HomeMy WebLinkAboutR-75-0678RESOLU1 h i'4 NO 75=67r
A RESOLUTION AtT'Hoit1`2ING THE ISSUANCE OP
NOV TO ExCEEB $1,2561,00b TEMPORARY TAX
ANTICIPATION BONDS OF THE CITY OP MIAM1,
PLORtbA, MATURING NO LATER 'THAN 12 MONTHS
FROM THE LATE OP ISSUE, POR THE PURPOSE OP
PROVIDING PUNDS IN ANTICIPATION of REVENUES„
INCLtibING RtVENUtS TO BE LER1VED> FROM AL
VALOREM TAXES LEVIED BY T'HE 'CITY OF IIAMI,
POR PAYMENT OF JULGMENTS ANb CLAIMS AGAINST
THE CITY OF MtAMI FOR WHICH NO FUNDS ARE
AVAILABLE IN THE CURRENT OP`CRAT'2NG BUDGET;
PROVIDING FOR THE SALE 'OF SAID EbNbS PRO-
VIDINO FOR THE BONDS TO BE PAYABLE NO LATER
THAN OCTOBER 1, 1976; PROVIDING FOR A
DEBT SERVICE LEVY OF Ab VALOREM TAXES BY
THE CITY TO REPAY SAID BONDS AND PROVIDING
FOR THE VALIDATION AND SALE OF SAID BONDS
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF MIAMI, FLORIDA, AS FOLLOWS:
Section 1. This Resolution is adopted pursuant
to the provisions of Article Vil, Section 12, and Article
VII, Section 9, of the Florida Constitution, Section 57 of
the Charter of the City of Miami, being Chapter 10847,
Special Acts of 1925, as amended, Chapter 166, Florida.
Statutes, and other applicable provisions of law.
Section 2. It is hereby found, ascertained,
determined and declared that:
(A) The City of Miami has certain claims now
asserted and pending against the City and heretofore
judgments have been entered against the City of Miami for
the payment of certain sums of money by the City to the
judgment creditors.
(B) That the amount of the aforementioned
claims and judgments against the City of Miami, including
the cost of validating and issuing these temporary bonds
(hereinafter referred to as the "Bonds") aggregate not to
exceed $1►250,000.
W A Z is q'\5e
CITY COMMISSION
MEETING OF
JUL 1 7.1975
�~qi
RESu4ufu,n nu.,1ti.„" 4:1..
REMARKS: ,, ..
(C) i b fU ida are aVa 1ab1e £r the ditreht
operating budget of the City Of Mi&Mi for the pay meat of
Said ihdebtedhes a It is heteteary a s Urgent that funds
be made iTThediately available i i order tb provide Mbhey
for the payment of such indebtednett prior tea the receipt
by the City of Miami of Current reve iutt.
(D) Under the Authority of the Constitution
and the statutes of PlOrida and the Charter of the City of
Miami, the City Commission by resolution is authorized to
issue temporary tax anticipation bonds and when necessary
refunding bonds maturing not later than the close of the fiscal
year in which said tax anticipation bonds are issued under the
terms, conditions and limitations set forth in said Charter and
the Constitution of Florida.
(E) Prior to the adoption of this Resolution the
Director of Finance has submitted to the City Commission a
statement showing:
(a) The amount of uncollected taxes
and revenues for the preceding
1974-75 fiscal year, namely.
291,531
(b) The amount of uncollected taxes for
the 1975-76 current fiscal year,
namely $ 16,101, 705
(c) The estimated amount of uncollected
revenues for the current 1975-76
fiscal year excepting taxes mentioned
in (b) above, namely $ 42, 345, 220
(d) The amount of all taxes and revenues
embraced in (a) , (b) and (c) above,
which are sinking funds for the payment
of bonds maturing after the 1975-76
current fiscal year
-0-
(e) The face value of all bonds, notes,
warrants, judgments and other City
obligations to pay money then out-
standing or authorized, which have
no fixed time of payment, or which
by their terms are payable within
a year and three months from the
date of their respective issuance,
exclusive of the judgments or
claims to be paid from the proceeds
of the Bonds $ --0.
