C4K - Issue Second Go Bond Tranche

Committee Referrals - C4 K

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends approving a referral to the Finance & Economic Resiliency Committee to review and discuss the updated issuance of the second tranche of the G.O. Bonds approved by voters in 2018.

BACKGROUND/HISTORY

The General Obligation Bond (G.O. Bond) program was approved by the voters of Miami Beach in November 2018. Residents voted to approve the $439.0 million bond program, which includes $169 million for parks, recreation facilities, and cultural facilities; $198 million for neighborhoods and infrastructure; and $72 million for police, fire, and public safety projects. All 3 related ballot measures passed with a support rate of ~70%.

The first tranche of new money funding (Tranche 1) in the amount of $152 million (net of cost of issuance related expenses) was approved by the City Commission with the goal to advance as many projects as possible. A total of 45 out of the 57 voter approved projects have either been completed or are in some form of active status. The funding allocated as part of Tranche 1 in the 3 separate bond categories are:

• • •

Parks, Recreation & Cultural Facilities: $87.1 million Neighborhoods & Infrastructure: $28.2 million Police, Fire & Public Safety: $36.7 million

In June 2024, the City Commission, via Resolution # 2024-33099, approved an initial Declaration of Intent to Issue the second tranche of G.O. Bond funds, in the amount of $20,030,000, allowing the continuation of 5 projects from the Neighborhoods & Infrastructure category: Street Tree Master Plan, Sidewalk Improvements, Street Paving, Seawalls & Shorelines, and Traffic Calming.

ANALYSIS

In order to be able to continue to advance projects within the Neighborhoods & Infrastructure category, it is now necessary to assess the possibility of expanding the previously approved Tranche 2 Declaration of Intent to Issue.

To date, approximately 82% of Tranche 1 funds, and 15% of Tranche 2 funds in this category have been utilized. Several projects will soon require additional funding beyond what is currently available.

FISCAL IMPACT STATEMENT

N/A

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends approving a referral to the Finance & Economic Resiliency Committee to review and discuss the updated issuance of the second tranche of the G.O. Bonds approved by voters in 2018.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

G.O. Bond Program

Sponsor(s)

Co-sponsor(s)

Condensed Title

Ref: FERC - Issuance of Second Tranche of G.O. Bonds. GOB

Previous Action (For City Clerk Use Only)