975) purchased a parcel of land from the City known as the Graves Tract, for $8,500,000. The Authority had agreed to pay the amount of indebtedness, together with 5% annual interest, in equal semiannual installments of $300,000, beginning January 1, 1977. In March of 1980, the City accepted a payment of $8,000,000 from the State of Florida in full settlement of its rights to the property. The funds received may only be used for "tourist related activities" as defined by Florida law. Because the funds are restricted in this manner, the amount has been included as revenue in the Special Obligation Capital Improvements Fund. (b) Prior to October 1, 1977, the City sold the Dodge Island Seaport site to Dade County for $1,330,000 of which $500,000 was received during 1978. The remainder, plus interest, was received in 1979 and is included in General Fund revenues. (7) Self Insurance The City maintains a Self Insurance Fund to provide insurance for certain prop- erty and liability risks, group accident and health and workers' compensa- tion. The City has continued to purchase outside coverage for certain expo- sures where the premium is small in relation to the coverage provided. The charges made by the Self Insurance Fund are not determined on an actuarial basis. The City believes the amounts provided in the accompanying financial statements world not differ materially from actuarially determined amounts. The City's accounting policy and amount of unpaid claims at September 30, 1979, for the various coverages, is explained below: (Continued) C-19 CITY OF MIAMI, FLORIDA Notes to Financial Statements Amount included in Claims Payable (a) General Coverage $ 2,3869143 Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims are re- ported, claims personnel investigate each claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not report- ed. The amount of this liability is not susceptible to determination at this time. (b) Group Accident and Health 345,850 Employees participating in the City's group coverage contribute through payroll deductions and depart- ments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability for this coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liabil- ity. During 1979, this liability was reclassified as a reserve, i.e., an appropriation of fund balance. All claims paid subsequent to this date have been expensed as paid. The amount of claims at September 30, 1979 represents September claims paid by the City in October. (c) Workers Compensation In 1978, workers compknsation claims were charged on an actual cost basis directly to the worker's respective department. Effective October 1, 1978, all workers compensation costs are included in the Self Insurance Fund, with all departments of the City being assessed a charge for this coverage. At September 30, 1979, there is no claim liability for workers compensation recorded. The amount of this liability is not sus- ceptible to determination at this time. Total Claims Payable 3 29731,993 (Continued) C-20 CITY OF MIAMI, FLORIDA Notes to Financial Statements The City maintains reserves as an appropriation of fund balance as followss Amount included in Appropriated Fund Balance Hurricane loss - established by ordinance. $ 5000000 Workers Compensation - 10% of annual operating budget for this coverage. 2749471 Group accident and health - 25% of the annual operating costs for this coverage, exclusive of life, acciden- tal death and disability for which the City has out- side coverage. 1,629,774 General liability - 10% of the number of incidents re- ported during the year at actual average claim cost. 551,406 $ 29955,651 (8) Claim Payable In April, 1978 the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain City employees in prior years. The City agreed to pay the plaintiffs, $1,100,000 covering all back wages, attorney's fees, court costs, and auditor costs. This amount was charged to General Fund expenditures in prior years. The City disbursed $350,000 during 1978, and $375,000 during 1979. The remaining $375,000 pay- ment is scheduled to be made during fiscal 1980 and is reported as a claim payable in the General Fund. During 1976, with the cooperation of the Office of Revenue Sharing, the U.S. Justice Department filed suit against the City alleging a pattern and practice of illegal employment discrimination. A consent decree was entered requiring the City to employ minorities and women in proportion to their availability in the Miami labor force. The consent decree provides that the City will "set aside" $100,000 each year for the next five years to provide back pay and other financial relief to persons injured by the City's former employment policies. At September 30, 1978, in accordance with the provisions of the consent decree the City had included approximately $2509000 in outstanding encumbrances in the General Fund. During the year ended September 30, 19799 this encumbrance was closed and the balance, net of disbursements, is now included in the financial statements as appropriated fund balance. The amount so appropriated also includes $1009000 for 1979. (Continued) C-21 CITY OF MIAMI, FLORIDA Notes to Financial Statements (9) Litigation (a) Gates vs the City of Miami This is a class action on behalf of present and former employees of the City, seeking to require the City for the years 1957-1975 to retroactively make additional deposits to its pension plans totalling approximately $30,000,000, including $8,000,000 in interest. The plaintiffs claim that the City levied property taxes for "pension or relief" purposes and was required to, but did not, deposit all such revenues into the pension fund. Instead, a portion of these tax monies was used for the City's social security contributions, the City's required portion of premiums on group health and life insurance policies, payment of judgments on pension re- lated cases, the City's workers' compensation obligations, and reimburse- ment to the City of pension -related expenses. Summary judgment on liability was entered against the City on two of seven counts of the complaint on October 9, 1979, upon a finding by the court that monies taxed for pension or relief purposes were improperly used by the City to pay off two judgments against the City and for contributions toward workers' compensation obligations. The City has filed an inter- locutory appeal from the court's ruling on the two counts as to which summary judgment was granted. The plaintiffs have moved for summary judgment as to liability on two additional counts of the complaint. Though a judgment for damages cannot vr granted in response to these motions, these two counts seek damages in the principal amount of $17.4 million. At a hearing held before the trial judge the court ruled that it would stay ruling on the plaintiff's pending Motions for Summary Judgment until the Appellate Court rules on the City of Miami's interlocutory appeal of the .previously entered summary judg- ment. The City maintains in this action that its allocation of monies collectec- pursuant to its levy of property taxes for "pension or relief" purposes was proper. Counsel has advised that, in their opinion, the City has gooc defenses to this action, and that its appeal is a meritorious one. Now ever, the City's ultimate liability, if any, cannot be determined at thi time. (b) City of Miami vs FEC The City is involved in a "Quick Take" Eminent Domain action to acquir 32.64 acres of bayfront land owned by the Florida East Coast Railwa Company (FEC). The property is located in Downtown Miami, between N. 4 6th and N. W. 9th Streets, and bounded on the West by Biscayne Boulevarc In March, 1978, a Trial Court entered an Order of Taking and an Order t Necessity, vesting title to said property in the City, subject to Stipulation entered between the parties. In accordance with the Order c C-22 (Continue, 6 CITY OF MIAMI, FLORIDA Notes to Financial Statements The City maintains reserves as an appropriation of fund balance as follows: Amount included in Appropriated Fund Balance Hurricane loss - established by ordinance. $ 5009000 Workers Compensation - 10% of annual operating budget for this coverage. 2740471 Group accident and health - 25% of the annual operating costs for this —coverage, exclusive of life, acciden- tal death and disability for which the City has out- side coverage. 19629,774 General liability - 10% of the number of incidents re- ported during the year at actual average claim cost. 551,4O6 $ 2,9559651 (8) Claim Payable In April, 1978 the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain City employees in prior years. The City agreed to pay the plaintiffs, $1,100#000 covering all back wages, attorney's fees, court costs, and auditor costs. This amount was charged to General Fund expenditures in prior years. The City disbursed $350,000 during 1978, and $375,000 during 1979. The remaining $375,O00 pay- ment is scheduled to be made during fiscal 1980 and is reported as a claim payable in the General Fund. During 1976, with the cooperation of the Office of Revenue Sharing, the U.S. Justice Department filed suit against the City alleging a pattern and practice of illegal employment discrimination. A consent decree was entered requiring the City to employ minorities and women in proportion to their availability in the Miami labor force. The consent decree provides that the City will "set aside" $100,000 each year for the next five years to provide back pay and other financial relief to persons injured by the City's former employment policies. At September 30, 1978, in accordance with the provisions of the consent decree the City had included approximately $250,000 in outstanding encumbrances in the General Fund. During the year ended September 30, 1979, this encumbrance was closed and the balance, net of disbursements, is now included in the financial statements as appropriated fund balance. The amount so appropriated also includes $100,000 for 1979. (Continued) C-21 E, I CITY OF MIAMI, FLORIDA Notes to Financial Statements (9) Litigation (a) Gates vs the City of Miami This is a class action on behalf of present and former employees of the City, seeking to require the City for the years 1957-1975 to retroactively make additional deposits to its pension plans totalling approximately $30,000,000, including $8,000,000 in interest. The plaintiffs claim that the City levied property taxes for "pension or relief" purposes and was required to, but did not, deposit all such revenues into the pension fund. Instead, a portion of these tax monies was used for the City's social security contributions, the City's required portion of premiums on group health and life insurance policies, payment of judgments on pension re- lated cases, the City's workers' compensation obligations, and reimburse- ment to the City of pension -related expenses. Summary judgment on liability was entered against the City on two of seven counts of the complaint on October 9, 1979, upon a finding by the court that monies taxed for pension or relief purposes were improperly used by the City to pay off two judgments against the City and for contributions toward workers' compensation obligations. The City has filed an inter- locutory appeal from the court's ruling on the two counts as to which summary judgment was granted. The plaintiffs have moved for summary judgment as to liability on two additional counts of the complaint. Though a judgment for damages cannot ,C granted in response to these motions, these two counts seek damages in the principal amount of $17.4 million. At a hearing held before the trial judge the court ruled that it would stay ruling on the plaintiff's pending Motions for Summary Judgment until the Appellate Court rules on the City of Miami's interlocutory appeal of the .previously entered summary judg- ment. The City maintains in this action that its allocation of monies collectec pursuant to its levy of property taxes for "pension or relief" purposes was proper. Counsel has advised that, in their opinion, the City has goo( defenses to this action, and that its appeal is a meritorious one. How- ever, the City's ultimate liability, if any, cannot be determined at thi time. (b) City of Miami vs FEC The City is involved in a "Quick Take" Eminent Domain action to acquir 32.64 acres of bayfront land owned by the Florida East Coast Railws Company (FEC). The property is located in Downtown Miami, between N. k 6th and N. W. 9th Streets, and bounded on the West by Biscayne Boulevarc In March, 1978, a Trial Court entered an Order of Taking and an Order c Necessity, vesting title to said property in the City, subject to Stipulation entered between the parties. In accordance with the Order c �� - -- C-22 (Continue ..........1�i1...y.