The amount of the Tax Anticipation Bonds proposed to be
issued, namely, $1,250,000, plus the amount of item (e),
will not exceed 75% of the amount obtained by subtracting_
item (d) from the sums of items (a) , (b). and (c) .
section 21 Pot' the prompt payt'ne1 t of the principal
cipal
of and the Let aft tuck Bends there shah be levied and
collected annually a special ad valorem tak upon all taxable
property within the City of Miattii over and above all other
taxes authorized tb be levied by the City bE Miami for
existing debt service and operating tax levy sufficient to
pay the principal and interest of the 1:3onds as the same
become due and payable. Such tax shall he levied and
collected at the same time and in the same manner as ad
valorem taxes levied for operating expenses of the City
and for debt service on outstanding bonds of the City and
shall be in addition to all other taxes authorized to be
levied by the City of Miami. Said Bonds shall be general
obligations of the City of Miami, Florida. For the prompt
payment of the Bonds and the interest thereon the full faith,
credit and taxing power of the City of Miami are hereby
irrevocably pledged.
Section 3. In consideration of the acceptance
of the Tax Anticipation Bonds authorized to be issued
hereunder by those who shall hold the same from time to
time, this Resolution shall be deemed to be and shall
constitute a contract between the City and such holders.
The covenants and agreements herein set forth to be
performed by the City shall be for the equal benefit,
protection and security of the legal holders of such Tax
Anticipation Bonds.
Section 4. Subject and pursuant to the provisions
of this Resolution, Tax Anticipation Bonds of the City to be
known as "CITY OF MIAMI, SERIES 1975, TEMPORARY TAX ANTICIPATION
13ONDS", herein sometimes referred to as "Bonds", are hereby
authorized to be issued from time to time in the principal
amount of not exceeding $1,250,000.
8eCtiton t The bands shall be dated OCtOber it
157t; shall be ih the denOrhinatiOn Of $5#000# eXcept that
registered BOndS May be ih& denOtinatiOn Of any tUltiples
Of $5,000; shall be nuMbered from one upWard: Shall bear
interest at a tate Or rate§ WA exceeding the legal tate
per annum payable seMi-annually; and the prinCipal of all
such tonda shall be payable on October 1# 1976 unless
redeemed prior to that date. The City Commission reserves
the right to make all or a part of such Bonds redeemable
prior to maturity at such times and prices and under such
terms and conditions as may be fixed by resolution adopted
prior to the sale of the Bonds.
The interest rate or rates shall be fixed and
determined by resolution of the City Commission awarding
the Bonds to the purchasers.
Said Bonds shall be payable with respect to
both principal and interest at such banks or trust
companies as the City may designate in the resolution
authorizing the sale of the Bonds, in lawful money of
the United States of America and shall bear interest
from their date.
Section 6. The Bonds shall be executed in the
name of the City by the Mayor and its corporate seal or a
facsimile thereof shall be affixed thereto or reproduced
thereon, attested by the City Clerk or Assistant City
Clerk. The facsimile signatures of the Mayor and the
City Clerk or Assistant City Clerk may be imprinted or re-
produced on the Bonds, provided that at least one signature
required to be placed thereon shall be manually subscribed.
In case any officer whose signature shall appear on any
4
grids shall cease tb be Such officer before the delivery
of such bonds, such signature or facsimile shall heverthe
less be valid and sufficient for all purposes the Berne as
if he had remained in office until such delivery. Any
obligation may be signed and sealed Oh behalf oaf the City
by such person who at the actual time of the execution of
such obligations shall hold the proper office with the
City, although at the date of such obligations such person
may not have held such office or may not have been so
authorized.
Section y. The Bonds issued hereunder shall be
and have all of the qualities and incidents of negotiable
instruments under the Uniform Commercial Code Investment
Securities Law of the State of Florida, and each successive
holder in accepting any of said Bonds or the coupons
appertaining thereto, shall be conclusively deemed to have
agreed that such Bonds shall be and have all of the qualities
and incidents of negotiable instruments under the Uniform
Commercial Code - Investment Securities Law of the State
of Florida.
