01-18-2018 Commission Meeting Agenda ,` City Manager
City Commission l 1�, Susan L. Grant
-
Enid Weisman,Mayor
Robert Shelley,Vice Mayor :••• � �a :C � City Clerk
Denise Landman,Commissioner * �i * Ellisa L.Horvath,MMC
Dr.Linda Marks,Commissioner
Gladys Mezrahi, Commissioner %' ' 1' CityAttorney
y �. ♦
Marc Narotsky, Commissioner , - 1. 1 11\s` tC Weiss Scrota Helfman
Howard Weinberg, Commissioner a '� Cole&Bierman
ele e
CITY COMMISSION MEETING AGENDA
JANUARY 18, 2018
9:00 A.M.
EXECUTIVE CONFERENCE ROOM
Aventura Government Center
19200 West Country Club Drive
Aventura, Florida 33180
1. CALL TO ORDER\ROLL CALL
2. ORDINANCE FIRST READING -PUBLIC HEARING:
AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE
ISSUANCE OF CAPITAL IMPROVEMENT BONDS BY THE CITY IN AN AMOUNT
NOT EXCEEDING$7,100,000 FOR THE PURPOSE OF FINANCING A PORTION OF
THE COST OF CONSTRUCTING AND EQUIPPING A CHARTER HIGH SCHOOL
WITHIN THE CITY, AND PAYING COSTS OF ISSUANCE OF THE BONDS;
PROVIDING FOR A SUPPLEMENTAL RESOLUTION SETTING FORTH THE
DETAILS OF SAID BONDS; ACCEPTING A PROPOSAL FROM BRANCH
BANKING AND TRUST COMPANY TO PURCHASE THE BONDS; PROVIDING
FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
3. MOTION AUTHORIZING THE APPROPRIATION OF UP TO$4,500 FOR THE LEO
FOUNDATION FROM THE POLICE STATE FORFEITURE FUNDS IN
ACCORDANCE WITH THE CITY MANAGER'S MEMORANDUM.
4. ADJOURNMENT
This meeting is open to the public. In accordance with the Americans with Disabilities Act of 1990,all persons who are
disabled and who need special accommodations to participate in this meeting because of that disability should contact
the Office of the City Clerk,305-466-8901,not later than two days prior to such proceeding. One or more members of
the City of Aventura Advisory Boards may be in attendance and may participate at the meeting. Anyone wishing to
appeal any decision made by the Aventura City Commission with respect to any matter considered at such meeting or
hearing will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the
proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based. Agenda
items may be viewed at the Office of the City Clerk, City of Aventura Government Center, 19200 W. Country Club
Drive,Aventura,Florida,33180. Anyone wishing to obtain a copy of any agenda item should contact the City Clerk at
305-466-8901.
CITY OF AVENTURA
FINANCE DEPARTMENT
MEMORANDUM
TO: City Commission Or
40
I
i ,"
FROM: Susan Grant, City Manager
BY: rian K. Raducci, Finance Director
DATE: January 12, 2018
SUBJECT: Issuance of Capital Improvement Bonds, in an aggregate principal
amount not to exceed $7,100,000, for the purpose of financing a
portion of the cost of constructing and equipping a charter high
school within the City, and accepting a proposal from Branch
Banking and Trust Company to purchase the bonds.
1'r Reading January 18, 2018 City Commission Meeting Agenda Item al-
2n° Reading February 6, 2018 City Commission Meeting Agenda Item
RECOMMENDATION
It is recommended that the City Commission approve the attached Ordinance
authorizing the issuance of capital improvement bonds by the City in an amount not
exceeding $7,100,000 for the purpose of financing a portion of the cost of constructing
and equipping a charter high school within the City, and paying costs of issuance of the
bonds and accepting a proposal from Branch Banking and Trust Company to purchase
the bonds.
BACKGROUND
At the June 22, 2017 City Commission Workshop Meeting, the former City Manager
presented the Capital Improvement Program 2017-2022 Briefing. During that
presentation and at other workshops throughout the year, the former City Manager
discussed the option to obtain a bank-qualified loan (bond) to finance a portion of the
cost of constructing and equipping a charter high school within the City, and pay the
costs of issuance of the bonds over 20 years. This type of loan will be secured by a
Covenant to Budget and Appropriate from legally available Non-Ad-Valorem revenues.