-v CITY OF MIAMI, FLORIDA Notes to Financial Statements Taking, and the Stipulation, the City deposited $14,500,000 of certifi- cates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. On June 12, 1979, the Third District Court of Appeal issued its opinion affirming the Order of the Trial Court. The FEC asked for a rehearing before the Third District Court of Appeal which was denied; and FEC filed both a Notice of Appeal and Petition for Certiorari in the Supreme Court of Florida. The last jurisdictional brief was filed in that Court on September 26, 1979. Those cases are presently pending. In a separate proceeding filed before the Interstate Commerce Commission, (ICC), FEC challenged Florida's and the Federal Couri'4 right to deter- mine the nature of the railroad track located on the property and ruled that the FEC track is a "line of railroad" requiring a certificate of abandonment from the ICC. The City has appealed that ruling to the United States Circuit Court of Appeal, Fifth Circuit. If the City continues to be successful in upholding the Order of the Trial Court, this case will be returned to the Circuit Court for a jury trial to determine the ultimate amount which the City must pay FEC and other defendants for the property and damages they may have sustained, includ- ing defendants' attorneys' fees and court costs. This amount, however, cannot be determined at this time. (c) Pension Trustees Suit for Contributions to its Pension Plans The Board of Trustees of each of the pension plans has filed a petition for Writ of Mandamus, seeking to require the City to contribute an additional $4.2 million over and above the amount actually appropriated by the City for fiscal year 1980. The plaintiffs in each action contend that the City is required to contribute the amount that the pension boards certify in accordance with actuarial reports prepared for the boards. This amount for 1980 totals approximately $21 million. The plaintiffs assert that the City's pension ordinances required the board of each pension plan to file with the City Manager, a certification of the amount of the appropriation necessary to pay the plan's normal and accrued liability contributions, and provide that such appropriation "shall be included in the appropria- tion ordinance." The plaintiffs contend that the amount appropriated for fiscal 1980 by the City falls short of the amount certified and these two actions seek to require the City to appropriate an additional $4.2 million dollars. The City Commission in September of 1979, adopted a policy limiting the increase in the pension contribution to five percent of the preceding year's amount. It is the City's position that it is fiscally sound to limit its budgeted contribution, that the budgeted amount is actuarially sound, that the City is not automatically required to appropriate and contribute the amount certified by the pensions boards, and that if the City were automatically required to do so, the City Commission would be defaulting on its responsibility for government of the City. C - 2 3 (Continued) 0 0 CITY OF MIMII, FLORIDA Notes to Financial Statements This litigation is in its preliminary stages and the outcome is not present- ly determinable. (d) Other There are a number of claims and lawsuits against the City resulting princi- pally from personal injuries incurred on City property. In the opinion of City officials and the City Attorney, these claims could result in a liability to the City of approximately $29400,000, which is reflected in the Self Insurance Fund. The City of Miami relies primarily on its legal department acting under the direction of the City Attorney for legal advice. The foregoing opinions (under the heading "Other") are based solely on the opinion of the City Attorney. Outside co—u-n-s—el has been retained to represent the City in the litigation referred to in (a), (b) and (c) above. (10) Federally Assisted Grant Programs The City participates in a number of Federal and State grant programs which are subject to financial and compliance audits by the grantors or their representa- tives. In December of 1978, an audit report was issued by the Dade County Internal Audit Department representing the South Florida CETA Consortium. This report covered the financial and compliance activities of the City as subgrantee of CETA funds from June 1, 1974 to September 309 1977, and questioned $1,717,000 of costs disbursed by the City during that period. Based upon the City's response to the questioned costs, the Consortium has reduced the amount to approximately $137#000 and has given the City the opportunity to respond further. Management believes that no material liabil- ity will ultimately result from this or any similar audit. (11) Commitments and Contingencies (a) Employee Benefits The City has certain contingent liabilities relating to earned employee benefits. The amount of benefits earned and accumulated is governed by Civil Service regulations and administrative policy. These earned bene- fits are summarized below: Type Description Amount vacation Normal vacation earned $ 1,4829000 Earned Time Additional time off earned by hourly employees for overtime hours worked 198710000 Sick Leave Normal sick leave accumu- lated 12,701,000 $ 16,O549000 (Continued) C-24 CITY OF MIAMI, FLORIDA Notes to Financial Statements The full amount of vacation time, if not used by the employee, is payable upon separation of service, subject to the following limitations: . for employees in service at December 31, 1973 - all accumulations to that date, plus a maximum of 160 additional hours. . for employees employed since December 31, 1973, a maximum of 160 hours. Earned time payable at separation is limited to 200 hours. Sick leave payable upon separation is limited to a maximum of 960 hours, and is paid only if the employee has ten or more years of service. In the case of sanitation workers, there are various limits based on years of service ranging from fifteen to twenty-five years. Due to uncertainties relating to the timing and amount of payments to be made, the above liabilities are not recorded. (b) Housing Bonds In February, 1976, the Commission passed an ordinance which approved the issuance of $25,000,000 General Obligation Housing Bonds of the City, for the purpose of providing housing for families and persons, including the elderly, of low and moderate income. In addition, and pursuant to agree- ments between the City and Dade County, the proceeds of such bonds, as they are issued from time to time, will be deposited in trust in a reserve fund to provide additional security for certain housing revenue bonds to be issued by Dade County. In the event the housing projects do not generate sufficient funds to service the County's debt, the proceeds of the City's Housing Bonds will be used to pay principal and interest. If, however, the Dade County Housing Bonds are self-liquidating, all amounts remaining in the trust account will be returned to the City for purposes set forth above. At September 30, 1979 and 1978, $1,500,000 of such City Housing Bonds were sold and approximately $213,000 had been transferred to the trust account. A receivable and an allowance for this amount were recorded at the balance sheet date. (c) Revenue Bond Projects Convention Center During 1978, the City of Miami commenced construction of a Convention Cen- ter, officially designated the City of Miami/University of Miami James L. Knight International Center. The total estimated cost of the Convention Center, including a related parking garage, is approximately $82,000,000. The City has entered into an agreement with the University of Miami to lease space in the Convention Center for a term of 30 years, including two 30-year renewal options, for the sum of $2,500,000, payable as advance rent. The City has also entered into a lease and agreement for develop- mert with a private developer, of certain air space over a portion of the C-25 (Continued) CITY OF MIAMI, FLORIDA Notes to Financial Statements Convention Center for a hotel. In addition, the City has agreed with a separate private developer, to lease air space over a portion of the parking garage for a 30-story world trade center. The City intends to issue, in the Spring of 1980, $60,000,000 in revenue bonds for its share of the project's cost. A lien on and pledge of 1) the net revenues of the Convention Center; 2) telephone and telegraph utili- ties service tax revenues (after certain bond ordinance debt service requirements are met); and 3) other non -ad valorem tax revenues, secure payment of the bonds. In connection with the project, the City has awarded approximately $30,000,000 of construction contracts, of which approximately $25,000,000 is contingent upon the sale of the bonds. Additionally, the lease and agreement for development with the hotel developer calls for the City to complete certain phases of the project by specified dates. In the event of delays by the City in completing the facilities, the City is liable for the additonal interest expense payable by the hotel developer to its mortgage holder, as well as other reasonable costs incurred by the devel- oper attributable to such delays. Watson Tsland Theme Park In May, 1979, the City Commission passed a resolution authorizing the City Manager to execute an investment banking agreement with certain under- writers for the sale and issuance of $55,000,000 of revenue bonds to finance the development of Watson Island as an amusement and recreation theme park. In June, 1979, an Investment Banking Agreement was executed for $55,000,000 of revenue bonds. Of such bonds, $20,000,000 will be secured by revenues from the Watson Island Theme Park, together with a pledge of the City's electric franchise fees. The remaining $35,000,000 of the revenue bonds will be secured only by revenues from the theme park. The date of the sale of the bonds has not yet been established. (12) Other Matters A statement was filed by two interested parties with the Securities and Exchange Commission (SEC) in October, 1979 claiming that an Official Statement relat- ing to an offering of the City's general obligation bonds omitted or mis- stated a number of material facts. The City has responded to the complaint and has been advised that no further investigation is contemplated by the SEC staff. However, under applicable SEC rules, such advice may not be construed as indicating that the City has been exonerated or that no action may ulti- mately result from the staff's investigation. (13) Maintaining the Current Level of Services and Liquidity The City is experiencing difficulty in providing the current level of services with existing available resources. Revenue curtailments and operating cost (Continued) C-26 0 9 CITY OF MIAMI, FLORIDA Notes to Financial Statements increases have resulted from many conditions. Some of the more significant conditions affecting the City's resources are: . Property taxes for general operating purposes have reached their maximum allowable millage (see note 3). . Limitations have been placed on the maximum increase allowed in assessed valuation from year to year. . Anti -Recession Fiscal Assistance Funds have been discontinued. Federal Revenue Sharing Funds available for general operating purposes are. decreasing. . Comprehensive Employment Training Act Funds and other sustaining grants are decreasing (see note 10). . Anticipated pension contributions and related expenses are increasing (see note 4). . The amount of vested benefits under the City of Miami Retirement plan and System exceeding fund assets is increasing (see note 4). . General operating costs are suffering from the continuation of double digit inflation. The liabilities for vacation, illness and earned time continue to increase (see note 11). In addition to the above, the following situations and/or contingencies exist which could place additional strain on the City's financial conditions . Penalties may have to be paid if construction of the Convention Center is not completed within specified time limits (see note 11). • Judgments against the City or demands upon the City to pay in excess of budgeted amounts may result from pending litigation (see note 9). Certain revenues, particularly telephone utilities service taxes and elec- tric franchise revenues, heretofore principally used for general operating purposes may be required to pay debt service or maintain reserve require- ments of certain revenue bonds (see note 11). The City's ability to continue to provide the current level of services in the future and/or pay the amounts, if any, that might be required by the unfavor- able resolution of the contingencies noted above is dependent upon further expansion of revenue sources and containment of expenditures. C-27 THIS PAGE INTENTIONALLY LEFT BLANK C-28 .................... s.+ • 4�.:__ CITY OF NIAl12, FLORIDA General fund balance Sbeet September 309 1979 Assets Equity in pooled cash and investments Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $3779773) General accounts receivable (net of allowance for doubtful accounts of $32,171) Other Liabilities, Encumbrances Outstanding, Reserves and Fund balance Accrued liabilities (principally salaries) Accounts payable Deferred revenue Claims payable Total liabilities Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balance - appropriated Fund balance - unappropriated C-29 $ 490649077 7209106 4549451 43,186 $ 5,2819820 190629555 1,5349385 1,071,860 375.000 4.043.800 342, 69S 2319259 272,173 3_ $ 5,281,820 1 I i CITY OF MiAMI I Ceneral Fund Statement of Revenues. Expenditures. Encumbrances and Transfers - Budget and Actual Year ended September 30, 1979 I f Expenditures - Revised or bwl�et transfers Enc,m►ramces actual Revenues: Taxes: General propert♦ tax $ 39,461,971 - - 39,116,611 Penalties and interest 200 - - 271.124 Business and excise taxes 21,818,257 - - 20,050,19) 61,780.428 - - 59,437,720 Licenses and permits: Business licenses and permits 3,402,083 - - 3.762,963 Construction permits 915,000 - - 1,030,161 4.317.063 - - 4,793,124 Intergovernmental revenue: o Federal grants 2,566,7" - - - State grants 12.043.306 - - 12.630,004 Other 2,464.000 - - 2,840,933 17.074,104 - - 15,491,017 lntragoveramental revenue: Engineering services I,5B0.000 Charges for services: Public safety 292,000 - - 4M,871 Recreation 350,236 - - 128,757 Other 294,722 - - 224,114 936.958 - - 961,742 Miscellaneous revenues: Interest 1,177,000 - - 9M,711 Sale of land 500.000 = _ 992,176 Rents 572,446 536,913 Other (including General Fund budget item of $1,000,000 for anticipated salary savings) 2,967,024 - - 20O4.491 5.216,470 - - 4,436.491 Total revenues 90.405,043 - - $6,663,070 Transfers from other funds 12,079,34 Total revewes and transfers 102,4",417 - - 95,034,733 t CITY OF MIAMI, F1.ORIDA General Fund Statement of Revenues, Fxpenditures. Encumbrances and Transfers - Budget and Actual Expenditures and encumbrance%: Cenral government: Mayor and commission City manager city clerk Management and budget Finance Legal Civil service Human resources Community development Conferences and conventions Tourism and promotion Computers and communications Public improvements: Public works Building Planning and zoning boards i., Public safety: Police Fire solid waste Parks and leisure services 0acollectible delinquent property taxes Other: Employee benefits Special programs Miscellaneous Total expenditures and encumbrances Transfers to other funds Total expenditures, encumbrances and transfers (Deficiency) of revenues and transfers over expenditures, encumbrances and transfers Expenditures Revised or ."Oret transfers Encumbrances Actual S 2R5.811 7S9,249 22 259.271 $03.323 774,711 8.031 792,742 260.328 735.392 5.46s 24o,0s7 839.842 714.142 14,394 740,536 1.482,395 1.442.134 29.532 1,471,666 827.723 703,391 4.357 707,740 222.728 143.434 1.723 195.157 976.617 749,512 17,960 767.372 S83,323 566.633 5."s 572,031 1.276.215 127.851 - 127,851 1.370,605 I.ISI.590 9,602 1,161,200 _2.5R09372 2,291.769 30,072 2,321.441 Il.SO9.282 9.22q.416 126,536 9,355,952 8.576.103 8.296.231 7.966 8.294,197 1.722.767 1.627,164 7.834 1.634.990 770,961 701,132 6,633 707,765 11.069.826 10,614.527 22,433 10,636,960 30.082.699 28,539,503 47.091 20,s06.SK 22,045,38B 21,583,426 35,024 21,619.250 52,128,087 $0,122,929 02,90S 50.205,836 14,514.757 14,297,002 13,905 14,311.787 6,885.393 6,845,152 24.670 6.80,830 - 319,923 - 319,923 2,348.340 1.599.354 - 1,599,354 1.071,565 966.902 - 966,002 1,149,337 670,603 72,Iss 742,041 4,569,242 3,236,839 72.150 3,3n,997 100,676,587 94,666,500 34296" 95.009,203 1,007,830 1,907,830 - 1,007.030 102,484,417 96,474,418 362,69s 96,017,113 ONO") • i C CITY OF MIAMI, FLORIDA General Fund Statement of Changes in Fund Balance Year ended September 30, 1979 Fund balance, October 1, 1978 Equity transfers from other funds (Deficiency) of revenues and transfers over expenditures, encumbrances and transfers Transfer of current portion of long-term judgment payable Fund balance, September 30, 1979 C-32 $ 1,474,525 546,921 (982,380) (375,000) $ 664,066 �,pRIDA C'LIV of VIV01 • Tunas SPOC �is°�e S1„eet C°'�D'ela�er � � lq'i4 S,t1*t Assn �er�ents ,�ecetnable* tics other 6 tstsaaiot dayrauces � tibiliti� as y`'"a s'lances ana investtwats lea cash peficit in PpO Accvvats Papble rues �tstss+ains Est spPrOPrlstea T� bals�es roPriatea Fs04 babes 5 11 a'� 5 .29 0-2,204 Is 00,261 49161 3,988 150 +000 3 2?4 5 2• leaeral Funds Iterenue TeX Le sharing ciel S Yub is tY Street fund Tourist I.i htin Ye°may Z Ob2 204 1'900'2a1 - 1061 150,000 3 274 40 Ffpa10A .0 OY Nam' CI $Qiat Revevoe TOW-0 sites and Transfers � �es • LtsQendl stat�t of fte t 30. 