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Home My WebLink AboutItem #21 - Discussion ItemLARTMENT OF OFF—STREET PPfl rrlc; 141 INT�.�'2—OFFICE ; nl�,'/�URAN��.1,"+7`, •r'� ♦ I j N Toy Honorable Joseph R. Grassie DATE: March 28, 1980 City Manager /isuuJccT:-Attention: Angela Bellamy Item for City Commission Agenda - April 10, 1980 - 2:30 p.m. FROM! / ENCLO$URM Richard A. L Baw — Director Deaartment o Off -Street Parking Please reserve 2:30 p.m. at the City Commission meeting of April 10, 1980 for the awarding of bids for parking facilities revenue bonds. In the event of a change in the date of this meeting, please notify us. Thank you for your consideration in this matter. RAL/cp Ur arkent of (off- !*frerf�arking \f�J FIOP: •.. RICHARD A. LA SAW, DIRECTOR CITY OF MIAMI. FLORIDA 190 N. E. THIRD STREET MIAMI, FLORIDA 33132 TELEPHONE 879-6789 April 4, 1980 OFF-STREET PARKING BOARD MITCHELL WOLFSON. CHAIRMAN MARX D. CAUTHEN ARNOLD RUBIN DIANNE SMITH H. GORDON WYLLIE Honorable Joseph R. Grassie City Manager City of Miami P. 0. Box 330708 Miami, Florida 33133 Dear Mr. rassIe� U � For your information and review, we are enclosing copies of the Preliminary Official Statement dated April 2, 1980 and the Bidding Specifications for our $8,725,000 Bond Issue, which were prepared by Mr. Robert Riehle, President, Wainwright & Ramsey, our financial consultant. We wish to thank you for having scheduled our appearance before the City Commission at 2:30 p.m. on April IOth, at which time we can review the bids and a recommendation on award of bid will be made by the Off -Street Parking Board. If you have any questions, please feel free to call me. S ince" eIy, c ell Wo fson Chairman MW/cp Off -Street Parking Board W .. Enc.2 cc: George F. Knox, Jr., City Attorney ; James Gunderson, Director of Finance T RESOLUTION NO. A RESOLUTION PROVIDING FOR THE ISSUANCE OF AND FIXING CERTAIN DETAILS CONCERNING $8,725,000 PARKING FACILITIES REVENUE BONDS (SERIES 1980) CITY OF MIAMI, FLORIDA, AUTHORIZED BY AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $8,725,000 OF SAID BONDS HERETOFORE ADOPTED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA. RESOLUTION NO. A RESOLUTION AWARDING $8,725,000 PARKING FACILITIES REVENUE BONDS (SERIES 1980) OF THE CITY OF MIAMI, FLORIDA; DESIGNATING A CERTAIN BANK TO ACT AS PAYING AGENT; SPECIFYING THE INTEREST RATE OF EACH SUCH BOND AND DIRECTING THE DELIVERY OF SUCH BONDS TO OR UPON THE ORDER OF THE PURCHASERS HEREIN NAMED UPON PAYMENT OF THE PURCHASE PRICE HEREIN SET FORTH; APPROVING THE OFFICIAL STATEMENT AND BIDDING SPECIFICATIONS AND RATIFYING AND APPROVING THE DISTRIBUTION OF SUCH OFFICIAL STATEMENTS AND BIDDING SPECIFICATIONS; AND AUTHORIZING EMPLOYEES AND OFFICIALS TO TAKE ACTION AS REQUIRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS n • ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 9060, PASSED AND ADOPTED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA, ON JANUARY 24, 1980, AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $8,725,000 PARKING FACILITIES REVENUE BONDS (SERIES 1980) OF THE CITY OF MIAMI, FLORIDA, FOR THE PURPOSE OF ADDING CERTAIN DEFINITIONS, DIRECTING THAT A PORTION OF THE PROCEEDS OF SAID BONDS BE DEPOSITED WITH THE TRUSTEE TO THE CREDIT OF THE GENERAL RESERVE FUND, APPOINTING FLORIDA NATIONAL BANK OF MIAMI AS TRUSTEE; DECLARING THE ORDINANCE AN EMERGENCY MEASURE AND DISPENSING WITH THE READING OF THE ORDINANCE ON TWO SEPARATE DAYS. '1. ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 9060, PASSED AND ADOPTED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA, ON JANUARY 24, 1980, AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $8,725,000 PARKING FACILITIES REVENUE BONDS (SERIES 1980) OF THE CITY OF MIAMI, FLORIDA, FOR THE PURPOSE OF ADDING CERTAIN DEFINITIONS, DIRECTING THAT A PORTION OF THE PROCEEDS OF SAID BONDS BE DEPOSITED WITH THE TRUSTEE TO THE CREDIT OF THE GENERAL RESERVE FUND, APPOINTING FLORIDA NATIONAL BANK OF MIAMI AS TRUSTEE, REVISING THE FORMS OF THE BONDS AND THE COUPONS AND AUTHORIZING THE PAYMENT OF VARIABLE INTEREST; DECLARING THE ORDINANCE AN EMERGENCY MEASURE AND DISPENSING WITH THE READING OF THE ORDINANCE ON TWO SEPARATE DAYS. U BROWN, WOOD, IVEY, MITCHELL & BETTY ONE LIBERTY PLAZA, NEW YORK, N.Y. 10006 212-349-7500 OUNDARS APERANS PETER J. MICHEL -- JOSEPH W. ARMBRUST, JR. HENRY P. MINNEROP TELEX. 127324 GEORGE B. BOYLE ROBERT L- MITCHELL It MICHAEL BRA0L EY JOHN N. NEWMAN CA669 ADONEBS BROWOOOLAW WILLIAM C. CARTER RICNARD S. PETTY TLILCOPILR: 111-348•7616 WILLIAM R CARTER PAUL C PRINGLE RICHARD CONWAY CASEY JOHN A OLIISENBERRY PHILIP W CLARK A FRANCIS ROSINSON,JR. KENNETN T COTE RICNARD D RUCCER T HOMAS D CRCAN CHARLES J 9ANCERS IIOWAPO G GOOWIN,JR HOMER 0 SCHAAF JCSEPH OUANUOLO NORMAN D SLONAKER RCGEP J HAWKE THCMAS R. SMITN,JR. J COURTNET IVEY COWARD P T^LLEY,JR CHARLES J JOHNSON,JR LAWRENCE C TONDEL PALPH L J: NES MICHAEL VOLDSTAD GEOR3E R LASHNITS SEDOWICA A WARD E LEE LIEBOLT,JR. KAREL WESTERLING JAMES K MANNINO HOWARD W WHITAKLR,JR. JAMES B MAY HENRY E. WILLIAMS.JR.A WALTER O M.N LILL MICHAEL 0 WOLFSON i. pril 7 I 1980 April •ADMITTIO IN KLDAIDA ONLY ' Mr. Richard A. LaBaw Director, Department of Off - Street Parking 190 N. E. Third Street Miami, Florida 33132 Dear Mr. LaBaw: BAN FRANCISCO OPPICL ALCOA BUILDINO ONE MARITIME PLAZA SAM ►RANCISCO,CALIP. 04111 TELEPHONE. 415-396-3909 TAMPA OFFICE BARNETT BANK BU'LO'NO 1000 AS -LEY DRIVE TAMPA, FLORIDA 33602 TELEPHONE. 613-223-9600 TELECOPIER 413-823-0061 Re: $8,725,000 Parking Facilities Revenue Bonds (Series 1980) Enclosed are copies of the ordinances and resolutions for the Commission's meeting on Thursday, April 10, 1980. Each document has been prepared in the alternative and is marked "A" or "D," depending upon whether the City accepts a bid requiring variable interest. The documents should be adopted in the following order: first, the ordinance, alternative A if only fixed interest is required, Alternative B if variable interest is involved; second, the resolution fixing details of the bonds (marked resolution 11;1), alternative A or B. third, the resolution awarding the bonds (marked resolution #2), alternative A or B. BIDDING SPECIFICATIONS $8,725,000 THE CITY OF MIAMI, FLORIDA Parking Facilities Revenue Bonds (Series 1990) Sealed bids will be received from Selected invited bidders by the Commission of The City of Miami, Florida, at its regular place of meeting in the Cite Hall. 3500 Pan American Drive, Miami, Florida, until 11 o'clock A.M., Miami time, on Thursday, April 10, 1980 at which time and place all bids will be publicly opened and read, for the $8.715,000 Parking Facilities Revenue Bonds ( Series 1980). (herein called the "Bonds-) of The City of Miami. Florida, all dated April 1, 1980. The 13ondS will mature October 1, 2009. The Bonds shall he retired by mandator\ amortization commencing October I. 1985. On cash of the dates and in the anxxmts set forth below, the City is required to apply the a1110UMS indicated to the rctirement of the Bonds either (i ) by purchase at not more than 1001; of the principal amount thereof or ( ii) by redemption. by lot, at 100�, of the principal amount thereof: October 1 Amount October 1 Amount October 1 Amount 1985 ....... $ 45,000 1993 ....... $ 95.000 2002 ....... $ 415,000 1986 ....... 50,000 1994 ....... 105,000 2003 ....... 705,000 1987 ....... 55,000 1995 ....... 115,000 2004 ....... 775,000 1988 ....... 60,000 14'96 ....... 120.000 2005 ....... 850,000 1989 ....... 65,000 1997 ....... 130,000 2006 ....... 930,000 1990 ....... 75,000 1998 ....... 135.000 2007 ....... 1,020,000 1991 ....... 80,000 1999 ....... 150,000 2008 ....... 1,115,000 1992 ....... 85,000 2000 ....... 160,000 2009 ....... 1,220,000* 2001 ....... 170,000 * To be paid at maturity and not redeemed. The Bonds will be in coupon form. in the denomination of $5,000 each and will be registrable as to principal only, or as to both principal and interest but may he rccon\crted to coupon bonds. Principal and semiannual interest (payahlc each April 1 and October 1, beginning Octobcr 1, 1980 ) will be payable in lawful money of the United Statcs of Anicrica at Florida National Bank of Miami, Miami, Florida, Trustee, subject to the approval of the Cit\ b\ ;uncndnrent of the OrdinanCe or at the option of the holder, at the principal office of The Chasc Manhattan Bank ( National Association ). in the Borough of '.Manhattan, City and Statc of New York. pro\idcd, that it' the Bonds arc awarded on the basis of variable coupons, principal and Semiannual interest will he payable al Florida National Bank of Miami, :Miami, Florida, Truslec, or at the option of the holder. at the principal office of the Manufacturers Hanover Trust Company in the Borough of Manhattan. City and State of New York, subject to the approval of the City by amendment of the Ordinance. The Bonds were validated by judgment of the Circuit Court of Dade County, Florida, on Febru- ary 28. 1980, and the time for taking an appeal thercfrom to the Suprcmc Court in Florida has expired. The Series 1980 Bonds may he redeemed prior to maturity, at the option of the City from any moneys that may be made available for such purpose, either in whole on any date not earlier than October 1, 1988, or in part, by lot, on any interest payment date not earlier than October 1, 1988, at the 80- 0-85 8 0 - '86 f f BROWN, WOOD, IVEY, MITCHELL & PETTY ONC LI15CATY PLAZA, NEw YORK, N.Y. 10006 212-349-7500 0UNDARS APCRANS PETER J.MICNEL JOSEPH W. A"MBRUST,JR. HENRY I. MINNEROP GEORGE B. BOYLE TUCK. 127324 ROBERT L MITCHELL [. MICHAEL BRADLEY JOHN H. NEWMAN CABLE ADDRESS! BROWOOOLAW W I LLIAM E. CARTER RICHARDS PETTY WILLIAM R CARTER PAUL C PRINGLC iCILCOPIEp: t12�3AB•7618 RICHARD CONWAY CASEY JOHN A OUISENBEPOT PMII IP W CLAPK A rAANCIS ROBINSON,JR. K ENNETII T COTE RICHARD D PUCD[R THOMAS D CRf AN CHARLES J SANCLAS IIOWAPD 0 GODWIN,JR. NOMCR D SCHAAf JOSLCH OUANUOLO NONMAN D SLONAKCP ROGER J HAw•f THC.AS P. SMI7H,JR J COURTNE7 IVEY COWARD P T^LLEY,JR CHARLES J JOHIISON,JP LAWnENC[ C TONCCL PALCH L JC`NES MICHACL VOL05TAU GEORGE R LASHNITS SEDG.YIC- A WARD 7 LEE LIESOLT,JR PAPCL WESTERLINO ' JAMES 11 MANNING HOWARD W WMITAKEP,JR. JAMES B MAY HENRY E. WILLIAMS, JR. WALTER 0 MCNEILL MICHAE.L 0 WOLFSON AAOMITTLO IN 7.06I0A ONLY April 7, 1090 Mr. Richard A. LaBaw Director, Department of Off -A Street Parking 190 N. E. Third Street Miami, Florida 33132 Dear Mr. LaBaw: r, BAN ♦RANCISCO O/IICt ALCOA 9UILDINO ONE MARITIME PLAZA BAN FRANCISCO, CALM. 94111 ♦ELEPNO N E. 415 . 398.3909 TAMPA OPIICE BARNETT BANK BU'LD'NO 1000 AS -LEY OPIVE TAMPA, FLORIDA 33602 TELEPHONE. 613.223-9800 TELCCOPIER 613-223-9952 Re: $8,725,000 Parking Facilities Revenue Bonds (Series 1980) Enclosed are copies of the ordinances and resolutions for the Conunission's meeting on Thursday, April 10, 1980. Each document has been prepares] in the alternative and is marked "A" or "B," depending upon whether the City accepts a bid requiring variable interest. The documents should be adopted in the following order: first, the ordinance, alternative A if only fixed interest is required, Alternative B if variable interest is involved; second, the resolution fixing details of the bonds (marked resolution 1#1), alternative A or B. third, the resolution awarding the bonds (marked resolution #2), alternative A or B. Should you have any questions or need any further information, please do not hesitate to call. Sincerely yours, Susan L. Barry Enclosures tact Wainwright Ramsey BIDDING SPECIFICATIONS $8,725,000 THE CITY OF MIAMI, FLORIDA Parking Facilities Revenue Bonds (Series 1980) Sealed bids will be received from selected invited bidders by the Commission of The City of Miami,' Florida, at its regular place of meeting in the City Hall, 3500 Pan American Drive, Miami, Florida, until 11 o'clock A.M., Miami time, (in hhursdav, April 10, 1980 at which time and place all bids will be publicly opened and read, for the $8,725,000 Parking Facilities Revenue Bonds (Series 1980), (herein called the "Bonds-) of T'he City of Miami, Florida, all dated April 1, 1980. The 13011dS will mature October 1, 2009. The Bonds shall he retired by m;uuiatory amortization commencing October I. 1985. On each of the elates and in the amounts set forth below, the City is required to apply the amounts indicated to the retirement of the Bonds either (i) by purchase at not more than 100'; of the principal amount thereof or (ii ) by redemption, by lot, at 100r� of the principal amount thereof: October 1 Amount October 1 Amount October 1 Amount 1985 ....... $ 45,000 1993 ....... $ 95,000 2002 ....... $ 415,000 1986 ....... 50,000 1994 ....... 105,000 2003 ....... 705,000 1987 ....... 55,000 1995 ....... 115,000 2004 ....... 775,000 1988 ....... 60,000 1996 ....... 120,000 2005 ....... 850,000 1989 ....... 65,000 1997 ....... 130,000 2006 ....... 930,000 1990 ....... 75,000 1998 ....... 135,000 2007 ....... 1,020,000 1991 ....... 80,000 1999 ....... 150,000 2008 ....... 1,115,000 1992 ....... 85,000 2000 ....... 160,000 2009 ....... 1,220,000* 2001 ....... 170,000 * To be paid at maturity and not redeemed. The Bonds will be in coupon forn►. in the denomination of $5,000 each and will be registrable as to principal only, or as to both principal and interest but may he reconverted to coupon bonds. Principal and semiannual interest (pad able each April I and October 1. beginning October 1, 1980 ) will he payable in lawful none\ of the United States of America at Florida National Bank of Miami, Miami, Florida, Trustee, subject to the approval of the City by antendn►ent of the Ordinance or at the option of the holder, at the principal office of The Chase Manhattan Bank (National :Association ), in the Borough of Manhattan, City and State of Ncty York; provided, ho►%c\cr. that if the Bonds arc awarded on the basis of variable coupons, principal and semiannual interest %+ill he payable at Florida National Bank of Miami, Miami, Florida, Trustcc, or at the option of the holder, at the principal office of the Manufacturers Hanover Trust Company in the Borough of Manhattan. City and State of New York, subject to the approval of the City by amendment of the Ordinance. The Bonds were validated by judgment of the Circuit Court of Dade County, Florida, on Febru- ary 29. 1980, and the time for taking an appeal therefrom to the Supreme Court in Florida has expired. The Series 1980 Bonds may he redeemed prior to maturity, at the option of the City from any moneys that may be made available for Such purpose, either in whole on any date not earlier than October 1, 1988, or in part, by lot, on any interest payment date not earlier than October 1, 1988, at the 80-w85 80- 286 1 following redemption prices (expressed as percentages of the principal amount being redeemed) plus accrued interest to the redemption date: Redemption Period (Roth Dates Inclusive) Redemption Price October 1, 1988 to September 30. 1991 .......................... 1021h % October 1, 1991 to Septcnlher 30, 1994 .......................... 102 October I, 1994 to September 30, 1996 .............. . ........... 10112 October 1. 1996 to September 30. 1998 .......................... 101 October 1, 1998 to September 30, 2000 .......................... 1001h 100 October I. 2000 111d thereafter ................................. Any such redemption, either in whole or in part, nuly he made upon at Ieast thirty (30) days' prior notice by publication in a daily newwspaper of general circulation published in the City of Miarni and in a daily newspaper or financial journal published in the Cit\of New York. by tiling such notice with the Paying Agents and by mailing such notice to all registered o\wncrs of the l3onds. Bidders are requested to name the interest rate, in multiples of I � or 1 /20 of I i The City' will also accept from am bidder an Xiternatise Bid providing for: (1) optional redemption by the Cite commencing on October 1, 1985 at 1021 z''; , rather than on October 1. 1988. and (2) variable interest rate coupons, as described below. In the event the Bond, ;lre a\\;uded Jo ;1 hidd;r in acc,1rdalice \with these ,Mterruue 13id provisions, the S.rics 19SU Bond, 111;1\ he redeenled prior to nl111.11'6. at th; option of the City front any tllotleys that 111M be 111AIe lot' ,llt ll purpo,e, either ill Whole oil :111\' date 1101 earlier than October 1, 1985, or in part, h� lot. on any intLrCst pa\'nicnt date not earlier than October I, 19S5, at the following redemption priers ( expressed a, percentages of the principal amount being redccnicd) plus accrued interest to the redemption date: Redemption Period (Roth Dates Inclusive) Redemntinn Prier October I. 1985 to S.pteniber 30, 1991 .......................... 1021,/2 % October 1. 1991 to September 30, 1994 .......................... 102 October 1, 1994 to September 30. 1996 .......................... 1011/2 October 1. 1990 to Septcnlher 30, 1998 .......................... 101 October 1, 1998 to Septcniher 30, 2000 .......................... 1001/2 October 1, 2000 and thereafter ................................ 100 Any such Alternatke 13id for the Bonds will provide that the Bonds will pay additional interest (not to exceed per annum) in addition to the normal coupon rate, but only at the rates and under the specific conditions described below: In the event that the numerical value of the "The Bond Buycr Index (of 20 Bonds)" (the "Index"), as published on the date most immediately preceding the April 1, 1981 coupon date, shall htryc incre;r,cd o\,r the 1111111CFit.:A1 \;Ilue of :hc llhlex a, puhlished oil the date oil which the Bonds were marded ( the".\\yard DAtC 111dCI," ), 111e Cit\ shall pay on October 1, 1981, as additional interest on th. Bonds. an amount c0n1putcd h\ nulltipl\ ima ( i) I' 11\ a fraction the numerator of which is such incrcasc in ha,is point, and the denominator of which is 100 by (ii) the principal aniount of such Bond, Auld .li d111g th product I'\ t\W. I here.11ter, on e;lch ,uhscqucnt s. iiannual interest pa\mcnt date, the Cit\ shall pat' ;I, additional interest on the Bonds the result of it similar calculation made of the increase. it' :ulv, in the Index on the ininiediatel\' prior interest payment date over the Award Date Index• such increase to he calculated as a variable annual interest rate to be paid, on a semiannual basis, on the then current interest pa\'ment date. F, 0 r in the event that all the Series 1980 Bonds shall be called for redemption prior to their maturity and provision for redemption shall be made in accordance with the Ordinance securing said Bonds with the result that the Bonds shall not thereafter he deemed to he outstanding, then the Bonds shall bear interest at the fixed interest rate from and after the date on which such provision shall he made, whether or not the Cite would otherwise be obligated to pay on account of the Bonds additional interest exceeding the fixed interest rate on the Bonds and whether or not the applicable Bond Buyer Index shall have exceeded or shall thereafter exceed the Award Date Index. The following is a hypothetical example: Latest Bond BUyer Index as of date Bonds are awarded — April 10. 1980 ................ . ....... . ....... . ... 9.08% Same index on April 1, 1981 . . ........ . ............... 9.58 Increase ........................................... .50% Therefore: 50/100 X 1.00"( .= One-half of one percent variable interest calculated on April 1, 1981, and payable (on semiannual basis) on the next coupon date —October 1, 1981. 50/ 100 X 1.00rc }, $5,000 denomination —_ $25 on an annual basis on a $5,000 bond, or $12.50 on October 1, 1981 ($25.00 per annum - 2 = $12.50 for a 6 month coupon). The interest rate can vary above the fixed interest rate up to a maximum of 21/217t, or it can vary downward to the fixed interest rate, depending upon the movement of such Bond Buyer Index. In the event that fhc Bold JiMJ Index tot '_U Bonds) ccascs to exist, or substantially changes its character, the Board of the Dep;nuncnt of O l Sirect Parking, with the approval of the City Commis- sion and the 'I note., \%ill select All altcrn;rlc indcx that in its opinion most closely resembles The Bond Buyer Index (of 20 Bonds) as to the nunncCr. type and ratings of the bonds included. No hid for Icss than all of the Bonds offered or for less than 58,408,875 plus accrued interest will be entertained. I he Bonds will b', a�iidcd to the bidder oticring to purchase the Bonds at the lowest interest cost to the City, such cost to be determined by deducting the total amount of any premium bid from (or by adding the tot,rl sum of any discoUnt bid, if any, tol the aggregate amount of fixed interest on all the Bonds �kithou: regard to the possible yariahle, additional interest, from their date until their respective maturities. It \sill be :usum. d, for purposes of such award only, that the mandatory amortization rckluircrnents hcrcinah,1yc set fo: ; :ue serial maturities. Giving ctfcct to such amortization, there are 213,112.5 bond years. if two or more equal bids are received, the City Commission shall deter- mine which bid shall be accepted. The determination of the City Commission shall be final. Each bid must he submitted on a form to be furnished by the undersigned, enclosed in a sealed envelope marked "Bid for 58,725,000 Parking Facilities Revenue Bonds (Series 1980)" and must be accompanied by a certified or bank cashier's or treasurer's check for $174,500, drawn on an incorporated hank or trust c.mtpany, payable unconditionally to the order of The City of Miami, Florida, on which no interest will he allowed. :\ward or rejection of bids will be made on the date above stated for the receipt of kids, and the checks of unsuccessful bidders will be returned immediately thereafter. At the option of the Cite, the check of the successful bidder will be cashed and the proceeds will be invested for the account of the City. In the event that the successful bidder shall fail to comply with the terms of his bid, the proceeds will be retained as and for full liquidated damages. Whenever such terms have been complied with, the proceeds may be applied towards payment of the Bonds, or if it shall be found impossible to issue and deliver the Bonds, the proceeds of said check will be returned with no interest thereon. 3 It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of or to pay for the Bonds in accordance with the terms of his bid. All expenses in relation to the printing (if CUSIP numhcrs on said Bonds and the CUSIP Service Bureau charge for the assignment of said numbers shall be paid for by The City of Miami. Delivery of the Bonds will be made on or about April 24, 1980 in the Borough of Manhattan, City and State of New fork, against payment thcrefor in Federal funds or other irnnwdiatcly available funds to the order of the Cite of Miami, Florida. At the time of delivery of the Bonds, the City of Miami, Florida will furnish a certificate, executed by the Director of Finance to the effect that nothing has come to his attention which would lead him to believe that the Official Statement, as of its date and as of the date of delivery of the Bonds, contains any untrue statement of a material fact or omits to state a material fact which should he included therein for the purpose for which the Official Statement is intended to be used, or which is necessary to make the statement,, contained therein, in the light of circumstances under which they were made, not misleading. The eXecution and delivery of the Official Statement by its Director of Finance will be ratified and approved at the time of deli\; ry of these Bonds by 114, Cite Commis,ion of the City of Miami, Florida. The unqualified. approving opinion of Brown, %\'aod, Iycy, Mitchell & Petty will be furnished without cost to the purchasers of the Bonds. There will also be furnished the usual closing papers. Copies of the Bidding Specifications, bid forms and the Preliminan Official Statement may be obtained by application to Mr. Richard A. LaBaw, Director, Department of Off -Street Parking, 190 N.E. Third Street, Miami, Florida 33132 or from \laimiright & Ramscy Inc., 70 Pine Strcct. Suite 4100, New York, New York 10005. The right to reject any or all bids is reserved. JAMES E. GUNDERSON Director of Finance City of Miami, Florida 4 OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF $8,725,000 CITY OF MIAMI, FLORIDA Parking Facilities Revenue Bonds (Series 1980) logo CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA City Hall 3500 Pan American Drive Miami, Florida 33133 Gentlemen: In accordance with the terms and conditions of the attached Bidding Specifications, which are hereby made a part of this proposal, we offer to purchase $9,725,000 Parking Facilities Revenue Bonds (Series 1980) (the "Bonds") of the Cite of Miami, Florida, dated April 1, 1980, maturing October 1, 2009 and bearing interest, to he paid semi-annually on April 1 and October 1 in each year, commencing October 1, 1980, at the rates shown below, this offer being for all of said Bonds and not for less than all. We herewith tender our bid for $9,275,000 Parking Facilities Revenue Bonds (Series 1980) as follows: ALTERNATIVE A Fixed Interest Rate Coupon Callable, beginning October I, 1988 at 1021h%. Paying Agents: Florida National Bank of Miami, Miami, Florida, subject to the approval of The City Commission by amendment to the Ordinance, and The Chase Manhattan Bank ( National Asso- ciation), New York City, New York. We will pay ALTERNATIVE B Variable Interest Rate Coupon Callable, beginning October 1, 1985 at 1021h% Payi►►g Agents: Florida National Bank of Miami, Miami, Florida and Manufacturers Hanover Trust Company, New York City, New York, subject to approval of the City Commission by amendment to the Ordinance. We will pay Dollars ($ ) at an interest rate of at an interest rate of percent ( % ). Dollars ($ ) percent ( % ). 6 f Following are our computation, made in accordance with the Bidding Specifications but not to be considered as part of our bids: Alternative A Interest on the Bonds from April 1, 1980 .................. $ Less Premium ....................................... $ Plus Discount ........................................ $ Net Interest Cost . . . . . . . . . . . . . . . . . . . . . . . . . . ........... $ Average Interest Cost Rate (to Four Decimal Places) ........ °Io Alternative B Interest on the Bonds from April 1, 1980 .................. $ Less Premium ....................................... $ Plus Discount ........................................ $ NetInterest Cost ..................................... $ Average Interest Cost Rate (to Four Decimal Places) ........ % No alterations are to be made in these bids except for those additions provided for. In accordance with the terms of the Bidding Specifications. there is enclosed herewith a certified bank cashier's or treasurer's check for $174,500, payable to the order of The City of Miami, Florida, which check is to be applied in accordance with the terms of the Bidding Specifications. The closing papers referral to in the Bidding Si)ecifications shall include a certificate, dated as of the day of delivery of the Bonds, stating that there is no litigation pending or, to the knowledge of the signers of such certificate, threatened. atlecting the validity of the Bonds or the means provided for their payment. Respectfully Submitted, .............................:...... . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . The above good faith check has been returned and receipt thereof is hereby duly acknowledged. By: ............................ a 0 11It1 l I\11\ \i;t tr1 I I; I+.t � I I ail \t 11%11 t► \I'►;it 1. I.1Vl1 In the opinion of Bond Counsel, interest on the Series 1980 Bonds is exempt from all present Federal Income taxes, and the Series 1980 Bonds and the income thereon are exempt from taxation ` under Florida law, except its to taxes imposed by Chapter 220, Florida Statutes, (in interest. income or profits on debt obligations owned Itscorporations, as defined in said Chapter 220, Florida Statutes. NEW ISSUE *Ratings—!Nood�'s: Baa-1 N ai E °' ' Standard R Pooes: BBB + w .. $8,725,000 .Ga Y CITY OF MIAM1, FLORIDA PARKING FACILITIES REVENUE BONDS (SERIES 1980) L 1O Dated: April 1, 1980 Due: October 1. 2009 Principal and semiannual interest (pa%able each April 1 and October 1, beginning October I, 1980) will he payable at the principal office of Florida National Bank of Miami, Isliami, Florida, subject to the approval of the Cih Commission h} amendment of the Ordinance authorizing the Series 1980 Bonds or. at the option of the holder or registered owner, at the principal office of in the City of , except that interest on bonds registered as to both principal and interest will be parable 1►'% check mailed to the registered owners thereof. The Series 1980 Bonds are issuable as coupon bonds in the denomination of $5,000, registrable as to principal onj%, or as to both principal and interest. The Series 19811 Bonds are subject to redemption prior to niaturih, as more fulh dis- cussed herein. The Series 1980 Bonds are secured Its it pledge of the Net Revenues of the Off -Street Parking Facilities and on -street parking meters of the City of Miami, subject to the prior lien of the Parking Facilities Re►enuc Bonds Series .%, It and C heretofore issued by the City and preuntl} outstanding in the aggregate amount of $6,0311,000. the Series 1980 Bonds will not constitute a debt of the City, and the faith and credit of the Cite are not pledged to the payment of the 1980 Bonds. 17c Term Bonds, Price co (plus accrued interest) The Series 1980 Bonds are being offered for sale bs invitation to selected bidders, the bids to be in accordance with the provisions of the Bidding Specifications, a separate document. dated April 1, 1980, permitting alternate bids for either fixed interest rate coupons or for variable interest rate coupons and redemption at atn earlier date. Scaled proposals for the purchase c►f the Series 1980 Bonds will be received hs the Cit} Commission of the City, at the ('its flall. 3500 Pan American Drive. Miami, Florida until 11:00 A.M.. Miami time, on :%pril 111, 19811. The ('its will not accept am bid submitted b% any purchaser other than the selected bidders mentioned above. The Series 1980 Bonds are offered sslien. as and if issued and received by the Purchasers and subject to the receipt of an unqualified opinion as to the -alidify of the Series 1984) Bonds bi Brown, Wood, Ives, Mitchell $ Pats. New fork. New fork, Bond Counsel. It is expected that the Series 1980 Bonds will be available for delheri in New fork, New fork on or about April 24, 1980. April , 1984) * See the caption "Bond Ratings" herein. 80-285 8 0 — :°;sr; !r. D No dealer.-alesman or any other person has been authorized to give an information or to taake any representatiom other than the information and representations contained herein. in connection with the offering of the Series 1980 Bonds. and. if �en or made. such information or representations most fti not be relied upon. This Official Statement does not constitute an offer to sell or Solicitation of an offer to buy an% of the Series 1980 Bonds in an% jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. TABLE OF CONTENTS Page 1 Officia' Stu::.;ien: .. ......... ................ De_crip:ion o' zhe Bonds ....... ........... 1 OD:tonal R,je-mr-6:on D70V:3i0n5 ..... 2 panda:oc fro^.na:_o^ ............... �u�hor<<:ian o' ..._ Se-..19SO Bonds ......... ................ 3 S.:u.:� ,' �`.; 5:.... :SSG Bond 3 Ad ...;ra_ Boss ...... .. = Azzlioa—z of Bond aDi"V.�.'. Q: { ............ ................ Pazk nc Braid ..... , .. 5 7 W_ {)?'..'3:rC ParkinZ i 3:1!i1ts ...... Dc% ..zo-7 Nt7 .' _ PuI'd'_u_-g YacEi-i.= of :he Der"—tment of Ou-St_ee- N+ __. dies 10 �ao_r m ''_.____ z an,. -Po-hzies ........ ... 12 C - ?_ ?rzz—.54 azAt a- o: 197L-1980 Revenue antic Z-xDe'ndiv2z"s Ia r a 0 top FinancialFactors ............................................... 1s Revenues of the Department ..................................... 1S TheRevenue Fund ............................................ is The On -Street Meters Fund ..................................... 16 Historical Revenue of the Department Available for Debt Service ........ 16 Table 1—Revenue Fund —Statement of Net Income and Fund Balance .. , .. 17 Table 2—Revenue Fund —Balance Sheet .... . ........................ 18 Table 3—On-Street Meters Fund —Statement of Net Income and Fund Balance 19 Table 4— On -Street Meters Fund —Balance Sheet ...... , , ... • .......... 20 Percentage of Ciross Revenues By Operations .......................... 21 Interim Revenues ............................................... 21 Table 5—Interim Revenues for the Four Month Periods Ending January 31, 1980 and 1979............................................... 22 Table 6—Revenue Fund and On -Street Meters Fund —Summary Statement of Revenues and Expenses ......................................... 22 Table 7—Interest and Sinking Fund —Balance Sheet .................... 23 Historical Debt Service Coverage on Outstanding Bonds ................. 24 Debt Service Coverage —Projected .................................. 24 Debt Service Requirements on Outstanding Revenue Refunding Bonds (Series A), Revenue Bonds ( Series 13 and C) and Proposed Series 1980 Bonds .... 25 General Information ............................................. 26 Principal Governmental Services Performed by the City .................. 26 Economy...................................................... 27 Statement of Bonded Debt ................................ . ........ 30 Growth Factors and Economic Indices ............................... 32 Building Permits ................................................ 32 Bond Ratings ................................................... 33 Validation..................................................... 33 Legality....................................................... 33 TaxExemption ................................................. 33 Litigation...................................................... 33 Certificate Concerning Official Statement .............................. 34 Miscellaneous..........................................4....... 35 Appendix A —Letter Report from Conrad Associates East Regarding Financial Feasibility of Project. Appendix B-1978-79 Annual Financial Report, as Audited. Appendix C—Summary of Certain Provisions of Ordinance No. 7414, as amended, and Summary of Certain Provisions of Ordinance No. 9060. iii OFFICIAL STATEMENT $8,725,000 CITY OF MiAMI, FLORIDA Parking Facilities Revenue Bonds ( Series 1980 ) This Official Statement, including the Appendices hereto, is provided to furnish information in connection with the sale by invitation by the City Commission of the City of Miami, Florida ("the City") on April 10, 1980 of $8,725,000 Parking Facilities Revenue Bonds (Series 1980) (the "Series 1980 Bonds"). Proceeds from the sale of the Series 1980 Bonds will be used to pay the cost of the acquisition and construction of the proposed Parking Projects as described in this Official Statement, to replace existing parking meters and to repay a note outstanding in the principal amount of S500,000 which, together with accrued interest at the rate of W.41r, was due on July 29, 1979. See the section entitled . "Other Indebtedness," herein. The City has previously issued (a) $3,400,000 Parking Facilities Revenue Refunding Bonds (Series A), (b) S1.600,000 Parking Facilities Revenue Bonds (Series B), and (c) $3,600,000 Parking Facilities Revenue Bonds (Series C), (the last sale having been on April 26, 1973), which are now outstanding in the aggregate amount of $6,030,000, (collectively. such outstanding bonds hereinafter referred to as the "Outstanding Bonds"). The Outstanding Bonds are payable, as to both principal and interest, from a special fund designated "Miami Parking Facilities Revenue Bonds interest and Sinking Fund" (the "Interest and Sinking Fund"). The Bond Ordinance. which authorizes the Outstanding Bonds, permits the deposit of moneys to the credit of the General Reserve Fund, after all required deposits to the interest and Sinking Fund, the Renewal and Extension Fund and the Expansion Fund have been made. See the subparagraph, "Flow of Funds," in the caption "Re% enue Funds." in Appendix C. The principal of and interest on the Series 1980 Bonds are payable from moneys which may be deposited in the General Reserve Fund. For the definitions of certain terms and phrases used in this Official Statement, see "Summary of Certain Sections of the Ordinances," in Appendix C, herein. DESCRIPTION OF THE BONDS The Bonds will be dated April 1, 1980 and will mature October 1. 2009 and will be subject to redemption prior to their stated date of maturity a. shown below. The Bonds will be in coupon form, in the denomination of $5,000 each and will be registrable as to principal alone, or as to both principal and interest. Registered bonds may be reconverted to coupon bonds. Principal and semiannual interest (payable each April 1 and October 1, beginning October 1, 1980) will be payable in lawful money of the United States of America at the principal office of Florida National Bank of Miami, Miami, Florida, Trustee, subject to the approval of the Commission by amendment of the Ordinance, or at the option of the holder or registered owner, at the principal office of , in the City of 6 OPTIONAL REDEMPTION PROVISIONS from The Series 1980 Bonds may be redeemed prior to maturity, at the option of the City y moneys that may be made available for such purpose, either in whole on any date not earlier than October 1, 1988, or in part on any interest payment date, by lot, not earlier than October 1, 1988, at the following redemption prices (expressed as percentages of the principal amount being redeemed) plus accrued interest to the redemption date: Redemption Period gedemDtion Prke ( Both Date% Inclusive ) October 1, 1988 to September 30, 1991 102ifs% 102 October 1, 1991 to September 30, 1994 ................... • . • ... 101 �s October 1, 1994 to September 30, 1996 ............ • .. • ....... , • 101 October 1, 1996 to September 30, 1998 ......................... 1003h October 1. 1998 to September 30, 2000 ......................... 100 October 1, 2000 and thereafter ................................ MANDATORY AMORTIZATION The Series 1990 Bonds will also he subject to mandatory redemption. On each of the dates and in the amounts set forth below, the City is required to apply the amounts indicated to the retirement of the Series 1980 Bonds either ( i) by purchase or (ii) by redemption by lot at a redemption price of 100% of the principal amount thereof plus interest accrued to the redemption date: October 1 Amount October 1 Amount October I Atnowd 1985 ........ $ 45.000 1993 ........ $ 95.000 2002 ........ $ 415,000 1986 ........ 50.000 1994 ........ 105,000 2003 ........ 705,000 1987 ........ 55,000 1995 ........ 115,000 2004 ........ 775,000 1988 ........ 60.000 1996 ........ 120,000 2005 ........ 850,000 1989 ........ 65,000 1997 ........ 130,000 2006 ........ 930,000 1990 ........ 75,000 1998 ........ 135.000 2007 ........ 1,020,000 1991 ........ 80.000 1999 ........ 150.000 2008 ........ 1,115,000 1992 ........ 85,000 2000 ........ 160,000 2009 ........ 1,220,000 2001 ........ 170,000 Any such redemption, either in whole or in part, may be made upon at least thirty (30) days' prior notice by publication in a daily newspaper of general circulation published in the City of Miami and in a daily newspaper or financial journal published in the City of New York, by filing such notice with the Paying Agents and by mailing such notice to all registered owners of the Bonds. A 0 AUTHORiiZATiiON OF THE SERIES 1980 BONDS The Bonds are to be issued pursuant to the authority of (i) the Constitution and laws of the State of Florida, particularly Chapter 166, Florida Statutes, (ii) Section 23-A.1 of the Charter of the City of Miami, Florida, as enacted by Chapter 30997. Special Laws of Florida, Acts of 1955, (iii) Ordinance No. 7414, passed and adapted by the Commission of the City (the "Commission") on March 14, 1966. as amended by Ordinance No. 7452 and Ordinance No. 7517 adopted on July 14, 1966 and February 8, 1967, respectively (said Ordinance No. 7414 as so ,intended hereinafter called the "Bond Ordinance"), (iv) Ordinance No. 9060, passed and adopted by the Commission on January 24, 1980 (hereinafter called the "Ordinance") and (v) certain resolutions adopted by the Commission on April 10, 1980 in compliance with or in furtherance of the Ordinance. in addition to authorizing the issuance of the Series 1980 Bonds, the Ordinance amends certain sections of the Bond Ordinance, several of said amendments to become effective onlv after all of the Outstanding Series A, B and C Bonds shall have been retired or provision shall have been made for their retirement. See Appendix C, "Summaries of Certain Provisions of the Ordinance." SECURiiTY OF THE SERIES 1980 BONDS The Series 1980 Bonds, together with any additional parity bonds which may be issued under the Ordinance, will be secured equally and ratably by a pledge of the Net Revenues of the Off -Street Parking Facilities and the on -street parking meters when deposited in the General Reserve Fund under the Bond Ordinance, but only after provision has been made for payment of principal and interest on all the Outstanding Series A, B and C Bonds and for any other payments required to be made under the Bond Ordinance. There is currently payable from the General Reserve Fund the principal and interest of a $1,000,000 note due July 29. 1979 and currently outstanding in the principal amount of $500,000. The principal and interest of this note will be paid in full from the proceeds of the Series 1980 Bonds. In the Ordinance, the City has covenanted that if on any April i or October 1 the amount deposited in the Interest and Sinking Fund under the Bond Ordinance is insufficient to pay the principal and interest then due on the Outstanding Bonds, the City will transfer from the '.Miami Parking Bonds Interest and Sinking Fund, the fund securing the Series 1980 Bonds, such amount as may be required to make up such insufficiency. The City has also covenanted that until such time as the Outstanding Bonds shall have been retired or provision shall have been made for their retirement, it will use its best efforts to insure that there will be adequate deposits made in the General Reserve Fund under the Bond Ordinance to pay the principal of and the interest on the Series 1980 Bonds and to that end, the City has specifically agreed (a) to main- tain rates and charges at levels required to insure that there will be adequate moneys available in the General Reserve Fund to pay the principal of and the interest on the Series 1980 Bonds; (b) not to provide for the payment of the cost of major extensions or additions to the Off -Street Parking Facilities from moneys to be deposited in the Renewal and Fxtension Fund if meeting such costs would prevent adequate deposits' being available in the General Reserve Fund to pay the principal of and the interest on the Series 1980 Bonds; and (c) that no moneys shall be deposited in the Fxpansion Fund. No assurances can be given, however, that deposits in the General Reserve Fund will be sufficient to pay principal and interest on the Series 1980 Bonds. The holders of the Series 1980 Bonds shall have no claim to any moneys deposited to the funds and accounts under the Bond Ordinance except the General Reserve Fund. The City has pledged the moneys which may he deposited to the credit of the General Reserve Fund and the funds and accounts created under the Ordinance to the payment of the Series 1980 Bonds. The Series 1980 Bonds shall not be deemed to constitute a debt of the City nor a pledge of the faith and credit of the City, but shall he payable solely from the special fund provided therefor. The City is not obligated to pay the Series 1980 Bonds or the interest thereon except from such special fund, and the faith and credit of the City are not pledged to the payment of such principal or interest. The issuance of the Series 1980 Bonds shall not directly or indirectly or contingently obligate the City to levy or to pledge any taxes whatever therefor or to make any appropriation for the; payment of the Series 1980 Bonds or the interest thereon except from such special fund. Rate Covetaaets The City has covenanted in the Bond Ordinance that it will continue in effect the present schedule of rates and charges for the use of the Off -Street Parking Facilities and on -street parking meters and that it will not reduce such rates and charges unless (a) all deposits required by the Bond Ordinance to be made have been made and (b) the total amount of Revenues for the last 12 months shall have been not less than the total of ( 1 ) Current Expenses for the current Fiscal Year and (2) 150% of the maximum ❑rnount of Principal and Interest Requirements on the Outstanding Bonds for any fiscal year thereafter on account of all bonds then outstanding. At such time as the Outstanding Bonds shall have been retired or provision shall have been made for their retirement, the ratio of 150(' referred to in (2) above shall be reduced to 125`"( of the amount of Principal and Interest Requirements for the current fiscal year on account of all bonds then outstanding under the Ordinance. The City further covenants to make such adjustments in the rates and charges as may be necessary or proper so that the Revenues of the Off -Street Parking Facilities and on -street parking meters will be not less than the amounts required above. Additional Bonds The Bond Ordinance authorizes the issuance of additional revenue bonds of the City on a parity with the Outstanding Bonds heretofore issued. The City has covenanted in the Ordinance, however, that no such Additional Bonds shall be issued until after such time as all of the Outstanding Bonds shall have been retired or provision shall have been made for their retirement, at which time any such Additional Bonds thereafter issued will be on a parity with the Series 1980 Bonds and all secured equally under the Bond Ordinance as amended by the Ordinance. Under the Ordinance. Additional Bonds may be issued on a parity with the Series 1980 Bonds and with any additional bonds theretofore issued under the Ordinance, for the purpose of paying all or part of the cost of constructing or acquiring Additional Facilities. Before any Additional Bonds may be issued, the following requirements must be met: ( 1 ) the amount on deposit to the credit of the Reserve Account shall be not Icss thorn the amount then required by the Ordinance to be on deposit in such account and (2) the percentage derived by dividing (a ) the total amount of Net Revenues of the Off -Street Parking Facilities and on -street pm -king meters for the last 12 months, adjusted in case the rates and other charges shall have been rc%i,rd, plus 70'( of the average increase in the annual Net Revenues of the Off -Street Parking Facilities to b,� rcceiyed solely from the Additional Facilit} in the third, fourth and fifth complete fiscal years imm.di,rtcl% f)llowine the estimated date of placing the Additional Facility in operation by (b) the maximum Principal and Interest Requirements for any Fiscal Year thereafter on account of the bonds of each Series then out,t:tnding, including the bonds to be delivered, shall be not less than 110%. RESERVE ACCOUNT From the proceeds of Series 1980 Bonds, there will be deposited to the credit of the Reserve Account the amount of ti700.0oO. I he renminimz S099,575 rr:rdcd to increase the balance to meet the Bond Reserve Account Requirement of approximately $1,399.575 must be deposited in 60 equal, monthly installments beginning in the month following delivery of the Series 1980 Bonds. Any withdrawals from the Parkintt Bonds Reserve Account are required to be made up in 24 equal, monthly installments beginning in the month tollm%i ig, any such %%ithdrawals. The amount of the Bond Reserve Account Requirement is based upon an :usumcd rate of interest on the Series 1980 Bonds of 101/2 %. The Bond Reserve Account Requirement will be higher if the interest rate exceeds 101/2%. 4 r� A ESTIMATED APPLICATION OF BOND PROCEEDS Proceeds from the sale of the Series 1980 Bonds will be applied approximately as follows: Garage No. 5 Construction Cost ( including Security System) ........ $5,447,000* Landscaping ............................................. 33,000 Engineering Services ...................................... 320,000 Surveys, Soil Investigation, Testing ............ . . .... . ......... 30,000 Sub -total ........................................ 5,830,000 Replacement of Meters ......................... . .... . . ..... 342,750 Repayment of Short -Term Debt ....... . .. . ........ . ........ . . 520,000 Bond Issuance Expenses .................................... 100,000 Interest for 12 months on $8,725,000 at 101/2 % ... . .............. 916,125 Bond Series 1980 Reserve Account -Initial Deposit ................ 700,000 Allowance for Bond Discount (31/2 % ) and for Miscellaneous Expenses 316,125 Total ........................................... $8,725,000 Actual amount bid for this work, pursuant to construction bids received February 26, 1980. Although no change orders are anticipated, if implemented change orders may result in higher construction costs than those indicated above. THE PARKING PROJECTS Proceeds of the Series 1980 Bonds will be used to finance the construction of a Multi -level Parking Structure to contain approximately 700 spaces adjacent to the Department of Off -Street Parking's existing garage located at 190 NE Third Street, including all costs; to replace existing parking meters, and to repay short-term debt which consists of a promissory note outstanding in the principal amount of $500,000, plus accrued interest thereon, which was due on July 29, 1979. See the caption entitled "Other Indebtedness," herein. For more complete information concerning the Parking Projects and the Parking Facilities, reference is made to the "Feasibility Report for the Propos,-d Addition to the Mianii Parking System of Parking Garage No. 5," submitted to the Department of Off -Street Parking in January, 1980 in connection with this financing by Conrad ASSOCiMes East, of Chicago, Illinois, Parking Consultants under the Bond Ordinance. A letter summarizing this Report appears as Appendix A to this Official Statement. Conrad Associates East has been the Parking Consultant to the Board since 1977, when the prior consultant resigned. S THE CITY OF MIAMI, FLORIDA DEPARTMENT OF OFF-STREET PARKING MEMBERS OF OFF-STREET PARKING BOARD MITCHELL WOLFSON, Chairman Chairman of Off -Street Parking Board President of Wometco Enterprises, Inc. Member -Board of Trustees, Miami -Dade Community College Trustee -Mount Sinai Hospital (life member) Director and Member -Executive Board National Association of Theatre Owners Chairman of the Board -Financial Federal Savings & Loan Association, Miami Beach Board of Trustees, Florida House, Washington, D.C. Member -Orange Bowl Committee ARNOLD RUBIN, Vice Chairman Vice Chairman of Off -Street Parking Board President of HUB Past President, Downtown Miami Business Council President -Juvenile Diabetes Research Foundation Member -State of Florida Diabetes Advisory Council Member -Metro Inter -governmental Policy (Transportation Committee) DIANNE SAULNF.Y SMITH Sales Associate -Keyes Company Realtors Member -Council for the Continuing Education of Women Member -Panel of American Women President -Black American Law Students Association MARX D. CAUTHEN Treasurer, Comptroller, Director Miami Laundries (Ret.) Former Member -Southwest Kiwanis H. GORDON WYLLIE Chairman of the Board and President — Southeast Properties, Inc. (an affiliate of Southeast Banking Corporation) Chairman of the Board -National Association of Corporate Real Estate Executives RICHARD A. LA BAw, Director Past President, Institutional & Municipal Parking Congress Employed by City of Miami since 1953 (formerly Budget Director) Director of Department of Off -Street Parking since 1961 6 HISTORICAL BACKGROUND The Miami parking system was founded 29 years ago. No tax money has ever been used to support the City's parking system. Revenue bonds, issued to finance the expansion of the system, are paid from revenues generated by the system. In 1950, as it result of the rapid growth within the City of Miami and the immediate surrounding area, and due to the C'ity's emergence as a major metropolitan area, it was recognized by the City officials that parking would present it serious problem. An ordinance creating an advisory five -man committee was adopted in Dcccmhcr of that year by the City Commissioners. Designated the Off -Street Parking Board, the group ryas authorized to stud) parking conditions and to make its reconuuendations for needed iniproycfile tits, It soon became apparent that responsibility for it municipal parking program should be centralized and, aceordingl}, the Cite Commission, in November, 1955, enacted an ordinance creating the Off -Street Parking Board and the Department of Off -Street Parking, and the State Legislature adopted it special act creating the Department and defining its powers. This act conferred on the Board the power, duties and responsihilitics custoriariiv ycstrd in the hoard of directors of a private corporation. The Department is completely independent and self-sufficient, except that its budget must be approved, its rates must be established by ordinance, and its bonds must be issued by the City Commission. All expenses incurred by the Department and by the Board in earning out their duties are paid from revenues of the parking facilities, Tax money has never been used. Fxcess revenues of the System cannot be distributed or used in any manner except to improve and expand the system. The objective of the department was to dey�lon an adequate, long-range off-street parking program for the City. However, of immediate concern was it solution for the increasing parking problem in the central business district. The Board engaged a firm of consulting engineers to make an engineering and financial feasibility study. The recommended program..ubmiticd by the engineers in December, 1957. called for the construction of three multi-Icycl parking earages in the central business district. The planning for the issuance of a revenue bond issue to finance these projects was completed and in 1960, a $3 million construction program was initiated. The first multi -level parking garage at 40 N.W. 3rd Street was opened on March 1. 1961, and the second, it mechanical garage, at 130 Biscayne Blvd., was opened in February, 1962. The mechanical garage, because of consistently high operating expenses, was never profitable and was sold to it private operator in October. 