On November 1, 2017 the City issued an Invitation to Bid (ITB #18-12-08-2) to obtain
proposals for the purpose of selecting a firm to provide a not-to-exceed $7,100,000
Bank-Qualified Loan (evidenced by a single bond) to partially finance the construction of
the City's Charter High School and to pay costs of issuance on such obligations. On
1
November 1, 2017, the City advertised the availability of the ITB in the Daily Business
Review and made available a solicitation package on www.demandstar.com. In
addition and on the same day, the solicitation package was directly emailed to several
banking institutions from a list that was provided by our Financial Advisor — Craig
Dunlap, of Dunlap & Associates, Inc.
On December 8, 2017 one (1) firm submitted a proposal to the City. Upon receipt of
said proposal, it was forwarded to our Financial Advisor for their collective review and
analysis. In an excerpt from his letter dated January 8, 2018 (ATTACHMENT "A") he
provided the following review and recommendation:
FINANCIAL ADVISOR'S REVIEW AND RECOMMENDATION
Branch Banking and Trust Company "BB&T Bank"
"Upon our review, which was based on the Terms and Conditions, length of term for the rate
being fixed and the interest rate, Dunlap & Associates is recommending BB&T Bank based
on the following:
1. The Bank Qualified Tax-Exempt fixed rate indicated of 3.68% is for a full term of the
loan (final maturity August 1, 2038).
2. Callable after August 1, 2023 at any time without penalty.
3. Default Rate Equals Bank Rate plus 2.00%
4. Current Term is not subject to "Tax Gross Up" Provisions
With the current tax reform changes, Dunlap & Associates, Inc. believes that rebidding this
RFP would not result in any additional benefits to the City."
In addition, we are also providing (ATTACHMENT "B" — Bond Debt Service Schedules).
These "draft" schedules were prepared by our Financial Advisor based on information
that was available at the time this memorandum was prepared and results in an
Average Annual Debt Service of$496,954.98.
ADMINISTRATION'S RECOMMENDATION
Based on the foregoing, the Administration is recommending that the City Commission
approve the attached Ordinance authorizing the issuance of capital improvement bonds
by the City in an amount not exceeding $7,100,000 for the purpose of financing a
portion of the cost of constructing and equipping a charter high school within the City,
and paying costs of issuance of the bonds and accepting a proposal from Branch
Banking and Trust Company to purchase the bonds. A copy of the Bank's Proposal
Letter (EXHIBIT "A") is attached to the Ordinance which was drafted by our Bond
Counsel — Jeff DeCarlo of Weiss Serota Helfman Cole & Bierman, P.L. and has been
reviewed by our City Attorney.
Assuming Commission approval of the Ordinance, the City Manager, the City Finance
Director, the City Attorney, Bond Counsel to the City and the Financial Advisor for the
City will be authorized to negotiate with the Bank with respect to the final terms of the
2
Bonds. The final terms of the Bonds shall be set forth in the Bond Resolution which the
Commission will be asked to approve at the February 6, 2018 Commission Meeting. In
addition, the City Attorney and Bond Counsel to the City will be authorized to draft
documents and to do all other things necessary to accomplish the issuance and sale of
the Bonds.
If you should have any questions related to this memorandum, please feel free to
contact the City Manager.
3
DA ATTACHMENT "A"
Dunlap &
Associates
Financial Consultants
January 8, 2018
Brian K. Raducci
City of Aventura
Government Center
19200 W. Country Club Drive, 5th Floor
Aventura, FL 33180
Dear Brian,
On December 8, 2017, the City of Aventura, Florida received one (1) response to the
Request for Proposal (RFP) which was distributed to several banking institutions (See
Distribution List). The respondent was:
1. BB&T Bank
Upon our review, which was based on the Terms and Conditions, length of term for the
rate being fixed and the interest rate, Dunlap &Associates is recommending BB&T Bank
based on the following:
1. The Bank Qualified Tax-Exempt fixed rate indicated of 3.68% is for a full term of
the loan (final maturity August 1, 2038).
