HomeMy WebLinkAboutM-78-0368taseph R. Gkassie
• City Manager
es E. Gunderson
Director of Finance
• CItY OF —ta! r4►,,,,'Loatchr
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May 25, 1978
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City of Miami Housing Bond
Cotmnitment
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An inquiry was made by the City Commission on May 19, 1978 regarding the
use of City Housing Bond funds for the support of County Revenue Bond
housing projects.
Briefly, the amount of City Housing Bond funds committed at any one time
will be the equivalent of the highest annual debt service payable on
County Revenue Bonds issued for City housing projects. That amount is
calculated after construction contracts have been awarded and the County
has sold its revenue bonds.
The amount so calculated will be transferred to the Trustee (Southeast
First National Bank) to be held in a reserve account to guarantee the
payment of the County Revenue Bonds.
Interest earned on the reserve account will be returned to the City to
be used to pay off the bonds it issued to support the County Bonds,
provided there are sufficient funds generated by the projects to pay off
the County Bonds.
At the present time, $1,500,000 in City Housing Bonds have been issued;
$25,000,000 were authorized, leaving $23,500,000 authorized but unissued.
The issuance of Housing Bonds increases debt service requirements because
the reserves will not be returned until the County Bonds are paid off.
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