1979 for � 1.6 million. Its original construction cost was $1,350,W0, The site for Gam-2,, No. 3 at 90 S.W. Ist Street was purchased from revenues of the Facilities. In 1967, $3 200,000 revenue bonds were issued to refund the outstanding debt and $1,600,000 Series B Bonds were sold to finance the construction of Garage No. 3. Parking Garage No. 3 was opened in February, 1969, This facility showed a profit commencing with the first month's operation. Garage No. 4, which has it capacity of 683 parking spaces and an adjacent 110 space parking lot, was acquired with the proceeds of $+3.150.000 Series C Bonds in April, 1973, and was opened in January, 1975. Use of this facility reached its maximum level in 1978 when it reached its capacity with the existing mix of users. The Existing Facilities The Department presently operates three garages with a total of 1,675 spaces and 21 lots with a capacity of 2.600 spaces in the downtown area. In addition, the Department operates 15 off-street parking lots in the outlying business areas, with a total of 1,679 spaces, See "Statement of Net Income —Revenue Fund" on page 6 in Appendix B of this Official Statement for the Net Operating Income of each garage. e, Proposed Garage No. 5, N.E. 2nd St. & N.E. 3rd St., will contain 700 spaces, which will provide a net gain of 590 spaces, due to the loss of 110-space surface lot. The Department's downtown facilities are identified on the following map. Rates Schedules of recent rates for Garage Nos. 1, 3 and 4, and rates effected February 11, 1980 are as follows: Effected Rates Recent 2/11/80 1 hour S 0.40 S 0.50 2 hour 0.80 1.00 3 hour 1.20 1.50 4 hour 1.60 2.00 All Dav 2.00 2.25 Monthly 30.00 35.00 A Decal 15.00 18.00 B Deed 15.00 18.00 C Decal 9.00 11.00 ,Night 0.75 1.00 It is assumed that the new rates w;ll be in effect at garage No. 5 for the first year of operation and that rates will .b; increased at a rate m 61`r per Fear (compounded) in succeeding years. Competing Privately Owed and Operated Parking Facilities The City's do\ nlow'n parting ozy et7 conrpe:es with privately owned and operated parking facilities, whic:n :re wily chart rates hiz-her than thi. Cit\'_ for their, parking sen•ices. A summar< of rates charged :it 46 owned and ujo%%utown narking loi_ and garages in the Vicinity of Municipal Pa.7kin= Gara-s dos. 1.: an3 Lin'oventb:r _S. 1979 was prepared by the Department and appears Ares of Gauge Hoarly Rate. etc. Ail Day Monthly A Auto Nark—LLx 'Sc— hi. 51.68 phis tax None A:l Ai::,, Park ........... 'sr—?: hi. 54.50 Pius tax Noae t Ave. $2.60 tzi incl. gone ca ,;-.col;........ ............ Plus 'tm 5-4.25 Notre . ......... $=.50 Max. None Aativ, ......... .. 75t'—:4. h.-. None P_1 ,:: Lo: =5e— . h:. S: ) :al 6 P>t Nox �0 N*P Sr.. SKN) sf;:- 6 PM A titi�3 :iLti< ti_ S: +L7 A.\i to 5 P` I $ 0.00 P't- � .�:i•.:ax..• . L:' ... .. . - .......... $ i.SIL:: Li. uu L?:?. SIX) .. e 4:"0 PNI —:�O W�=L N'o>e Ux .......... :1 1.4 i::. ta-T ;, : - z a'Y yam: `s G z, • ... .. —;'It: S-4.ti; �' '.`'•;.;._. ::�: � ate- ; : ^ c c'1, f �':. $ : ='.l �'A'1: -k:-: n_"lSA- -ray 'S.m. `.. S 0 Ej Area of Garage Allright Parking Lot ........... 62 SF. t St. & 2 St. Burdines lot . ............... 50 SE 2 St. Robert's Garage (Apcoa) .. 35 SW 1 St. Apcoa Surface Lot ............ 30 SW 1 St. Lot 60 W. Flagler St. & SW 1 St. Apcoa Garage ................ 20 SF 1 St. Allright Lot .................. SE 1 Ave. & SF 3 St. & SE 2 St. Downtown Parking Lot ........ SW 1 St. & i Ave. Apcoa ....................... 46 NW 1 St. Wilson's Garage (Allright) .... 170 NF 1 St. Parking Lot (Vick's Bar) ....... 215 NE i & 2 Sts. Fla. Natl. Bank ............... 200 NE 1 St. First Federal Garage ........... Parking Garage at 221 NE i St. & 228 NE 2 St. by Meyer's Parking System Southeast 1st Natl. Bank Garage . . 320 SF 1 St. Apcoa Garage ................ 1 Biscayne Tower Ingraham Garage (Apcoa) ..... 226 SE 1 St. Allright ................... 140 SE 1 St. Allright Lot .................. SE 3 Ave. (bet. 2 & 3 St.) Allright Lot .................. SE 3 Ave, (bet. 3 & 4 St.) Apcoa ....................... SE 3 Ave. (bet. 3 & 4 St.) American First Bldg. Garage .. . 321 SF I St. Dupont Plaza Hotel Garage .. . . SE 4 St. Allright Auto Park ............ 100 W. Flagler Allright Auto Park . 101 W. Flagler St. & SW 1 St. Parking Garage ............... W. Flagler & SW 1 St. Allright Parking Lot ........ .. 220 NW 1 Ave. Allright Parking Lot ........... 220 NW I Ave. U Park Lot ................... v_.._r.. s_- -- 750-1 hr. 35a-th hr. 750-1/1 hr. $1.00-1 hr. (self park & pay box) $1.00-1/2 hr, tax incl, 750-Ih hr. 656-1/2 hr. 75e-ti4 hr. 75e-th hr. tax incl 65t-th hr. 750-Ih hr. tax incl. 500-I4 hr. plus tax 8-5 PM 30 min. free for bank 75e-% hr. 75C-Ih hr. 750-th hr, 75e--lh hr. 75t-th hr. 75C-Ih hr. 750-Ih hr. 75C-Ih hr. 75t-1/2 hr. $2.00-1-3 hr. $2.50-3-6 hr. $3.00-6-8 hr. $3.50-8-24 hr. 75�-Ih hr. plus tax 75P-Ih hr. 50t-% hr. All Day $4.50 over 2th hr. $2.75 max. $4.50 max. $2.25 $5.00 $4.50 max. $1.50 Sat. in by 10:00 AM $3.50 max. $1.25 in by 1:00 PM Sat. 750 after 4:30 PM $4.50 $4.50 max. $4.00-24 hrs. $4.00 Max. to closing $4.00 Overnight-S 1,00 Lost ticket-$4.00 $4.00 max. $1.00 after 3 PM $6.00 3.31/2-$5.25 3! 2-12-$6.00 12-24-$6.00 $4.50 max. $1.00 after 4:30 PM $2.16 $1.68 $2.00 650 after 5 PM $4.00 max. 750 all day Sat. $3.50 $4.50 $4.50 $3.00 $1.20 $1.10 $1.00 Allright Parking Lot ........... 750--1 hr. $1.50 301 S Miami Ave. Park & Lock Lot .............. $1.00 400 S Miami Ave. 9 Meel&ly None None $50.00 tax Incl. None None $50.00 plus tax None None None $41.60 roof $50.00 inside tax incl. None $44.00 tax incl. $30.00 roof $45.00 inside plus tax $48.88 tax incl. $44.00 plus tax None None None None $45.00 tax Incl. $50.00 gr. fl. $40.00 2, 3 & 4 None None $30.00 None None $20.00 per mo. $90.00 6 mo. in advance None None f f Downtown Municipal Parking Facilities of the Department of off -Street Parking : L ------ __J L_-J L- -------- j F j, '. . I - 7 - ------ 7 X'D V F P 7 1 4 . I HAND SHELL - PIN PLAZA LEGEND FACILITY SPACES FACILITY SPACES FACILITY SPACES A —Parking Garage No. 1 455 K—Lot No. 14 ........... 191 S—Lot No. 39 ........... 73 *B—Parking Garage No. 2 422 L—Lot No. 15 ........... 230 T—Lot No. 41 ........... 20 C—Parking Garage No. 3 427 M—Lot No. 16 ........... 90 U—Lot No. 19 ........... 300 D—Parking Garage No. 4 793 N—Lot No. 17 ........... 123 V—Lot No. 20 ........... 90 F.—Lot No. I ............ 154 0—Lot No. 32 ........... 69 W—Lot No. 21 ........... 326 F—Lot No. 7 ............ 108 P—Lot No. 33 ........... 185 X—Proposed Garage G—Lot No. 10 ........... 221 Q—Lot No. 34 ........... 20 Site No. 5 H—Lot No. 11 98 Lot No. 36 18 I —Lot ........... No. 12 67 ........... Lot No. 37 22 Total Central J—Lot ........... No. 13 ........... 68 R—Lot ........... No. 38 ........... 127 Business District ......... 4697 * Garage No. 2 sold October 1979. Municipal Parking Facilities in Outlying Areas In addition to providing parking facili- ties in the Central Business District, the Off -Street Parking Board operates 15 landscaped oil -street parking lots in the following outlying business areas: 10 FACILITY SPACES Allapattah, NW 35 St. & ISth Avenue 117 Little River, NW 79-82 St. & Ist Pl. 254 Civic Center. NH' 11-12 St. & 1%W 13-14 Ave. 1,029 Garment District, NAV 26--'7 St. & 5-6 Ave. 92 Miami Design Center. NE 38 St. & 2 Ave. 65 Friendship Plaza, Biscayne Blvd. & NE 12 St. 122 Total parking spaces in outlying areas 1,679 r71 0 Proposed Downtown Parking Facilities to be Financed and Constructed by Other Governmental Units Two new parking garages are in the planning stage: (1 ) a Government Center Parking Garage, with approximately 750 spaces, is planned by Dade County to serve the State and County office buildings; and (2) it Convention Center Garage, with approximately 1.450 spaces, for the James L. Knight Inter- national Center, sponsored by the City of ;Miami, The Department of Off -Street Parking will not finance either of these garages, but will operate the City's facility, pursuant to :i contractual commitment. in the Bond Ordinance, the City has covenanted that neither it nor the Department will acquire, construct, operate or maintain an off-street parking facility other than existing facilities under the direction and control of the Board or facilities financed under the Bond Ordinance unless (a) ,id,quate provisions shall be made for the retirement of all bonds issued under the Bond Ordinance, or (b) the Parking Con- sultants certify in writing that, in their opinion the operation of such facility will not adversely affect Revenues, or (c) if in their opinion the operation of any uch facility hats adversely affected such Revenues, the City shall deposit with the Trustee to the credit of thy Bond Scrvice Account an amount that is not from ad valorem taxes, sufficient to make up any such deficiencies. The County of Dade, Florida within which the City of Miami is located. retains the power to provide and regulate its oN%-n parking facilities and to assume control of the parking facilities constructed by the City. Dade County Home Rule Charter Art. 1 c 1.01 (A) ( i ). The County has declined to assume juris- diction over parking facilities and meters not located on arterial streets pursuant to Section 2-97 of the Code of Metropolitan Dade Countyn , Florida and has recognized the ordinances of the City that provide for the issuance and security of the Outstanding Bonds and of these Series 1980 Bonds. There is no assurance, however, that the County will continue to decline to exercise such jurisdiction. Landscaping and Beautification All of the Department's parking facilities have distinctive landscaping which has won national and state awards for design and enhancement of land area. in the opinion of the Department, attractive land- scaping encourages patronage of the Department's parking facilities. ADMINiiSTRATIVE. OPERATING AN13 FINANCIAL. PROCEDURES The Department of Off -Street Parking of the City of '.Miami (sometimes called the "Department"), has full power and authority (i) to operate. manage and control the off-street parking facilities of the City and all properties p.•rtaining thereto now owned or hereafter acquired or constructed by the City or by the Department. (6) to acquire, own, use, hire, lease, operate and dispose of real property and personal property and of an\ interest therein. including the power to make and enter into all contracts necessary or incidental to the exercise of its powers and the performance of its duties and functions with respect to the operation, management and control of said facilities. (iii ) to promulgate and enforce appropriate rules and regulations gov,rning the utilization of the services of said facilities. and (iv) to do all things necessary or convenient to carry out such purposes. The Department. is supervised by the Off -Street Parking Board ( the "Board"). \1 hen a. vacancy occurs on the Board, the remaining members may name and appoint a new member, subject to confirmation by the City Commission. The Department has a full-time salaried staff headed by the Director of Off -Street Parking, Mr. Richard A. La Baw, The D partment is responsible for maintenance and collection from all on -street and off-street parking meters, and for the operation of the three downtown parking garages. In addition, the Department has its own enforcentcnt staff, which patrols parking meters in and around the central business district, and issues tickets for meter violation. Their duties supplement the police department's enforcement activities. The Department receives none of the fines paid in connection with the tickets issued for meter violations. 11 / f The on -street parking meters are maintained and repaired by private firms. pursuant to contracts with the Department. The Department's preventive program requires each meter to be inspected at least once each month and those in high -use areas to be inspected each week. Collection and counting of reycnues from the on -street meters are also performed by a private firm. The Company is required by its contracts to and does employ bonded collectors who work under security arrangements. Administrative In addition to the Director, the Administrative Section employs an Assistant Director, Treasurer, Secretaryand accounting personnel. A complete set of books is kept, and monthly financial statements are issued. This Section is responsible for the hank deposits of all moneys. Daily graphs are maintained on meter rc%'cnues: declines are in\cstigated inimcdiately to determine their cause. Purchasing for the Department originates hire and all correspondence is handled from this main office. An outside auditor examines the book, and issues an annual. audited financial statement for the Department. Accounting Practices and Policies An annual audit is required by' the Bond Ordinance to he made of the books of account, financial records and transaction, b\ an independent certified public accountant selected by the Board. Robert J. Graham. C.P.A. of Coml Galll.s has audi::d the records of the Department for the fiscal year ending September 30. 19-9. A copy' of the Annual Financial Report for the fiscal year ending September 30, 1979. appears as Appendix B in this Official Statement. Robert J. Graham. C.P.A. has served as the Department's auditor since 1977. The funds o' the Department of Off -Street Parkin= are enterprise funds of the City of Miami. An accrual basis of accounting is used in which expenditures are recorded at the time that liabilities are incurred. Fixed ass.ts arc carried at cost. Capital Program The Department continuously studies the merits of financing additional parking projects but presently has no definitive plans for development beyond Garage No. 5, which is the subject of this financing. The financing of tutu:c projects, among other considerations, will be predicated upon compliance with the earnings test for the qualification of the issuance of additional parity bonds and the Parking Consultants certification of feasibility. Lease Rental Indebtedness There is no lease rental indebtedness outstanding. The Department of Off -Street Parking owns all of its furniture, fixtures, computer. office equipment and vehicles. Other Indebtedness There is presently outstanding a promissory note payable to the Southeast First National Bank of Miami, soV\ from the Genera! Reserve Fund. The note, of which S500.000 is presently outstanding, is payable with interest at a rate of 61;q. The note, originally in the amount of $1.000,000 and due in 1976. \%as rcne%%ed for thre. \, ars. The final payment on this note was due on July 29. 1979. Sub- sequently. interest has been paid quarterly' when due. Rate Making The City covenants that from time to time and as often as it shall appear necessary, it will adjust rates and. if the revenues of the system in any fiscal year shall have been less than (1 ) the current expenses 12 0 01 Of the system; (2) 150% of the maximum Principal and Interest Requirements on the outstanding Series A, B and C bonds; and (3) adequate deposits to the General Reserve Fund to pay the principal and interest on the Series 1980 Bonds, it will, before the 15th day of the second month of the following fiscal year, request the Parking Consultants to make their recommendations as to a revision of such rates or charges, and copies of such request and of the recommendations of the Parking Consultants shall be filed with the Trustee and mailed to each bondholder of record. If the City shall fail to follow the recommendation to revise such rates or charges, the holder of any bonds then outstanding may institute an appropriate action to Compel the City to revise such rates or charges. Budgeting Process and a Summary of 1979-1980 Budgeted Revenues and Expenditures The City Charter requires that all budgets, funds and accounts pertaining to the Off -Street Parking Facilities of the City shall be segregated from all other budgets, funds and accounts of the City and shall be so kept that they shall reflect the financial condition and the operation of each Off -Street Parking Facility of the City separately. Not later than one month before the end of each fiscal year, the Director, with the approval of the Board, shall prepare and submit to the Commission of the City a budget estimate of expenditures and revenues for the ensuing fiscal year in the same form and like manner as all other departments of the City for approval by the Commission with the exception, however, that such budget estimate will be submitted directly to the Commission of the City for its approval. If for any reason the City Commission has not adopted the Annual Budget of the Off -Street Parking Facilities or of the on -street parking meters before the first day of any fiscal year, the budget for the preceding fiscal year shall, until the adoption of the Annual Budget, be deemed to be in force and shall be treated as the Annual Budget. The City Commission may at any time adopt an amended or supplemental Annual Budget of the Off -Street Parking Facilities or of the on -street meters for the remainder of the then current fiscal year, but no such amended or supplemental Annual Budget shall be effective until it has been approved by the Parking Consultants. Promptly after the adoption of any such amended or supplemental Annual Budget, copies thereof shall be filed with the Department and mailed to each bondholder of record. As a matter of Department policy, revenues are underestimated and expenditures are overestimated. The effect of the rate increase which was implemented on February 11, 1980 was not included in the 1979-1980 Budget. Budgetary control is maintained by a constant review by the Director of the Depart- ment of Off -Street Parking. 13 f F DEPARTMENT OF OFF-STREET PARKING BUDGET SUMMARY Fiscal Year 1979.80 Approved Actual Actual EWmated 9/30/79 Budget 1978.79 Budget 197940 9/30/77 9/30/78 Revetvues Revenue Fund $ 505,019 $ 555,501 $ 542,902 $ 539,400 $ 608,720 Parking Lots .......................... 135,910 205,707 221,500 193,480 255,640 '_20,900 Garage No. 1 ......................... 150,527 1-13,195 145,800 Garage No. 2* ........................ 237,797 237,797 245,235 1- 2 243,300 278,800 Garage No. 3 ..... . ................... 359,062 433,715 426,680 382,980 - - 448,900 Garage No. 4 , , , . $1,419,688 $1.590.685 $1,653,059 $1.495,960 $1,812400 4,325 5,880 5,598 ,960 Other Income $1,424,013 $1.596,565 $1,658,657 $1,500,260 $1,818,760 _-- Total -Revenue Fund .................... On-Street Meters Fund $ 510,179 $ 641,710 $ 566,055 5 $ 566,000 00 $ 616,000 Meter/Decal Revenues .................. 4,466 6,591 ,OS,,00 Other Income ......................... Total -On -Street Afeters Fund ............. $ 514,645 $ 648,301 - - -- $ 575.680 - - - -- ------ $ 566,400 $ 621,500 Combined Totals (Revenues) .............. --- $1,938,658 ---- $2,244,866 $2,234,337 $2.066.660 32.440,260 ExPENses Revenue Fund Administrative $ 180,924 $ 180,602 $ 207,905 $ 215,718 $ 258.992 ... ..................... General Operations .................... 201,415 205,708 210,390 219.997 238.166 Enforcement 17,950 24,658 34,056 30,564 51,882 .......................... Parking Meter Services ................. 43,441 43,598 48,829 54,696 60,668 Lot No. 25 -0- 14,300 19,849 -0- 21,720 ........................... Garage No. 1 ......................... 114,819 126,532 137,457 149,911 158,734 Garage No. 2* ........................ 204,149 219,192 246,548 240,940 307.640 Garage No. 3 ........................ 98,931 103,227 104,351 117.419 135,822 Garage No. 4 ........................ 158,830 165,028 188,074 197,539 231,295 Total-Revenuc Fund .................... $1.020,459 $1,082.845 $1,197,459 $1,216,784 $1.464,919 On -Street Meters Fund Administrative ......................... $ 53,887 $ 54,138 $ 83,034 $ 75,786 $ 106,512 General Operations .................... 14,814 15,734 24,917 27.202 35.958 Enforcement .......................... 18,198 26,310 35,417 31,800 56,232 Parking Meter Services ................. 45,194 45,411 51,992 56,908 65,734 Total On -Street Meters Fund .............. $ 132.093 --- --- $ 141,593 -- - - $ 195,360 - $ 191,696 $ 264,436 Combined Totals (Expenses) .............. $1.152,552 $1,224,438 $1,392,819 $1,408,480 $1,729,355 Combined Net Revenues .................. $ 786,106 $1,020,428 $ 841,518 $ 658,180 $ 710,905 Less: Debt Service ....................... 455,075 454,262 458,075 458,075 456,512 Contingency ...................... -0- -0- -0- 20,000 50,000 SURPLUS** ........................ $ 331,031 $ 566,166 $ 383,443 $ 180,105 $ 204,393 * Garage No. 2 was sold in October, 1979. ** Elimination of $220,900 revenues and $307,640 expenses projected for Garage No. 2 from the 1979-80 budget, increases the Surplus by $86,740, that is, from $204,393 to $291,133. SOURCE: Department of Off -Street Parking. 14 40.. RETIREMENT PLAN The Plan which was effected November 14, 1971 is for employees of the Department of Off -Street Parking not covered by any other retirement plan. 1t is a contributory split -funded plan which utilizes the following actuarial assumptions: I. interest only at 5% : no mortality 2. Benefits for life and 10 years certain. Retirement age 55. Level annual funding. The pension cost is directly related to the pension formula and the foregoing funding assumptions. No benefits will vest until the participant has been a member of the Plan for at least five years. The participant is always 1o(1r; vested in his own personal contribution plus 4°b simple interest. Retirement benefits arc based on 217r per year of average final compensation times the number of years of Plan participation. An additional pension benefit equal to 10% of average final compensation is received if participant shall have completed since last becoming a participant of continuous credited service at th; time of his normal retirement date and shall also have completed since last becoming a member 1.5 years of continuous credited service at the time of his ultimate retirement. Preretirement death benefit is equal to one hundred times monthly pension benefit. November 14, 1971 Through Year Ended Year Ended September 30, September 30. 1978 1979 Total Employer Contributions .................. M6,599 $38.505 $265,094 Employee Contribution° .................. 93,596 19.289 112,894 Robert J. Graham, Certified Public Accountant, Coral Gables, Florida, determined that as of September 30. 1979 the PI in was overfunded due to the termination in October, 1979 of several employees form, rly rmIII i 'CLI by (iarage No. 2, which was sold by the Department on October 19, 1979. Due to the ovcrfunding at September 30, 1979. no contributions would be required by the Department to the Plan through September 30, 191M. The only cash outlay required for the coming year will be for insurance totaling approxinuttcly S18,400. Rohcrt J. (jr;ih;im. (' P.A. Im,, further confirmed that the actuarial assuntptiom which have been used by the Plan since its inception, Noyentber 14, 1971, have been reviewed and that in light of the Plan's past experience, the actuarial assumptions being used for calculating annual contributions to the Plan are still satisfactory and conservative. FINANCIAL FACTORS Revenues of the Department The revcnu;s derived by the Department for its operation of the Department's Parking Facilities are accounted for prim;:ril\ through the R�vcnuc Fund and the On -Street Meters Fund. In addition, income earned from investment of availahlc halancrs in the Interest and Sinking Fund is accounted for in the Interest NMI Sinkin' Fund ;1nd applied to paNment of the principal and interest requirements on the Outstanding Bonds, and maintenance of the Reserve Account for the benefit of the Outstanding Bonds. The Revenue Fund The R:venuc Fund recciycs parking tees collected at the three parking garages operated by the Deportment. pres,nrly Garage No. I. No. 3 and No. 4 (Garage No. 2 was sold on October 19, 1979), as well as parking fees collcctCd from parking meters installed at the 35 (off-street) parking lots operated by the Drpartnt.ni. l3oth revenues and expenses for each garage, as well as off-street parking meters as a group, arc aeanutted for scparrtcly in the annual reports of the Department. Interest earned on investments of av;iilabic balances in the Revenue Fund are also reported as income in this Fund. 15 Table No. 1 entitled "Revenue Fund —Statement of Net Income and Fund Balance" summarizes the income, expenses and balances of the Revenue Fund for the fiscal years ended September 30, 1975 through 1979, inclusive. Table No. 2 entitled "Revenue Fund —Balance Sheet" summarizes the balance sheet as of September 30, 1975 through 1979, inclusive. The On -Street Meters Fund The On -Street Meters Fund receives the parking fees collected from approximately 4,200 meters located throughout the City. Direct expenditure; attributed to the on -street meters are reported in this Fund, a, well as that portion of the indirect expenditures (administrative and general) allocated to such meter.. The balance of ,uch expenses are allocated to the Reserve Fund described above. Interest earned on investments of available balances in this Fund are also reported as income to this Fund. Table No. 3, entitled "On -Street deters Fund —Statement of Net Income and Fund Balance" summarizes the income. expCnsC, 111d balances of such Fund for the fiscal years ended September 30, 1975 through 1979, inclusive. Table No. 4, entitled "On -Street Meters —Balance Sheet" summarizes the balance sheet as of Sepicmher 3(). 1975 through 1979, inclusive. Historical Revenue of the Department Available for Debt Service The Bond Ordinance requires the Department to combine the net income of the Revenue Fund and net income of the On -Street deters 1-und on a monthly basis and allocate such combined income to the various other funds and accounts established by the Bond Ordinance. During the fiscal year ended September 30, 1979 such combined net income amounted to $969,018, of which $587,538 was reported by the Revenue Fund and $381,480 front the On -Street Meters Fund. Table No. 1 entitled "Revenue Fund —Statement of Net Income and Fund Balance" summarizes the income, expenses and balances of the Revenue Fund for the fiscal years ended September 30, 1975 through 1979, inclusive. Table No. 2 entitled "Revenue Fund —Balance Sheet" summarizes the balance sheet as of September 30. 1975 through 1979. inclusive. The On -Street Meters Fund The On -Street Meters Fund receives the parking fees collected from approximately 4,200 meters located throughout the City. Direct expenditures attributed to the on -street meters are reported in this Fund, as well as that portion of the indirect expenditures ( administrative and general) allocated to such ureters. The balance of such expenses are allocated to the Reserve Fund described above. Interest earned on investments of available balances in this Fund are also reported as income to this Fund, Table No, 3, entitled "On -Street deters Fund —Statement of Net Income and Fund Balance" summarizes the income. expenses and halances of such Fund for the fiscal years ended September 30, 1975 through 1979. inclusive. Table No. 4, entitled "On -Street Meters —Balance Sheet" summarizes the balance short as of Srptenther 30, 1975 through 1979, inclusive. Historical Revenue of the Department Available for Debt Service The Bond Ordinance requires the Department to combine the net income of the Revenue Fund and net income of the On-Strect Meters Fund on a monthly basis and allocate such combined income to the various other funds and accounts established by the Bond Ordinance. During the fiscal year ended September 30, 1979 such combined net income amounted to $969,018. of which $587,538 was reported by the Revenue Fund and $381,480 front the On -Street Meters Fund. Tubb i dEPARTMENT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA REVENUE FUND STATEMENT OF NET INCOME AND FUND BALANCE Year Ended September 30, PAttttlAlO GARAGES:1979 1978 1977 1"6 1975 Revenues ................................... $1,172,896 $1,035,194 $914,669 $972,709 $724,901 Expenses ................................... 