1979 C�isiaTeat eaa s ea Se4teobe c� w .a _ entitt�nt rerennxe t r�ata � ets simeeditor*$ other fuels and tr:lief T see e s to sve lrtutcs Torsi , of tevek sus TO tDef zai� to"s esaaa � .total Funds at Tax tie S cl publicity Street slid Li htin T°u YeaJ= 6,949 9 07 9 082,6150 �a3y �p35) S f Feaeral seveaue Shat ias juad g2� 6,949 9'0 9,08 29650 40 CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Statement of Changes in Fund balances Year ended September 30, 1979 Fund balances, October 1, 1978 Equity transfers (to) other funds (Deficiency) of revenues over expenditures and transfers Fund balances, September 30, 1979 Special Tax Levy Funds Publicity and Street Total Pension Tourism Lighting $ 1,643,173 108,943 5,908 541,013 (655,864) (108,943) (5,908) (541,013) (834,035) - $ 153,274 - Federal Revenue Sharing Fund 987,309 (834,035) 153,274 i CITY OF MIAMI, FLORIDA Debt Service Funds Combining Balance Sheet September 30, 1979 Assets Equity in pooled cash and investments IS Receivables: 1w Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $121,780) Assessment liens receivable Liabilities. Reserves and Fund Balances Accounts payable Reserve for noncurrent delinquent taxes receivable Fund balances - appropriated Fund balances - unappropriated General obligation Total bonds $ 8,182,077 6,5349337 Orange Utilities Bowl Incinerator service bonds bonds tax bonds 710,479 274,073 6639188 316,070 316,070 - - - 3,138 3,138 - - $ 9,501,285 6,853,545 710,479 274,073 663,188 3,474,614 3,474,614 100,097 100,097 - 1,152,892 - 710,479 3,773,682 3,278,834 - $ 8,501,285 6,853,545 710,479 250,000 192,413 24,073 470,775 274,073 663,188 FLORIDA CITY OF MIAMI+ Debt Service Funds Statement of Revenues, Exp enditures, Combining Changes in Fund Balances Transfers and 1979 Year ended September 309 Revenues: rty taxes General grope Interest liens collections Assess*ent Total revenues e+ o Transfers fro'Ather funds and transfers Total revenues f � Expenditures: Bond principal rt Uncollectible delinquent y taxes ms Bond interest a procharges eats' fees and administrative Fiscal g Other i Total expenditures fers to other funds trans Total expenditures and transfers Trans over expenditures Excess of revenues and transfers and transfers October 1, 1978 Fund balances, September30, 1979 Fund bslances, General obligation tal Lo bonds $ 17,547,314 17,5ta71,314 950,317 g04,930571 523 5� `�� 19,069,154 18,923,767 5�l 18,923,767 19,629,514 1—� —'`ter Utilities Orange service Bowl incinerator bonds br' onds bondstam j� 10,3269000 9,860,000 16 7,2949 501 7,202, 1399668 139.668 8,144 6,87022 11T 17,790,430 17,230,671 20� 762 17,230,6T1 17,811,192 62,309 62,309 1765 238,444 r-r 11818,322 11693,096 $ 4,9269574 3'278,834 �.�-� 150,000 26,035 25 176,060 24,046 24,048 18 209,523 1 166,000 19,200 555 185,755 '~�r 185,755 176,060 62,384 59,030 59,030 19� 257,780 1- 150,000 47,250 694 �r 197,944 2 218.706 23,768 39,074 8095 25 _ 7109479 274,073 62y 663,168 i �.J CM OF MIAMI. FL0AIfIA (fa Pital P—i-t. Funds C,_h,n R Aalance 5hwt 5epteeher N). 1979 General ObliOation special --- ---------- ------ -- ------- - Parks and Obliptsaa Store Sanitary Pnllutian Pnlice recreation Nilb my Canreetion Fire Oerelvis0 Capital severs severs control Iac, 1, tie. facilities iaprarenvots tenter facilities Sidewlla Nersiri feed iapteeemmusts Assets Tnta_I F.Quit7 in pOmled cash and inrestalents S SA,41A,1?6 01,147.100 14.093.000 1,9(M,IIS 3,477,777 7,316.477 6,590,501 4,940,790 6.949,095 17.710 1.421.136 I54.936 2.736.913 Acc. is receirabl• (net of all mane• _ _ _ - - _ - 0,011,715 for doebtfvl ar�mmts of $713,249) 8.011,715 - - - _ W m Assessnent liens recerrahle 17,4v1 Prepaid expenses S76 - - - - - - - 576 - - - - D. froe rA%" fled. _350,fN1(1 ---__ _ ._____. - - 3,0,000- $ 66.797."P 8,147. M 14,0n1,MM 1.,1011.211, 3.477.7?7 7.316.427 6,510.501 5,2M.790 6.949.661 17.714 1.421.136 172.425 10.7416,620 Liabilities and Fvnd Oalances _-- --- A:cn..ats payable 3.015,148 154,370 1.602.921 2.906 142. 740 200.604 330.527 167.300 396,236 - - - % Accrued liabilitie. (principally - - 7,717 1,1J7 _ 1,935 1,2» - - - - .alaries) 7,Sn1 - 63,774, 7S7 S190L930 I7,490,679 1t90�"9 32711?, 275 7,105."6 6,260,054 5,1»,467 6,552.IK 37,710 1,421,136 172,425 N.7K,572 Fad balances - appropriated S 66,791.90A 8.141.100 14.093.800 1,91N1,715 3.477.277 7.116.427 6,596,501 5,290,170 6.949.661 17.710 1.421,136 172.425 10,7N,620 n W Statist "Pst"A at MtMlt • a p►ti iar ca • cln cap /tot fKolKttf.>7"' 'tomtee. }!'e.�.{ t RM�*• prlsMe" teatat ni •n a.A C1.MRtew1•e< a �Nt a It /: C'A tf It , oad In Into Ge•�'ta��tif�t'nw 'Sep Mt Cdt�i cro 1 :w it. at .4,4 fe -= to•o� s _ .00 n 1.2•'� 00 - tl�.f#+► f_•M66 1'719 L 42) rnt.Ii.t<ol I� • .py2 I.�SI.� ) {'� Sonipcv .01 Stn<� •erers - 5M•6 y)) �—� tla.f•0 4 311 ?--ts t'•I• _ 6. t•140•�I M1) il0e 74a.tS: �—�' _�^ 2) ttit h4� �� y �.► $26 4�►T9.Ty �� y407 .y) *,two.lylll �'� T.aN.�ST r ).4,10.)26 � r+4"-,►_si +oe•+TI f � n: y 6.)�.� as2 -- _ �`� 57-t�Tlit45 TT.S� fb).741 ; t� �_ J. ) �Tt 61461, 11a.M't' tI�'1M• W yT0 Soy ' �YspoT I.tle.2 _�—� J 112 _� I 'j��' t.y.+�) W2 M yT� t4T �- y t.yyI. 7. y TA Mt t•�• _ Ya t T J-� y 02.166 � ZS t,�y,711aI 7� T � )M) ♦.'4» tom•+ I ; 10IY 1.1 s •� �_ arjeax o ►ee so+oecM. tereaoea tototgot sort el lM"f t Ot+'e fetal tevea+ro a ftmatt.etototo item tooelet►a sod S•= i'aoofe'o t �it ate pta� atUrt 1+040 "Samfeco to aaa tto" totao- oefarea two- taotitieoei Of oopeaa'trte time" t , fete ot ttaMfeto t. t4T>f � Vol, at 7p, 14» Ml�oa. tep"� pa•'f 1 i nw sm cia1 OF 'A104" f1.pR1 ac tits Gtr1 *MIF to Fu•'ds tt Fntcrpr aMc Sh'Ptimes r 1�•N2 ccoobi^inR Ral 1g19 i s Rl or ip,sSS ♦r ` ("Sege p�r� 245 ,s2s is Ccpt c•"° 11i ovi S�>d/ 155.622 too" NariM 5tad"� 41F,41i tot• 77g) 4 4). i,i�•� l2n].M•0) (ll.. 12i•0� 32,24 15, N.4 30 3.45i 000 As1 S 1.p23.410 12n•2� ). 1,16306013" =� l�i �.dtoo,4]7 2i9 i51. in poalcd c'sh S,}79 SQ.}n2 lnl.�Z )•447.4 } 2 111 ldtficltl t for 375•00 s.)5�•1St• 1 �tlit wests+tnts ai sjlona 4.b}i ,.(Al 100 411 s•i inr ci,rablt l Q1t S75.066/ 1 �1120.109 2.}�,5i � ] 9 477 bll Acedo�tful acco�+t• u+ is 21.�17. 119.25 1.1 b 9,1s� -_ 6."5 I 1Ka�ct7• plant '� cat• y 2.2i i.r 3,606942 is+p •ems 2q, 2 1 1, t,and and pleat S ildinssXna moilss j1,422 11.2s2 2p,� `+ 1.%int rl ire is PraRrc 1.}51 Z'►• l Coostr ! •i)2 i cd l•11 i.sh9 es. Ca+tribeTnio • }l. Z84,253 j4• '�' i•h+1itiLaved Ea l,315 24,22s y'l and st nctNllp •a/arztal 133.261 00 �� .5 its lFr' 3.414 5)i s.2M.ml '�� i50 iccrutd tt'b+1♦t 25 �_ 22i ��_ SZe• "" .170 I y l,i 66, '%cc"'ta PAYS°1c 2� 1 6l5 Sj4 1 5�•24! 641 r s il+) •1ll "'"Oe , ,71b rl� lxftrrtd %,,ds Vol t+ ► ! 4 1.091.144 ti Rtotu+` total hsb'li voies•. 5�•i1 1 1 9.617 1s2.i1� rctaipa to 2 290 422 ►.146.s� toutribotcd tedtt•1 t•�iess� is� 2.�b approp •nd retai^a S 'r� �- i I _ Ca+t oPr*tea ta t , I , 1 I I I CITY OF MIAMI. FLORIDA Enterprise Funds combining Statement of Revent•es. itaSes l and Changes in Contributed CsP and Retained Earnings r 30. 1974 st Spec iol as year ended Septea+be w� Orange Ik�+l Marina+ Andit� CoIE Marine St a_ d"s r3&'179 79.10f 'i stadium To_ LEI Stall""" 215 62,916 S,]l2 004. Ol6 22a. _ 118.1 1.55s.00 - 10a 7e.492 - 14 �•� � 22.a77 ?,� �1 ��1 4l� 79. 3,839. _ ter— I "9W 4" $ 131.309 163 154 M3 "4,796 �,�-- '�` - 173 RevfD scions 22T 4A6 --� 1.026. �� 15,535 Rev~ from opet 647 179 ��— — 1 266 1.59e•262 �-- 657,T32 lntcrsst ��� 105#976 261,266 9!3 a16.07f 556+lie �� - —� other funds 4,666.596 r,_ 1,479. ----173 Tressfers from s and transfers 7 7� _ _ �- SS6 657,732 15,535 79• "ter 5.104 333,9a Total revsaue 4.165.363 — a16.071 1� 2S•9SS 33].'>�7 1.554,993 d2s J2,o 22) 305.104 --1 210. Opecotios espM�s 43.269 other funds 4.24f.—.2 J 52,Tt9) 230,294 1,57a• tcoosfers to ors mull transfers 4� 1,47i.K1 Total esP� 3,926-743 a"AS ,320 � s) 1.191,331 9.449.E Met isso w (los 2,279.550 242i006 � rttained esrninss. 2R.66s.493 y capital s� I,66S.370 cotttriirtsa cop October 1, 197S 247 $52 1 `� 13s,612 9.44a.310 4,03� i tassencies � other so.,ernsXnl 2,280,422 1+ comtribotions from S 2q,142.5T6 comtribrted Capitol " 1979d tarninss+ Septeabe l , I' i i i �I CITY OF MIAMI, FLORIDA Internal service Funds Combining Balance sheet September 70, 1979 Assets Equity (deficit) in pooled cash and investments Accounts receivable j� Inventories p N Property, plant and equipment: Buildings and improvements Machinery and equipment Construction in progress Liabilities, Contributed Capital and Retained Earnings Accrued liabilities (principally salaries) Accounts payable Contributed capital and retained earnings (deficit) - unappropriated Total Public City Motor property print Stationery Properties garage pool maintenance shop stock $ 2,048,921 (18,793) 1,888,460 445,199 (247,455) (36,402) 17,912 12,105 - - 421 11,664 - - 392,422 - 164,092 99,638 89,699 8,067 30,926 27,346 - 390,545 244,934 90,258 1,6 709 8,2,346 24,698 6,038,245 2,717,317 86,997 61,699 - 2,838,906 - 2.838,906 - - $ 14,948,656 5,905 11,320,248 3,507,509 31,183 34,973 48,830 50,462 212,226 14,685,966 $ 14,%8,656 3,411 16,408 11,732 1,251 99,054 61,308 17,692 1,006 211 22,191 5,587 22,837 1,243 11,204,736 3,434,469 (8,700) 28,378 25,790 5,905 11,320,248 3,507,509 31,183 34,973 48,838 CITY OF MIAMI, FLORIDA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings Year ended September 30, 1979 A 1 a. Revenue from operations w Transfers from other funds Total revenues and transfers Operating expenses Met income (loss) Contributed capital and retained earnings (deficit), October 1, 1978 Contributions from other governmental agencies Contributed capital and retained earnings (deficit), September 30, 1979 Public City Motor Property hint Stationery Total properties garage Pool maintenance shop stock $ 7,411,594 367,536 3,380,230 1,853,584 1,517,554 135,064 157,626 316,602 - - - 316,602 - - 7,728.196 367,536 3,380,230 1,853,584 1,834,156 135,064 157,626 7,100,710 409,202 2,814,524 1,790,127 1,779,052 155,455 152,350 627,486 (41.666) % 5,706 63.457 55,104 (20,391) 5,276 13,037,277 36,649 9.645,348 3.349,801 (63,804) 48,769 20,514 1,021,203 6,260 993,732 21,211 - - - $ 14,685,%6 1,?43 11,204.786 3.434,469 (8.700) 28,378 25,M0 0 I G i F it CITY OF MIAM1, FLORIDA I' Trust and Agency Funds Combining Balance Sheet September 30. 197q I Couun i t y Other Total Development CETA EDA LEM r� ants !ensue Assets and Other Debits Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $21,182) $ 47,449 Accounts receivable (net of allowance for - - - 237,2!)f3 doubtful accounts of $366,607) 237,783 - - Receivables from other governments (net of allowance for doubtful accounts or $110,000) 5.174.194 2,667,231 2,026,616 226,912 14,369 23l,064 - Mortgage notes and loans receivable (less allowance for estimated ancollec►ihle p amounts of $440,SOR) - - Prepaid expenses ?L196 2,1% - - - - $ 5,456.1?: 2.669,427 2,026,613 226,912 14,369 239,064 279,732 Liabilities, Reserves and Fund Balances Vc-ficit (equity) in pooled cash and investments 7,645,00i 1,290,365 1,656,533 (11,638) (156,997) (676,792) 543,536 Accrued liabilities (princ;pally salaries) 176,126 15,817 145,919 1,858 3,3" 7,651 1,313 Accounts payable 1.83R.235 1,339,566 164,524 165,067 82,418 41,503 45,137 Deposits refundable 75.938 - - - - 75,938 Due to other governments 12.977 - - - 12,077 Due to other funds 3.)0.000 - - - 350+000 Reserve for noncurrent delinquent taxes receivable 13,806 - - - Fund balances (deficit) 344,933 23,679 59,642 71,605 $5,580 428,487 (324,060) e a 1lsa,1717 9."4.427 2.026.618 226,912 14,369 239,064 279,732 40 0 i � l � 1?y OT Nt/d+t, fbCN�InA ?rust unds and AAenc9 p CoAbioinR Valance gheet �I Aerte+aber 30. Ig7q Other Debits Assets and lA2) S cent (less aslafaSTl, Taxes rece,,,ted un olle tible oc for for est . ble (net of6 Iowa doubtfulsrece o f S3f' counts s 01) (net of ) IAccnac r Rovern+sentS u( Silo, 'too othe �ccnunt- Receivobles fr duubtiul allowance for n,ei�atile (less es and loans m4ollect�hie not i0a Nor a61 nts offor pst `+0A)te Ab a as+� F{,Faid exFenses Cogwo"it7 t CET <:D�► Selo 4i ,449 - 17.1A1 5.t74.1g4 RegeTYes and fund Aar e!4 - cash and jn4iM�enis l,iabilit�) in FO°1ed ve uity sAl ar ies) 0..ficit (equity) e9 ( rimiFallY Accrued hahilities P Accounts Payable �i osits refundable MF s to other Rovern+Aent' � Dom' ivable in other funds uent taxes rece Due ent dclit� jesetwe for noMan Rand balances (deficit) 1 2 9026 •blb 226,912 29667923 Otuer peogies 21T .2f3 226,912 2,026,616 2.� —! y�7) (676,?92) 543'S36 7,F1,Sone i l7b +176 I.g3A.�3S 75.91fi 17 �+37 7 344 93 533 (11.616) Owl 3 _y 7,551 1.91 1*2y0.365 1'656, 1,956 3, t►1,'i0 3 4S•13� 15+Sf T 165.919 166.S2i 16S•�T _ TS,93` 1 � 339 •� _ - _ 12.07T - - s 2» r7s7 - 662 ,y *9 23l, 2 6i 226.4) 12 7. 