The Bonds may be registered at the option of the
holder as to principal and interest at the office of the Director
of Finance, as Registrar, such registration to be noted on
the back of the Bonds in the space provided therefor. After
such registration as to principal and interest, no transfer
of the Bonds shall be valid unless made at such office by
written assignment of the registered owner, or by his duly
authorized attorney in a form satisfactory to the Registrar,
and similarly noted on the Bonds, but the Bonds may be
discharged from registration by being in like manner trans-
ferred to bearer and thereupon transferability by delivery
shall be restored. At the option of the holder, the Bonds
may thereafter again fttt tine to tiMe be tegi§teted or
tf`ahtferred th bearer at before,
Bef tion $ ,, tr oase aty BOhdt shali becOite
Mutilated, or be destroyed, st let ter lost, the City may
In its diScretibh its ile and deliver a hew Bond Of like
tenor as the Bond so mutilated., destr€ayecl, stolen or 1st,
in exchange and substitution for such mutilated Bond , upon
surrender and cancellation of such mutilated Bond , or in
lieu of and substitution for the Bond destroyed, stolen or
lost, and upon the holder furnishing the City proof of his
ownership thereof and satisfactory indemnity and complying
with such other reasonable regulations and conditions as the
City may prescribe and paying such expenses as the City may
incur. All Bonds so surrendered shall be canceled by the
Director of Finance. If any such Bonds shall have matured or be
about to Nature, instead of issuing a substitute Bond the
City may pay the same, upon being indemnified as aforesaid,
and if such Bond be lost, stolen or destroyed, without
surrender thereof.
Any such duplicate Bonds issued pursuant to this
section shall constitute original, additional contractual
obligations on the part of the City whether or not the lost,
stolen or destroyed Bonds be at any time found by anyone,
and such duplicate Bonds shall be entitled to equal and
proportionate benefits and rights as to lien on and source
andsecurity for payment from the funds, as hereinafter
pledged, to the same extent as all other Bonds issued hereunder.
Section 9. The text of the Bonds shall be in
substantially the following form with such omissions, insertions
and variations as may be necessary and desirable and authorized
or permitted by this Resolution or by anv subsequent resolution
adopted prior to the issuance thereof;
N $ 5 H oO
UNITtb STATES OP AMERICA
STAVE OP PLORtbA
CO1iNTY OP bAbE
THE CITE' b ' i4IANII
TEMPORARY VAX ANTICIPATION SONb
The City of Miami, in the County •of bade, state
of Florida, is justly indebted and for value received
hereby promises to pay to the bearer or, if this bond be
registered, to the registered owner hereof, on the 1st
day of October, 1976, the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon from the date hereof at the
rate of per centum ( %) per annum until payment
of such principal sum, such interest to the maturity hereof
being payable semi-annually on the 1st days of April and
October. Both the principal of this bond and, unless this
bond be iegistered as to both principal and interest, the
interest hereon are payable at
, in the City of Miami, Florida, at the option
of the holder or registered owner, in any coin or currency of
the United States of America which at the respective dates
of payment thereof is legal tender for the payment of public
and private debts. Payment of the interest on this bond to
the maturity hereof shall be made only upon presentation and
surrender of the coupons, if any, representing such interest
as the same respectively fall due; or, if this bond be
registered as to both principal and interest, payment of the
interest on this bond on any interest payment date shall be
Made to the person appearing On the Bond registratiOft books
Of the City as the registered OWfter, such interest to be
paid by check or draft tailed to the registered Owner at
his address at it appears on such registration books,
for the prompt payment hereof and the interest hereon as
the sane shall fall due the full faithi credit and taking
power of The City of Miami are hereby irrevOcably pledged.
This bond is one of a duly authorized issue of
temporary tact anticipation bonds of the City of Miami issued
under the authority of and in full compliance with the
Constitution and particularly Sections 9 and 12 of Article VII
thereof, and laws of the State of Florida, including the
Charter of said City (Chapter 10847, Special Laws of Florida,
1925, as amended), and pursuant to a resolution duly adopted
by the City Commission of said City, for the purpose of
paying certain obligations of the City of Miami for which no
funds are currently available in the operating budget of the
City of Miami.