665.140 613,979 576,729 593,929 511,423 Net Operating Income .................. 507,746 421,205 337,940 278,879 213,478 PIRKING METERS (Off -Street): Revenues ................................... 610,449 555,501 505,019 548,019 522,525 Expenses ................................... 93,253 82.556 61,391 69,597 68,576 Net Operating Income .................. 517,196 472,945 443,628 478,422 453,949 Total Net Operating Income ............ 1,024,942 894,150 781,568 757,301 667,427 GENERAL REVENUE AND EXPENSES: Revenue -Interest on Investments, etc .......... 10,053 51880 4,325 11.763 16,738 Expenses: Administrative Expenses ................... (213,949) (190,602) (180,924) (212,002) (195,755) General Operating Expenses ................ (233,510) (205,708) (201,415) (179,238) (140,234) Net Income ........................... 587,538 313,720 403.554 377,824 348,176 FUND BALANCE AT BEGINNING OF YEAR ............ 56,852 182,842 62.999 87,847 73,027 ADD: Reimbursement of Prior Year Expense ......... - - 1,184 526 - Transfer from Hospital Fund .................. - - - - 80545 Total ................................ 644,390 696,S62 467,737 466,197 501,748 DEDUCT: Prior Year Payroll Charges ................... - 1,647 - - -. Transfer to Other Funds: Interest and Sinking Fund: Bond Service Account ................... 134,584 191,645 211,324 235,683 253,875 Reserve Account ........................ - - 44,947 70,699 37,472 Renewal and Extension Fund ................ 324,960 230,241 27,071 63,761 4,413 General Reserve Fund .................... 72,359 216,177 1,653 33,055 - Expansion Fund ........................... - - - - 20,977 Construction Fund ......................... - - - - 97,164 Total Deductions ...................... 551,903 639,710 284,895 403,198 413,901 FUND BALANCE AT END OF YEAR ................ S 92.487 $ 56.852 $182,842 $ 62.999 S 97,847 Source: Audited Annual Financial Reports of the Department. 17 Tabb 2 DIPARTMLNT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA REVENUE FUND BALANCE SHEET ASSETS September 30, 1979 1978 1977 1976 1975 Cash .............................. $ 45,474 $ 58,728 $103,735 $ 33,738 $ 87,990 Investments (U. S. Treasury Bills) ...... 99,718 95,680 86,095 82,020 41,782 Accounts Receivable ...... . ........ . .. 8,283 12.559 18,032 2,237 1,409 Prepaid Items ........... . ........... 4,107 10,890 7,410 36,767 154 Due from Other Funds ................ 54,391 21,150 67,022 14,804 65,806 Construction Advance ................ . - - 3,110 15,819 27,212 Total $211,973 $199,007 $285,404 $185.385 $224,353 LIABILITIES, RESERVE AND FUND BALANCE Liabilities Accounts Payable ................ $ 18.114 $ 28,851 $ 12,728 $ 11,166 $ 6,174 Accrued Expense ................ 10,752 9,930 8,563 29,662 41,768 Deferred Parking Income .......... 63,687 59.368 51,680 48,040 43,853 Due to General Reserve Fund ...... 1,770 8,204 - - - Total Liabilities .......... 94,523 105,353 72,971 88,868 91,795 Reserve for Encumbrances ......... . ... 24,963 36,802 29,591 33,518 44,711 Fund Balance ....................... 92.487 56.852 182,842 62,999 87,847 Total .................. $211,973 $199,007 $285,404 $185,385 $224,353 Source: Audited Annual Financial Reports of the Department. 46 Table 3 DRPARTMENT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA ON -STREET METERS FUND STATEMENT OF NET INCOME AND FUND BALANCE Year Ended September 30, 1979 1978 1977 1976 1975 Revenues $549,250 $641,710 $510,179 $402,146 $360,695 Direct Expenditures ................... 80,038 71,721 63,392 57,425 57,717 Operating Revenues in Excess of Direct Expenditures .................... Indirect Expenditures Administrative ..................... General Operations ................. Total Indirect Expenditures ......... Operating Revenues in Excess of In- direct Expenditures ............. Other Revenue -Interest Earned on Invest- ments ............................ Net Income ..................... Fund Balance at Beginning of Year ....... Add: Reimbursement of Prior Year Expense ........................ Total .................. 469,212 569,989 446,787 344,721 302,978 76,388 54,138 53,887 63,088 58,148 20,526 15,734 14,814 13,667 12,199 96,914 69,872 68,701 76,755 70,347 372,298 500,117 378,086 267,966 232,631 9,182 6,591 4,466 4,935 4,168 381,480 506,708 382,552 272,901 236,799 187,639 258,931 145,379 143,813 81,014 - - - 157 - 569,119 765,639 527,931 416,871 317,813 DEDUCT: Transfers to Other Funds: Interest and Sinking Fund: Bond Service Account ........... 220,000 216,000 150,000 192,492 144,000 Reserve Account ............... - - 37,098 - 16,000 Renewal and Extension Fund ....... 137,000 218,000 81,902 54,000 - General Reserve Fund ............. 74,000 144,000 - 25,000 - Expansion Fund .................. - - - - 14,000 Total Deductions ......... 431,000 578,000 269,000 271,492 174,000 Fund Balance at End of Year ........... $138,119 $187,639 $258,931 $145,379 $143,813 Source: Audited Annual Financial Reports of the Department. 19 Tame 4 DEPARTMENT OF OFF-STREET PARKING CITY OF MIAMI. FLORIDA ON -STREET METERS FUND BALANCE SHEET ASSETS September 30, 1979 1978 1977 1976 1975 Cash .............................. $ 66,531 $103,448 $ 67.158 $ 69,904 $ 40,050 Investments (U. S. Treasury Bills) .... , . 99,71R 94,134 84,748 81,272 60,353 Accounts Receivable .................. 306 58 - - 26 Prepaid Expense ..................... 195 2,711 7,965 10,184 7 Due from Other Funds .............. . . 1,952 4,070 109,304 240 59,857 Total .................. $169,702 $204.421 $269,075 $161,600 $160,293 LIABILITIES, RESERVE AND FUND BALANCE Liabilities Accounts Payable .................. $ 1,742 $ 4,741 $ 680 $ 884 $ 742 Accrued Expense ................... 1,389 1,088 942 3,390 1,893 Deferred Parking Income ............. 720 390 - - - Due to Other Funds ................ 25,164 9,620 5,279 7,335 3,163 Total Liabilities .......... 29,015 15,839 6,901 11,609 5,798 Reserve for Encumbrances .............. 1,568 943 3,243 4,612 10,682 Fund Balance ........................ 138,119 187,639 258,931 145,379 143,813 Total .................. $168,702 $204,421 $269,075 S 161,600 $160,293 Source: Audited Annual Financial Reports of the Department. Table No. 6 entitled "Revenue Fund and On -Street Meters Fund —Summary Statement of Revenues and Expenses" summarizes such combined net income for the fiscal years ended September 30, 1975 through 1979, inclusive. Included in the combined net income of $969,019 is $19,237 investment income earned on balances in both funds. in addition to such combined net income the Department reported investment income of $95,740 for the fiscal year ended September 30. 1979 in the Interest and Sinking Fund on balances held in that Fund, all of which was available to meet principal and interest requirements on the Outstanding Bonds. Table No. 7 entitled "Interest Sinking Fund —Balance Sheet" surmarizes the balance sheets for that Fund as of September 30, 1975 through 1979, inclusive, including the investment income reported in two different accounts within that Fund. Summarized below are the total amounts which were available for payment of principal and interest on the Outstanding Bonds during the fiscal rears ended September 30, 1975 through 1979, inclusive. Fhed Combined Net Years Income -Revenue Investment Ended Fund and Income on Total Income September 30, Off-street Interest and Available for Meters Fund Sinking Fund Debt Service 1979................ $ 969,018* $95,740 $1,064,758 1978................ 1,020,428 99,430 1,119,858 1977 ..... . ....... . .. 786,106 65,164 851,270 1976................ 650,725 60,634 711,359 1975 ................ 584,975 69,891 654,866 * See comments concerning 1979 Revenues below under "Interim Revenues" SOURCE: Tables 1, 3 and 7 which are derived from Audited Annual Financial Reports of the Department. PERCENTAGE OF GROSS REVENUES BY OPERATIONS (Thousands) Year Ended September 30, 1979 1978 1977 Revenue Fund: Garages ..................... $1,173 50% $1,035 46% $ 915 47% Lots ........................ 610 26 556 25 505 26 On -Street Meters Fund ........... 549 24 642 29 510 27 Total ................. $2,332 $2,233 $1,930 Interim Revenues Table No. 5 entitled "Interim Revenues for the Four Months Periods Ended January 31, 1980 and 1979" summarizes the revenues, expenses and net income of the Revenue Fund and the On -Street Meters Fund for the months of October. November and December, 1978 and 1979 and January, 1979 and 1980. The combined net income of both Funds in December, 1979 amounted to $108,144, the highest such monthly total ever reported by the Department. During the 1979 fiscal year, parking meters were extensively vandalized to break into the coin boxes, causing a decline in earnings. To counter this. 6,000 vandal resistant meters housings had been installed by year end. The remaining 2,500 meters will be upgraded in the next few months. Although the replacement program is presently incomplete, meter revenues are returniing to the norm. This is the only type of vandalism that the Department has experienced. 21 rA ff Table s INTERIM REVENUES FOR THE FOUR MONTHS ENDED JANUARY 31, 1980 AND 1979 (00we Omitted) 1980 1979 1979 1973 IwL Dec. Nov. Oct. ToW Jan. Dec. NOV. Oct. Told Revenue Fund Revenues(a) ................ $153 $153 $128 $147 $581 $157 $I51 $144 $138 $590 Expenses ................... 102 73 79 105 359 98 84 98 79 359 Net Income ............ 51 80 49 42 222 59 67 46 59 231 On -Street Meters Fund Revenues(a) ................ 53 42 37 38 170 54 53 55 52 214 Expenses 22 14 14 21 71 15 15 14 15 59 Net Income ............ 31 28 23 17 99 39 38 41 37 155 Combined Funds Revenues(a) 206 195 165 195 751 211 204 1" 190 804 Expenses ................... 124 87 93 126 430 113 99 112 94 418 Net Income ............ S 82 $108 $ 72 $ 59 $321 $ 98 $105 $ 87 $ 96 $3 66 (a) Excludes all investment income. Table 6 DEPARTMENT OF OFF-STREET PARI13Tr1G CITY OF MIAMI, FLORIDA REVENUE FUND AND ON -STREET METERS FUND SUMMARY STATEMENT OF REVENUES AND EXPENSES Yen Ended September 30, 1979 1978 1977 1976 197S Revenue Fund Revenues ................ $1,793,390 $1,596,565 $1,424,013 $1,432,490 $1,264,164 Expenses ................ 1,205,852 1,082,845 1,020,459 1,054,666 915,988 Net Revenues ........ 587,538 513,720 403,554 377,824 348,176 On -Street Meters Fund Revenues ................ 558,432 648,301 514,645 407,081 364,863 Expenses ................ 176,952 141,593 132,093 134,180 128,064 Net Revenues ........ 381,480 506,708 382,552 272,901 236,799 Combined Funds Revenues ................ 2,351,822 2,244,866 1,938,658 1,839,571 1,629,027 Expenses ................ 1,382,804 1,224,438 1,152,552 1,188,846 1,044,052 Net Revenues ........ $ 969,018 $1,020,428 $ 786,106 $ 650,725 $ 584,975 Source: Audited Annual Financial Reports of the Department. 22 .11 T" "I DEPARTMENT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA INTEREST AND SINKING FUND BALANCE SHEET September 30, 1979 1978 1977 1976 1975 ASSETS -" Cash ................................... S 355,507 S 349,021 S 298,266 $ 327,127 S 287,612 Investment (U.S. Treasury Notes) .......... 962,850 975,067 973,010 890,791 816,140 Accrued Interest and Discount ............. 17,980 - - - 10,320 Total ........................... $1,336,337 $1,324,088 $1,271,276 $1.217,918 $1,114.072 RESERVES Reserve for Bond Service Balance at Beginning of Year ............ $ 346,521 $ 298,239 $ 326.720 $ 291,380 S 313,959 Increases Income from Investments .............. 21,377 14,267 7,020 7,857 8,753 Transfer from Revenue Fund .......... 154,584 191,645 211,324 235,683 253,875 Transfer from On -Street Meters Fund ... 220,000 216.000 150,000 192,492 144,000 Transfer from Reserve for Sinking Fund .. 68,600 80,633 58,250 54,970 26,819 811,082 800.784 753,314 782,382 747,405 Decreases Principal Payments ................... 140,000 130,000 125.000 120,000 115,000 Interest Payments .................... 318,075 324,263 330,075 335,662 341,025 458,075 454,263 455,075 455,662 456.025 Balance at End of Year ................. 353,007 346,521 298,239 326,720 291,380 Reserve for Sinking Fund Balance at Beginning of Year ............ 977,567 973,037 891,198 822,692 734,900 Increases (Decreases) Income from Investments .............. 74.363 85,163 58,144 52,777 61,138 Transfer from Revenue Fund ........... - - 44,847 70.699 37,472 Transfer from On -Street Meters Fund ... - - 37,098 - 16,000 Transfer from (to) Reserve for Bond Service ........................... (68,600) (80,633) (58,250) (54,970) (26,818) Balance at End of Year ................. 983,330 977,567 -- 973.037 ----- 891,198 -------- 822,692 ---- Total ........................... $1,336,337 $1,324.088 $1,271,276 $1,217,918 $1,114,072 Source: Audited Annual Financial Reports of the Department. 23 f f Historical Debt Service Coverage on Outstanding Bonds Summarized below are the Net Revenues of the Revenue Fund and the On -Street Meter Fund, together with investment income from the interest and Sinking Fund for the last five fiscal years, together with debt service requirements and coverage on the Outstanding Bcnds. Reference is made to Table 6. entitled "Revenue Fund and On -Street Meter Fund Summary Statement of Revenues and Expenses" for further details concerning such Net Revenues. Fiscal Year Ended September 30, 1975 .................... 1976 .................... 1977 .................... 1978 .................... 1979 .................... (000 omitted) Debt Service Invest- on Out - Net Revenues ment Income Total Income standing Bonds Coverage $ 585 $70 $ 655 $458 1.43x 650 61 711 458 1.55 786 65 851 457 1.86 1,020 99 1,119 461 2.43 969 96 1,065 460 2.32 Debt Service Coverage —Projected Summarized below are the estimated Net Revenues of the existing Parking System and proposed Garage No. 5 during the calendar years 1980 through 1985, inclusive, as set forth in the "Feasibility Report —January 1980" prepared by Conrad Associates East, a Division of Construction Research and Development, Inc., Chicago, Illinois, together with investment income which the Department anticipates it will derive from various funds. (000 omitted) Net Revenues(s) Debt Service Invest. Existing Proposed ment Out- Series Calendar S)stem Garage Total Income Total standing 1990 Year (b) No.! Revenues (c) Income Bonds Bonds Total Coverage 1980 ........... $1,280 $— $1,280 $200 $1,480 $458 $(d) $ 458 3.2x 1981 ........... 1,357 92 1,449 200 1,649 461 458(d) 919 1.8 1982 ........... 1,438 157 1,595 200 1,795 459 916 1,375 1.3 1983 ........... 1,524 210 1,734 200 1,934 456 916 1,372 1.4 1984 ........... 1,616 270 1,886 200 2,086 458 916 1,374 1.5 1985 ........... 1,713 336 2,049 200 2,249 460 961 1,421 1.6 (a) Summarized from Feasibility Report, Appendix A. (b) Excludes interest on bond principal, interest and reserve accounts. (e) Includes interest at 10% on new reserve account, new debt service account and $95,000 historical income on Outstanding Bonds debt service and reserve accounts. (d) 12 months interest (October 1, 1980 and April 1, 1981 coupons) funded from bond proceeds. It lu DEPARTMENT OF OFF-STREET PARKIIMG CITY OF MIAMI, FWRIDA DEBT SERVICE REQUIREMENTS ON OUTSTANDING REVENUE REFUNDING BONDS (SERIES A), REVENUE BONDS (SERIES B AND C) AND PROPOSED SERIES 1980 BONDS Proposed Series 1980 Bonds FW111 Tow Outstanding Revenue Refunding and Estimated Total raftsMandatory Revenue Bonds Interest Estimated SIVL Principal Interest Total Amortization 1t q1�M� Total Debt Service 1980 ............ $ 150,000 $ 308,175 $ 458,175 $ - $ 458,063 S 458,063 $ 916,238 1991 ............ 160,000 301,275 461,275 - 916,125 916,125 1,377,400 1982 ............ 165,000 293,925 458,925 - 916,125 916,125 1,375,050 1983 ............ 170,000 286,195 456,195 - 916,125 916,125 1,372,320 1984 ............ 180,000 278,235 458,235 - 916,125 916,125 1,374,360 1995 ............ 190,000 269,815 459,815 45,000 916,125 961,125 1,420,940 1996 ............ 200,000 260,865 460,865 50,000 911,400 961,400 1,422,265 1987 ............ 210,000 251,455 461,455 55,000 906,150 961,150 1,422,605 1988 ............ 220,000 241,325 461,325 60,000 900,375 960,175 1,421,700 1989 ............ 230,000 230,725 460,725 65,000 994.075 959,075 1,419,800 1990 ............ 240,000 219,655 459,655 75.000 887.250 962.250 1,421,905 1991 ............ 250,000 208,115 458.115 80,000 879,375 959,375 1,417,490 1992 ............ 265,000 196,105 461,105 85,000 870,975 955,975 1,417,080 1993 ............ 275,000 183,325 458.125 95,000 862,050 957,050 1,415,375 1994 ............ 290,000 170,075 460,075 105,000 952,075 957,075 1,417,150 1995 ............ 305.000 155,925 460.925 115,000 941,050 956,050 1.416,975 1996 ............ 325,000 139,150 464,150 120,000 928,975 948,975 1,413,125 1997 ............ 345,000 121,275 466,275 1301000 816,375 946.375 1,412,650 1998 ............ 370,000 102,300 472,300 135.000 802,725 937,725 1,410,025 1999 ............ 390.000 81,950 471,950 150,000 788,550 938,550 1,410,500 2000 ............ 415,000 60,500 475.500 160,000 772,800 932,800 1,408,300 2001 ............ 445,000 37,675 482,675 170,000 756,000 926,000 1,408,675 2002 ............ 240,000 13,200 253.200 415,000 738,150 1,153,150 1,406,350 2003 . , , ......... - - - 705,000 694,575 1,399,575 1,399,575 2004 ............ - - - 775,000 620,550 1,395,550 1,395,550 2005 ............ - - - 850,000 539.175 1,389,175 1,389,175 2006 ... , .. , ... , . - - - 930,000 449.925 1,379,925 1,379,925 2007 ............ - - - 1,020,000 352,275 1,372,275 1,372,275 2008 ............ - - - 1,115,000 245,175 1,360,175 1,360,175 2009 , , , . , , . , , . , . - - - 1,220,000 128,100 1,348,100 1,348,100 $6,030,000 $4.411,240 $10,441,240 $8,725,000 $22,376,813 $31,101,813 $41,543,053 NoTE: All principal matures on October 1, and payments of principal and interest due on October 1 are calculated as if due on preceding day. 25 GENERAL iNFORMA"ON City of Miami and Dade County The following forth certain information regarding the City of Miami and Dade County. g sets : sets g g Area and Location the inc\\r}\grated in 1896 the City of Miami is the count) seat of Dade tyro and of eland and f 19.5 F tweniv-seven incorporated communities in the County. It covers 34.3 square square miles of water. Climate The tomperanlrc of Miami is essentially subtropical marine, featured by long, warm summers, with abundant rainfall, f0ll0\\ed by mild, dry winters. The average temperature in the summer is 81.4° and 69.1° in the minter, \\ith a yearly average of 75.3°. Population The following table depicts the steady growth of the City since 1910. Year Population 1910 ............................ 5,471 1920 ............................ 29,571 1930 ............................ 110,637 1940 ............................ 172.172 1950 ............................ 249,276 1960 ............................ 291.688 1970 ............................ 334,859 1979 Est ......................... 345.000 Source: U. S. Bureau of Census. 1979 is a City estimate based on added elec:ric and water connections and new dwelling units constru::ed. Govemment Since 1021 t11c Lit\ of Miami has un&r the Comrn:s';"'n-Clty Manager form of govern ment. T!w City Coninilssi,\rl :.`Ibis n\: :,:::e4 me'!!^ers. %00 art qualified \o:ers in the Cizy, one of \%hotn : r\:> .is \t.i\,,r 1 h: (onln1lNs: 71 1> ::1,, i `\ cram_ 1' ` 1\ of :he Ca\ wi:h powers :o pass ordinances, adopt resohi:ions and oppolll: Silo board n1ein-, crs all.: Cl:\ PRIN'CiPAI. GOVEWSMENTAL SFR\ ICES PERFORMED BV THE CIT1 Fite Department F..- D; .... 7,7,,\:des enw eency medical and rescue .n;,:::n%.n:.,*' ii% and hui1.1ins zoies, and emercenc\ communication ser%ices are also pro\ ded!,\ .hc D:partmen'.. Police Depamment ll c ? .. ^a7:nwn: in the Ctc is :he Fo!',%, D:7a7:,rcn:. In o t law enformmen:, it n :n\'e. :za:;ons, developing of new information J a -men: and ',h :.N:A-nun:-y Recreation 1 ... :\ n.........:ns \ha\;ng an area a^'n. , c,,'c . cou-:es. I: a:1 5.0 operates and ,• ;: 1_ ,\\. id:'1T. �1:a^.1: Bascla.. n:l S:adiu, .four Ci:}'-,�wned manna facilities, the Di .ncr Kc\ E.�r osi:;on B:::...:rL and .~.c Ba\`ron', Para; A:t.:i:orium. 26 If GENERAL INFORMATION r City of Miami and Dade County The following sets forth certain information regarding the City of Miami and Dade County. Area and Location incorporated in 1896 the City of Miami is the county seat of Dade County and the largest of the twenty-seven incorporated communities in the County. it covers 34.3 square miles of land and 19.5 square miles of water. Climate The temperature of Miami is essentially subtropical marine, featured 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°. Population The following table depicts the steady growth of the City since 1910. Year Population 1910 ............................ 5,471 1920 ............................ 29,571 1930 ............................ 110,637 1940 ............................ 172,172 1950 ............................ 249,276 1960 ............................ 291,688 1970 ............................ 334,859 1979 Est ......................... 345,000 Source: U. S. Bureau of Census. 1979 is a City estimate based on added electric and water connections and new dwelling units constructed. Government Since 1921 the City of Miami has operated under the Commission -City Manager form of govern- ment. The City Commission consists of five elected members, who are qualified voters in the City, one of whom serves as Mayor. 'rhe Commission is the governing body of the City with powers to pass ordinances, adopt resolutions and appoint the board members and City officials. PRINCIPAL GOVERNMENTAL SERVICES PERFORMED BY THE CITY Fire Department In addition to the fire services the City's Fire Department provides emergency medical and rescue services. Training, enforcement of fire and building codes, and emergency communication services are also provided by the Department. Police Department The largest department in the City is the Police Department. In addition to law enforcement, it provides personnci training, computer systems, criminal investigations, developing of new information and improving relations between the department and the community. Recreation The City maintains 87 parks having an area of 936 acres and two golf courses. It also operates and maintains the Orange Bowl Stadium, the Miami Baseball Stadium, four City -owned marina facilities, the Dinner Key Exposition Building and the Bayfront Park Auditorium. 26 14 Ofber S"Vkes Other services performed by the City are garbage collection; sanitary sewer, storm sewer, and high- way construction; tourism; trade and commerce promotion; planning; and building and zoning inspection. Education Public Schools are operated by Dade County. Public school enrollment, including both primary and secondary levels, is as follows: 1971 245,275 1972 242,190 1973 244,565 1974 246,548 1975 243,,W 1976 .......................... 239,806 1977 .......................... 235,123 1978 228,592 Colleges and universities located within the area are: University of Miami Miami -Dade Community College Florida International University Barry College Biscayne College Medical Facilities There are 42 hospitals located in the area. ECONOMY lndm&y Industry and manufacturing are becoming a strong factor in the economy of the City as well as the County. While the County's share of Florida's expanding tourist trade remains one of its major economic forces, industry has combined with tourism to produce the beginning of a diversified economic base. A strong factor in the manufacturing economy of the County is the textile industry which has shown strong growth over the last decade. Other fast growing areas include transportation products, machinery products, and professional and scientific products. Adding to the County's economic base is its growth as the location for many national and inter- national firms doing business in Latin America. Among them are Dow Chemical, Gulf Oil Corporation, Owens-Corning Fiberglas Corporation, American Hospital Supply, Coca-Cola Interamerican Corpora- tion, Ocean Chemical, Inc., Subsidiary of Rohm & Haas Company, Alcoa International, Ltd., Bemis International, Royal Export, Dymo Inc., Atlas Chemical Industries, Johns -Manville International, International Harvester, Pfizer Latin America, Minnesota (3-M) Export Inc., and United Fruit. 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. The following table g,ves the estimated employment in nonagricultural establishments in Dade County, Florida. 27 rj 01 ESTIMATED El11PLOVNIENT IS NONAGRICULTURAL ESTABLISHMENT'S DADE COUNTY. FLORIDA (Prepared by the State of Florida Department of Commerce in Cooperation with the U.S. Bureau of Labor Statistics) December cem cem NO December 1978 Miami SNISA M 1979 (Drde County) 'TOTAL 686,100 000 678,- 663,800 ............................................. 99,100 ,400 97,300 MANUFACTURIN..................................... G 42.00 41 ,800 41 41,700 Durable Goods .................................... 4,200 4,100 Furniture & Fixtures ...... • • • . • . • • . • . • • " " 3,2300 00 2,900 3,000 Stone. Clad• and Glass Products ...................... 7,600 7 600 8,400 Fabricated :Metal Products .......................... 12,300 12,200 11 700 111achinen ............. 4,300 4,300 4,200 Transportation Equipment ........ 56,900 56,600 55,600 Nondurable Goods.................................. 7,200 7,200 6 0 Food & Kindred Products ......................... 1 1,00 2 ,700 Apparel & ether Textile Prods ............... 4 ....... 8,00 8,500 8,000 Printing & Publishing ,500 39,500 39,200 32,400 CONsrRvcYio\ .......... TRANSPORI-AIION \ PUBLIC UTILITIES, 71.600 71,700 65,300 txr. L S. PosI \I SI k\ Wt. ... . ...................... Local & Interurban Passenger Transit ................. 1,900 7,700 1,800 7,900 1,500 7,300 TrtickirrR & Warehousing .......................... 31,300 31,200 28,500 Transportation by Air ............................. Comm. & Elect.. Gas & Sanitary Ser., exc. 18,400 18,600 17,200 U.S Po, -,al Ser\i:e ............................. WHOLVS\t I & RrTa1L I'll ODE ........................... 167,500 166,700 171,000 Wholcs:rle Trade . ............ 50,100 50,000 49,800 Retail Trado ......... I .................... 117,400 116,700 121,200 Bldg. \Utcrial. & Garden Supp. ..................... 3.900 3.900 3,800 General Merchandise Stores ......................... 23,200 23,700 24,500 Food Stores ...... ........................... 18,400 18,300 17,100 & S: r\ is c Sta. ........................ 13,700 9,800 14,100 9.800 13,900 9,500 .->I,parel Stores ......................... Furnitur, & Home Furnishings ....................... 4,900 4.800 4,600 Eatin, & Drnkine Places ........................... 28.800 27.900 33,600 Miscellaneous Retail .............................. 