2.026 1 it i CITr OF MIAMI, FLORIDA Trust and Agency Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances I Tear ended September 30, 1979 Total Community Development CETA EDA LEM other grants pension Revenues: Intergovernmental grants S 23,347,922 9,688,S12 11,192,368 _ l,IS2,085 _ i17,328 _ $91,529 - - 15,056,396 Intragovernmental charges l5,056,396 _ _ _ 870,118 258,230 Other 1,128,348 39,532,566 9,688,512 11,192,368 1,152,085 417,326 1,767,647 15,314,626 Total revenues es _ 200,ppp - 464,622 - Transfers from other funds `r 664,822 40,217,388 _ 9,688,512 11,192,368 1,352,085 417,328 2,252,469 15,314,626 Total revenues and transfers ---- Expenses: Crant and related expenditures 24,672,449 9,682,557 11,153,503 1,282,305 333,075 2,221, - 15,093,031 Pension expense 15,093,031 90,207 Uncollectible delinquent property taxes 90,207 - _ _ _ %4,391 Other 564,391 40,420,076 _ 9,662,557 11,153,503 1,282,305 333,075 2,221,009 15,747,629 Total expenses Excess (deficiency) of revenues sea transfers (Z02,690' 5,955 38,865 69,780 84,253 31,460 (433,003) over expenses Fund balances, October 1, 1978 438,680 17,724 20,777 1,825 1,327 397,027 - - - - - 108,943 Equity transfers from other foods 108,943 - Fund balances (deficit), September 309 19" i $ 344,933 23,679 59,642 71,605 85,580 428,487 (324,060) 0 0 THIS PAGE INTENTIONALLY LEFT BLANK C-46 I CITY OF MIAM, FLORIDA Financial Report Year ended September 30, 1978 Table of Contents Page Accountants' Report C- 49 Part I - Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups C - 51 Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types C-53 Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types C-54 Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds C-5 5 Combined Statement of Changes in Financial Position - Enterprise Funds C-56 Notes to VI"s-181 Statements C-57 Part II - Supplementary Data General Fund: Balance Sheet C-75 Statement of Revenues, Expenditures, Encumbrances and Transfers - Budget and Actual C- 76 Statement of Changes in Fund Balance C - 78 Special Revenue Funds: Combing Balance Sheet C - 7 9 Combining Statement of Revenues and Transfers C- 8 0 Combining Statement of Changes in Fund Balances C-81 Debt Service Funds: Combining Balance Sheet C-8 2 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances C-8 3 C-47 CITY OF NUM, FWRIDA Financial Report Year ended September 30, 1978 Table of Contents Page Accountants' Report C-4 9 Part I - Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups C-51 Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types C - 5 3 Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types C-54 Combined Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds C- 55 Combined Statement of Changes in Financial Position - Enterprise Funds C-56 Notes to 'N"a lal Statements C-57 Part II - Supplementary Data General Fund: Balance Sheet C-75 Statement of Revenues, Expenditures, Encumbrances and Transfers - Budget and Actual C- 76 Statement of Changes in Fund Balance C- 78 Special Revenue Funds: Combing Balance Sheet C - 7 9 Combining Statement of Revenues and Transfers C- 8 0 Combining Statement of Changes in Fund Balances C- 81 Debt Service Funds: Combining Balance Sheet C-82 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances C-83 C-47 w CITY Of MIAHI. FLORIDA Financial Report Table of Contents, Continued Page Capital Projects: Combining Balance Sheet C-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-85 Enterprise Funds: Combining Balance Sheet C- 86 Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings C-87 Intragovernmental Service Funds: Combining Balance Sheet C-88 Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings C-89 Trust and Agency Funds: Combining Balance Sheet C-90 Combining Statement of Revenues, Expenses and Changes in Fund Balances C-91 C-48 4 PEAT, MARNICK, MITCHAL & CO. CERTIFIED PUBLIC ACCOUNTANTS 1000 BRICKELL AVENUE MIAMI. FLORIDA 33131 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida We have examined the financial statements of the various funds and account groups of the City of Miami, Florida as of September 30, 1978 and for the year then ended, as listed on the accompanying Table of Contents. Our examination was made in accordance 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. The Department of Off Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City of Miami, Florida. The financial statements of these entities for the year ended September 30, 1978, are not included in the accompanying financial statements. As described more fully in note 14 to the financial statements, the City is experiencing difficulty in maintaining the current level of services with existing available resources. The City has levied the maximum property tax millage for operating purposes and has determined that future intergovernmental revenues will be decreasing and that anticipated contributions in support of the pension plan will be increasing significantly over the next few years. The ability of the City to continue to maintain the level of current services in the future will depend on the City's ability to maintain or expand existing revenue sources while containing costs. As described more fully in note 1 to the financial statements, the City does not provide depreciation on property, plant and equipment of the Enterprise and Intragovernmental Service Funds as required by generally accepted accounting principles. Also, as described more fully in note 6 to the financial statements, the City, which is self -insured for a variety of risks, does not record claims payable in the Self Insurance Fund for all losses incurred as required by generally accepted accounting principles. C-49 0 0 The Honorable Mayor, City Commissioners and City Manager City of Miami, Florida Page Two As described more fully in note 12 to the financial statements the City participates in several Federal ly-sas isted grant programs which are subject to financial and compliance audits by the grantors or their repre- sentatives. The amount of reimbursement, if any, which may be required as the result of such audits is subject to final determination by the granting agencies and cannot be determined at this time. In our opinion, except for the effects on the financial statements of the failure to provide depreciation on property, plant and equipment of the Enterprise and Intragovernmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund and, subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies, all as discussed in the two preceding paragraphe, the financial statements present fairly the financial position of the various funds and account groups of the City of Miami, Florida at September 30, 19789 and the results of operations of such funds and' the changes in financial position of the Enterprise Funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The examination referred to above was directed primarily toward formulating an opinion on the financial statements of the various funds and account groups of the City of Miami, Florida. The supplementary data included in the schedules listed in the Table of Contents are presented for su;7!znintary analysis purposes and are not necessary for a fair presenta- tion of the financial position and results of operations of the various funds and account groups, and changes in financial position of the Enterprise Funds of the City of Miami, Florida. The supplementary data have been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, except for the effects of the failure to provide depreciation on property, plant and equipment in the Enterprise and Intragovernmental Service Funds and the failure to provide for all losses incurred in the Self Insurance Fund, and subject to the effect, if any, on the financial statements resulting from the financial and compliance audits required by certain grantor agencies all as discussed in the preceding paragraphs above, are stated fairly in all material respects only when considered in conjunction with the basic financial statements taken as a whole. Miami, Florida July 31, 1979 A711a4w"L 7;0,40v-4,. 4.4 C-60 �i F �CITY OF MIAMI, IIA0Ifa1 Combined Balance Sheet - All Fund Tyres mad Account croups ' September 30. 1979 ---- Cowernne-mtal -- -- ---^- Fund Types - - - ►ropr(etart rand Types - _ _ -- ridoc iary Fund Types - - - -S Aceauerosp nt-elf ---Central Total Cemr-ral Speciml O.bt Capital Intra- T►ust and Insurtnce fixed laaA-tero (lltsiaraa� Assets and OtMt_flebi_ts Crn.ral - revenue __ -- service - CtoiecN [nt.rprise - `ov.rnrntal aA-n.y rural - - ass.ts debt -- MI1) Equity in pooled cash and investm.ets (note I) S 7.2M.548 2,941,675 ",973,170 773,848 1.19?.R02 - 4.614.971 -- 67.706.}lg 4ceivabl.9: Tomes receivable - delinqu►nt (loom allnuaece for estimar.d mocoll.ctible amounts of S2.I1h,400) 642,74E 173,962 242,106 - - - - - - - 1.0S9,516 Geaerol ace -rats receivable (net of allowance for doubtful accounts of $77.662) 502,246 - 615 - 404,0119 I2,S7S - "7.914 - - L M,I89 'n Assessment liens receivable (mete 1) - - 1.106 19,170 - - - - - - 20.306 Other governments (net of ollowaoce -' few doubtful accounts of $110,000) - 09 2,0,477 - - - - 66 9,414.0 - - - 11.4M.1i7 Deposits and prepaid insurance - - - - - - - 145,097 - - 144."2 Inventories, and other (mate 1) 19,120 - - - - 291.%4 - - - - ))0,606 Property. plant sod equipment (mete 1): LMA - - - - 1,620,107 gaildimp and improvements - - - - 21.121.652 724.489 - - I5,007.0OS - 36,053.IN Machinery and equipment - - - - 155,419 9,091,SS6 - - 6,761.9M - 16,642,901 Improvements other than buildings (note 10) - - - - - - - - 90.101,)12 - 99,301.312 Contraetioa-in-progreem (mete 10) - - - - 4,104,915 1.838.014 - - 49,606,504 - 55,610,111 Annual ovailoble for retirement of ►oads: Genersl obligation - - - - - - - - - I.SO5,710 I.S",710 Special obligation - - - - - - - - - 1,522,S14 I.S2}.S14 Meant to be provided for retirement of beads sod judgment payable: Genera) obligation beads - - - - - - - 1".6".262 tTO.ON.}t+2 Special obligation bo•.ds - - - - - - - - - 1,124,N6 1.M.40 i. judger t and other, Pgables (note 7) - — ---- - - - -• -- ---- - Ir10)001 _J,YFL201 ii tr�Ip1,66f 1 1 �IDJi419 �106,}02 50,992.4E 29,090,gS0 I)t1iA,llsn 9t114,460 S,Ibo,sgS 1761506,477 1nt4ni}01 y).tU Tm! rrt u to E7ra.a'r �) �pltiM TiMciar ktt tiad /rMt-tee �t Ct'I M tttJlll• aceee.t Gcao�e TWO e a ietar E'eaa T_�.t SPA t..�� a sty trttt•�t Cep;� plaoc e ! •cot _all Taal Tw+t Tt l.tr .tat • iee o 'cx' - - - l,V2 .4M� 2� �_erYRet.t CNitet. Tte _ 6.744.12 S 261.09 6.693 �.ria1 - 2ti.614 123.276 a Ceo°1 10.772 N,10 4jy1,tS\ i _ 5.141•7st MSI.otS Lio>•i s - is l.a1l. 2f •� _ 2a+.�0 224.NS _ - >•.ato s.Sta,tst 1".475.09 t".itS. ia�eeteMte i* 12a.p11.••" a sa -_ -- - _ t•pt.Mo 2.Mt.," lip 201 �Eicic - iTlji011idtiMC,* etll t11 (&tc�l(TciacT, lt _ 4ccov Poo tale .4 igaee lotor ,.aa Th woote sovelete�o 1.o to ot able /eto ToTb e C iewo T�liaot:ea - �r an sst �r �r�r - - ' dte a) a r/e wK t� �l rr 2 a1� S� _U »2 •� �; pti� �� 4S a ..fieset esrar SS N r��r _ _ _ ass.*A - 1Z2r� leete t) y.,17a ilitiee l,atS.S12 lot lid 54.2►t 11• - _ ast.w0 My,� a9a " - ~1 4ts iea (vote t) �,aso Oat tee& �liovoaot tii.� yc�t..eee�tacreat trz pyle Sweet" e cKai M.21S,r4 1.tS4.m 22t.4"tomm _ - �,ats vital S l lr4tarSts t•Syy�2At ram Ewa 1•171' _ �•EM. tlA r27t �� �J� 201 few ( e 1) ..+ (� (,,.t _ y Its. �y tta� T'.Tc - Nt�N " .ea/Tc� t..liee�td _ - lS 1 rJ T.d iae+ - " �t��iaw " ; in ro _ �` 2 00 to Comet to.;;Otee't. teK* ta. ial to e- See ��owopyiai "toll i CITY OF Mimi, FLORIDA Combined Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - All Governmental Fund Types Year ended September 30, 1978 Total Special Debt Capital ("am sadmm General revenue service projects emh) Revenoes: Taxes (notes 2 and 10) S 37,937,203 - 11,819,882 - 49,757,085 Licenses and permits 4,476,690 - - - 4,476,690 Intergovernmental revenue (note 2) 18,7" ,170 8,037,906 - 1,618.505 28,440.581 Intragovernmental revenue 1,525,513 - - - 1,525,313 Charges for services 718,514 - - - 718,514 Sale of bonds (note 4) 14,060,000 14,060 Assessment lien collections (note 1) - - 358,917 - 3": Franchise and utility service tax revenue - - 15,442,625 4,853,025 20,295,650 Interest 1,049,282 228,467 505,701 3,654,954 5,438,384 Other Total revenues 1,196,635 65,690,007 93,177 8,359,550 - 28,127, 14 9" ,181,35O 1 306 778 1269356oll2 Transfers from other funds 29,996,667 - 191,700 - 30,188,367 Total revenues and transfers 95,686,674 8,359.550 28,318,905 24,181,350 156,566■479 Expenditures and encumbrances (note 6): General government 8,494,669 - - - 8,494,K9 e� Public improvements 9,149,199 - - - 9,149,199 Public safety 36,891,170 - - - 36,891,170 w Sanitation 12,022,064 - - - 12,022,064 Pension (note 3) 14,410,206 - - - 14,410,206 Parks and recreation 5,103,662 - - - 5,1O3,K2 Intragovernmental charges 1,546,357 - - - 1,566,351 Other 4,290,990 - - - 4,290,990 Project expenditures - - - 26,923,332 26,923,332 Debt service (note 4): Bond principal - - 8,726,000 - 8,726, Bond interest - - 6,709,502 - 6,ye9, Fiscal agents' fees and administrative charges - 96,179 - 96.1 Total expenditures 91,908,319 15,531,681 26,923,332 134,363,332 Transfers to other funds 1,803,688 11,0371215 15,240,175 3,506,537 31,567,615 Total expenditures, encumbrances and transfers 93,712,007 11,037,215 30,771,856 30.429.869 165,950,947 Excess (deficiency) of revenues and transfers over expenditures, encumbrances and transfers 1,974,667 (2,677,665) (2,452,951) (6,248,519) (9.406,468) Fund balances (deficit), October 1, 1977 (61,377) 3,776,990 3,575,618 54,543,913 63,835,136 Reclassification of encumbrance outstanding (note 8) - 500,000 - - 500,000 (Increase) decrease in reserve for noncurrent delinquent taxes receivable (63,765) 43,858 (14,415) - (36,322) Transfer of current portion of judgment payable (mote 7) (375L000) - - - (375.000) Fund balances, September 30, 1976 S t,474z525 1,643,173 3,100,252 48.295,3% 54,521.344 See accompanying notes to financial statements. CITY OF MIAMI, FLORIDA Combined Statement of Revenues. Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - Geeeral and Special Revenue Fund Types Year ended September 30, 1978 Total General Fund !peciat Revenue Funds -- (Mrmorandum Os -'-_Actual Budget -----Actual B.djt Actual met Revenues: Taxes (note 2) $ 37,645,091 37.977.ml - - - 37,845,091 4.043.%l 37.937,203 4.476,690 Licenses, permits and service taxes 4,043,941 21.654,433 4,476.690 18,784.170 - 8,037,906 21,654.433 26,822,076 Intergovernmental revenue (note 17) 1.626,312 1,525,513 - 1.626.312 1,525,513 Intragovernmental revenue 890.763 718,514 - - 890,763 718,514 Charges for services 900,000 1,049.282 - 228.467 900.000 1.277,749 Interest Other (including General Fund budget item of $1.500,000 for anticipated salary savings) _1,%9P- I,198.675 — _ - 93,177 1,%9.767 1,291.812 Total revenues 68.930,307 65,690,007 - 8.359,550 68,930,307 74,049,557 Transfers From other funds 28,na.au �996�667 - - --- 28,274,413 29,9%.K7 Total revenues and transfers 97,704,720 95,686,674 - 8,359,550 97,204,1" 104.046,224 a Expenditures and encumbrances (mote 6): 9.a78.813 8.494,669 _ _ 9 478.813 + •.N4.669 General government 9,954,466 9,149.1" - - 9.954.468 9.149,1" Public improvements 38,117.734 36,891,170 - - 38,117.734 36+891.170 Public safety Sanitationf 12,551,290 12.022,064 - - - 12,SS1.290 14,621.841 12,022.064 14,410.208 Pension (mote 3) 14,621,841 5.279.916 14,4!0.208 5,103.662 - - - 5,239.978 5.103,662 Parke and recreation 1.692,891 1,546.357 - 1,692.891 I,546,357 Imtragoveremeetal charges 4t-"-I- 97 = 4.908,497 •,290� Other Total expenditures 96,565,512 ItS43 72 _tt290'990 91,�.319 1,801,6" _ _ - 11,037_,21% 96.565.St2 1,543L472 91,908.3t9 12 "O.L 03 Transfers to other funds Total expenditures and transfers ".106.984 93,712,007 - _ 11,031,215 90,108,9R4 106,749,222 Excess (deficiency) of revenues and transfers over S (9M.264) 1.974,667 _ (2,677,665) (90►�2641 (702,998) e:pewdtCYfts and transfers ___ _ Fund balances (deficit). October 1, 1977 (61,377) 3,776,"0 3.715.607 (Increase) decrease in reserve for noncurrent delinquent (63765) . (19,907) taxes receivable 00, 000 ,� Reclassification of encumbrances outstanding (note 8)� Transfer of current portion of long-term judgment _ _ (375.000) payable (mote 7) _(775.000) _ _ _ Fund balance. September 30, 1978 $ 1,474,525 1,643,17) r 3'117L690 see accompanying motes to financial statements. CITY 0► MAKI, FLORIDA Combined Statement of Revenues, Expenses and Changes is Contributed Capital and Retained Earnings/fund Ralances - All Proprietary fund Types and Similiar Trust funds Proprietary Fiduciary Year Ended September 30, 1976 fund Types fund Types Self Intra- Trust nc Insurae Enterprise governmental i ll�enc� fund Revenues: Revenue from operations S 3,701,319 - - - Intragovernmental charges - 6,364,097 - 4,011,626 Intergovernmental grants (note 12) - - 26,074,069 - Contributions from employees