The Bonds of the issue of which this bond is one,
upon publication of the notice herein provided, are redeemable,
at the option of the City, at any time prior to their stated
dates of maturity at a price of 100% of the principal amount
thereof, without premium, plus accrued interest to the date
specified for,redemption. A notice of the prior redemption of
any bonds shall be published at least once and at least 30 days
prior to the date specified for redemption in a newspaper of
general circulation published in the City of Miami.
8
It is hereby certified and recited that all acts,
dOnditibht And things required by the ConstitutiOn and laws
of the State of Florida to happen, exist and be performed
precedent to and in the issuance of this bond have happeftedt
exist and haVe been performed in due time, form and manner
as so required; that the total indebtedness of The City
oE Miami, including this bond, does not exceed any constitutional
or statutory limitation thereon; and that proVision has been
made for the levy and collection of a direct annual ad valorem
tax upon all taxable property within said City sufficient to
pay the principal of and the interest on this bond as the same
shall fall due.
This bond may be registered as to principal alone
and also as to both principal and interest in accordance
with the provisions endorsed hereon.
IN WITNESS WHEREOF, The City of Miami has issued
this Bond and has caused the same to be signed by its Mayor,
either manually or with his facsimile signature, and the
corporate seal of said City or a facsimile thereof to be
affixed, impressed, imprinted, lithographed or reproduced
hereon, attested by the manual or facsimile signature
of its City Clerk, and at least one of said signatures has
been manually subscribed, all as of the lst day of October,
1975.
(SEAL)
Mayor
City Clerk
9
(thdOttements t pbn tbndt)
8TATtnN ' Off' VALVA'iON
hi's bOhd it pine bf a series of bonds Vhith Were
Validated by judgment Of the 'Circuit Court for Made County,
rendered fin 1975.
PROVISIONS FOR REGIS`Z'RATION
This Bond may be registered as to both principal
and interest in the name of the holder on the books to be
kept by the Director of Finance, as Registrar, such registra-
tion being noted hereon by such Registrar in the registration
blank below, after which no transfer shall be valid unless
made by written assignment on said books by the registered
holder or attorney duly authorized and similarly noted in
the registration blank below, but it may be discharged from
registration by being transferred to bearer, after which it
shall be transferable by delivery, but it may be again
registered as before.
DATE OF IN WHOSE NAME SIGNATURE OF
REGISTRATION REGISTERED REGISTRAR
No.
(form of upotts)
The City of Miami, in the County of Dade, State of Florida,
will pay to bearer at
in the City of Miami, Florida, tipon the presentation and
surrender hereof, the sum of
Dollars in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment
of public and private debts, as provided in and for the semi-
annual interest then due upon its Temporary Tax Anticipation
Bond, dated October 1, 1975, No. ("unless said
Bond shall have been called for previous redemption and
provision made for the payment thereof").
CITY CLERK
11
'8ctith VS, The bonds are issued i ahticipatioh
of the receipt tf current revenuts of the 'City. The term of
the bonds shall be for the twelve months' period constituting
the 1975-1976 fiscal year of the City, but notwithstanding
the foregoing the bonds shall be payable on October 1, 1976,
unless such bonds are redeemed prior to such date.
Section 11. The proceeds Of the Terry Tax
AnticipatiOn tOnds, When receiVed, shall be paid into the
treasury of the City in the manner provided by SeCtion 57 of
the City Charter and used for the purposes provided by this
resolution.
Section 12. The Bonds herein authorized may be
sold at one time or from time to time in the manner authorized
by law.
Section 13. The City's Attorney is hereby authorized
and directed to institute appropriate proceedings in the
Circuit Court for Dade County, Florida, for the validation
of said Bonds and the proper officers of the City are hereby
authorized to verify on behalf of the City any pleadings in
such proceedings.
Section 14. The City covenants to the purchasers
of the Bonds provided for in this Resolution that the City
will not make any use of the proceeds of the Bonds at any time
during the term of the Bonds which, if such use had been
reasonably expected on the date the Bonds were issued, would
have caused such Bonds to be "Arbitrage Bonds" within the
meaning of Section 103(d) of the Internal Revenue Code of
1954, as amended, as implemented by Sections 1.103-13 and
1.103-14 of the Regulations proposed for such purpose by
the United States Treasury Department or, after permanent
regulations implementing such Code section are promulgated,
the corresponding provisions of such permanent regulations.