2. Callable after August 1, 2023 at any time without penalty.
3. Default Rate Equals Bank Rate plus 2.00%
4. Current Term is not subject to "Tax Gross Up" Provisions
With the current tax reform changes, Dunlap & Associates, Inc. believes that rebidding
this RFP would not result in any additional benefits to the City.
Please give me a call if you have any questions concerning this recommendation.
Sin 'rely, /
�rait Dunlap (
President
Dunlap & Associates, Inc.
1146 Keyes Avenue Winter Park, Florida 32789
Telephone: 407.678.0977 Telecopy: 407.678.6240
ATTACHMENT"B"
Prepared by Dunlap&Associates,Inc. (Finance 7.008 Aventura-Copy:DERT-1518) Page 1
SOURCES AND USES OF FUNDS
City of Aventura,Florida
Capital Improvement Bank Loan.Series 2018
Level Debt Service
BB&T Rate 3.68%
*****FOR DISCUSSION PURPOSES*****
Dated Date 02/15/2018
Delivery Date 02/15/2018
Sources:
Bond Proceeds:
Par Amount 7.100,000.00
7,100,000.00
Uses:
Project Fund Deposits:
Prosect Fund 7,000,000.00
Delivery Date Expenses:
Cost of Issuance 100,000.00
7,100,000.00
Note: Cost of Issuance is Estimated-To be Determined Prior to Closing
Prepared by Dunlap&Associates.Inc. (Finance 7.008 Aventura-Copy:DEB'I'-1518) Paget
BOND SUMMARY STATISTICS
City of Aventura,Florida
Capital Improvement Bank Loan.Series 2018
Level Debt Service
BB&T Rate 3.68%
*****FOR DISCUSSION PURPOSES*****
Dated Date 02/15/2018
Delivery Date 02/15/2018
Last Maturity 08/01/2038
Arbitrage Yield 3.680131%
True Interest Cost p'IC) 3.680131%
Net Interest Cost(NIC) 3.680000%
All-In TIC 3.837276%
Average Coupon 3.680000%
Average Life(years) 11.743
Duration of Issue(years) 9.222
Par Amount 7,100.000.00
Bond Proceeds 7,100,000.00
Total Interest 3,068.251.11
Net Interest 3,068.251.11
Total Debt Service 10,168,251.11
Maximum Annual Debt Service 498,932.00
Average Annual Debt Service 496,954.98
Underwriter's Fees(per$1000)
Average Takedown
Other Fee
Total Underwriter's Discount
Bid Price 100.000000
Par A'erage Average
Bond Component Value Price Coupon Life
Bond Component 7,100,000.00 100.000 3.680% 11.743
7.100.000.00 11.743
All-In Arbitrage
TIC TIC Yield
Par Value 7.100,000.00 7,100,000.00 7.100,000.00
+Accrued Interest
+Premium(Discount)
-Underwriter's Discount
-Cost of Issuance Expense -100.000.00
-Other Amounts
arget Value 7,100.000.00 7.000.000.00 7,100,000.00
Target Date 02/15/2018 02/15/2018 02/15/2018
Yield 3.680131% 3.837276% 3.680131%
Prepared by Dunlap&Associates.Inc. (Finance 7.008 Aventura-Copy:DEBT-1518) Page 3
BOND DEBT SERVICE
City of Atentura,Florida
Capital Improvement Bank Loan,Series 2018
Level Debt Service
BB&T Rate 3.68%
*****EOR DISCUSSION PURPOSES""""
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
08/01/2018 10,000 3.680% 120,479.11 230,479.11 230,479.11
02/01/2019 20,000 3.680% 128.616.00 248,616.00
08/01/2019 20,000 3.680% 126,408.00 246,408.00 495.024.00
02/01/2020 25,000 3.680% 124.200.00 249,200.00
08/01/2020 25,000 3.680% 121 900.00 246,900.00 496.100.00
02/01/2021 30,000 3.680% 119,600.00 249,600.00