and retirees - - - 2,498,559 Interest 58,638 90,765 - 56,417 Other - - 191,310 Total revenues 3,759,957 6,444,862 26,074,069 6,751,912 Transfers from other funds - 1,657,248 213,000 n Total revenues and transfers 3,759,957 8,102,110 26,287,069 6,751,912 Expenses: Operating expenses 3,073,538 6,187,850 - 6,"s,714 Grant expenditures (note 12) - - 25,713,271 Total expenses 3,073,538 6,187,850 25,713,271 6,465,714 Transfers to other funds ' - M,644 435,000 Total expenses and transfers 3,073,538 6,232,494 26,148,271 6— ".71� met income 686,419 1,969,616 - - Excess of revenues and transfers over expenses and transfers - - 138,790 292,198 Contributed capital and retained earnings, fund balances, October 1, 19779 24,691,574 10,434,847 299,882 - Reclassification of Self Insurance fund (note 10) - (1,169,258) - 1,169,258 Contributions from other funds 3,29P."00 1,902,072 - - Contributed capital and retained earnings, fund balances, September 30, 1978 3 2-1 468,493 13A37,2II 438,680 1,461456 See accompanying notes to financial statements. f CITY OF MIAMI, FLORIDA Enterprise Funds 9 Combined Statement of Changes in Financial Position Year ended September 30, 1976 ; Funds provided: Net income $ 686,419 Item not using funds - disposition of machinery and equipment 55,485 Funds provided from operations 741,904 Contributions from other funds 3,290,500 Increase in accounts payable and other liabilities 40,435 4,072,839 Funds used: Retirement of revenue bonds 18,000 Increase in receivables 87,644 Additions to property, plant and equipment 3,622,044 Decrease in accrued liabilities 99206 Increase in equity in pooled cash and investments 335,945 $ 4,072,839 See accompanying notes to financial statements. C-56 CITY OF MIAMI, FLORIDA Notes to Financial Statements September 309 1978 (1) Summary of Significant Accounting Policies The City of Miami in the County of Dade was incorporated in 1896 and comprises approximately 34 square miles of land and 20 square miles of water. The City operates under a Commission - City Manager form of government and provides the following services as authorised by its charters public safety, public works, sanitation, recreation and community development. The County is a separate governmental entity and its financial statements are not included in this report. (see note 11) The accounting policies of the City of Miami, Florida conform to generally accepted accounting principles as applicable to governmental units except for the nonrecognition of depreciation on fixed assets of the Enterprise and Intragovernmental Service Funds and except for the failure to provide for all losses incurred in the Self Insurance Fund. The following is a summary of the more significant policies: (a) Basis of Presentation - Fund Accounting The accounts of the City are organised on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The Department of Off -Street Parking, the City of Miami Retirement Plan and System and the Downtown Development Authority are entities independent of the City. The financial statements of these entities are not included herein. The various funds are grouped by type in the financial statementb. The following fund types and account groups are used by the City: GENERAL GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are acounted for in this fund. From the fund are paid the general operating expenses and the fixed charges that are not paid through other funds. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments or major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. Budget information has not been presented since all resources are appropriated in the General Fund. (See note 10) C-57 ---w•_r „+r'��___. ..�-.+•+�.. .w �..�- ..—.�.. .. �......�.�y�-mow �. -T...r �.a.w. w�.....�1A�.�►�!'.'1RI'�'�.•lf'.- 40 CITY OF MINA, FLORIDA Notes to Financial Statements Debt Service Funds - Debt Service Funds are used to account for the annual payment of principal, interest and expenditures on long-term general obligation debt, other than bonds payable from the operations of an enterprise. Capital Project Funds - Capital Project Funds are used to account for financial resources segregated for the acquisition or construction and financing of public improvements. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that provide a service to citizens financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capital maintenance, public policy, management control, accountability or other purposes. Intragovernmental Service Funds - Intragovernmental Service Funds are used to account for the financing of goods or services by a department of the City on a cost reimbursement basis. FUDICIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held in trust or as an agent by the City for others. These funds are used tc account for revenues and expenditures relating to most Federal and State grants. For the year ended September 30, 1978 approximately $13,600,000 of expenditures were reported in the Trust and Agency Funds which benefit other funds. The amount of benefit provided to other funds is not individually resdil3 accessible, although the majority is in support of general governmental services. Self Insurance Fund - Self Insurance Fund is used to account for losses incurrec by the City for a variety of risks for which it is self insured. The Fund alsc accounts for employee and employer contributions for certain health coverages. GROUPS OF ACCOUNTS General Fixed Assets Group of Accounts - This group of accounts is established t, account for all fixed assets of the City, other than those accounted for in th, Enterprise and Intragovernmental Service Funds. General Long -Term Debt Group of Accounts - This group of accounts is establish* to account for all long-term debt not accounted for in the Enterprise Funds. (b) Basis of Accounting The modified accrual basis of accounting is followed by the Genera Governmental Funds. Under the modified accrual basis of accounting revenues are recorded when received in cash unless susceptible to accrual i.e. measurable and available to finance the City's operations or of material amount and not received at the normal time of receipt. (Continued) C-58 Is CITY OF MIAMI, FLORIDA Notes to Financial statements Expenditures, other than interest on liability is incurred. The accrual Proprietary and Fiduciary Fund Types. (c) Encumbrances long-term debt, are recorded when the basis of accounting is utilised by Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the general governmental funds. included in encumbrances outstanding in the General Fund is $1209854 relating to prior years. (d) Investments Investments are stated at cost, which approximates market. Investments consist of U. S. government obligations and time deposits with financial institutions. (a) inventories Inventories are priced at cost on a first -in, first -out basis. Inventory in the Intragovernmental Service Funds consists of expendable supplies held for consumption. (f) Property, Plant and Equipment -Enterprise and Int•a!—arnmental Service Funds Property, plant and equipment owned by the Enterprise and Intragovernment al Service Funds is stated at cost. Depreciation has not been provided as required by generally accepted accounting principles. The amount of accumulated depreciation at September 309 1978 and the related depreciation expense for the year then ended is not susceptible to determination at this time. (g) General Fixed Assets General Fixed Assets have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the general governmental funds and capitalised at cost in the General Fixed Assets Group of Accounts. In the case of gifts or contributions, such assets are recorded in General Fixed Assets at fair market value at the time received, except for the Olympia building which houses the Maurice Gusman Cultural Center for the Performing Arts which was donated in 1975 but for which a fair value has not yet been determined. General Fixed Assets include certain improvements, including roads, bridges, curbs and gutters, streets and sidewalks, and lighting systems. (Continued) C-59 wpm lb ,% CITY OF MIAMI, FLORIDA Notes to Financial statements No depreciation has been provided on general fixed assets. (h) Vacation Earned Time and sick Leave Under terms of Civil service regulations and administrative policy, City employs** are granted vacation and sick leave in varying amounts. Additionally, certain overtime hours can be accrued and carried forward as earned time -off. Due to the uncertainties relating to the timing and amount of payment to be made, the above liabilities are not recorded (see note 13). M Pooled Cash and Investments During 1977, the City implemented a new accounting system in which all cash, investments and accrued interest are recorded and maintained in a separate group of acco!ints. All cash and investments, including accrued interest ant interfund transfers, are reflected in the equity or deficit in pooled cast and investments. Interest income is allocated based upon the approximate proportionate balances of each fund's equity in pooled cash and investments, A summary of pooled cash and investments and equity in pooled cash an, investments followst Short term investments, including accrued interest $ 659026,389 Petty cash and other 32,182 $ 65,0581571 Bank overdrafts $ 31127,097 Liability for payroll deductions 11272,273 Other 1509178 Equity (deficit) of Funds: General Fund 70204054f Special Revenue Funds (451007` Debt Service Funds 29941,67! Capital Projects Funds 5009730371 Enterprise Funds 7739841 Intragovernmental Funds 1,197980: Trust and Agency Funds (69746,13: Self Insurance Fund 4,614,97' $ 65.058.57 The liability for payroll deductions shown above represents employee sale deductions for FICA, credit union, bond purchasers etc. This liabili is not reflected in the accompanying financial statements since as funds' equity in pooled cash and investments amount has been reduced f its respective portion. (Continued) C-60 a it CITY OF MIAMI, FLORIDA Notes to Financial statements (j) Allocation of Administrative Expenses The General Fund incurs certain administrative expenses for other funds, including accounting, legal and engineering services. An administrative charge is levied against these funds to defray a portion of these expenses. The General Fund also contributes toward certain costs of the Intragovernmental Service Funds, including pension cost, social security and group insurance charges. These costs are recorded in the Intragovernmental Service Funds, with the General Fund transfering sufficient funds to cover the expenses. M Appropriation of Fund Balances The 1978-79 budget for the General and Special Revenue Funds include appropria- tion of the September 309 1978 fund balances of $2,427,000 and $1,0779000 respectively for purposes of funding general operating expenses. (1) Deferred Income Deferred income at September 30, 1978 represents collections made in advance for which the use or service will not be provided until the subsequent year. Included in the General Fund amount is a $5809000 payment received in 1978 pursuant to an agreement made in 1975 for the sale of certain assets to the Dade County Water and Sewer Authority. The payment was received in advance of the scheduled date and is being deferred until the next fiscal year to coincide with the period in which it is appropriated. (m) Debt Service Funds Activities Included in the operations of the debt service funds are collections of utilities service taxes and collections of assessment liens. These revenues have been reported in the Debt Service Funds because they are restricted for the payment of principal and interest on certain bond issues. Excess receipts over current debt service and reserve requirements are transferred to the General Fund for general operating purposes. (2) Real and Personal Property Tax The City's real and personal property tax is levied each January I on the assessed value listed as of the prior September 30, for all property located in the City. Assessed values are established by the Dade County Assessor of Property at just values. The assessed value of property at September 30, 1977, upon which the 1977-78 levy was based was $3,828,200,000. (Continued) C-61 4b 11 CITY OF MIAMI, notIDA Notes to Financial Statements The City is limited under Article 79 Section 8 of the Florida Constitution to a maximum tax levy of 10 mills per $100 ($10 per $1000) of assessed valuation for general governmental services. Taxes levied for the payment of principal and interest on long-term debt are not subject to this limitation. The tax rate to finance general government services, other than the payment of principal and interest on long-term debt, for the year ended September 30, 1978 was $10 per $1000 of assessed valuation which means that the City exhausted its taxing capability to finance general government services. An additional $3.20 per $1000 of assessed valuation was levied for the purpose of debt service. Total taxes levied, therefore, for the year ended September 30, 1978 aggregated $50,532,000 of which $38,282,000 was designated for general government service and $12,250,000 for debt service. All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Dade County Tax Collector. The Dade County Tax Collector mails to each taxpayer on the assessment roll a notice of the taxes levied. Taxes may be paid upon receipt of such notice, witt 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. All unpaid taxes on real and personal property become delinquent on April 1 of the calendar year following the year it which the taxes were levied. All tax collections for the City are deliAl ed tc the 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 salt certificate is sold at auction from which time the interest rate shall be as bi, by Hho buyer of the certificate. (3) Retirement Plans The City has contributory pension plans covering substantially all employees. Total pension expense for the current fiscal year, including amortization o prior service costs over 35 years was approximately $14,650,000. Of this amoun, $14,410,000 was funded by the General Fund, and the remainder by various othe funds, principally Enterprise. The actuarially computed value of vested benefits under the plans exceeded th pension funds' net assets by approximately $76,211,000 at September 30, 1971 the date of the last valuation. The pension expense and the excess of vested benefits over fund assets, for th year ended September 30, 1978 increased substantially from the amounts reports for the year ended September 30, 1977 (approximately $11,200,000 an $69,700,000, respectively). This increase was principally due to changes i actuarial assumptions, the most significant being anticipated future salar increases. The anticipated aggregate contribution for the fiscal year ending September 30 1979 is approximately $16,100,000. (Continued) C-62 a st CITY OF MIAMI, FLORIDA Notes to Financial statements (4) Bonds Payable (a) Bond Issuances During 1978 the City issued $14#040#000 of General Obligation Bonds. The proceeds are restricted as to use as follows Parks and recreational facilities $ 1195409000 Fire facilities 1/0000000 Housing 1,500,000 $ 14,040.000 (b) General Long -Term Debt General obligation bonds, 1/10% to 7-1/229 maturing in various years through 2008, current principal maturities of approximately $9,860,000 backed by the full faith and credit of the City and its taxing power. $ 129,675.000 Special obligation bonds, 32 to 4-1/102, maturing in various years through 19889 current principal maturities of approximately $466,000. $ 2,647,000 (c) Enterprise Funds Revenue bonds, 6.52, maturing in various years through 1989, current principal maturities of approximately $20,000. $ 249,000 (d) Debt Service Requirements General Oligation Bonds Debt service is provided by an unlimited tax levy on nonexempt property value and collections on assessment liens from projects financed by proceeds of such bonds. Special Obligation Bonds (1) Incinerator revenue bonds - Debt service is being provided by General Fund transfers. A reserve of $250,000 must be maintained. (2) Utilities service tax bonds - Debt service is provided by utilities service taxes imposed by the City on each purchase of electricity, gas, water and local telephone and telegraph service. A reserve must be maintained equal to the maximum annual debt service requirement. Utilities service tax revenues exceeding debt service and reserve requirements can be used for any lawful purpose. C - 6 3 (Continued) a A CITY OF MIAMI, FLORIDA Notes to Financial Statements (3) Orange Bowl Special Obligation Bonds - Debt service is provided by electric franchise revenues. A reserve equal to the maximum annual debt service requirement must be maintained. At September 30, 1978 there were sufficient funds reserved to fully pay the amount outstanding. Enterprise Revenue Bonds Rental income from the lease of the warehouse facilities is pledged to provide debt service on these bonds. (5) Land Transactions During 1974 the Inter -American Center Authority purchased a parcel of land from the City known as the Graves Tract for $8,5009000. The Authority had agreed to pay the amount of the indebtednese, together with 52 annual interest, in equal semiannual installments of $300,000 beginning January 19 1977. In 1975 the Authority was dissolved. Negotiations as to the payment of indebtedness are in process. The State of Florida budget for 1979-80 fiscal year contains a line item that gives the State the opportunity to buy the City's interest in the property for $8,0009000. The $8,000,000 would be restricted for projects related to tourist development. The City has not yet accepted the terms of the State's proposal and due to uncertainty as to timing and ultimate collection of this amount, no receivable has been recorded at the balance sheet date. At September 30, 1978 Dade County was indebted to the City for approximately $830,000 relating to the sale of the Dodge Island site. Pursuant to terms of the original agreement, the aggregate purchase price of $1,330,000 was to be received by the City after payment and cancellation of the County's Seaport Revenue Bonds. During 19779 the original agreement was amended to provide for earlier payment. Included in revenue for 1978 is a receipt for approximately $580,000 including accrued interest. The remaining $830,000 is not considered available to finance 1978 operations, and therefore has not been recorded at the balance sheet date. (6) Self Insurance On October 1975 the City established a Self Insurance Fund to provide insurance against certain liability risks. The City has continued to purchase outside coverage for certain exposures where the premium is small in relation to the coverage provided. In prior years these self insured risks were limited to automobile liability and property damage, and general liability for slips, falls and torts (hereinafter referred to as general coverage). During 1978 the City expanded the types of risk for which it is self insured to include group accident and health and also modified its accounting for workers compensation. The City's accounting policy and amount of unpaid claims at September 30, 1978 for the various coverage is explained belows (Continued) C-64 LJ CITY OF MIAMI, FLORIDA Notes to Financial Statements A. General Coverage - Departments of the City are assessed a charge for each risk based upon the number of automobiles, square footage of space utilized, etc. As claims are reported, claims personnel investigate each claim and estimate a liability on a case by case basis. No provision is made for claims incurred but not reported. The amount of this liability is not susceptible to determination at this time. B. Group Accident and Health - Employees participating in the City's group coverage contribute through payroll deduction and departments of the City fund the remaining cost based upon their respective number of participating employees. Retired employees also participate and contribute to the plan. During 1978, when the City assumed the liability f^- coverage, the insurance carrier returned to the City an amount representing the unpaid claims at that date. This amount was established as a claim liability. All claims paid subsequent to this date have been expensed as paid. C. Workers Compensation - In prior years, workers compensation claims were recorded on a pay-as-you-go basis in the General Fund. In 1978, all departments of the City were charged for their respective share of claims paid. Effective October 1, 1979 all workers compensation costs will be included in the Self Insurance Fund with all departments of the City being assessed a charge for this coverage. At September 30, 1978 there is no claim liability for workers compensation recorded. The amount of this liability is not susceptible to determination at this time. Total claims payable C-65 Amount included in claims payable $ 1,884,025 1,690,727 -0- $ 3,574,752 (Continued) a ot CITY OF MIAMI, FLORIDA Notes to Financial Statements The charges made by the Self Insurance Fund to other funds are not determined on an actuarially sound basis due to the lack of adequate data. The accuracy of expenditures recorded in other funds for insurance coverage depends on the ability of the Self Insurance Fund to accurately estimate the claim losses incurred by the insured departments. To the extent the claim liabiiity recorded in the Self Insurance Fund is understated, or to the extent the fund balance represents charges to other funds in excess of actual losses, the expenditures of other funds would differ accordingly. The City does not believe such a refinement in the claim liability amount would have a material impact on any fund's expenditures for the year ended September 30, 1978. (7) Claims, Judgment and Other payables Claims Payable - General Fund In April 1978, the City, as defendant, settled an outstanding suit which alleged certain irregularities in pay increases granted to certain Citv emnloyces in prior years. The City agreed to pay the plaintiffs $1,100,000 coverine all hack wages, attorney's fees, court costs and auditor costs. Of this amount, $187,500 was charged to expenditures during 1976, and $912,500 was charged to expenditures in 1977, both in the General Fund. The City disbursed $350,000 during 1978 from the General Fund and has accrued as part of claims payable the fiscal 1978-79 payment of $375,000. A corresponding charge to fund balance in the General Fund has been recorded for the fiscal 1978-79 accrual. The remaining $375,000 payment is scheekilyd t be made during fiscal 1979-80 and is reported as part of judgments and other payables in the General Long Term Debt Account Group (see below). Judgments and Othei Payables - General Long Te m Debt Account Group During the fiscal year ended September 30, 1977 the City purchased a parcel of land and agre-.d to compensate the owner $1,293,500. At September 30, :�78 the unpaid bala%ce of the indebtedness is $732,201 and is scheduled to be paid in varying aQ)unts through 1986. The remaining $375,000 in judgments and other payables represent the fiscal 1979- 80 payment on the judgment described above. (Continued) C-66 fk CITY OF MIAMI, FLORIDA ft Notes to Financial Statements (8) Federal Revenue Sharing Fund - Reclassification of Encumbrance Outstanding During 1978 the City cancelled an encumbrance outstanding in the Federal Revenue Sharing Fund for $500,000 and appropriated the monies for the 1978-79 operating budget. Due to the significance of the amount involved and the fact that the original encumbrance was never supported by an executed purchase order the amount is being shown as an addition to fund balance for the year ended September 30, 1978. (9) Litigation (a) City of Miami vs. FEC The City is involved in a "quick take" eminent domain action to acquire 32.64 acres of bayfront land owned by the Florida East Coast Railway Company.(FEC) The property is located in downtown Miami between NW 6th and NW 9th Street and bounded in the west by Biscayne Boulevard. In March, 1978 a trial court entered an Order of Taking and an Order of Necessity, vesting title to said property in the City subject to a Stipulation entered between the parties. In accordance with the Order of Taking and the stipulation, the City deposited $14,500,000 of certificates of deposit with a local depository. On March 30, 1978, FEC and certain other defendants appealed. In June 12, 1979 the Third District Court of Appeal issued its opinion affirming the Order of the trial court. The FEC has asked for a rehearing before the Third District Court of Appeal. If the City continues to be successful in upholding the Order of the trial court, this case will be returned to the Circuit Court for a jury trial to determine the ultimate amount which the City must pay FEC and other defendants for the property and damages they may have sustained including defendant's attorney's fees and court costs. This amount, however, cannot be determined at this time. (b) Cates at al vs The City of Miami The City of Miami is involved in a lawsuit filed by several contributors and retired members of the Miami City Employees' Retirement System primarily challenging the legality of certain expenditures made by the City from revenue raised pursuant to a Special Act which authorized the City to levy ad valorem real property taxes for the relief and pension of City employees. The alleged improper expenditures are as follows: City's Social Security contributions $ 8,771,929 City's required portion of premiums on Group Health and Life Insurance Policies 8,627,239 Payment of Judgments on pension related cases 19660,182 City's Workers' Compensation obligations 566,810 Reimbursement to City of expenses for City Departments' services rendered to pensions 2,460,233 $ 22.086.393 (Continued) C-67 0 0 CITY OF MIAMI, FLORIDA Motes to Financial Statements In the opinion of the City Attorney, the lawsuit will not ultimately result in the City of Miami having to actually pay any money judgment. (c) Other The City is currently appealing a $400,000 judgment that arose out of an automobile accident involving a police vehicle. In the opinion of the City Attorney the City liability is either $100,000 or $400,000 depending on the outcome of the appeal. The City is defendant in a case which arose out of an alleged police brutality incident. A verbal demand for $300,000 has been submitted and in the opinion of City counsel the case will be settled. There are a number of claims and lawsuits against the City resulting principally from personal injuries incurred on City property. In the opinion of City officials and the City attorney, these claims together with those mentioned above could result in a liability to the City of approximately $1,900,000. The liability for outstanding claims is recorded in the Self Insurance Fund (see note 6). The City of Miami relies primarily on their legal department acting under the direction of the City Attorney for legal advice. The foregoing opinions are based solely on the opinion of the City Attorney. (10) Changes Affecting Comparability (a) Reclassification of Self Insurance Fund As discussed in note 6, the Self Insurance Fund was reported as an Intragovernmental Service Fund for the year ended September 30, 1977 but has been reclassified and is being reported as a Fiduciary Fund Type for the year ended September 30, 1978. This reclassification, in managements' opinion, more properly presents the activity of the Fund. The amount reclassified of $1,169,258 represents fund balance at October 1, 1977. (b) Special Tax Levy Funds For the year ended September 30, 1977 general property taxes aggregating $14,099,000 were levied and reported as revenue in the'Special Revenue Funds in support of Pension, Publicity and Tourism and Street Lighting. Total expenditures reported in the Fund were $15,959,000. Pursuant to City Commission action, these activities and the related revenue and expenditures are reported in the General Fund for the year ended September 30, 1978. (Continued) C-68 A A CITY OF MIAMI, FLORIDA Motes to Financial Statements (c) Group Insurance and Workers' Compensation Costs Prior to June 1, 1978 the General Fund absorbed certain costs relating to Group Insurance and Workers' Compensation costs. Subsequent to that date, each department is charged their respective portion of actual claims coverage. Aggregate costs charged for the year ended September 30, 1978 was $5,012,000 of which $4,341,000 was recorded in the General Fund and $671,000 was recorded in other funds, principally Intragovernmental, Enterprise and Trust and Agency Funds. The aggregate costa recorded in the General Fund for the year ended September 30, 1977 were $4,927,000. (d) Federal Revenue Sharing Fend Prior to 1978 certain expenditures were budgeted and paid for directly by the Federal Revenue Sharing Fund. For the year ended September 30, 1978 all disbursements previously reported in this Fund were budgeted and disbursed by the General Fund. Total expenditures reported for the year ended September 30, 1977 for activities currently reported in the General Fund were $2,747,000. (e) Transfer of General Fixed Assets to Dade County Water and Sewer Authority As of September 30, 1978 the City recorded the transfer of approximately $49,000,000 of sanitary sewers to the Miami -Dade Water and Sewer Authority in accordance with an agreement dated March 1975 between the City, Dade County and the Miami -Dade Water and Sewer Authority. The transfer was recorded, although most of the assets were being used by the Miami -Dade Water and Sewer Authority since 1976, by reducing improvements other then buildings by $48,842,186 with a corresponding decrease in investment in general fixed assets. There is an additional $8,896,690 of similar assets recorded as part of construction -in -process that will be transferred when the respective projects are