12
SedtiOn 1S6 At specified in Article WI, tection 12,
of the Florida fthatitUtith# inasmuch as the maturity of the
8onds does not exceed twelve months after 1.001,Wite no referendum
of the electors is required for the issuance of the bonds.
Section 16. The City shall, from time to time and
at any time, adopt such resolutions ab shall nOt be inconsistent
with the terms and conditions of thiS ReSOlutibt:
A. To Mire any ambiguity, defect, or omission
in this Re801UtiOno
Bo To secUre, extend or renew to the holders- of the
Bonds the pledges made herein for the payment of the Bonds
and the interest to accrue thereon.
Section 17. No material modification or amendment
of this Resolution or of any resolution amendatory hereof or
supplemental hereto may be made without the consent in writing
of the holders of the Bonds.
Section 18. If any one or more of the covenants,
agreements, or provisions of this Resolution should be held
contrary to any express provision of law or contrary to the
policy of express law, though not expressly prohibited, or
against public policy, or shall for any reason whatsoever be
held invalid, then such covenants, agreements, or provisions
shall be null and void and shall be deemed separate from the
remaining covenants, agreements, or provisions and in no way
affect the validity of all the other provisions of this
Resolution or of the Bonds issued thereunder.
Section 19. This Resolution shall take effect
immediately upon its passage.
PASSED AND ADOPTED this l7thday of July
1975.
MAURICE A FERRE
MAYOR
Attest:
-e'ze 1_
CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS: \\\
. LLOY , City Att
13
tit" 15P MiAMt figtA1bA
1Nttti,t5P1=1tt Mt9101 ANbiJM
Honorable Members of
The City C minis s ofi
Atio astsdisokro--
tabM: Io. W. Andrews
City Manager
bAE:
JUL 18 19i5
$utoEC : Tam Afiti pa°t ot'i 13oiids
t2EfERENCES:
ENCLOSURES:
A resolution is being prepared for City Commission consideration at
the July 17, 1975, City Commission Meeting that will authorize the
issuance of up to $1, 250, 000 of temporary tax anticipation bonds of
the City of IVliarni that will mature rio later than twelve months from
the date of issuance.
The issuance of these temporary bonds is predicated on the fact that
revenues, during the 1974-75 fiscal years are, in some instances
substantially overestimated due to the unforseen slow down in the
economy. For example, the most recent check from the State of
Florida for State Revenue Sharing was $393, 000 less than prior monthly
checks. The City's revenue is substantially affected for the current
fiscal year.
By using the tax anticipation technique, the City can defer payment of
any judgments to the 1975-76 fiscal year, thereby making those amounts
available for operating expenses during the current fiscal year.
The City Administration is making every effort to avoid utilizing tax
anticipation bonds to assist in fully funding the current budget. This
item is being presented to the Commission withtheintent that this
method will be used only if necessary and only in an amount that will
not exceed $1, 250, 000.
cc: Honorable
Honorable
Honorable
Honorable
Honorable
Maurice A. Ferre, Mayor
J. L. Plummer, Jr., Vice Mayor
Theodore R. Gibson
Rose Gordon
Manolo Reboso
K, Mrs V1 W.• AfidttfWN ,..
City Manager ."
' Pe,f I:e 1
WA it, Bailey
bisector tat Finyt'vi
!!
1
t:ltr of MI MI. i Lei1 1b*
Itft,grPIC1` MEMORANDUM
J ► ► t# i 3 tiAtf=:
tt,iftt:t:
July 151 1975
tfit:
Resolution Authoritit►g tssuafee Not to
Exceed '$14250000 Temporary Tax
Anticipation $ottds
ttrtatNttf3:
tNCLof3Ufttf3:
During the Current 197445 fiscal year of the City, several unexpected develops=
mints have occurred which have a serious effect on the finances of the City,
Several revenue .sources have been affected by the recession, such as a decrease
in building permits, a shortfall -from estimated real and personal property tax
collections of about $375,000 in the General Fund alone due to reductions in
assessed values by the Board of Adjustment, and a $393,000 reduction in the
month of June State Revenue Sharing payment. In addition, a judgment against
the City in the amount of $375,000, an anticipated judgment in the amount of
$150,000, and another court action possibly involving payment by the City up
to $600,000, results in an increase in required expenditures for this fiscal
year.
in order to alleviate this condition to some extent, it is deemed prudent for the
City to issue Temporary Tax Anticipation Bonds which will provide funds for pay-
ment of nn existing judgment against the City and possibly additional judgments.