14,700 14,200 14.200 FINANrE.. INst I: �N r \ REAL ESTATE .................... 50,700 50,500 47,500 SERVICES& MiNINc................................... 167,200 161,800 159,200 Hotels & 0-her L.-.igines Places ........................ 20,400 17.900 18,300 Personal Ser%::es................................... 10,200 9,100 9,100 Business Soviets ...................... , ............ 30,700 29,500 29,400 \1"tion Pic:ures................................... 1.500 1,500 1,300 Amusemcn: & Recreation Services ...................... 12,200 11,800 9,600 Health .................................... 40.600 40.500 38,700 TOTAL GOVERNMENT .................................. 90.500 89,700 _91,100 Total Fe.lcral Go%ernment ........................... 14,300 14,100 14,100 Total S:a:. G. \ crnnrent .............................. 8.500 8.500 8,300 Total Loca' Go%ernment ............................. 67,700 67,100 68.700 (1) .all industries are classified according to the Standard Industrial Classification Manual, 1972. All data are adjusted to first quarter 1978 benchmark levels. 2S TEN LARGEST TAXPAYERS IN THE CITY OF IVIIAhU 1978 N=* of TazMw NNure of ACdTky Amund Valor Southern Bell Telephone & Telegraph Co........... Telephone Utility $220,145,510 Florida Power & Light Co . ..................... Electrical Utility 69,765,376 Equit. Life Assur. ............................ Retail Sales 195485 65,485,195 International Business Machine Co . .............. Retail Sales 39,081,036 First Federal Savings & Loan Co ................. Bank 37,348,613 Miami Herald ............................... Newspaper 34,022,494 One Biscayne Assoc . .......................... Office Building 25,609,191 Massachusetts Mutual Ins. Co . .................. Insurance 20,685,541 St. Joe Paper Co .............................. Paper Manufacturer 20,523,946 New York Life Insurance Co . ................... Insurance 18,486,532 Total Assessed Valuation of top 10 Taxpayers, which is $551,153,434 13.67% of total 1979 Assessed Valuation .......... 1979 Assessed Value Real Estate ...................................... $3,415,306,566 Personal Property ................................. 906,793,605 Railroad Property .................................. 5,074,856 Total ................................ 4,227,175,027 Less: Homestead Exemptions ........... . ............ 196,708,033 Total 1979 Net Assessed Valuation ........ $4,030,466,994 Direct Debt General Obligation Bonds . . . . ... ...............4.... $138,065,000 Incinerator Revenue Bonds ..................4....... 346,000 Utility Service Tax Bonds ............................ 1,350,000 Orange Bowl Revenue Bonds ........................ 485,000 Orange Bowl Warehouse Rental Bonds ................ 229,000 Off -Street Parking Revenue Bonds .................... 6,030,000 $ 146,505,000 Less: Self -Supporting Bands Including Bonds Payable from Special A"cssments .............................. 8,440,000 Net Direct Tax Supported Debt ........................... 138,065,000 Plus Overlapping Debt: Dade County (22.39%) ............ 93,205,092 Total Net Direct and Overlapping Tax Supported Debt ........ $ 231,270,092 CWS Per Capita Total Net Net Debt Assessed 1979 valuation Population ($4,030,466,994) (345,000 Est.) Total Net Direct and Overlapping Debt ($231,270,092) ...... 5.74% $670.35 Labor Force Summary 1975 1976 1977 1978 1979 Civilian Labor Force ........ 691,000 672.000 681,700 688,000 707,800 Employment ................ 613.000 609.000 62 1. 100 639.800 666,300 Unemployment .............. 78,000 63,000 60,600 48,200 41,500 Unemplovrrtent Rate .......... 11.3rc 9.4010 8.9r'o 7.0% 5.99:0 Source: Florida Department of Labor and Employment Security. 30 I Arkd m+e Miami is the marketing and distribution hub for one of the nation's richest. agricultural counties which annually produces farm products worth over $100 million. Dade County is an important producer Of limes, avocados, mangos, tomatoes and pole beans for fresh market. The mild climate allows crops to be grown and harvested during winter months. Transportation Miami International Airport had a 18,95 percent increase in passenger traffic during 1979, and averaged more than 53,600 passengers per day. The airport 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 persons are employed at the airport. The 275-acre Port of Miami "Gateway to the Americas" was opened in 1967, The facility has 9,200 feet of berthing space accommodating cruise and cargo ships of all sizes, and a modern passenger terminal. The following table sets forth data concerning the movement of cargo and individuals into and from the City. MIAMI PORT OF MIAMI INTERNATIONAL AIRPORT Number Air Cargo _ Atr Mall Year Cargo of (lbs.) (Ibs.) Revenue Tonnage Passengers Passengers (0001s) (0001s) 1950 .................... $ 355,199 194,633 61,377 1,387,142 67,160 6,391 1957 ........ . ........... 597,482 318,001 120,732 3,980,534 202.814 14,428 1960 .................... 601,936 352,154 136,275 4,180,556 188.657 20,597 1970 .................... 2,380.579 794,144 569.366 10,660,815 51.1,823 64,811 1971 ....... . ............ 2,755,089 841,185 685,990 11,176,739 579,071 66,194 1972 ................ . ... 2,842.933 779,591 678,397 12,076,000 636,893 71,449 1973 .................... 3,700,182 1,205,454 851,164 12,722.239 720,807 68,765 1974 .................... 3.850,232 1,301,052 728,201 12,443.885 779,006 67,459 1975 .................... 4.517,946 1,257,608 804,926 12,068,118 745,453 68.233 1976 . .................. 4,956,670 1,525,095 1,029,687 12,884,153 807,791 69,218 1977 .................... 5,374,978 1,711,535 947,093 13,736,483 987,998 69,856 1978 ........ . ........... 6.236,385 1.756,850 982.275 16,500,738 1,026,593 74,609 Financial Institutions There are 71 banks located in Dade County which together have a total of over $7,000,000,000 in deposits. DEMAND DEPOSITS AND BANK DEBITS Number or Total Total Year Banks Demand Deposits Bank Debits 1960 . , ........ 36 $1,150,924,000 $15,682,000 1965 .......... 63 1,744,453,000 21,869,000 1970 .......... 68 3,257,368,000 46,086,000 1971 .......... 71 3,614,491,000 55,129,000 1972 ....... , .. 77 4,432,841,000 62,168,000 1973 .......... 83 5,193,728,000 80,030,401 1974 ... , ...... 91 5,493,965,000 91,205,336 1975 .......... 93 5,296,569,000 90,037,666 1976 .......... 95 5,526,615,000 95,569,000 1977 .......... 98 6,489,006,000 1979 .......... 71** 7,008,649,000 • *Discontinued by Federal Reserve Board System in 1977. **The current listing of banks merged all of Flagship Banks together and also all of Pan American Banks. 31 Miseelhowou The growth of the economy of Dade County since 1950 is presented in the following table. DADE COUNTY, FLORIDA GROWTH FACTORS AND F'CONON11IC INDICES WATER i F.LF("rRIrITI' i TFITMONF.S Number of roncump• don KN'H rot". Recl• Number %Wor V.hkle Post Sales Teti Collecdoee Year Water Meters Mllllone nt Gal.. So1d 1000•c1 merclal riWorner, denthl ru%tot"en in Service Reaktra• flon Office Recelph (00015) 1950 ........ 59.613 18,091 '80,295 19.233 144,902 20(1.687 222.939 S 5,677,073 S 12,763 1955 ........ 77.637 26,070 1.714.338 23,919 220,003 125,953 377,093 9.868,686 22.622 1957 ........ 83,291 29,290 2.319.301 26,040 254.013 419,929 448.736 12.101.825 32,639 1960 ........ 86,918 32,440 1.344.041 28,991 288,987 516.715 492.999 17,396.609 41,666 1965 ........ 92.657 51,310 5.121.535 31.472 341.32R 649,457 603.349 25,429,131 58,942 1966 ........ 94,�16 45,957 5,676,151 31,937 354.300 689,937 613,402 27.091.324 63,703 1967 ........ 96,185 48,601 6.294,814 32.351 361,262 740.540 671,210 29,641,261 69,807 1968 ........ 97,170 50,127 7,151,631 35,296 183,455 792.654 730.922 34,553,865 99,703 1969 ........ 98,180 50,044 8,165,989 37,746 401,922 859.684 796.455 37,322.879 129,241 1970 ........ 100,035 55,879 9.134,181 39,452 419.957 919.131 823,442 39,404,520 140,227 1971 ........ 104,221 58,073 10,117,519 41,955 443,419 995,606 863,564 45.251,523 155,001 1972 ........ 105,166 59.558 11,237,94,4 43,882 466,814 1,092,960 925,881 51,304,014 178,565 1973 ........ 117,807 64,785 12.164.376 50.010 488,642 1.181.573 995,000 51,679,419 193,845 1974 ........ 120,936 69,02() 12.162,021 52,594 501,040 1,216.761 1.009,855 54,889,081 233,487 1975 ........ 122,870 69,437 12.416.964 53334 494,269 1.235,015 1,(140.047 71,088,591 218,347 1976 ........ 126,500 70,770 12,388,600 55,200 511.900 1,251,390 1,200.212 78.807,661 224,801 1977 ........ 130,500 71,774 13,032,900 57,600 537,2(10 1,328.413 1,268.032 77,378,596 259,119 1978 ........ 145,000 72,409 13,060,000 59,500 546,000 1,368,634 1,081.224 99,873,395 298,386 Building Permits Building permits issued in Dade County and the City of Miami since 1971, are as follows: Year City of Miami (000,S) Dade County (0001e) 1971 .......... 156,239 760,228 1972 ......,,,, 241,967 1,296,235 1973 .......... 190,026 1,119,141 1974 ......... 113,619 786,760 1975 .......... 60,750 404,585 1976 .......... 80,744 506,798 1977 .......... 97,151 460,689 1978 .......... 105,064 651,482 32 1 Bond Ratings 04 As noted on the cover page of this Official Statement Moody's investors Service, Inc. and Standard & Poor's Corporation have given to the series 1990 Bonds ratings of Baa 1 and BBB+, respectively. Such ratings reflect only the respective views of such organizations, and an explanation of such ratings may be obtained from the rating agency furnishing the same. There is no assurance that such ratings will be maintained for any given period of time, or that they may not be lowered or withdrawn if in the agencies' judgment, circumstances warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Series 1980 Bonds. The Outstanding Bonds, Series A, B and C, are presently rated A-1 by Moody's Investors Service, Inc. and A by Standard & Poor's Corporation. Validation The Bonds were validated by judgment of the Circuit Court of the Eleventh Judicial Circuit of Florida, in and for the County of Dade, rendered on February 28, 1980, and the time for taking an appeal therefrom to the Supreme Court of Florida has expired. LopBty Legal matters incident to the validity of the Series 1980 Bonds, including their authorization, issuance and sale by the City of Miami, are subject to the approval of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel, New York, New York, whose approving opinion will be furnished, without charge, to purchasers of the Series 1980 Bonds. Tax Exemption In the opinion of Bond Counsel, the interest on the Series 1980 Bonds will be exempt from all present Federal income taxation, and the Series 1980 Bonds and the income thereon are exempt from income taxation under Florida law, except as to taxes imposed by Chapter 220, Florida Statutes, on interest income or profits on debt obligations owned by corporations as defined in said Chapter 220. 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 hounded 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. On Junc 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 Citv 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 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 N] ri 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 ............................ 1,660,182 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 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 automoble accident involving a police vehicle. In the opinion of the City Attorney, the City's liability is either $100,000 or $400,000 depending upon 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 Cite property. In the opinion of City officials and the City Attorney, these claims together with those mcntioncd 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. The City of Miami relies primarily on their legal department acting under the direction of the City Attornev for legal advice. The foregoing opinions are based solely on the opinion of the City Attorney. There is not now pending any litigation restraining or enjoining the issuance or delivery of the Series 1980 Bonds or ducstioning or affe:ting the validity of the Series 1980 Bonds or the proceedings and authority under which theN are to be issued. Neither the creation, organization or existence nor the title of the present members of the Commission of the City of Miami or of other officers of the City of Miami to their respectiyc otticers is being, contested. There is no litigation pending which in any manner questions the right of the City to pav the Outstanding Bonds, nor is there any litigation pending or to the knowledge of City officials thrcatened which, if it were decided against the City, would have a materially adverse effect upon the financial affairs of the Department of Off -Street Parking. Certificate Concerning Official Statement At the time of delivery of the Bonds, the City of Miami, Florida will furnish a certificate, executed by the Director of Financc and the Director of the Department of Off -Street Parking to the effect that nothing has come to hk attention which would lead him to believe that the Official Statement, as of its date and as of the date of delivery of the Bonds, contains an untrue statement of a material fact or omits to state a material fact which should be included therein for the purpose for which the Official Statement is intended to lie a>ed. or which is necessary to make the statements contained therein, in the light of circumstances under which ;hey were made, not misleading. The execution and delivery of this Official Statement by its Director of Finance will be ratified and approved at the time of dclivcr� of these Bonds by the City Commissioner of the City of Miami, Florida. U11 iNlecell�eeoaa The references, excerpts and summaries contained herein of certain documents, including the Bond Ordinance which authorized and secures the Series 1980 Bonds and the Bidding Specifications and Bid Form referred to herein, do not purport to be complete statements of the provisions of such documents. References should be made to these documents for full and complete statements of all matters of fact relating to the Series 1980 Bonds, the security for the payment of said Bonds and the rights of the holders thereof. This Official Statement or any advertisement of the Bonds, other than the Official Notice of Sale and Bid Form, are not to be construed as a contract with purchasers of the Bonds. Any statements made in this Official Statement involving matters of opinions or of estimates, whether or not so expressly identified, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Information relating to the location, economy and finances of the City of Miami and the surrounding areas will be found in this Official Statement. All of such data, as in the case of the other information, were prepared for the City tinder the direction of Wainwright & Ramsey Inc.. Consultant~ on Municipal Finance, of New York, New York and Miami, Florida, and while not guaranteed as to completeness or accuracy, are believed to be correct as of the date of this Official Statement. CITY OF MIAMI, FLORIDA LAMES E. GUNDERSON Director of Finance RicHARD A. LABAw Director, Department of Off -Street Parking 0 APPENDIX A CONRAD A81S0CIATE8 EAST ARCHITECTURE yJ ENGINEERING ` A DIVISION OF CONSTRUCTION RESEARCH AND DEVELOPMENT, INC. PARKING CONSULTING 169 WEST MADISON STREET • CHICAGO,ILLINOIS 60602 • (312) 263-3139 March 28, 1980 Mr, Mitchell Wolfson, Chairman Off -Street Parking Board Mr, Richard A. La Baw, Director Department of Off -Street Parking 190 N.E. Third Srect Miami, Florida 33132 Gentlemen: Introduction This letter is a summary of the report entitled "Feasibility Report for the Proposed Addition to the Miami Parking System of Parking Garage No. 5," dated January 1980, which we prepared and submitted to the Off -Street Parking Board. For purposes of this letter the contents of such Report have been revised principally to the extent of reflecting actual construction bids received on Februan 26, 1980, and to modify projected interest rates on the proposed Series 1980 Bonds. The Miami Parking System consists of three parking garages, thirty five parking lots and on -street meters with a total capacity of 10,221 parking spaces to serve the needs of the City of Miami, Florida, The Miami Parking System is under the direction of the Oti-Strcet Parking Board and is administered by the Department of Off -Street Parking. The Department is a semi -autonomous agency which was created by the City of Miami Charter and operates under that charter and City of Miami Ordinance No. 7414 (as amended) —Authorizing and Securing Parking Facilities Rcvcnue Bonds. The Department plans to construct a new facility, Parking Garage No. 5, adjacent to Parking Garage No. 4. The existing parking facilities in the downtown area of Miami are shown in Figure 1, along with the site of proposed Garage No. 5. Proposed Garage No. 5 The prcposed Garage No. 5 will be a twin to existing Garage No, 4. Existing Garage No. 4 has a capacity of 683 parking spaces and is coupled with an adjacent 110 space parking lot which is the site of the proposed Garage \o. 5. Garage 5 will have a capacity of 700 spaces, which when added to the 683 spaces in Garage No. 4 will provide a combined capacity of 1.383 spaces or a net addition of 590 spaces. The present Garage No. 4 and lot operate with entrances on both N.E. 2nd Street and N.E. 3rd Street and exits to both streets. However, the exit to N.E. 2nd Street is only open during evening rush hour, With Garage No. 5 adjacent to Garage No. 4, the pattern will be different. Garage No. 4 will only be entered from N.E. 2nd Street and all cars using Garage No. 4 will exit onto N.E. 3rd Street, Garage No. 5 will be entered from N.E. 3rd Street and exit to N.E. 2nd Street. At the present time, the patrons using the N.E. 2nd Street and N.E. 3rd Street entrances to Garage No. 4 is about equally divided between the two entrances. Thus, one approach to the demand for the use of Garage No. 5 is to project the use of the combined Garages No. 4 and No. 5, based on the historical use of Garage No. 4 and the known factors which will influence future use. Then, it is reasonable to assume that each of the garages will share the use nearly equally. A-1 ST \ _ 1 Lriw s - — �-- _J l--J L— — ST NE S Z _— T _ 7 -- O >E Z S S � ; � N s 0 u I z - J � I N W A__� ST NE� z i PROP E NO 5 21 13 I GARA J L T m Nw s —_ --� GARAGE jNO4 121 �—"W—� - - GARAGE < I 1 NO 1 9 \\ m I ST - - _ ST NE t d N t f L� v 32 I� ; '� Vt < � $T m W FLAGE_R ST E FLAOER GARAGE ic --NO 3 sT ST SE I Sw t 34 ST s � � 0 _ o BISCAYNE •LVD WAY / � Mt'Mt at�Ew MIAMI PARKING SYSTEM FACILITIES CENTRAL BUSINESS DISTRICT MIAMI, FLORID CONRAD ASSOCIATES EAST CHICAGO. ILLINOIS Past and Present Use of Parking Garage No. 4 Garage No. 4 was opened in January 1975. From that time until recently its use has increased. During most of this period, the increase in use was at a rate of ab,put 2400 cars per month. However, the use of Garage No, 4 has leveled out because it is operating at its capacity Transient parkers are turned away nearly every day for it portion of the d;ly, usually in the mornines Also, the number of monthly packers has increased, and maybe are it larger portion of the users than is-ptimum for this operation. No new monthly customers are being added and it waiting list has been .carted. 'There are eurren'ly 240 people on the waiting list for monthly parking at this facility. To graphically illtvgatc the use of Garage No. 4 with the adjacent lot, twelve month totals were computed for the time period of Dccenlher 1975 through April 1979. 1 he total use of the facility along with the use by monthly customers and transient customers were determined for each twelve month period Iduring that time. These values are shown in Figure 2. When Figure 2 is studied, it is seen that thrnc things happened starting about .August 1478. These are: Monthly use of the Garacc No. 4 facility leveled off. Monthly customer use increased significantly. Transit customer use decreased significantly. At about the same time, some customers had to he turned away because the facility was full for a portion of the day on seycral days each month. The use of the facility had reached its capacity with the existing mix of users. Factors Affecting the Demand When it \%as planned, it was expected that Garage No. 4 would be used by a combination of people. The principal groups of p<<tcntial users were: Customers and employees of the businesses in the blocks just south of the facility. People going to the Fecicral (ourt Building in the block northwest ,,f the faeihty. Students and stall of Miami -Dade Community College in the block to the north of the facility. Observations of the people Ica% ing the faeilitas pedestrians show that about one-half the users have destinations to the south of the facihty and about one-half have destinations to the north side. The Fedcr:ll (ourt I;uildinz is in lh; process of cxp;ulsioa. When it is completed, the user demand from that source will inere;ls, abo w m o fold. Since the G:lr:li:e No. 4 �k(ls eoollsirU !ed, I'.yU new shopping arcades were constructed about two blocks away to the ,ou!h. .also, :l garage about 't one and one-half blocks away to the south was torn down. 1 he general Icyel oof business acti\ its in the blocks south of the garage has increased and appears to be continuing to increase. Miami -Dade Community College is planning to expand its campus which is discussed in the following section. Miami -Dade Community College The Nc\y World ("enter Campus of Miami -Dade Comnnulity College is in the block immediately north of the site of G.nag:s NO. 4 and 5. This campus, constructed specifically as it Community College, opened in the fall of 1973, just prior to the opening of Garage No. 4. The enrollment Of student ,on this c.lmpu, has grown steadily since it was opened. In June 1976, the Conullurtit� ('ollege pluicet d an vnrollntent for the 1990-91 year. This projected 1990-91 enroll- ment was surpas,cci in both the• 1977-78 ;lnd 1978-79 academic scars. The Community College is able to serve this increased cnrollntent only through the use of temporary facilities. A-3 t PARKERS INS SRI SIR IN IN I U Figure 2 Garage No. 4 Use by Catagory 12 Month Totals I f, 4 Plans ate under way to increase the Community College facilities at the New World Center. This planned expansion will approximately double the size of the existing permanent facilities of the New World Campus. A portion of the new facilities will be in the western portion of the block containing Garages No. 4 and No. 5. It is expected that the expanded campus will serve an enrollment of about 20,000 students in 1990, compared to the present enrollment of about 12,000 students. Figure 3 shows the actual enrollment in the fall semester along with the currently projected enrollment through the 1990 fall semester. Since the students and staff of Miami -Dade Community College comprise a significant portion of the users of Garage No. 4, it is readily seen that the use of Garages No. 4 and No. 5 will continue to increase. Projections of Future Use The typical growth rate of Garage No. 4 is approximated as follows: 12 month use ending Oct. '78 = 388,937 12 month use ending April '76=316,146 Difference 30 months = 72,791 or 2426 cars per month average increase The present capacity of Garage No. 4 and the adjacent lot is 793 spaces. The combined capacity of Garages No. 4 and No. 5 is 1383 spaces for a net increase of 590 spaces. If 388,937 users per year is considered capacity for the present facility, then the projected annual capacity for 1383 space facility is about 678.310 users. At a growth rate of 2426 cars per year, the combined facilities would reach 90% of capacity or 610,479 users in 7.6 years and 100% of capacity in 9.9 years. 90% of capacity is considered the practical capacity so that users can find a parking space without difficulty and no one needs to be turned away. ENROLLMENT "A" 15,000 10,000 0 W73 '71 '75 '76 '77 '78 '79 '80 '81 10, loop I - 000 i ' 'as to w 'as U w U " " Figure 3 Fall Semester Enrollment (Credit a Non -Credit) New World Center Campus Miami -Dade Community College This time to reach 90% of capacity should be measured from October 1978 or about the time that Garage No, 4 reached its limiting capacity. Thus, about May 1986, the use of the combined facilities is expected to reach practical capacity. With Garage No. 5 expected to open about January 1981, this Practical capacity point would be reached only a little over 5 years later. This appears very realistic but conservative, considering that Garage No. 4 alone with 57% of the combined total spaces reached 100% Of its capacity in less than four years (from January 1975 to October 1978). The above projection of use assumes a uniform rate of growth in the future based on the growth of Garage No. 4 from April 1976 to October 1978. When the present pent-up demand is considered, an even more intensive use is projected. The present unfilled demand for the use of these facilities is estimated as follows: The 240 people on the monthly waiting list would generate about 60,000 uses of the garage per year, based on 250 uses per person per year, The present unfilled transient demand is estimated to be about 50.000 uses per year based on the historical information. When the historical growth rate of about 30,000 uses per year increase is added for the year of construction and the first year of operation, the projected use rate at the end of the first year of operation of combined Garages No. 4 and No. 5 becomes about 560,000. This projection of a rate of 560.000 uses per year at the end of the first year of operation compares to an estimated 483.551 uses per year, if the first concept is applied to determine the projected use. For the purposes of this study, the annual rates of use of the facility is estimated to be between these two values and is assumed as follows: First year ................................. Secondyear ............................... Thirdyear ................................ Fourthyear ............................... Fifthyear ................................. Total Use (No. 4 & No. 5) Net Added Use 520,000 130,000 560,000 170,000 590,000 200,000 620,000 230,000 650,000 260,000 Because Garage No. 5 will add 590 spaces of the combined capacity of 1383 spaces, only the net added use above the present level of annual use of about 390,000 will generate additional revenue for the total parking system. Characteristics of Users In mid 1978 (before transient use dropped off due to excess monthly use) the characteristics of the users were as follows: 1 hour ........................ 17.75% 2 hour ........................ 18.40% 3 hour ........................ 10.09% 4 hour ........................ 5.59% All day ....................... 7.65% Monthly ...................... 31.24% ADecal ...................... 3.97% B Decal ...................... 0.51 % C Decal ...................... 0.40% Night ......................... 4.40% Total ......................... 100.00% It is anticipated that the characteristics of the users will remain essentially the same after Garage No. 5 is in operation. A-7 f Projections of Additional Revenue A rate increase has been approved for Garage No. 4. The previous and new rates for Garage No. 4 are as follows: Previwu New 1 hour .................... $ 0.40 $ 0.50 2 hour .................... 0.80 1.00 3 hour .................... 1.20 1.50 4 hour .................... 1.60 2.00 All day ............. . ..... 