completed. (11) Relationship with Metropolitan Dade County The Florida Legislature in 1955 approved and submitted to a general election, a Constitutional Amendment designed to give a new form of government to the County of Dade. The Amendment was approved in a state-wide general election in 1956. A Dade County Charter Board was constituted and in 1957 and drafted a charter which established a form of Metropolitan County government. The charter was adopted in a county election on July 20, 1957. The electors of Dade County are granted power to revise and amend the charter from time -to -time by countywide vote. The County is in effect, a municipality with governmental powers effective upon twenty-seven cities and unincorporated areas including the City of Miami. It has not displaced or replaced the. cities but supplements them. The County can take over particular activities of a 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. C-69 (Continued) CITY OF MIAMI, nORIDA Notes to Financial Statements Since its inception, the Metropolitan County Government has assumed responsibility on a County -wide service basis for a number of functions, including County -wide police services, complementing the municipal police service; uniform system of fire protection complementing the muncipal fire protection; consolidated two-tier court system; creation of the Miami -•Dade County Water and Sewer Authority; coordination of the various surface transportation programs; installation of a central traffic control computer system; merging all public transportation systems into a County system; effecting a combined public library system; and centralization of the property appraiser and tax collector functions. (12) Federally Assisted Grant Programs The City participates in a number of Federally -assisted grant programs, principally of which are General Revenue Sharing, Community Development Block Grant, Comprehensive Employment and Training Act (CETA) and Local Public Works programs. These programs are subject to financial and compliance audits by grantors or their representatives. In December of 1978 an audit report was issued by the Dade County Internal Audit Department representing the South Florida CETA Consortium. This report covered the financial and compliance activities of the City as subgrantee for CETA funds from June 1, 1974 to September 30, 1977 and questioned $1,717,000 of costs disbursed by the City during that period. Although the City has responded defending specific items of questioned costs, a final determination of the amount, if any, of monies to be reimbursed to the South Florida CETA Consortium cannot be determined at this time. At September 30, 1978, the audits of certain other programs including the Comprehensive Employment Training Act for the period since October 1, 1977 have not been conducted. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the different granting agencies cannot be determined at this time. (13) Commitments and Contingencies At December 31, 1978, the City had certain contingent liabilities relating to earned employee benefits. The amount of benefits earned and accumulated is governed by Civil Service regulations and administrative policy. These earned benefits are summarized below: (Continued) C-70 A A CITY OF MIAM19 FLORIDA Notes to Financial Statements Me Description Amount Vacation Normal vacation earned $ 1,223,405 Earned time Additional time -off earned by hourly employees for over- time hours worked 1,8129100 Sick leave Normal sick leave accumulated 121438,021 The full amount of vacation time, if not used by the employee, is payable upon separation of service subject to the following limitations: . for employees in service at December 31, 1973 - all accumulation# to that date plus a maximum of 160 additional hours. . for employees employed since December 31, 1973 - a maximum of 160 hours. Earned time payable at separation is limited to 200 hours. Sick leave payable upon separation is limited to a maximum of 960 hours and is paid only if the employee has ten or more years of service, or in the case of sanitation workers, fifteen years service is required and limited to $3,000 or twenty-five years service and limited to $5,000, or forty years of service and limited to 960 hours at the pay rate at separation date. Due to uncertainties relating to the timing and amount of payments to be made, the above liabilities are not recorded. In February 1976 the Commission passed an ordinance which approved the issuance of $25,000,000 General Obligation Housing Bonds of the City for the purpose of providing housing for families and persons, including the elderly, of low or moderate income. In addition, and pursuant to agreements between the City and Dade County, the proceeds of such bonds, as they are issued from time to time, will be deposited in trust in a reserve fund to provide additiunal security for certain housing revenue bonds to be issued by Dade County. In the event the housing projects do not generate sufficient funds to service the County's debt, the proceeds of the City's Housing Bonds will be used to pay principal and interest. If, however, the Dade County Housing Bonds are self-liquidating, all amounts remaining in the trust account will be returned to the City for purposes set forth above. At September 30, 1978, $1,500,000 of such City Housing Bonds were sold and approximately $213,000 has been transferred to the trust account. Due to the uncertainty as to timing or ultimate return of the amount transferred to the trust account, no receivable was recorded at the balance sheet date. (14) Maintaining the Current Level of Service The City is experiencing difficulty in providing the current level of services with existing available resources. Revenue curtailments and operating cost increases have resulted from many conditions. Some of the more significant conditions affecting the City's resources are: . Property taxes for general operating purposes have reached their maximum allowable millage (see note 2). . Limitations have been placed on the maximum increase allowed in assessed valu,';on from year to year. C -7 1 (Continued) CITY of mum, nonDA Notes to Financial Statements . Anti -Recession Fiscal Assistance Funds have been discontinued. • Federal Revenue Sharing Funds available for general operating purposes are decreasing. . Comprehensive Employment Training Act Funds and other sustaining grant• are decreasing (see note 12). • Anticipated pension contributions and related expenses are increasing (se( note 3). . General operating costs are suffering from the continuation of double digit inflation. The amount of vested benefits under the City of Miami Retirement Plan anc System exceeding fund assets is increasing (see note 3). The City is continually assessing alternatives to alleviate the above conditions and has successfully avoided any reduction in services. Its ability to eontinw to provide the current level of services in the future is dependent upol expanding existing revenue sources while containing costs. (15) Subsequent Events and Other Matters Bone! Issuance In November 1978, the City offered for sale $18,250,00 of General Obligatiot Bonds as follows: $6,000,000 Sanitary Sewer Bonds $5,000,000 Street and Highway Improvement Bonds $2,250,000 Fire Fighting, Fire Prevention and Reserve Facilities Bonds $5,000,000 Storm Sewer Improvement Bonds Ordinances authorizing the issuance of these bonds were previously adopted b; the Commission and approved by the electors. The bonds bear interest at rate between 4% and 7.5% and were sold at a small premium. Bond Resolution In May of 1979 the Commission passed a resolution authorizing the City Manage to execute an investment banking agreement with certain underwriters for th sale and issuance of $55,000,000 of revenue bonds to finance the developmen of Watson Island as an amusement and recreation complex (the Project). I June 1979 an Investment Banking Agreement was executed whereby th C-72 k (Continued) a A CITY OF MIAMI, FLORIDA Notes to Financial Statements underwriters agreed to underwrite the $55,000,000 principal amount of the revenue bonds. Of such bonds, $20,000,000 will be secured by revenues from the Project together with a pledge of the City's franchise fees and non - ad valorem taxes or revenues not otherwise pledged, and $35,000,000 of revenue bonds will be secured only by Project revenues. State Reporting Requirements On June 15, 1979, the Governor of the State of Florida approved the "Local Government Financial Emergency and Accountability Act." The Act is effective October 1, 1979, and requires local governmental entities to complete their financial statements within 90 days after the close of their fiscal year. Additionally, financial statements are to be included in a financial report examined by a certified public accountant and submitted to the State Department of Community Affairs within 180 days after the close of the entities' fiscal year. Failure to comply with these requirements may result in the witholding by the state of funds payable to the entity until the required report is received. C-73 a W THIS PAGE INTENTIONALLY LEFT BLANK C-74 schedule CITY OF MIAMI, FLORIDA General Fund Balance Sheet September 309 1978 Assets Equity in pooled cash and investments Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $1,292,407) General accounts receivable (net of allowance for doubtful accounts of $189677) Other Liabilities, Reserves, and Fund Balance Accrued liabilities (principally salaries) Accounts payable Deferred income Claims payable Total liabilities Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balance - appropriated C-75 $ 792049548 6429748 502,246 39,120 $ 81388,662 $ 1,0199739 29094,269 2,202,797 375,000 51691,805 190159512 2069820 1,474,525 $ 8j388,662 CITT Of Iglat General fund ExPead'tuv s$ tual State ,met of sevenues• ynbraand Transfers, Budget Tear ended September �• 197E *evenues: Taxes: �e,+eral PrO Zd interest penalties wexcise taxes Business an and Pettit*: Lroils icenses and pe Business itcens�its .,estructio•+ Pe A "' Iatergo'Kr^�ntal revenue: federal grants State grants other rs,men .,I revenue Intraza seeriVS cervices CberEes far services: pu1•tie safety *,ecreation Other s revenues' lliseeltaeieou of 31,S0,000 for Interest et itas Beuts (including General fund lw•dE Other (ine savings) aaticipoted salary Total revenae s ts �a,•sEers saoi �Mt Expen' ditnres rya. or sauces %� 226.257 _ 37,2029692 - 7141SS y`� 37 �r 3•545,1S3 3,S71,441 - �!3_1� �537 4 472 500 3,052 •60 12,10115" 129965,052 1 SZ'S�3 1 626 312 �r -J �' 414,rn - 1549965 246,650 tt,5776 1 20E -"763 '""" 1 ,049.2a - 310.6'55 W.Opp - •S74 - 24 917 96",007 6E,930,307 _ M,99i,K�- CITT OF MIeW, TIMIOA General Fund Statement of Revenwes, Expenditureop Actual �usbrances and Transfers, >lud6et and Expenditures and usbrances: Gene lr government' nd .....■wission City manager city clerk 1�nagesent services Finance Legal Civil service Susan resources Citizen servicesvent, Conferences andlion Tourism and promotion Computers an d comm public improveuents: v public Works Building planning and zoning boards public safety: police pire Sanitation pension atiom parks ov rental charge,: property maintenance intenance Self insurance print Shop OtherEmployee benefits Special programs Miscellaneous Total expenditures and encumbrances Transfers to otherfunds and transfers itures encumbrances -Total t:pe s and transfers Excess of �iittures, encumbrances and transfers S Expen- ditures fjwuw- Revised of - brances transfers b„dget 240, 341 555,682 295,321 543,347 1,260,883 745,783 161,255 852,363 1469757 675,934 1,214,331 2,784,816 9 4T8,813 7,9469812 1,435,412 572,244 y ,468 22,113,187 16,E 38,117,734 12, 55 14,6�1 230,486 1,031 ►,113 Si,5,794 10,096 298.507 416,013 57,634 1,168,629 10,102 222 716,949 10,225 1b0'542 1619229 630,700 6,039 238,867 110.661 190369791 _ 101,539 2,537,681 8,135__ '"0 3. 29 - -�- -- 7,357,610 8,898 9,158 1,264,656 483,040 693 21,489,148 170,465 15 139,353 26, 2 569 12,01, 9+4134 12 14,410,208-67.012 036036,650 �--- 701,065 877,714 114,092 2,297,564 162,700 2,428,233 4990,497 96,565,512 ��543,412 98,108`"4 S 404�264 ) 646.965 $26,666 72,06 1 1,489,015 100,659 2,541,712 4'. tv" 14i 8 91,3661 1,03,668 92,6 11� ;3i9 Actual 231,517 546.407 30e,603 5.335,µ7 1,176.731 717,171 150,167 791,9" 2µ,926 110,661 1,140.330 2,537,�1- g�,669 7,366,50 1,273,014 509,677 y,1=9,M_ 21,659.613 ISIS 2 36,891s170 12 14 4� S 1 646,965 626,666 72 6" 1,J 1 1,439,015 100.659 2,lO1,116 4.290,990 l,sp_ s►6ds �2 1,974,667 CITY OF MIAMI, nORIDA General Fund Statement of Change# in Fund balance Year ended September 30, 1978 Fund (deficit), October 19 1977 Excess of revenues and transfers over expenditures, encumbrances and transfers (Increase) in reserve for noncurrent delinquent taxes receivable Transfer of current portion of long-term judgment payable Fund balance, September 309 1978 C-78 $ (61,377) 199749667 (63,765) (375,000) $ 1,474,525 CITY OF MIAMI, FLORIDA Special Revenue Funds Combining Balance Sheet September 30, 1978 Assets Taxes receivable - delinquent (less allowance for estimated n uncollectible amounts of $370,868) v Receivables from other governments Liabilities, Encumbrances Outstanding, Reserves and Fund Balances Deficit (equity) in pooled cash and investments Accounts payable Encumbrances outstanding Reserve for noncurrent delinquent taxes receivable Fund balances - appropriate Fund balances - unappropriated Special Tax Levy Funds Feder&. Publicity Revenue and Street Sharing Total Pension Tourism Lighting Fund $ 173,962 148,280 13,203 12,479 - 2,009,477 - - - 21009,477 $ 2,183:439 148,280 13,203 12,479 2i009,477 $ 451,075 (6,773) 3,226 (532,602) 987,211% 6 - - - 34,938 - - - 34,938 54,247 46,110 4,069 4,068 - 1,076,826 - 2,725 527,015 547,086 566,347 108,943 3,183 13,998 440,223 $ 21183,439 148,280 13,203 12,479 290099477 i ,�pltl01► CltOf%jol• �°ems SQ�Lst �c,�sut s � ��sftts iteStst�at of�� 30 9 19 �s Co�za�at�tst ��� StPt�tt 1 Tsx Le leae g Cis rb.Licl 1Y Stteet 1.1 d93 Yta� tbu� s•�l?'� 7�ta1 r S Z2 6,461 � �... Z9 s • •tam . .tjtteaeat Ps 93 1� - s• s 1p 616 161 ttoes: taseatsl !