HomeMy WebLinkAboutSummary FormDate: 8/13/2008
AGENDA ITEM SUMMARYrFORM
FILE ID: O 1 —o0q'
Requesting Department: Finance
Commission Meeting Date: 9/11/2008 District Impacted:
Type: ® Resolution [1 Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
RE.8
Subject: City of Miami, Florida Non -Ad Valorem Refunding Revenue Bonds Taxable Pension Series
2008
Purpose of Item:
It is respecfully recommended that the City Commission adopt the attached resolution authorizing the
issuance of not to exceed $40,000,000 in aggregrate principal amount of the City of Miami, Florida
Non -Ad Valorem Refunding Revenue Bonds, Taxable Pension Series 2008, The Series 2008 are
being issued for the purpose of refunding the City's Oustanding Non -Ad Valorem Variable Rate
Revenue Bonds Taxable Pension Series 2006. The resolution delegates the City Manager certain
matters and details concerning the bonds, including obtaining a municipal bond insurance policy ,debt
service reserve, or surety for the bonds. The resolution also authorized a negotiated saleof the bonds.
Background Information:
See Attached
Budget Impact Analysis
V6 WO Is this item related to revenue?
Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP Budget
If using or receiving capital funds
Grants Risk Management
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Subject: City of Miami, Florida Non -Ad Valorem Refunding Revenue Bonds Taxable Pension
Series 2008
The City issued $30,615,000 of its Non -Ad Valorem Variable Rate Refunding Revenue Bonds
Taxable Pension Series 2006 at a variable rate of interest and insured by MBIA Insurance
Corporation. On November 15, 2004, the City entered into a swaption with Morgan Stanley
Capital Services, Inc. ("Morgan Stanley") as a means to lock in the interest rate associated with
refunding of the Series 2006 Bonds. The swap became effective on December 1, 2006. The City
is exercising its right to optionally terminate the swap. A portion of the proceeds of this
transaction will be used to pay any termination payments related to the termination of the
swap. Due to the change in market conditions in municipal finance, the downgrade of MBIA
and the increase in the variable rate interest rate on the Series 2006 Bonds, the City desires to
refund all of the Series 2006 Bonds to a fixed rate of interest. The Bonds may not be insured by
a municipal bond insurer, such determination will be made prior to pricing based on the
municipal bond insurance market at that time.