2.00 2.25 Monthly .................. 30.00 35,00 A Decal ................... 15.00 18.00 B Decal ................... 15.00 18.00 C Decal .... . .............. 9.00 11.00 Night ..................... 0.75 1.00 To project the additional income for Garage No. 5, it is assumed that the above new rates will be in effect for the first year of operation and that rates will be increased at a rate of 6% per year (compounded) in succeeding \ears. Extending the added use and the projected rates gives the projected revenue shown in Table 1 for the first fire rears of operation of Garage No. 5. Projections of Addidonal Operating Expenses It is expe ned :hat Garages No. 4 and No. 5 will operate as a combined unit for personnel. That is, the present garage manager and security staff will be :adequate. However, additional cashiers will be needed. Also. elenricit\. elevator maintenance and other similar operating expenses will increase with the new facility. Table 2 shows the estimated additional annual operating expenses with Garage No. 5 added. The operating costs were estimated for 1981. For projections, they are estimated to increase at an annual rate of 61-c per year (compounded). Table 1 Additional Revenue From Garage No. 5 Fh t Second Third Type Year Yew Year Fourth Fifth Year Year 1 hour ............. $ 11.538 S 15.993 S 19.944 $ 24,312 $ 29,132 2 hour ............. 23,920 33,157 41.348 50.404 60,397 3 hour ............. 19,676 27.273 34.001 411,460 49,680 4 hour ............. 14,534 20,146 25,124 30,626 36,698 All day ............ 22,376 31,017 38.680 47,151 56,499 Monthly ........... 68.228 94,575 117.940 143.769 172,273 A Decal ............ 4,459 6,181 7,708 9,396 11,259 B Decal............ 573 794 990 1,207 1,"6 C Decal............ 275 381 475 579 693 Night .............. 5,720 7,929 9,888 12,053 14,443 Total .............. $171,299 $237,446 5296,098 $360,957 $432,520 A-8 • 6 Table 2 Estimated Additional Annual Operating Expenses (Present Values —1980) Stan cost_ Cashiers ....................... 1 @ $11,000/yr. = $11,000 Cashiers (part-time) .............. 1 @ $ 5,500/yr. = 5,500 Sub -total .................................... $16,500 Fringe benefits and payroll taxes .................. (25% of salaries) .............................. 4,125 $20,62S Contractual Services — Elevator Maintenance ........................... $16,000 Parking Equipment Maintenance .................. 2,000 Telephone ........................... a........ 400 Electricity .................................... 26,000 Water ....................................... 2,000 Miscellaneous Maintenance ........... . .......... 5,000 $51,400 Other Expenses Uniforms and laundry ........................... $ 300 Tickets and expendable supplies ............ . ..... 4,000 Miscellaneous ................................. 3,000 $ 7,300 Total Estimated Additional Operating Expenses ........ $79,325 Projections of Net Additional Revenue Table 3 shows the net additional revenue which is a result of combining the additional revenue shown in Table 1 with the additional operating expenses from Table 2. The net additional revenue is shown for the first five years of operation, which are expected to be the calendar years 1981 through 1985. Projections of Existing System Net Revenues The net revenue of the PxISfing S\'StCnl of the twelve months ending September 1979 was $969,018. Figure 4 shows the revenue, operating expenses and net revenues for successive twelve month periods over the last few gars. Based on the trends and the recent rate increases, it is expected that the net revenue for calendar Near 19tio ( the twekc months prior to the start of Garage No. 5 operation) will be $1,280,000. It is expected that rate increases and increased use will result in an increase in net revenue of about 617c, per year ( conlpuundcd ) in the years after 1980. These projections of net revenue from the existing system arc shown in Tablc 3 along with the additional net revenue expected from Garage No. 5. Several factors went into the consideration of the net revenue projection for the calendar year 1980. These are noted with comments as follows. Garage No. 2 was sold in October 1979. This mechanical garage had failed to generate enough revenue to meet operating expenses for most of its life. Even with significant rate incn•a,cs for fiscal \'car 1978-79 there is an operating loss of over $11,000. With this facility eliminated from the system, not only will a direct financial drain on the system be eliminated but management can turn their attention to more profitable matters, In the Spring of 1979, the parking meters in the Miami parking system were hit with a severe rash of vandalism. This has resulted in a loss of revenue of at least $50,000 and may be as high as twice that value. As of the writing of this report, 6,000 new vandal resistant meter housings have A-9 replaced 6,000 (if the old metcr housing, The Department is planning to replace the remaining 2,500 trlefel huusinl, in Ilres next few months, With the replacements that have been done and will be done, tilt meler revenue (tan -Street and off-street) will be back to normal for most of 1980. When C3arage No, 5 (,the subject of this study) is under construction, about 110 spaces will be loth in Ills lot adjacent to Garage No, 4 which is operated at a part of that facility. Also, about 55 IptICe3 will be last in Lot No, 9, The loss of these revenues is included in the 1980 projections, I610 increases for the whole system went into effect February 11, 1980, The increase is $0.05 per hnur at all the Illocr:s whose present rates vary from $0.05 per hour to $0.30 per hour, Rates at the g;tu•11pps will increase front $0,40 to $0.50 per hour and from $30.00 to $35.00 per month. In looking; ahead, the cluestions of the planned people mover and transit system along with future g;llsoline shortages must be considered, This consultant has reviewed the history of use of the Depart - nuont's I'lleilities during; the 1974 and 1979 gasoline shortages along with the projections of use of the tr•nnsit xl'stenis and the new buildings to be constructed in the downtown area. As a result of these re\iews. it is this consulttlnt's opinion that neither the planned transit facilities nor gasoline shortages siiliilar to those• seen to dine will have any significant effect on the system revenues, This opinion is h:isrd in {t;ut on Ihr fact that the rates for off-street parking system are much less than the rates of competing, off-street facilities and they are attractive, well maintained and have a courteous staff, They are cinrrntJ�' ol7rr;iting near capacity and did so during; previous gasoline shortages. Because of these fiic ors, tile parking flirilitics of the. NI aii►i Parking System can be expected to be in great demand for nitlny yl'AI'\. Estimated Net Revenue itliand Parking System Constntrtion Calendar_Voin 1980 1981 1982 1983 - 1994 1985 Additional 12ov attic, l tt vl r — v, v0. S , • . $ $ 171,299 $ 237,446 S 296,098 S 360,957 S 432,520 Addidoiml 011crating li\l+rnsrc ........ . .... 79325 80.905 85,759 90,904 96,359 Net :ldditi,+n:d hevctinr claragr No, 5 $ — S 91,974 S 156.541 S 210,339 $ 270,053 S 336,161 Vioir;trd Nci Revelttle 1:\i<t_ {rt� S\\trttttal $1,280.000 St,357,000 $1.438.000 St.524,000 S1,616,000 S1,713,000 1', tat Net t)prrstutg t;rvemu 51,250,0011 $1 4-15,974 $1,594,541 Sf.73 i,339 $1.886,053 52.049,161 t�.nntatrd Lt\c•\tnunt 100,1Xl0 2t10,tkX1 200.000 200.000 200,000 200.0U0 f,+tag ln;++ntr �\\ailatic {�+r 00*( S:•n4-C 51.4S0,000 51.645,974 51,794,541 S1.934,139 S2,086,053 S2.249,161 glut>tau,ti,:� h,mds $ 45S,i'S S 46i,275 S 455.925 S 456,195 S 458,235 S 459,815 1.hiitiol"al 1\c M S,-TN i,r- 1`;-,+� ii,+::'•`: ` $_. _ _-_�") $�»58.t)63td) 5 016.125 5 Q16.125 S 916.125 S 961,125 4.3 -) _ 1..t 51,374,360 51,42 0!?40 fia:i,\ 1 1.41 S2 _ 1.58 for -uC+�• \ s,rvi:, payment; made by Wain\N-right Zan icr\i:e for ne\v and old ia;u A:M!i'13s:`.t � \nt1 :n m is pn��c4is, -10 DOLLARS 2,600,000 2,500,Ooo 2,400,000 2,300.000 2,20o,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,OOC 1,200,000 1,/0o,00C 1,000,OOC 900,OOC 600,00 Trends 12 Month Totals Total Revenue Cost of Operations & Maintenance Net Revenue CONRAD ASSOCIATES EAST A-11 CHICAGO, ILLINOIS f 0 Estimated Capital Cost of Garage No. S The construction cost of Garage No, 5 is estimated to be $5,480,000 including landscaping and the security system. To that must he added fees for professional services. The site is already owned by the Department, thus, is not included as part of the cost. Table 4 shows the elements and total estimated capital cost to be $5,830,000. Amount to be Financed In addition to the capital cost of Garage No, 5, there are other elements of the Miami Parking System to be financed at the same time as Garage No. 5. These are: Replacement Meters Repay Short Term Loan The replacement of parking meters mentioned earlier has exhausted the funds in the Renewal and Extension Fund and in the General Reserve Fund. Therefore, to pay for the remaining parking meters that must he replaced with the vandal resistant type, an additional $430,000 is needed of which $342,750 is provided from the Series 1980 Bond proceeds, and the balance from current revenues. That cost also includes the necessary parts to convert the existing mechanisms of all parking meters for the February 1, 1980 rate increase. The Department previously had borrowed $1,865.000 on a short term basis to purchase the land for Garages No. 4 and No. 5, and to create some parking lots. $500,000 of that amount remains outstanding. It is planned to use a portion of the planned bond issue proceeds to retire that short term debt. With accrued interest, an amount of $520,000 is required. To finance Garage No. 5 and the above described elements, a bond issue of $8,725,000 is proposed. Table 5 shows how the total bond issue size was obtained. In addition to the direct costs previously described, amounts are added to obtain the total bond issue amount as follows: Bond Issue expenses which are estimated to be $100,000. Interest for the first year on the amount of the bond issue. Funding of about one-half of the required Bond Reserve Account from the proceeds of the bond issue. This is estimated to be about $700,000. An allowance for a bond discount and miscellaneous expenses of $316,125 has been included. Financing It is planned that the Capital Costs of Garage No. 5 are to be financed with Revenue Bonds. These Revenue Bonds will be issued under the City of Miami Ordinance 7414 as amended in 1966, 1967, and 1980. The Ordinance authorizes and secures Parking Facilities Revenue Bonds. It is planned that the revenue bonds will be repaid over a 28 year period. For the purposes of this Official Statement, an interest rate of 9►/2 % has been assumed. A-12 ""A 0� Table 4 B,stimated Capital Cost Parking Garage No. S Garage Construction Cost (including security system) ......... $5,447,000• Landscaping.......................................... 33,000 Engineering Services .•. 320,000 Surveys, Soil Investigation, Testing ........................ 30,000 Estimated Total Garage No. 5 Coat ........... $5,830,000 • Actual amount bid for this work. Table S Estimated Amount of Bond lame Garage No. 5 Cost ..................................... $5,830,000 Replacement of Meters .................................. 342,750 Repayment of Short Term Debt .......................... 520,000 Bond Issuance Expenses ................................ 100,000 Interest for 12 months on $8,725,000 at 101/2% .............. 916,125 Initial Deposit into Series 1980 Bond Reserve Account ........ 700,000 Allowance for Bond Discount ............................ 316,125 Amount of Bond Issue ..................... $8,725,000 Conclusion Parking Garage No. 5 is financially feasible, along with the use of bond issue proceeds for parking meter replacement and retirement of the existing short term debt. Respectfully submitted, CONRAD ASSOCIATES EAST HoWAW R. MAY, P.E. President A•13 ROK" I. GRAHAM. C• RAT )OHM D. ntzm. C.RA. "PE,NDac s ROBERT J. GRAHAM Certified Public Accountant 250 CATALONIA AVENUE SUITE 302 CORAL GABLES, FLORIDA 33134 TELEPHONE (305) 445.1359 Honorable Mitchell Wolfson, Chairman Off -Street Parking Board Miami, Florida MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the financial statements of the various funds of the Department of Off -Street Parking of the City of Miami, Florida, as of September 30, 1979. Our examination was made in accordance with generally accepted auditing standards and 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 of the City of Miami, Florida has consistently followed the policy of not providing depreciation on fixed assets (see Note A). In our opinion, except for the failure to provide depreciation as described in the preceding paragraph, the aforementioned financial statements present fairly the financial position of the various funds of the Department of Off -Street Parking of the City of Miami, Florida, as of September 30, 1979, and the results of their operation and the changes in their financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. It is further our opinion that as required in Section 708 of Ordinance Number 7414, as amended by Ordinance Numbers 7452 and 7517 that for the year ended September 30, 1979: (1) the monies received by the Department under the Ordinances have been applied in accordance with their provisions, (2) the obligations for current expenses were not in excess of the amount appropriated in the annual budgets, and (3) the City was not in default in the performance of any covenants contained in Section 503 of this Ordinance. CertifiePPublic Accountant December 18, 1979 DEPARTMENT OF OFF-STREET PARKING CITY OF MIAMI. FLORIDA SUMMARY BALANCE SHEET SEPTEMBER 30, 1979 ASSETS CASH INVESTMENTS: U.S. Treasury notes and bills Certificate of deposit 12 Intermediate credit bank bonds Government fund deposits ACCOUNTS AND LOANS RECEIVABLE DUE FROM OTHER FUNDS: On -street meters fund G and 0 Enterprise fund Renewal and extension fund General reserve fund Revenue fund PREPAID EXPENSES: Pension contributions Insurance Legal expense and other INVENTORY - SPARE PARTS (at cost) CONSTRUCTION .ADVANCES FIXED ASSETS AMOUNT AVAILABLE AND TO BE PROVIDED FROM FUTURE OPERATIONS: Available in debt service reserves Amount to be provided Total Assets See notes to financial statements. 2 Not Covered by Bond Indenture Renewal General On -Street and General Interest Fixed Assets G and O Revenue Meters Extension Reserve and Sinking and Bonded Enterprise Retirement Fund Fund Fund Fund Fund Debt Fund Fund Fund $ 45,474 $ 66,531 $ 40,714 $ 497 $ 353,007 S - $ 82,560 $ 57 99,718 99,718 - - 962,850 - - 214,379 - _ - - 2,500 - - - _ 67.925 - - - - - - - 4,700 8,283 306' - - 17,980 - 2T,3T6 11,456 25,164 -- 14,657 1,952 8,898 - - - - 14,570 - - - - - - - - - 8,000 - - - - - - - 1,770' 3,552 - - - - 36,696 - - - - - - - 5,990 - 3,552 555 195- - - 29,111 - - - - - - _ 14,449,497 368,496 - 1,033,913 - - _ 5,141,087 - - S211.973 168 7 2 S123.4I9 $188.45 SI_336_337 S20.624.497 S484_422Q¢� ROBERTL GRAHAM Crawl POWk AeewMo r w DEPARTMENT OF OFF-STREET PARKING -CITY OF MIAMI. FLORIDA SUMMARY BALANCE SHEET SEPT_EMB_E_R 30, 1979 Not Covered by Bond Indenture General On -Street Renewal and General Interest Fixed Assets Bonded G and O Enterprise Retirement Revenue Meters Extension Reserve and Sinking Fund and Debt Fund- und Fund Fund Fund Fund Fund LIABILITIES�RESERVES AND FUND BALANCES (DEFICIT): LIABILITIES: $ - $22Q.0� _ $ - $ _ $ $1,665,000 S - Notes and loan payable $ 4,745 300 Accounts payable and accrued 29.066 3,131 45,879 15,991 expenses Due to other funds: 1,770 - - - 14,657 - General reserve fund - 25,164 16,5TQ _ _ _ 8,898 _ Revenue fund _ - 8'� - _ 1,952 _ Renewal and extension fund _ - On -street fund 24,953 - Security and performance deposits - _ _ 3,553 63,687 720 - - - • Deferred income 6,175,000 - _ Bonds payable 6,175,000 275,205 3,853 94,523 29,015 60,449 1,888,991 - Total Liabilities RESERVES: _ 13,697 _ Reserve for encumbrances 24,963 + 1,568 246,565 _ _ _ _ 353007 , - - _ Reserve for bond service 983,330 - - Reserve for sinking funds - 138,119 (183,595) (I 700,541) - 14449,497 195,520 298,216 FUND BALANCES (DEFICIT) 92,487 Total Reserves and Fund 139i687 62,970 (1700,541) 1i- 336' 337 - 14 449,497 209,217 298,216 Balances (Deficit) 117,450 Total Liabilities, Reserves 168 702 12 4 �188.45Q �36 3 20 24 S484_422 and Fund Balances 2-497 1 7 �--.4-� See notes to financial statements. ROBERT J. GRAHAM f me8.d Public AcmunUrd aEPARTM:ENT OF OFF-STREET PARKING CITY OF MIAMIJ _FLORIDA _ _` STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED SEPTEM BER 30, 1979 SOURCE OF FUNDS: Net income from parking revenue $ 969,018 Income from investments 136,647 Reimbursement by City of Miami for projected deficit of Gusman Cultural Center for the year ended September 30, 1979 62,580 Retirement plan contributions 57,793 Net income G & 0 Enterprises 42,088 Final reimbursement for professional fees paid re Convention Center site 5,500 Cash surrender value of insurance proceeds from terminated employees 4,272 Miscellaneous sales of scrap, etc. _ 1,075 Funds Provided From Operations 1,278,973 Increase in reserve for encumbrances 221,611 Decrease in investments 148,744 Decrease in cash 41,127 Increase in accounts payable and accrued expense 29,760 Decrease in construction advances 20,582 Increase in security and performance deposits 6,316 Decrease in prepaid expense 5,011 Decrease in spare parts inventory _ 3,559 1 755-.-68I APPLICATION OF FUNDS: Expenditures for renewal and replacementsand insurance $ 551,627 Increase in fixed assets 441,274 Interest on bonds 318,075 Retirement of bonds payable 140000 Interest on loans 119:833 Decrease in notes and loans payable 70,000 Employee insurance re: retirement plan 24,695 Feasibility study re: garage No. 5 24,570 Preparation of legal documents re: garage No. 5 24,570 Management fee lot 25 7,572 Refund of employees' contributions on terminated employees re: retirement plan 6,515 Increase in accounts and loans receivable 5,029 Progress billing re: annual report 5,000 Decrease in deferred income 4,408 Professional fee re: business computer system 3,555 Soil tests re: garage No. 5 3,087 Trustee fees: re: retirement plan 2,508 Photographs 1,787 Interest on lot 25 during constuction 1,360 Interest on expense re: retirement plan 218 $ 1,755,683 See notes to financial statements. 4 ROBERT J. GRAHAM Certified Public Accountant 7SEP KTMhNT OF OFF-STREET PARK141 _OF MIAMI._ FLORIDA_ BALANCE SHEET REVENUE FUND SEPTEMBER 30j_1979 ASSETS CASH INVESTMENTS (U.S. Treasury bill) ACCOUNTS RECEIVABLE: U.S. Government agencies Inman, Inc. Others PREPAID ITEMS: Pension contributions Legal expense DUE FROM OTHER FUNDS: On -street meters fund G b 0 Enterprise fund Renewal and extension fund LIABILITIES, RESERVE AND FUND BALANCE LIABILITIES: Accounts payable Accrued expense Deferred parking income Due to general reserve fund RESERVE FOR ENCUMBRANCES FUND BALANCE: Balance, October 1, 1978 Net income Less: Transfers to other funds: Interest and sinking fund - bond service account Renewal and extension fund General reserve fund Balance, September 30, 1979 See notes to financial statements. 5 3,630 4,325 328 3,552 555 25,164 14,657 141570 $ 18,314 10,752 63,687 1,770 56,852 587,538 644,390 $ 154,584 324,960 72,359 551,903 $ 45,474 99,718 8,283 4,107 54,391 L 211,972 $ 94,523 24,963 92,487 S 211.973 r ;PARTMENT OF OFF-STREET PARKIN CITY OF MIAMIP FLORIDA_�___ STATEMENT OF NET INCOME REVENUE FUND YEAR ENDED SEPTEMBER 30, 1979 PARKING GARAGES: Garage No. 1 - Northwest Third Street: Revenues Expenses Net Operating Income Garage No. 2 - Biscayne Boulevard (Note E)i Revenues Expenses Net Operating Loss Garage No. 3 - Southwest First Streets Revenues Expenses Net Operating Income Garage No. 4 - Northeast Third Street:' Revenues Expenses Net Operating Income PARKING METERS: Revenues Expenses: Parking meter patrol Parking meter service Civic Center - lot 25 expenses Net Operating Income Total Net Operating Income GENERAL REVENUE AND EXPENSES: Revenue: Interest on investments Expenses: Administrative expenses General operating expenses Net Income See notes to financial statements. $ (. 31,227) ( 47,096) ( 14,930) (213,949) (233,510) $ 240,540 (127,578) 112,962 228,264 (244,852) ( 16,588) 253,455 (107,172) 146,283 450,627 (185,538) 265,089 610,449 ( 93,253 517,196 1,024,942 10,055 (447,459) $ 587,538 6 ROBERT J. GRAHAM Grulied Public Accountant I "'NPARTMENT OF OFF-STREET PARKINC, CITY OF MIAMI, FLORIDA BALANCE SHEET ON -STREET METERS FUND SEPTEMBER 30, 1979 CASH INVESTMENT (U.S. Treasury Bill) ACCOUNTS RECEIVABLE - other PREPAID EXPENSE DUE FROM G 6 0 ENTERPRISE FUND LIABILITIES, RESERVE AND FUND BALANCE LIABILITIES: Accounts payable Accrued expense Deferred parking income Due to revenue fund RESERVE FOR ENCUMBRANCES FUND BALANCE: Balance, October 1, 1978 Net income Less transfers to other funds: Interest and sinking fund: bond service account Renewal and extension fund General reserve fund Balance, September 30, 1979 See notes to financial statements. $ 1,742 1,389 720 25,164 187,639 381,480 569,119 $ 220,000 137,000 74,000 431,000 $ 66,531 99,718 306 195 1,952 S 168.702 $ 29,015 1,568 138,119 S 168.702 7 ROBERT J. GRAHAM Certified Public Accountant a �'uPARTMENT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA STATEMENT OF NET INCOME ON -STREET METERS FUND YEAR ENDED SEPTEMBER 30, 1979 REVENUES DIRECT EXPENDITURES: Parking meter patrol Parking meter service Operating Revenues in Excess of Direct Expenditures INDIRECT EXPENDITURES: Administrative General operations Operating Revenues in Excess of Indirect Expenditures OTHER REVENUE - interest earned on investments Net Income $ 349*250 $ (32,501) (47,537) ( 80,038) 469,212 (76,388) (20,526) ( 96,914) 372,298 9,182 S 381-M See notes to financial statements. 8 ROBERT J. GRAHAM Certified Public Accountant DEPARTMENT OF OFF-STREET PARKIW, -°' CITY OF MIAMI, FLORIDA BALANCE SHEET RENEWAL AND EXTENSION FUND SEPTEMBER 30, 1979 ASSETS CASH INVENTORY - spare parts (at cost) PREPAID INSURANCE DUE FROM OTHER FUNDS: G & 0 Enterprise Fund General reserve fund LIABILITIES, RESERVE AND FUND BALANCE LIABILITIES: Account payable Due to revenue fund RESERVE FOR ENCUMBRANCES FUND BALANCE: Balance, October 1, 1978 Increases: Transfers from other funds Final reimbursement installment for professional fees re:convention center site Income from investments Miscellaneous scrap sales, etc. Decreases: Expenditures for renewal and replacements and insurance Balance, September 30, 1979 (deficit) See notes to financial statements. 9 40*714 29,111 36,696 $ 8,898 8,000 16,898 S 123.419 $ 45,879 14,570 $ 60,449 246,565 97,756 461,960 5,500 1,147 1,075 567,438 751,033 (183,595) 123.419 ROBERT ). GRAHAM Certified Public Accountant PIPARTMENT OF OFF-STREET PARKIN* CITY OF MIAMh FLORIDA— BALANCE SHEET GENERAL RESERVE FUND SEPTEMBER 30, 1979 ASSETS CASH CONSTRUCTION ADVANCES TO DADE COUNTY (re: Civic Center parking lot No. 25 at N.W. 12th Ave. and 14th street): Parcel "A" $ 184,265 Parcel "B" 1,918 DUE FROM REVENUE FUND LIABILITIES AND FUND BALANCE $ 491 186,183 1,770 $ 188,450 LIABILITIES: 61tX notes payable, Southeast First National Bank, payable in 1979 (Note E) $ 1,865,000 Accrued interest payable 15,991 1,880,991 Due to renewal & extension fund 8,000 FUND BALANCE: Balance, October 1, 1978 (deficit) (1,438,384) Increases: Transfers from other funds 146,359 Income from investments 17,723 (1,274,302) Decreases: Expenditures for replacements, acquisitions and interest on loans 426,239 Balance, September 30, 1979 (deficit) (1,700,541) $ 188.450 See notes to financial statements. 10 ROBERT J. GRAHAM Certified Public Accountant lVARTMENT OF OFF-STREET PARKING CITY OF MIAMI, FLORIDA BALANCE SHEET INTEREST AND SINKING FUND SEPTEMBER 30, 1979 ASSETS CASH INVESTMENTS: U.S. Treasury notes Certificate of deposit, Amerifirst Savings & Loan Association Accrued interest and discount RESERVES RESERVE FOR BOND SERVICE: Balance, October 1, 1978 Increases: Income from investments Transfers from other funds Decrease - principal and interest payments RESERVE FOR SINKING FUND: Balance, October 1, 1978 Increase: Income from investments Decrease - transfer to other funds See notes to financial statements. $ 962,850 2,500 171,980 346,521 21,377 443.184 811,082 458,075 977,567 74,363 1,051,930 68,600 $ 353,007 983,330 S 1,336 337 $ 353,007 983,330 S 1.336,337 11 ROBERT J. GRAHAM Certified Public Accountant k• i DEPARTMENT OF OFF-STREET PARKING CITY OF MIAMIi FLORI-DA — BALANCE SHEET GENERAL FIXED ASSETS AND BONDED__DEBT FUND SEPTEMBER 30,_1979 ASSETS LAND AND IMPROVEMENTS: Off-street parking lots $ 29883,125 Sites for parking garages 2,603,306 Buildings - harking garages 7,665,053 Preconstruction costs, garage No. 5 52,228 $ 13,203,712 PARKING MEIFRS 919,875 EQUIPMENT: Computer - revenue control, garage No. 4 163,877 Computer - accounting 32,261 Other 42,466 238,604 FURNITURE. AND FIXTURES 35,106 AUTOS 24,603 TRUCKS 8,410 ENFORCEMENT VEHICLES 19,187 AMOUNT AVAILABLE ANl) TO BE PROVIDED FOR PAYMENT OF (;ENFRAL. LONG-TERM DEBTS: Refunding revenue bands -Series A: Amount ;i%,,i i a l be in debt service fund $ 259,512 Amount to be provided _1,290,488 1,550,000 Revenue "B": Amount ,ivailable in debt service fund 252,792 Amount to be provided h257,208 1,510,000 Revenue bonds -Series "C": Amount available in debt service bond 521,609 Amount to be provided 2�593�391 3,115,000 6,175,000 $ 20,624,497 LIABILITIES AND INVESTMENTS IN GENERAL FIXED ASSETS LIABILITIES (Note C): Refunding revenue bonds -Series "A" 1,550,000 Revenue Funds -Series "B" 1,510,000 Revenue bonds -Series "C" 3,115_1 000 F $ 6,175,000 INVESTMENT IN GENERAL FIXED ASSETS 14 449 497 See notes to financial statements. $_20,h24,497 12 ROBERT J. GRAHAM Certified Public Accountant 1' -4 4. �, 7'7ARTMENT OF OFF-STREET PARKING CITY OF MIAMIRFLORIDAI' BALANCE SHEET G AND 0 EN'rERPRISE FUND SEPTEMBER 30, 1979 ASSETS CASH (Includes certificate of deposit in the amount of $21,653) (Note B) $ 82,560 ACCOUNTS RECEIVABLE 27,376 FIXED ASSETS (Note A): Building renovations 349,687 Furniture and fixtures 8,185 Equipment 10,624 368,496 PREPAID INSURANCE 5,990 484_.422 LIABILITIES, RESERVES AND FUND BALANCE LIABILITIES: Accounts payable $ 1,436 Loan payable, City National Bank 220,000 Accrued expense 3,309 Due to other funds: Revenue fund $ 14,657 On -street fund 1,952 Renewal and extension fund 8,898 25,507 Security and performance deposits 24,953 275,205 RESERVE FOR ENCUMBRANCES 13,697 FUND BALANCE: Balance, October 1, 1978 900852 Add: Reimbursement by City of Miami for projected deficit by Gusman Cultural Center for fiscal year ended September 30, 1979 62,580 Net income 42,088 195,520 $ 484.422 See notes to financial statements. 