� .. ;1s 4?1► ) Tatet� s,359,55� 8 �—�- lZ #A 15 -� t61y l S.stettst 1t,437 Ott at ltaats S tZ 671 665) taut � 'Errs sftts to °tit f s of tttta'i'es n"Kt ttss tt�' (leficicacl) I �I City OT OW, ILD"Dw stecial Uva>o Taads poabiAias statemot of CSIaoDss Taod jalMees tear eased september 30, 1976 °D prad bAsoces: October 1• l977 ) of es ever transfers (DeficieacY es outstaadi+� reclassification of enc,&brane receivable �ereas e is reserve for a .current delisq�t t"ea ftad balances, Septesber 309 19T6 10 S t, al T� L,t Tw�ds Teaeral sevenw f{blicit7 street sbariss a+ad TIAad lion i0arissl Ei t,ti 'total ten -- ""�— S 3,776,960 73,470 2,725 945,,87 2,75497" (410,176) (2,26794") (2,677,665) - 500,000 500,000 _ ♦3 858 �3 _3& 2 17 $41 0 A 1 a� M CITY OF MIAMI, FLORIDA Debt Service Funds Combining Balance Sheet September 30, 1978 Assets Equity in pooled cash and investments Receivables: Taxes receivable - delinquent (less allowance for estimated uncollectible amounts of $473,133) Assessment liens receivable General accounts receivable (less allowance for doubtful accounts of $37,720) Liabilities. Reserves and Fund Balances Accounts payable Reserve for non -current delinquent taxes receivable Fund balances: Appropriated Unappropriated Total fund balances General Orange utilities obligation Bowl Incinerator service Total bonds bonds bonds tart bonds $ 2,941,675 1,419,748 648,095 249,957 623,875 242,806 242,806 - - - 1,186 1,186 - - - 615 - - 348 267 $ 3i186,282 1,663,740 648,095 250,305 624,142 50 22 - - 28 77,"0 77,"0 - - - 1,134,795 - 648,095 250,000 236,700 1,973,457 1,585,738 - 305 387,414 3,108,252 1,585,738 648,095 250,305 624,114 S 3,186,282 11663,740 648,095 250,305 624,142 1 CITY OF MIAMI, FMIDA Debt Service Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance Tear ended September 30, 1978 Revenues: General property taxes Interest Assessment liens collections Franchise and utilities service tax Total revenues Transfers from other funds Total revenues and transfers Expenditures: Bond principal Bond interest Fiscal agents' fees and administrative charges Total expenditures Transfers to other funds Total expenditures and transfers Excess (deficiency) of revenues and transfers over expenditures and transfers Fund balances, October 1, 1977 (Increase) in reserve for noncurrent delinquent taxes receivable Fund balances, September 30, 1978 General Orange Utilities obligation bowl Incinerator service Total bonds bonds bonds tax bonds $ 11,819,882 11,819,882 505,781 505,781 358,917 358,917 15,442,625 - - - 1S 442i625 28,127,205 12,684,580 - - 15,442,625 191,700 - - 191,700 - 28,318,905 12,684,580 - 191.700 15,442,625 8,726,000 8,270,000 140,000 166,000 150,000 6,709,502 6,600,252 31,775 25,425 52,050 96,179 95,320 50 232 577 15,531,681 14,965,572 171,825 191,657 202,627 15,240,175 - - - 15,240,175 30,771,856 14,%5,572 171,825 191,657 15,442,502 (2,452,951) (2,280,992) (171,825) 43 (177) 5,575,618 3,681,145 819,920 250,262 624,291 (14,415) (14,415) $ 3,108,252 1,565,738 648,095 250,305 624,114 0 cTTT or UtAm, F60RIM capital Projects ►usde CedioioR selasce Sheet Septeuber 70, 1979 Stem Sesiter, Pollution Pot ire n Assets total severs severs control tecilities s • tquitp is peeld cash and isvestsents S 50,177.I78 1,675,8M 16,162,117 2,410,74e Arseesueat liens receivable `19t12o - _ _ — --- -- -- SOiN2�NR �67S.RM 16,162,117 �670,761 7, 1761111 Liabilities ws ►ud Ralawces Acc~ts payable Accrued liabilities (Principally salaries) Fund balances - appropriated �J S ial 061 iRatiw 061i6at iew _ Part. and Capital ...... ion Ri SlwaT Cenvestiea Fire Revelviy t ruvesewts (a., line+ iseroveseate cewter Patilitie. Sidwalts lla,u_ w—j IuwP .- 7,4eT,A71 3.474.301 3.705,476 6.078.733 68,616 1.2".692 75S,212 6,616.816 19,120 ),NT,Att 7,a7a,701 ),705,676 _GCO14t777 68t616 I,te616f2 )76,772 �r1�616 2,69I,S60 81.906 1,672.ON - 2,SM 7ST,Ae4 T70,e)a I2 t,7aA 7S6,e1R 6,1T2 - 1 5,524 - - - 2.080 1,721 - 1.2Re 916 - - u,:n,»�Is.sseo6 2,67o,7N s7 616- ) 201,17-1 )S16161 St7S0 NI 61,6N 1xryY 3L590 7,T01,J6t6j6)7 — S SO,N2,NS 3 b7JR66 Ut1S�1_17 2,♦70 33N yH6�771 It617t631 7�476�b1 1,705�676 6,015,71) 611t616 IL216tN2 77�712 •,616�16 ctvv A Mldlll, pp�ttM itel keject• food• o ca►iaims sitme"f is food Nl•wcos S•tt�r SO• t+ri veer eeded ceee[e1 t>Ili etiea eo +r-fin met fecYs God cea eati O cr•atiea refee�ro[e tooter [K:titie! s�dare1W Police focilitiN�- 6eaiterY felbciea fecilitin 1� - f.SM•� - store ceatrol _ LOK•� - K.`n 2)•� •eoets KS,SrT Kr,.2M [Mil - �•�� Tpe.+32 •51.700 it.6.295 - 1- f-- uSol. of taod• S tt.,s ?. 1.►0+.16) llta NS y l_j �� _ f[eacFise reve„oee ).65o,OSD 2>j{.577 �-1pT laterest 1.619,50S crow ►e r+K �- l2_ ,l77tt'tr• 2.oy1,+Jt+ I• if ptMr 30l_rStJ--- 374.518 vetol reveavrs t f[oject t26,+s2p)s,43 S)2 1�.O+`S.+7t S+J6TK1eA _ ► - 20 eoreaditon• Ulm, vrea•fersoetMr toad• O+y K7 }OTi1h �s•)�.u� t•2'K•� vetal Project es� �]p.i,2+ylN �.�51�)� �'-1�J 'K) ll• • ) (�TT,]�I) Tta).NS (M, atop• treoefece l)S• y M ta"g—M �aceeeN stcieftell of ever vow- (i.riO.Sl+1 (Ott. ) re traasfere 2 KitJTS ditores ed 7 fit+ t- - )27 '! S7ta•1�/ s� r� tad ee. a~eMr 1. Hlt 2 410iIt� _.- ►2 SSO�Of� � _. fad Yoleocee• 1+76 ) y!.m- ye♦tee0er 30. ftmNl feMl'te0 CeOt� 222r+�' �r IL 2U.&* )m NM "3 u �ipllla' p2 tllN1t • Ct't'{ t rise 2o^ds Lore V wet Bata^te Ctraib'ni^b 1g7b Kisoi ,0 $epte ec vyat i^e St�dAom Stadius tZ 1 41,44, Ase �° (detic%t)a„ S uoity a cash a Vote nts investme r (nrt teceivabi doobt- Ac of allos� i of 5i1 ,265) accoo„ tot Vta„t Old WirwoO ^a otta t+ soiIdOV W"te i*Vto cY an,, e4oip- 0, 14achio selat c�octio„ in C Qtovess 1 sp..ia It tt GOB $o •p6 5 v bivrl wtina. 7b7 Otst dior '' 1 b0• 1.46b 2b9.bZ 142,gg1 6 214,23b b •� b ( tp0 r366) 773r�'b 5b •Sbl 14 +561 bb4•bb9 -175.000 4.b3b 6b9000 1,$2 0 jp7 2,254'020 34,b5, 21.121'b5� 116.4g5 ►b5 7b5,439 264 _2� 2 4.t01, •9 5 S .090 2�� �� �ptt %bored Liabilitiessi`d le tatMd CapitaSatnin s able tits MCItued t sbvl salaries) me(V� ^ctvatoae Qefettedaut toods Vayalitbos rev 'total a csVit,% cantti.,Ka eatnisbs- caa4RtoV A cs,itat stea a„d �ttibuta eat„iobs- tetsi^e. tea sVVtOVtia 20b,195 2�'q5 95,000 170 .p70 15+pQ0 1.420,E Sp0 ip00 444,394 3.454 709, qg1 00 120.2 3,3g72 39. 3'b02.g2b 1.156+406 2j0.454 1 5�q 705 4 g35 46,114 j00,156 74 9 672 4 1 252,b73 3.Jis s 351 056 01 �9 , g61`� ► s5 •�j���� 7 10.222 5,12 3,222 109 65.246 1.'S0b 2.0p0 j0,112 6.000 �= 217 .337 000-1-0 j 1.11t'331 2.2j9 +550 2b,140,604 3-11 509 2 !• 5, 2�0►�'� 33.3b6 9.403 13'755 - `— i7 0 to,",ZO Z 4 g,14b 21 35 ,1, 4? 220.512 1� 445,3�0 1 •;14 ��1 ! 722 5 9, 4 49.6g4 3,`>0b•57b IS 51590 1 4g0Y j16,1,61 b.5 Y 9 7� CITY OF MIAMI, FLORIDA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings For the year ended September 30, 1978 Revenues: Revenue from operations v Interest Total revenues Operating expenses get income (loss) Contributed capital and retained earnings, October 1, 1977 Contributions from other foods Contributed capital and retained earnings, September 30, 1978 Orange Marine Miami Bowl warehouse Special Total Stadium Stadium Stadium Marinas Auditoriums Cell property properties $ 3,701,319 236,032 253,163 961,978 "1,695 472,550 7M,746 35,MS 131,710 �_$8,638 -_- _ 4,370 14,550 14,633 14,224 2."1 3,M 4,"0 3,759,957 236,032 257,533 976,528 916,323 486,774 711,187 39,425 136,150 3,073,538 _ 275,5% 248.40 811,243 "0'900 280,591 614,580 17,560 1",620 686.419 (39,524) 9,045 165,285 235,420 206,183 96,607 21,965 (8,470) 24,491,574 2,319,074 1,182,256 9,290,399 3,591,315 4,952,647 1,370,054 2010,429 1,579,370 3.290�500 - - 4,010 - 3,286,490 - - - 3 28,468,493 2,279.SSO 1,191,331 9,449,694 3 826,743 8,44S,320 11474,"1 230,2% 1L570.900 ciTy Of MIAMI, nmtoA tutragovernmental Service funds Combining balance Sheet September 30, 1978 Assets Lquity (deficit) in pooled cash and investments Accounts receivable Inventories Property, plant and equipment: Buildings and improvements Machinery and equipment Construction in progress I Public city Motor Property Print Stationery Total properties j!L&jLe pool maintenance Ski stock $ 1,197,802 24,109 1,176,259 2K,978 (282,868) (26,153) 17,507 12,525 - - - 12,525 - - 291,564 - 116,052 75,350 72,519 7,307 20,336 724,489 - 3",545 244,934 $7,401 1,609 9,093,556 16,003 6,154,805 2,168,ON 86,9" K,950 - 1,838,914 - 1,833 914 - - - S 13,158,850 40,112 l,676.S7S 3,376.062 (27.425) 51,683 37.M3 Liabilities and Retained Earnings Accrued liabilities (principally 52,283 2,780 1S,l07 12,028 20,611 771 lK salaries) Accounts payable 69,290 683 15,320 14,233 19,768 2,143 17,143 contributed capital and retained earnings (deficit) - unappropriated 13,037,177 _ 36, K9 9,645,348 3,349,801 (63,90i) 48,76! 20,514 S 13.158.850 40.112 9,676,575 3*376.062 (23,425) 51,683 = 37,843 cIT[ OF MIAMI, nA)RIDA Intragoverawatal Service Funds Combining Statement of Revenues, Expenses and Changes in Contributed Capital and Retained Earnings For the year ended September 30, 1978 Revenue from operations Transfers from other foods Total revenues and transfers m e Operating expenses Transfers to other foods Total expenses and transfers Net income (loss) Contributed capital and retained earnings (deficit), October 19 1977 Contributions from other funds Contributed capital and retained earnings (deficit), September 30, 1978 Public City Motor Property print Stationery Total properties ara a awl maintenance AM stock $ 6,444,862 159,066 3,031,140 1,880,899 1,062,463 122,611 188,683 1,657,248 - 498,501 531,619 622,418 4,017 693 8,102,110 159,066 3,529,641 2,412,518 1,684.881 126,628 189,376 6,I87,850 161.864 2,392,"0 1,904,464 1,436,227 141,580 151,275 44,644 40,827 3,817 - - - - 6,232,494 202,691 2,3% ,257 1,904,464 1,436,227 141,580 151,275 1,869,616 (43,625) 1,133,384 508,054 248,654 (14,952) 38,101 9,265,589 80,274 6,609,892 2,841,747 (312,458) 63,721 (17,587) 1,902,072 - 1,902,072 - - - - $ 13,037,277 36,649 9,645,348 3,349,801 (63,804) 48,769 20,514 10 Wool' a. ilwIs cttt d ��,cY puada twat sace 'wt Co�'"n,t of C� 23�► set Combtaias 1�i6b,ta g 6 76i 163 SeQt et 30, O� 533 255 $b� 41, 9 1 --y_ 255 6 i� µact; hetebouetn�►tts of silo, 9 4t4 660 1 5 163) y►i) (341, scc g (1, leceivsble c f to"' doubtful S,0 26,1i5 silo"sa a V1,140 5.263 26,636 1 6, _ 3 766.j2 1 1,15 sad goad Sets a�ea 6. 132 i24 195,51 4 1b0.0I 196.212 i46, 6, 5 0 Lisbilitlea csa1+ g12,614 209,2 _ 30,01 is pooled 142.�0 4S1 �021 .� c Del Lic L stsge°t tl'J 3) ipsasist leas 1 ,75q �*31T �131 - _ 1 30 2 34 to tota lisbilitiea (Ptlat 226,693 - � _yam 20 177 bcc a pgsble 309610 1T 124 b,y µcote 660 �" 6 its tefuadst►te 4�— 1 533 255 1�- Oepoa o ot�t s�etaµata S 9 4 0w t p,� bslsaceo , CITY OF h1Nt1 FIAXIDA and A6ency Funds Trust Revenues+ SxPenses St ane8 stinfFuo a Balances C�biain8 t and SePtenber 30, 1976 c+ October 1: `o balances (deficit)• t977 Fund otal Srants intergovernwe Revenues funds Transfers fro» othec Grant expenditures 'transfers to other funds Fund balances, SePtesber 30* t9TS S ve10 ErD► A C14,50 a'Wr �nt (13,850) 47592i4 1 t`73� 27b •2 61S6S3+,1►310�10 0 2,4,5,2# 29,$62 7'420,350119931,963 _ 26+0749069 _ 4,5691451 40,426 i 213+000 ,11,Sg7'236 3 6970,3� 713,2i 1 - - f�- 25, 435 Opt! �"''' 1 625 4X S 435 660- r '- APPINDMx D FORM OF MUNICIPAL BOND GUARANTY INSURANCE POLICY OMMunicipal Bond Insurance Association White Plains, New York 10601 PolicyNo.: ................................................. The instnthce companies compr►sing the Municipal Bond Insurance Association (the "Associatioa" ), each of which panicipatee ad is liable heretrader aeverelly and na �'eintly is the ntepsctive petrentage set fonA opposite its acme. in consideration of Me payment or the premium a d thhrbjecI to the terms of that policy, hereby uncondaionally and ttrevocabl) guarantee to any holder a hereinafter detirhed, after than die leaner ottbe folbwiag described bonds, the toll and complete payment required to be made by or on behalf of the Ironer to • or its successor Ithe "hying Agent") of an amount equal 10 the principel of and interest on, a such payments shall become due but shell new be so paid (excap that to the event of any acceleration of the due date of such principal, the payments guaranteed hereby shall be made in such amounts and at such times as such payments of principal would have been due had there not been any acceleration). the following bonds (the " Boads" ): SPECDMN The insurance companta constituting the members of the Association are as follows The 41na Casualty and Surety Company Fireman'$ Furl Insurance Company 41na Insurance Company United States Fire Insurance Company W Seri IScli I Sir Upon reetip of telephonic o tekgnpluc antics, such rwtice sttb$egtrently canfirned in writing by registered o certified mail, or upon nesip of carmen natce d) registered o cenrfied mail. by the Oenenl Manager of tAe A$sociation or iii dntgnee from the Psy►ng Agent or any holder of a Bost o coupon the payment for which i$ then due to the hying Agent, that loch rpttired pay meat has no been made to the Paying Agent. the Association on be haM of its member on the due 4te of weft Pymeat o within one business desyy after receipt of notice of such nonpayment, whichever is laser. will rma►t • depwit of fund$, in an account with ChtibaN, N. A. , in New Yark, New Yark. at its successor. Sufficient for the payment so the holtlas of any Bonds o eoYpans whit h are tlrcn due. Upon peseatmeru and surenda of such Bonds o the catpone. o prennunem of such other proof of ownership of Bonds registered as to principal a tar to principal tlnd inteteit logelha with an) appropriate instruments of assilamem a atoll rea$orha y sansfp Citibank. N . A., Cap A shall disburse to such hollers o the hying A``ent payment of the face amount of wch wrteadmed aced uneanoellad Bothds and coupons less any amount held by the Payinjj Agent fo the payment of the principal of or interest on the Bonds end legally available therefor Upon wM remittance and transfer of such hrncanoelkd Bonds and uncancelled coupons or appropriate instruments of assigamew to Citibank, N A., by the holden or the Paying Agent, the members of the Association shall become the owners thereof in proportion a diair percentage of participation under this policy. This policy dos not insure against Boss of any prepayment premium which may at any time be payable with respect to any Bond Aa used herein, the tern "holder" shall mean the bearer of any Bond not registered as to principal and the registered owner of any Bond registered a so principal or as to principal and interest as indicated in the books maintained by the hying Agent for such purpose and. when used with refereaoe to a coupon, shall mean the bearer of the coupon. Any service of process on the members of the Association nw) be made to the Association, one of the member of the Association or tte Gaillard Manager of the Assoc: ium and Such smice of process shall be valid and bindin{ as to the Association aid each of its ehembers. Goring the tam of its appointment. Municipal lateen Service Company will act a the General Manager of the Association and its offices ire WOW at 34 South Broadway, What Plains, New York 10601. This policy is eon -cancellable for any reason The premium on this policy is not refundable for any reason including the payment prior to maturity of Bonds. IN WITNESS WHEREOF. each of the members of the Association has caused this policy to be executed and attested on its behalf by the general manager and agent of the Association, this ............................... day of .......................................................... It ................... MUNICIPAL BOND INSURANCE ASSOCIATION The oftna Casualty and Surol Company Fireman's Fund Insurance Compsay .Etna Insurance Company Varied States Fire Irouraece Company 81 MVNXVAL 1111151,12111111 B1I11"M OOh@ANY AhaiM: 7QJO�X�OO�l0�7Q • taaw Nee ar TR1r 0 hey *AM, swrMy of Ya1C mw too Calpafa110a. GaaerY Faeroese