The applicable provisions of law authorizing this procedure are: Article VII,
Section 12, and Article ViL, Section 9, of the Florida Constitution; Section 57
of the Charter of the City of Miami, and Chapter 166, Florida Statutes.
The attached resolution provides for the issuance of not to exceed $1,250,000
Temporary Tax Anticipation Bonds of the City maturing no later than twelve
months from the date of issue for the purpose of providing funds in anticipation
of" revenues, including ad valorem taxes to be levied by the City of Miami for
payment of judgments and claimsagainst the City for which no funds are avail-
able in the current operating budget.
The authorization to issue these bonds does not necessarily mean that all of
the bonds will be issued. The resolution is purposely drawn to provide for
Issuance of only the dollar amount of bonds which may become necessary to pay
the cost of the judgments, together with interest and expenses of issuing the
bonds. Any bonds not required for these purposes will not be issued, and the
authorization will lapse.
Page 1 of 2
Mt. 1i. W. Andre ws July 15. 197
City Manager
r
subject! iesolution Authori.aing Issuance Not to Exceed $1,250,000
,1e► OtaryTax Atwtie . atiilli_8ofldss ...cont..hue+
it is estimated that the bonds can be sold at the tr►eeting f the City 'Cotissiof
on September 25. lielivery of the bonds will be made after October 1
This resolution was dram by Bryant, bickens, kumph, 1ranson and Miller, good
Counsel fate the City, and validation proceedings will be commenced immediately
after adoption of this resolution.
Wttn/p
cc - Honorable Mayor
and City Commissioners
Page 2 of 2
l nrrrsra'n1 c. MAk.nf And
*City toftif liont.t%
W. kt, i tt 1 11' y, r i
bi rector of Pin
t�
t tv C *MAW. '1`ibiiti5A
1N TER,OrtiC1+ it+I t t 1 ANbtAi1
U+4atct:
July 14, 19t5 r+et
itettilutiot Authorizing 'manta of
$ , 2;0, 000 Temporary 'Tat Attieipatthrt
13orld s
ntrth Ntkti:
kNttbsUht§:
Prior to adoption of the resbltition authort ing issuance of $1,250,000
of Temporary Taft Anticipation Bonds of the City, Section 57 of the
Charter of the City of Miami requires that the following statement be
submitted by the llirector of Finance to the City Commission.
(a)
The amount of uncollected taxes
and revenues for the preceding
1974..75 fiscal year, namely $ 291,531
(b) The amount of uncollected taxes for
the 1975-76 current fiscal year,
namely...... $ 16,101,705
(c) The estimated amount of uncollected
revenues for the current 1975-76
fl,rr.nl year excepting taxes mentioned
in (b) above, namely $ 42,345,220
(d) The amount of all taxes and revenues
embraced ' in (a) , (b) and (c) above,
which are sinking funds for the payment
of bonds maturing after the 1975-76
current fiscal year
(c) The face value of all bonds, notes,
warrants, judgments and other City
obligations to pay money, then out-
standing or authorized, which have
no fixed time of payment, or which
by their terms are payable within
a year and three months from the
date of their respective issuance,
exclusive of the judgments or
claims to be paid from the proceeds
of the Bonds
Page 1 of 2
-0-
ihlitltit aid*. Mayor end
W1Y t r9ittml o lbfie "t
`t`ho amount oi the Tax Anticipation Bonds proposed to be issued1 namely)
$1,2q0,0O( plus the amount of items (e), will not exceed 7 % o the
amount ohta1tted by subtracting item (d) from the sums of items (a), (b)
and (c).
WRg/11
cc - Honorable
Honorable
Honorable
Honorable
Honorable
Maurice A. P'erre, Mayor
J. L. Plummer, Jr., Vice -Mayor
Manolo Heboso
Rose Gordon
Theodore R. Gibson
Page 2 of 2