13 ROBERT J. GRAHAM Certified Public Accountant DEPARTMENT OF OFF-STREET PARE CITY OF MIAMI_,_ FLORIDA STATEMENT OF NET INCOME G AND 0 ENTERPRISE FUND YEAR ENDED SEPTEMBER 30, 1979 GUSMAN CULTURAL CENTER: Revenues $ 86,567 Expenditures 129,082 Net Operating Lose (42,515) OLYMPIA BUILDING: Revenues 261,652 Expenditures 177,049 Net Operating Income 84,603 Net Income S 42,088 I See notes to financial statement. I 14 ROBERT J. GRAHAM Certibed Public Accountant +h f )EPARTMENT OF OFF-STREET PARKI. C1TY OF MIAMl FLORIDA BALANCE SHEET RETIREMENT PLAN SEPTEPiBER 30� 1979 ASSETS CASH --- 57 INVESTMENTS, at cost (which approximates market): $20,000 U.S. Treasury notes, 7%, due May 15, 1982 $ 20j375 45,000 U.S. Treasury notes, 7.625% due August 15, 1981 45,053 40,000 U.S. Treasury notes, 8.0% due February 15, 1985 39,200 40,000 U.S. Treasury notes, 8.0% due May 15, 1982 39,688 25,000 U.S. Treasury notes, 9.875% due December 31, 1980 25 087 • 45,000 U.S. Treasury notes, 9.75% due April 30, 1981 44,976 70,000 12 Intermediate Credit Bank bonds, 7.3% due July 1, 1980 67,925 4,700 Government Fund deposits 4,700 287,004 ACCRUED INTEREST RECEIVABLE 7,922 ACCOUNT RECEIVABLE, MUTUAL BENEFIT LIFE 3,534 PREPAID INSURANCE 3,552 ,� 302 06 LIABILITIES, DEFERRED PENSION CONTRIBUTIONS AND FUND BALANCE ACCRUED EXPENSE $ 300 DEFERRED PENSION CONTRIBUTIONS 3,553 FUND BALANCE 2981216 $ 302 06 See notes to financial statements. 15 ROBERT J. GRAHAM Certified Public Accountant DEPARTMENT OF OFF-STREET PARK#.$ CITY OF MIAMI. FLORIDA _____ NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30. 1979 A. Aeeountine Policies: The funds of the Department of Off -Street Parking are enterprise funds of the City of Miami, Florida. An accrual basis of accounting is used in which expenditures are recorded at the time liabilities are incurred. Fixed assets are carried at cost. Generally accepted principles of governmental accounting require depreciation on fixed assets of enterprise funds. The Department does not depreciate such assets. Expenses have been allocated between the Revenue Fund and the On -Street Meters Fund on the following basis: Parking Meter Patrol and Parking Meter Maintenance: Specific charges were allocated 100% to the fund to which they applied. Proratable charges were allocated between the two funds based on the total number of meters in the off-street parking areas and the on -street parking areas. Administrative and General Operations: Specific charges were allocated 100% to the Fund to which they applied. Proratable charges were allocated between the two Funds on the respective revenue as earned by each of the two Funds for the prior year. Parking Garages: All direct charges applicable to the garages are recorded in the Revenue Fund. Investments, consisting primarily of U.S. Government obligations are carried at cost, which approximates market. B. Provisions for Reserves in the Interest and Sinking _Fund: Provisions for reserves in the Interest and Sinking Fund are provided in accordance with the bond ordinance. Revenue Series "C" Bonds were issued during the year ended September 30, 1973, in the amount of $3,150,000. Such proceeds were used in the construction of garage No. 4, which was completed during 1975. The reserves for Revenue Series A, B and C are fully funded. 16 ROBERT J. GRAHAM Cerlified Public Accountant 1 ^� DEPARTMENT OF OFF-STREET PARKING CITY OF MIAMI,_FLORIDA NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 301_1979 (Continued) C. Bonds Payable: Bonds payable include revenue bonds amounting to $6,175,000, maturing in various years from 1989 through 2002. Interest rates range from 4�% to 6%. Current principal payments total $140,000. D. Pension Plan: The Department provides fixed contribution split -funded contributory pension plan to substantially all employees. Employer contributions and prepayments to the plan for the year ended September 30, 1979, amounted to $38,505. Benefits will vest for employees that have been in the plan for five years or more. E. Sale of Garage No. 2: Garage No. 2 was sold on October 19, 1979 for $1,600,000. Proceeds from this sale were applied as follows: Notes payable, Southeast First National Bank $1,365,000 Payment for VIP meter housing and posts 235,000 S1.600.000 17 ROBERT J. GRAHAM Grtified Public Accountant APPENDIX C Summary of Certain Provisions of Ordinance No. 7414, as amended, authorizing and securing Parking Facilities Revenue Bonds and of Ordinance No. 9060 authorizing and securing Parking Facilities Revenue Bonds (Series 1980) and further amending Ordinance No. 7414. The following are verbatim excerpts of certain portions of the Ordinances and summaries of certain other portions of the Ordinances, to which reference is made for further information. Certain provisions of Ordinance No. 7414, as amended (hereinafter sometimes called the "Bond Ordinance") have been further amended by Ordinance No, 9060 (hereinafter sometimes called the "Ordinance"). Such amend- ments shall become effective only after all the Outstanding Series A, B and C Bonds shall have been retired or provision shall have been made for their retirement. In these summaries the term "Bonds" shall mean the $8,725,000 Parking Facilities Revenue Bonds (Series 1980), issued and secured under the Ordinance. Definitions "Additional Facility" shall mean any additional lot and any; additional improvements and structures for the off-street parking of motor vehicles or any combination thereof, which' shall be financed under, the provisions of the Bond Ordinance. "Amortization Requirements" shall mean with respect to. any Term Bonds issued under the Ordi- nance or, after all the Outstanding Bonds shall have been retired or provision made for their retirement, under the Bond Ordinance, an amount equal to the principal amount of such Term Bonds to be redeemed in installments beginning in a fiscal year determined by the City and ending with a fiscal year preceding the fiscal year in which such Term Bonds mature. "Board" shall mean the Off -Street Parking Board created by Section 23-A of the City Charter oIr if said Board shall be abolished, the board or body succeeding to the principal functions thereof and: exercising supervisory control over the Department of Off -Street Parking. "Bond Reserve Account Requirement" shall mean the maximum Principal and Interest Require- ments on account of the Bonds issued under the provisions of the Ordinance in the current or in any subsequent fiscal year. "Bond Reserve Account Deposit Requirement" shall mean as to each Series of Bonds (a) in each of sixty successive months beginning with the month following the delivery of any such Series, the Bond Reserve Account for which Series shall not have been capitalized from the proceeds of such Bonds, an amount equal to one -sixtieth (1 /60) of the difference between the amount on deposit in the Parking Bond Reserve Account prior to the issuance of such Series of Bonds and the Bond Reserve Account Requirement to be in effect immediately following the issuance of such Series of Bonds and (b) in each of the sixty successive months beginning with the month following any month in which any amount shall have been withdrawn from the Parking Bond Reserve Account an amount equal to one -sixtieth (1/60) of the deficiency created by such withdrawal until such deficiency is made up. "Current Expenses" as applied to the Off -Street Parking Facilities, shall mean the City's reasonable and necessary current expenses of maintenance, repair and operation, including all expenses incurred by the Department and by the Board in exercising their powers and performing their functions and duties, and shall include, without limiting the generality of the foregoing, all ordinary and usual expenses of maintenance, repair and operation which may include expenses not annually recurring, all administra- tive expenses, engineering expenses relating to maintenance, repair and operation, fees and expenses of the Trustee and the Paying Agents, legal expenses, fees of consultants, and any other expenses required to be paid by the City under the provisions of the Ordinance or by law but shall not include any reserves for extraordinary maintenance or repair, or any allowance for depreciation, or any deposits or transfers to the credit of the special funds created and designated in the Ordinance. CZ "Current Expenses" as applied to the on -street parking meters heretofore or hereafter installed by the City, shall mean and shall include the City's reasonable and necessary current expenses of installa- tion, maintenance, repair and operation, and shall include without limiting the generality of the fore- going, all ordinary and usual expenses of such installation, maintenance, repair and operation (including expenses of collection and meter surveillance) which may include expenses not annually recurring, all administrative expenses, and any other expenses required to be paid by the City under the provisions of the Ordinance or by law, "Department" shall mean the Department of Off -Street Parking of the City created by Section 23 A of the City Charter or the department, board or body succeeding to such Department and having juris- diction or control of the Off -Street Parking Facilities or any part thereof. "General Reserve Fund" shall mean the Miami Parking Facilities General Reserve Fund, a special fund created and designated by the provisions of Section 509 of the Bond Ordinance. "Government Obligations" shall mean direct obligations of the United States of America. "Interest and Sinking Fund" shall mean the Miami Parking Facilities Revenue Bonds Interest and Sinking Fund, a special fund created by the provisions of Section 509 of the Bond Ordinance, which special fund is pledged to and charged with the payment of the principal and interest on all the Outstand- ing Series A, B. and C Bonds and also provides for the deposit (subject to the prior lien of the Series A, B and C Bonds) to the credit of the General Reserve Fund. "Off -Street Parking Facilities" shall mean the existing parking facilities, Parking Garage No. 5, any Additional Facility or Facilities financed under the provisions of the Bond Ordinance and the Ordinance (excluding any parking facilities and meters which may be installed by the Department at the Jackson Memorial Hospital Complex from moneys in the General Reserve Fund unless such facilities and meters shall be incorporated in an Additional Facility financed under the provisions of the Bond Ordinance) and any property acquired or constructed under the provisions of Section 411 of the Bond Ordinance. "Outstanding Bonds" shall mean, collectively, all of the presently outstanding Parking Facilities Revenue Refunding Bonds (Series A), Parking Facilities Revenue Bonds (Series B) and Parking >' Facilities Revenue Bonds (Series C) heretofore issued by the City of Miami pursuant to the provisions of the Bond Ordinance. "Parking Projects" shall mean the acquisition and construction of the following: , Multi -level parking structure to contain approximately 700 spaces, adjacent to the Department of Off -Street Parking's existing garage located at 190 NE Third Street, including all costs; plus replacements of existing parking meters and repayment of short-term debt. "Principal and Interest Requirements" as applied to the Bonds, shall mean the respective amounts which are required in each fiscal year to provide: (a) for paying the interest on all such bonds then outstanding which is payable 'on April 1 in such fiscal year and on October 1 in the following fiscal year and (b) for paving the principal of all Serial Bonds then outstanding which is payable on October 1 in the following fiscal year and (c) the Amortization Requirements, if any, for all term bonds then outstanding for such fiscal year, the computation of such amount for each fiscal year, beginning with the fiscal year in which such computation shall be made, to be based on the assumption that the bonds of such Series at the time outstanding will be retired according to their stated maturities; provided, however, that there shall be deducted from the Principal and Interest Requirements so computed for any fiscal year the amount of any Redemption Fund Income deposited or to be deposited to the credit of the Bond Service Account in the Interest and Sinking Fund in such fiscal year, and also any amount deposited or transferred to the credit of said Bond Service Account under the provisions of sub- division (i1) of Section 208 of the Bond Ordinance. C-2 "Redemption Fund income" shall mean the income derived from the investment of moneys deposited in a special account in trust for the purpose of paying the principal of and the redemption premium and the interest on the bonds to be refunded by any revenue refunding bonds issued under the Bond Ordinance. "Time Deposit" shall mean an agreement by a bank or trust company authorized to engage in the banking business and subject to examination by federal or state authority, of good standing, and having a combined capital and surplus aggregating not less than Five Million Dollars ($5,000,000), to pay sums of money on definite dates with interest; provided, however, that each such time deposit shall require that the moneys be available for use at the time provided therein, and that each such time deposit shall be continuously secured by lodging with a bank or trust company approved by the Board and the Trustee as custodian, as collateral security, Government Obligations having a market value at all times (exclusive of accrued interest) not less than the amount of such time deposit. The following are summaries of certain portions of the Bond Ordinance. Additional Bonds Revenue Bonds of the City may be issued under and secured by the Bond Ordinance on a parity with the Outstanding Bonds for the purpose of paying the cost of any Additional Facility. See the summary of the Ordinance in which the City covenants that no Additional Bonds shall be issued pursuant to this Bond Ordinance until after such time as all of the Outstanding Bonds have been retired or provision made for their retirement. Refunding Bonds Refunding Bonds may be issued pursuant to the Bond Ordinance for the purpose of refunding at their maturity all or any part of the bonds of any Series which will mature within six months thereafter and for redeeming prior to their stated maturities all of the Outstanding Bonds of any Series, including payment of any redemption premium and the interest, if any, accrued or to accrue to the date of redemp- tion. Refunding Bonds issued to redeem Outstanding Bonds prior to maturity shall not be delivered unless either (i) the latest stated maturity is not later than the latest stated maturity of the bonds to be re- funded, and the Principal and Interest Requirements for each fiscal year thereafter on account of all Bonds to be outstanding after the issuance of such refunding bonds and the redemption of the bonds to be refunded does not exceed the Principal and Interest Requirements for each fiscal year on account of all bonds outstanding immediately prior to the issuance of such revenue refunding bonds, including those to be refunded or (2) the percentage derived by dividing the amount of Net Revenues of the Off -Street Parking Facilities and the on -street parking meters for the last twelve (12) months by the amount of Principal and Interest Requirements for any fiscal year thereafter on account of all Bonds to be outstanding after the redemption of the Bonds and the delivery of the refunding bonds is not less than one hundred twenty per centum (120% ). Redemption of Bonds Bonds issued pursuant to the Bond Ordinance may be subject to redemption as may be provided by resolution prior to the issuance of such bonds; provided, however, that any redemption in part may be made only on an interest payment date and any premium to be paid shall not exceed five per centum (5%) of the principal amount of bonds to be redeemed. If less than all of the bonds of a Series of any one maturity are to be redeemed, the particular bonds to be called shall be selected by lot. Rate Covenants The City covenants that no reduction in rates or charges for the use of Off -Street Parking Facilities or on -street parking meters will be made unless: (a) all deposits shall have been made to the credit of the Bond Service Account in the Interest and Sinking Fund which are required by the Bond Ordinance to have been made prior to the time of such reduction; C-3 (b) the amount then on deposit to the credit of the Reserve Account in the Interest and Sinking Fund shall be not less than the maximum amount of the Principal and Interest Requirements for any fiscal year thereafter on account of all bonds then outstanding under the provisions of the Bond Ordinance; and (c) the total amount of the Revenues of the Off -Street Parking Facilities and of the on -street parking meters as shown by the last twelve (12) monthly reports filed under the provisions of the Bond Ordinance shall have been not less than the total of the following: (1) the Current Expenses of the Off -Street Parking Facilities and of the on -street parking meters for the current fiscal year as shown by the Annual Budget for such fiscal year, and (2) one hundred fifty per centum (150%) of the maximum amount of the Principal and Interest Requirements for any fiscal year thereafter on account of all bonds then outstanding under the provisions of the Bond Ordinance. The City further covenants that, from time to time and as often as it shall appear necessary, it will adjust such rates and charges as may be necessary or proper so that the Revenues of the Off -Street Parking Facilities and the on -street parking meters in each fiscal year will be not less than the total of the amounts set forth in subdivision (c) above. Forthwith upon the adoption of any revision of such rates or charges the City will cause certified copies thereof to be filed with the Trustee and mailed to each Bondholder of record. The City further covenants that if the Revenues of the Off-Strect Parking Facilities and the on -street parking meters in any fiscal year shall be less than the total amount set forth in subdivision (c) above, it will, before the 15th day of the second month of the following fiscal year, request the Parking Con- sultants to make their recommendations as to a revision of such rates or charges, and copies of such request and of the recommendations of the Parking Consultants shall be filed with the Trustee and mailed by the Department to each bondholder of record. Anything in this Ordinance to the contrary notwith- standing, if the City shall comply with all the recommendations of the Parking Consultants in respect of such rates or charges, it will not constitute an event of default under the provisions of the Bond Ordinance if the Revenues of the Off -Street Parking Facilities and the on -street parking meters shall be less than such total. In the event that the City shall fail to revise such rates or charges in accordance with these provisions, the holder of any bonds then outstanding, without regard to whether an event of default shall have occurred, may institute and prosecute in a court of competent jurisdiction an appropriate action to compel the City to revise such rates or charges, and the City covenants that it will adopt and fix rates and charges in compliance with any order or decree entered in any such proceeding. Parking Consultant's Report The City covenants that it will cause the Parking Consultants at least once in each Fiscal Year to inspect the Off -Street Parking Facilities and on -street parking meters and to submit a report setting forth their findings regarding the condition of the Off -Street Parking Facilities and whether they have been operated eflicicntly and economically, their recommendations regarding proper maintenance of the Off -Street Parking Facilities and on -street parking meters and the amount which should be appro- priated for that purpose, the insurance to be carried and the amount that should be deposited in the next Fiscal Year to the credit of the Renewal and Extension Fund. Copies of such report will be filed with the Trustee and mailed to all Bondholders of record who have filed their names for that purpose. Annual Budget The City covenants that on or before the first day of each Fiscal Year, after public hearing, it will adopt a budget for that Fiscal Year. Copies of the Annual Budget will be mailed to all Bondholders of record who have filed their names and addresses for that purpose. The City may at any time adopt an amended or supplemental Annual Budget for the remainder of the current Fiscal Year but no such amended or supplemental budget shall be effective unless approved by the Parking Consultants. C-4 The City covenants that the amount expended for Current Expenses will not exceed the reasonable and necessary amount thereof and that it will not spend more for that purpose than the amount provided in the Annual Budget; provided, however, that the Director may make transfers between the detailed accounts in the Annual Budget, in order that any available balance in such account may be used for other necessary and proper purposes. Revenue Funds A special fund is created by the Bond Ordinance and designated the "Miami Parking Facilities Revenue Fund" (the "Revenue Fnnd"). Another special fund is created by the Bond -Ordinance and designated "Miami On -Street Parking Meters Fund" ("On -Street Meters Fund"). In the event that Net Revenues in any fiscal year shall be less than one hundred ten per centum (110% ) of the maximum amount of the Principal and Interest Requirements for any fiscal year thereafter on account of all bonds outstanding, the City covenants that it will pay the Current Expenses of the on -street parking meters in the ensuing fiscal year from other available moneys of the City. FLOW OF FUNDS —for Amendments to these provisions, effective after the Outstanding Bonds have been retired, see "Summaries of the Ordinance." A special fund is created by the Bond Ordinance and designated the "Miami Parking Facilities Revenue Bonds Interest and Sinking Fund" (the "Interest and Sinking Fund") which contains three separate accounts designated "Bond Service Account," "Redemption Account," and "Reserve Account". Two additional funds are created and designated the "Miami Parking Facilities Renewal and Extension Fund" (herein called the "Renewal and Extension Fund") and "Miami Parking Facilities General Reserve Fund" (herein called the "General Reserve Fund"). The Treasurer of the Department shall, monthly, withdraw amounts equal to the balances remaining in the Revenue Fund and in the On -Street Meters Fund on the last day of the preceding month, less amounts (to be held as reserves for Current Expenses) equal to twenty per centum (20% ) of the amounts shown by the Annual Budget to be necessary for Current Expenses during the current fiscal year, and transfer such amounts to the credit of the following Accounts or Funds in the following order: (a) with the Trustee to the credit of the Bond Service Account, such amount as may be required (over and above any Redemption Fund Income deposited to the credit of said Account) to make the amount then with the credit of the Bond Service Account equal to the principal of all bonds of each Series, if any, then due and payable and to become due and payable within the next twelve (12) months and the interest then due and payable and to become due and payable within the next six months on all bonds then outstanding; (b) with the Trustee to the credit of the Reserve Account, such amount, if any, of the balance remaining after making the deposit in (a) above as may be required to make the amount then to the credit of the Reserve Account equal to two times the maximum Principal and Interest Requirements for any fiscal year thereafter on account of the bonds of each Series outstanding; provided, however, that the amount so deposited in any &-cal year shall not exceed twenty per centum (20%) of the amount required to be deposited in such fiscal year under clause (a); (c) with a Depositary or Depositaries to the credit of the Renewal and Extension Fund, such amount, if any, of any balance remaining after making the deposits required under clauses (a) and (b) above as may be required to make the amount deposited in the current fiscal year equal to the amount recommended by the Parking Consultants; (d) subject to the provisions of clause (e) below, with the Trustee to the credit of the Expansion Fund such amount remaining after making the deposits under clauses (a), (b) and (c) above as may be required to make the amount so deposited equal to the amount recommended by the Parking Consultants; provided, however, that no such deposit shall be made in any fiscal year if the amount then to the credit of the Expansion Fund shall be not less than $600,000 or such other sum as may be recommended by the Parking Consultants. C-5 a • The City has covenanted in the Ordinance, however, that until after such time as the Outstanding Bonds shall have been retired, no moneys shall be deposited in the Expansion Fund. (e) the balance, if any, remaining after making the deposits under clauses (a), (b), (c) and (d), above, shall be deposited with a Depositary or Depositaries to the credit of the General Reserve Fund; provided, however, that if in any fiscal year after the expiration of two complete fiscal years following the issuance of bonds of any Series, Net Revenues in any such fiscal year shall not exceed 140% but shall exceed 130% of the maximum amount of the Principal and Interest Requirements for any fiscal year thereafter on account of all the bonds then outstanding, 25% of the balance remaining after making the deposits under clauses (a), (h) and (c) above shall be deposited with the Trustee to the credit of the Redemption Account, if such Net Revenues in any fiscal year shall not exceed 130% but shall exceed 120% of such maximum amount of Principal and Interest Requirements, 50% of the balance remaining shall be deposited to the credit of the Redemption Account: and if such Net Revenues in any fiscal year shall not exceed 120% of such maximum amount of Principal and Interest Requirements, all of such balance shall be deposited to the credit of the Redemption Account. In the Ordinance, the City has covenanted that until after such time as tite Outstanding Bonds shall have been retired, it will use its best efforts to insure that there will be adequate deposits made in the General Reserve Fund to pay the principal of and the interest on the Bonds. Application of Moneys The Current Expenses shall be paid from the Revenue Fund and from the on -street meters fund as the same become due and payable. Moneys in the Bond Service Account shall be applied to pay the principal of and the interest on the bonds by mailing to the owners of bonds registered as to both principal and interest, the interest on such bonds and by setting aside in trust sufficient moneys to pay the principal of such bonds and by depositing in trust with the Paying Agents the amount required to pay the principal of and the interest on all bonds not registered as such principal and interest becomes due. Moneys held for the credit of the Reserve Account shall first be used to pay principal and interest on the bonds to the extent that moneys in the Bond Service Account are insullicient for that purpose and thereafter, any excess over the maximum requirement for the Reserve Account shall be transferred to the credit of the Redemption Account. Moneys held in the Renewal and Extension Fund, except in case of an emergency caused by some extraordinary occurrence so characterized in a certificate of the Director and an insufficiency of moneys in the Revenue Fund to meet such emergency, shall be applied only to pay premiums on insurance, the cost and engineering expenses of (a) unusual or extraordinary maintenance, repairs, renewals or replace- ments, (b) the acquisition, installation or replacements of equipment, (c) construction, extension, addition, reconstruction or improvement of the Off -Street Parking Facilities, (d) to purchase and install on -street parking meters and to make up deficiencies in certain other accounts. The City has covenanted in the Ordinance, however, that until such time as all of the Outstanding Bonds have been retired, it will not provide for the payment from the Renewal and Extension Fund of the cost of any major extension or additions if paying such costs would prevent adequate deposits' being available in the General Reserve Fund to pay the principal and interest of the Bonds. Moneys held for the credit of the Redemption Account shall be applied to the retirement of the bonds by purchase, or by redemption, provided that not less than $10,000 principal amount shall be redeemed at any one time, of first, the bonds, if any, of each Series of revenue refunding bonds issued for the purpose of refunding bonds of any Series that would have matured within six months thereafter; second, to the purchase of any outstanding bonds and third, to redeem Serial bonds. Moneys held for the credit of the General Reserve Fund may be disbursed by the Department for any purpose authorized by the Bond Ordinance or may be pledged to pay the principal of and the interest C-6 on obligations not secured under the Bond Ordinance. However, until the Outstanding Bonds shall have been retired, the Ordinance requires the Treasurer to withdraw the balance remaining in the General Reserve Fund each month and to transfer such amounts to accounts established in the Ordinance for the Bonds: Depositaries, Security and Investment of Funds All moneys received by the Department shall be deposited with the Trustee or with one or more other Depositaries and shall not be subject to any lien or to attachment by any creditor of the City. All moneys held in excess of the amount guaranteed by the Federal Deposit Insurance Corporation or by another Federal Agency shall be continuously secured for the benefit of the City and of the holders of the bonds. Moneys held for the credit of the Construction Fund, the Revenue Fund, the Bond Service Account, the Reserve Account, the Redemption Account, the Expansion Account, the Renewal and Extension Fund and the General Reserve Fund shall, as nearly as may be practical, be continuously invested and reinvested in Government Obligations which shall mature or shall be subject to redemption by the holder at the option of such holder not later than the respective dates when moneys held for the credit of said Funds and Accounts will be required, or in Time Deposits; provided, however, that each such Time Deposit shall permit the moneys so placed to be available for use at the times required. Particular Covenants The City covenants, among other things, that it will promptly pay the principal of and the interest on each and every bond and any premium required, such principal, interest and premium to be payable solely from the Revenues of the Off -Street Parking Facilities and of the on -street parking meters. The City covenants further that it will pay all taxes, assessments or other municipal or govern- mental charges, that it will not create or suffer to be created any lien or charge upon the Off -Street Parking Facilities or the on -street parking meters or upon the Revenues therefrom, except the lien and charge of the bonds secured upon such Revenues and that it will pay or cause to be discharged all lawful claims which if unpaid might by law become a lien; provided, however, that nothing shall require the City to pay or cause to be discharged any lien or charge so long as its validity shall be contested. The City covenants that it will maintain a practical insurance program, with reasonable terms and costs, which will afford adequate protection against loss, including loss of Revenues, and also such . comprehensive public liability insurance for bodily injury and property damage as may be approved by the Parking Consultants. The City covenants that it will keep the funds and accounts of the Off -Street Parking Facilities and of the on -street parking meters separate from each other and from all other funds and accounts of the City or of any of its departments, and that it will keep accurate records and accounts of all items of cost and of all expenditures. The City further covenants that at least once each month it will cause to be filed with the Trustee and mailed to all bondholders of record a financial report signed by the Director of the Department, setting forth certain information concerning operations. The City further covenants that in the first month of each fiscal year, it will cause an audit to be made of its books and accounts relating to each of the Off -Street Parking Facilities and to the on -street parking meters by an independent firm of certified public accountants of suitable experience and responsi- bility to be chosen by the Board with the approval of the Trustee, and will cause an annual report of operations of each of the Off -Street Parking Facilities and of the on -street parking meters to be pre- pared, a copy of which will be mailed by the Department to the Parking Consultants and to each bondholder of record. C-y a The City further covenants that except as otherwise permitted in the Bond Ordinance, it will not sell, lease, or otherwise dispose of or encumber the Off -Street Parking Facilities or the on -street parking meters and will not create or permit any charge or lien on the Revenues thereof unless: (a) adequate provision shall be made for the retirement of all outstanding bonds, or (b) the Parking Consultants determine in writing that the continued operation of the facilities to be disposed of will be uneconomic, or (e) adequate provision shall be made for the acquisition or development of facilities which, in the written opinion of the Parking Consultants, will produce Net Revenues at least equal to those that would have been realized from the facilities disposed of. The Board may, however, sell any movable property which, in the opinion of the Parking Consultants, is no longer needed and may lease the Off -Street Parking Facilities or any part thereof to private operators for continued operation, in the public interest, as a public parking facility at rentals which, in the opinion of the Parking Consultants in writing, will be equal to the estimated Net Revenues that would have been realized from the facility to be leased. Competing Facilities The City covenants that neither it nor the Department will acquire, construct, maintain or operate an off-street parking facility other than existing facilities that are under the direction and control of the Board and off-street parking facilities financed under the Bond Ordinance unless (a) adequate provi- sions shall be made for the retirement of all bonds issued under the Bond Ordinance, or (b) the Parking Consultants certify in writing that, in their opinion the operation of such facility will not adversely affect Revenues, or (c) if in their opinion the operation of any such facility has adversely affected such Rev- enues, the City shall deposit with the Trustee to the credit of the Bond Service Account an amount that is not from ad valorem taxes, sufficient to make up any such deficiencies. Extension of Interest Payment In case the time for the payment of any coupon or the interest of any bond registered as to both principal and interest shall be extended, whether or not such extension is by or with the consent of the City, such coupons or such interest so extended shall not be entitled in case of default to the benefit or security of the Bond Ordinance except subject to the prior payment in full of the principal of all bonds then outstanding and of all coupons and interest the time for the payment of which shall not have been extended. Events of Default Each of the following events is declared an "event of default" under the Bond Ordinance: (a) payment of the principal and of the redemption premium, if any, of any of the bonds shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or (b) payment of any installment of interest on any of the bonds shall not be made within thirty (30) days after the same shall become due and payable; or (c) the City shall discontinue or unreasonably delay or fail to carry on with reasonable dispatch the construction of the Additional Facility for which the bonds shall be issued; or (d) the City shall for any reason be rendered incapable of fulfilling its obligations hereunder; or (e) any substantial part of the Off -Street Parking Facilities or the on -street parking meters necessary for their efficient operation shall be destroyed or damaged and shall not be properly and timely repaired, replaced or reconstructed; or (f) final judgment for the payment of money shall be rendered against the City as a result of the ownership, control or operation of the Off -Street Parking Facilities or the on -street parking C-8 ■^ ! S t .A` Av_ f meters and any such judgment shall not be discharged within sixty (60) days from the entry thereof or an appeal shall not be taken therefrom; or (g) an order or decree shall be entered, with the consent or acquiescence of the City, appointing a receiver or receivers of any of the Off -Street Parking Facilities or the on -street parking meters or of the Revenues thereof, or if such order or decree, having been entered without the consent or acquiescence of the City, shall not be vacated or discharged or stayed on appeal within sixty (60) days after the entry thereof; or (h) any proceeding shall be instituted, with the consent or acquiescence of the City, for the purpose of effecting a composition between the City and its creditors or for the purpose of adjusting the claims of such creditors pursuant to any federal or state statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of Revenues; or (i) the City shall default in the due and punctual performance of any other of the covenants. conditions, agreements and provisions contained in the bonds or in the Bond Ordinance on the part of the City to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the City by the Trustee, which may give such notice in its discretion and shall give such notice at the written request of the holders of not less than ten per centum (10% ) in aggregate principal amount of the bonds then outstanding. Acceleration of Maturities 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 twenty per centum (20% ) in aggregate principal amount of the bonds then outstanding, shall, by a notice in writing to the City declare the principal of all the bonds then outstanding (if not then due and payable) to be due and payable immediately, and upon such declaration the same shall become and be immediately due and payable; provided, however, such accelera- tion may be rescinded by the Trustee and shall be rescinded at the request of the holders of not less than twenty per centum (20%) in aggregate principal amount of the Bonds not then due under the terms and conditions contained in the Bond Ordinance. Enforcement of Remedies Upon the happening and continuance of any event of default, then and in every such case the Trustee may proceed and, upon the written request of the holders of not less than ten per centum (10% ) in aggregate principal amount of the bonds then outstanding, shall proceed to protect and enforce the rights of the bondholders under Florida law, or under the Bond Ordinance by such suits, actions or special proceedings in equity or at law, either for the specific performance of any covenant or agreement contained herein or in aid or execution of any power herein granted or for the enforcement of any proper legal or equitable remedy, as such bondholder shall deem most effectual to protect and reinforce such rights. Trustee The First National Bank of Miami, in the City of Miami, Florida, has been appointed Trustee under the Bond Ordinance. The Trustee may resign at any time or may be removed by not less than a majority in aggregate principal amount of the bonds then outstanding. H the position of Trustee shall become vacant for any reason, the City Commission under the terms and conditions of the Bond Ordinance shall appoint a Trustee to fill such vacancy. At any time within one year after any such vacancy, a majority in aggregate principal amount of the bonds then outstanding may appoint a successor Trustee which shall supersede any Trustee appointed by the City. If no appointment of a successor Trustee shall be made, as outlined above, the holder of any outstanding bond or the retiring Trustee may apply to any court of competent jurisdiction to appoint a successor Trustee. C-9 T Supplemental Ordinances The City Commission may, with the approval of the Trustee, from to time and at any time adopt such ordinance or ordinances supplemental to the Bond Ordinance as shall not be inconsistent with the terms and provisions of the Bond Ordinance and shall not adversely affect the interest of the bondholders, without consent of the bondholders: (a) to cure any ambiguity or formal defect or omission or to correct any inconsistent provisions in the Bond Ordinance or in any supplemental ordinance, or (b) to grant to or confer upon the Trustee for the benefit of the bondholders any additional rights, remedies, power, authority or security that may lawfully be granted to or conferred upon the bondholders or the Trustee, or (c) to add to the conditions, limitations and restrictions on the issuances of bonds under the provisions of the Ordinance other conditions, limitations and restrictions thereafter to be observed, or (d) to add to the covenants and agreements of the City in the Bond Ordinance other covenants and agreements thereafter to be observed by the City or to surrender any right or power therein reserved to or conferred upon the City. The holders of not less than two-thirds (2h) in aggregate principal amount of the bonds then out- standing shall have the right, from time to time, to consent to and to approve the adoption of supplemental ordinances modifying, altering, amending, adding to or rescinding the Bond Ordinance; provided, however, that such Supplemental Ordinance shall not permit (a) an extension of the maturity of the principal of or the interest on any bond issued thereunder, or (b) a reduction in the principal amount of any bond or the redemption premium or the rate of interest thereon, or (c) the creation of a lien upon or a pledge of Revenues other than the lien and pledge created by the Bond Ordinance, or (d) a preference or priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Miscellaneous Provisions All covenants, stipulations, obligations and agreements of the City pursuant to the Bond Ordinance shall be deemed to be those of the City, of the City Commission and of each department and agency of the City to the full extent permitted by law. No covenant, stipulation, obligation or agreement contained in the Bond Ordinance shall be a covenant, stipulation, obligation or agreement of any member, agent or employee of the City Commission or of the Board in his individual capacity and no such member or any official 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 expressly provided in the Bond Ordinance, nothing expressed or implied is intended or shall be construed to confer upon any person, firm or corporation other than the City, the Trustee and the Bondholders, any right, remedy or claim, legal or equitable; the Bond Ordinance is intended to be and is for the sole and exclusive benefit of the City, the Trustee and the Bondholders. Nothing in the bonds or coupons or in the Bond Ordinance shall be construed as pledging the faith and credit of the City or as creating any debt of the City. Subject to the requirements of the Bond Ordinance regarding competing facilities, nothing in the Bond Ordinance, express or implied, shall be construed as preventing the financing of any off-street parking facility by the issuance of obligations which are not secured under the provisions of the Bond Ordinance. / SUMMARY OF CERTAIN PROVISIONS OF ORDINANCE NO. 9060 (the "Ordinance") Constrnctloe Fund The proceeds (excluding accrued interest) of the Bonds will be deposited in the Miami Parking Projects Construction Fund (the "Construction Fund") created by the Ordinance. The moneys in the Construction Fund shall be applied to the payment of the cost of the Parking Projects and, pending such application, shall be subject to alien and charge in favor of the holders of the Bonds. Flow of Funds A special fund is created by the Ordinance and designated the "Miami Parking Bonds interest and Sinking Fund" (herein called the "Parking Bonds Interest and Sinking Fund"). In the Parking Bonds Interest and Sinking Fund there are created three separate accounts designated the "Parking Bond Service Account", the "Parking Bond Redemption Account" and the "Parking Bond Reserve Account". The moneys in each of said Funds and Accounts shall be held in trust and applied as provided in the Ordinance and pending such application, shall be subject to a lien and charge in favor of the holders of the bonds issued and outstanding under the Ordinance and for the further security of such holders until paid or transferred. The Treasurer of the Department shall, monthly, beginning in the month next succeeding the month in which the Bonds are issued and in each month thereafter prior to the time when the Outstanding Bonds shall have been retired or provision shall have been made for their retirement, withdraw an amount equal to the balance remaining in the General Reserve Account (as defined in the Bond Ordinance) on the last day of the preceding month, and transfer such amount to the credit of the following Accounts in the following order: (a) with the Trustee to the credit of the Parking Bond Service Account, an amount equal to one -sixth of the amount of interest payable on the bonds of each Series on the interest payment date next succeeding (less any amount received as capitalized or accrued interest from the proceeds of any Bonds which is available for such interest payment) and twelve months before the first Serial Bonds shall mature an amount equal to one -twelfth of the next maturing installment of principal on all Serial Bonds then outstanding; (b) with the Trustee, to the credit of the Parking Bond Redemption Account, an amount equal to one -twelfth (112) of the principal amount of term bonds of each Series then outstanding required to be retired in satisfaction of the Amortization Requirements, if any, for such fiscal year, plus the premiums, if anv, which would be payable in such fiscal year if the term bonds were to be redeemed prior to their maturities; and (c) to the credit of the Parking Bonds Reserve Account, such amount, if any, of any balance remaining after making the transfers under clauses (a) and (b) above (or the entire balance if less than the required amount) as may be required to make the amount deposited in such month to the credit of the Parking Bonds Reserve Account equal to the Bond Reserve Account Deposit Requirement for such month. If the amount transferred in any month to the credit of any of the Accounts shall be less than the amount required to be transferred thereto, the requirement therefor shall nevertheless be cumulative and the amount of any deficiency in any month shall be added to the amount otherwise required to be transferred in each month thereafter until such time as all such deficiencies have been made up. The City covenants that if on any April 1 or October 1 the amount on deposit in the special fund created under the Bond Ordinance and designated "Miami Parking Facilities Revenue Bonds C-11 Interest and Sinking Fund" is insufficient to pay the principal or interest then due on the Outstanding Bonds, the City will transfer from the Miami Parking Bond Interest and Sinking Fund such amount as may be required to make up such insufficiency. Application of Moneys Moneys held for the credit of the Parking Bonds Service Account shall be applied to the payment of the principal of and the interest on the Bonds in accordance with the provisions of the Bond Ordinance. Moneys held for the credit of the Parking Bonds Redemption Account shall be applied to the retirement of Bonds by purchase, or by redemption, provided that not less than $10,000 principal amount of the Bonds shall be redeemed at any one time, of first, the term bonds of each series to the extent of Amortization Requirements, premiums and deficiencies, if any; second, to the purchase of any bonds outstanding whether or not such Bonds then be subject to redemption, and third, to the redemption of Serial Bonds. Additional Bonds The City covenants that no Additional Bonds (as defined in the Bond Ordinance) shall be issued pursuant to the Bond Ordinance until after such time as all of the Outstanding Series A, B and C Bonds shall have been retired or provision shall have been made for their retirement, at which time any such Additional Bonds thereafter issued will be on a parity with the Bonds and all secured equally under the Bond Ordinance as amended by the Ordinance. Additional Bonds may be issued under the Ordinance, on a parity with the Bonds and any Additional Bonds theretofore issued and then outstanding, for the purpose of paying all or any part of the cost of constructing or acquiring any Additional Facilities. No Additional Bonds shall be delivered unless, among other things: 0 ) the amount on deposit to the credit of the Reserve Account shall be not less than the amount then required to be on deposit in such Account; and (2) the percentage derived by dividing the total amount of Net Revenues of the Off -Street Parking Facilities and on -street parking meters for the last twelve months, adjusted in case the rates and other charges shall have been revised prior to delivery of the Additional Bonds, plus seventy per centum (70% ) of the average additional annual Net Revenues of the Off -Street Parking Facilities to be received in the third, fourth and fifth complete fiscal years immediately following the estimated date of placing the Additional Facility in operation by the maximum Principal and Interest Requirements for any fiscal year thereafter on account of the bonds of each Series then outstanding, including the bonds to be delivered shall be not less than one hundred ten per centum (110% ). Particular Covenants The City covenants that until such time as the Outstanding Bonds shall have been retired or provision shall have been made for their retirement it will use its best efforts to insure that there will be adequate deposits made in the General Reserve Fund to pay the principal of and the interest on the Bonds and to that end, the City specifically agrees (a) to maintain rates and charges at levels required to insure that there will be adequate moneys available in the General Reserve Fund to pay the principal of and the interest on the Bonds; (b) not to provide for the payment of the cost of major extensions or additions to the Off -Street Parking Facilities from moneys to be deposited in the Renewal and Extension Fund if meeting such costs would prevent adequate deposits being available in the General Reserve Fund to pay the principal of and the interest on the Bonds; and (c) no moneys shall be deposited in the Expansion Fund. The phrase "until such time as the Outstanding Bonds shall have been retired or provision shall have been made for their retirement" as used throughout the Ordinance shall include the case of there having been deposited with the Trustee in irrevocable escrow direct obligations of or obligations the C-12 /el principal of and the interest on which are guaranteed by the United States of America, the principal of and the interest on which when due will provide sufficient money to pay the principal or redemption price of and all unpaid interest to maturity or to the redemption date, as the case may be, on all of the Outstanding Bonds. Amendments to the Bond Ordinance The Ordinance provides for certain amendments to the Bond Ordinance. The following amendments are to become effective immediately as to the Series 1980 Bonds. To the Article entitled "Definitions", there are added definitions of "Amortization Requirements", of "serial bonds" and of "term bonds". Section 209 of the Bond Ordinance, regarding the issuance of Additional Bonds, is amended to provide for the issuance of term bonds and to extend the maturities permitted from thirty years to forty years; to revise the financial tests required before such bonds may be delivered and in those tests to permit Net Revenues for the previous twelve months to reflect any revisions in rates, fees or rentals that become effective before delivery of the bonds as if those rates had been in effect during such twelve months. Section 513 of the Bond Ordinance, regarding redemption, is amended to provide for the redemption of term bonds. The following amendments shall become effective only after all of the Outstanding Bonds shall have been retired or provision shall have been made for their retirement. Section 503 of the Bond Ordinance, regarding rate covenants, is amended to reduce the amount of Revenues required before rates may be reduced. The amendment provides that the total amount of Revenues for the last 12 months shall have been not less than the total of ( I ) Current expenses for the current Fiscal Year and (2) 125% of the amount of Principal and Interest Requirements for the current Fiscal Year on account of all bonds then outstanding under the Ordinance. Section 509 of the Bond Ordinance, regarding various Accounts and Funds, is amended to make the flow of funds similar to that established in the Ordinance. Section 514, regarding the application of moneys in the General Reserve Fund, is amended to allow, at the option of the Director, such moneys to be applied to pay the cost of Additional Bonds, of the purchase or redemption of bonds, or to pay the principal of and the interest on junior lien obligations not financed or secured under the Bond Ordinance to make up deficiencies in any account or fund or for other lawful purposes of the Department. Article 1, Definitions, is amended to include the following definition of Investment Obligations; such term, as defined, shall be substituted for the term, "Government Obligations" in each section in which "Government Obligations" appears. "Investment Obligations" shall mean (1) Government Obligations, (2) bonds, debentures or notes issued by any of the following Federal Agencies: Banks for Cooperatives, Federal Intermediate Credit Banks, Federal Home Loan Banks, Export -Import Bank of the United States, Government National Mortgage Association, Federal Land Banks, or the Federal National Mortgage Association (including participation certificates issued by such Association), (3) all other obligations issued by or uncon- ditionally guaranteed as to principal and interest by an agency or persons controlled or supervised by and acting as an instrumentality of the United States Government pursuant to the authority granted by the Congress, (4) repurchase agreements fully secured by Government Obligations and (5) Time Deposits, subject to the foregoing being permitted investments of public funds under Florida law. Article IX will be amended to appoint Florida National Bank as successor Trustee, and those sections of the Bond Ordinance relating to the obligations of a Trustee are amended to refer to "Trustees". C-13