08/01/2021 30,000 3.680% 117208.00 247,208.00 496,808.00
02/012022 30,000 3.680% 114.816.00 244,816.00
08/012022 40,000 3.680% 112.424.00 252.424.00 497,240,00
02/01/2023 35,000 3.680% 109.848.00 244,848.00
08/01/2023 45.000 3.680% 107.364.00 252,364.00 497,212.00
02/01/2024 45,000 3.680% 104,696.00 249,696.00
08/01/2024 45,000 3.680% 102.028.00 247,028.00 496,724.00
02/01/2025 50,000 3.680% 99,360.00 249,360.00
08/01/2025 50,000 3.680% 96,600.00 246,600.00 495,960.00
02/01/2026 55.000 3.680% 93,840.00 248840.00
08/01/2026 55,000 3.680% 90,988 00 245,988.00 494,828.00
02/01/2027 65,000 3.680% 88.13600 253,13600
08/01/2027 60,000 3.680% 85,100.00 245,100.00 498,236.00
02/01/2028 65,000 3.680% 82,156.00 247,156.00
08/01/2028 70,000 3.680% 79,120.00 249,120.00 496.276.00
02/01/2029 75,000 3.680% 75,992.00 250.992.00
08/01/2029 75.000 3.680% 72,772.00 247,772.00 498.764.00
02/01/2030 80,000 3.680% 69,552.00 249,552.00
08/01/2030 80,000 3.680% 66.240.00 246,240.00 495.792.00
02/01/2031 85,000 3.680% 62,928.00 247,928.00
08/01/2031 90,000 3.680% 59,524.00 249,524.00 497.452.00
02/01/2032 95,000 3.680% 56,028.00 251,028.00
08/01/2032 95,000 3.680% 52.440.00 247,440.00 498,468.00
02/01/2033 05,000 3.680% 48,852.00 253,852.00
08/01/2033 00,000 3.680% 45.080.00 245,080.00 498,932.00
02/01/2034 05,000 3.680% 41,400.00 246,400.00
08/01/2034 10,000 3.680% 37,628.00 247,628.00 494.028.00
02/01/2035 220,000 3.680% 33,764.00 253.764.00
08/01/2035 215,000 3.680% 29,716.00 244,716.00 498,480.00
02/01/2036 225.000 3.680% 25,760.00 250.760,00
08/01/2036 225.000 3.680% 21,620.00 246.620.00 497,380.00
02/01/2037 230,000 3.680% 17,480.00 247.480.00
08/01/2037 235,000 3.680% 13.248.00 248.248.00 495,728.00
02/012038 245.000 3.680% 8.924.00 253,924.00
08/012038 240,000 3.680% 4,416.00 244.416.00 498,340.00
7,100,000 3,068.251.11 10,168,251.11 10,168251.11
ORDINANCE NO. 2018-
_
AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA
AUTHORIZING THE ISSUANCE OF CAPITAL IMPROVEMENT BONDS
BY THE CITY IN AN AMOUNT NOT EXCEEDING $7,100,000 FOR THE
PURPOSE OF FINANCING A PORTION OF THE COST OF
CONSTRUCTING AND EQUIPPING A CHARTER HIGH SCHOOL
WITHIN THE CITY, AND PAYING COSTS OF ISSUANCE OF THE
BONDS; PROVIDING FOR A SUPPLEMENTAL RESOLUTION SETTING
FORTH THE DETAILS OF SAID BONDS; ACCEPTING A PROPOSAL
FROM BRANCH BANKING AND TRUST COMPANY TO PURCHASE THE
BONDS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS,the City Commission(the"Commission")of the City of Aventura,Florida(the
"City") desires to authorize the issuance of not exceeding $7,100,000 of bonds for the purpose of
financing a portion of the costs of constructing and equipping a charter high school within the City
(the"Project"), and paying costs of issuance of the bonds; and
WHEREAS,in furtherance thereof,on December 8,2017,the City received a proposal from
Branch Banking and Trust Company(the"Bank")to purchase the bonds; and
WHEREAS,the Commission desires that the Bonds be secured by a covenant to budget and
appropriate Non-Ad Valorem Revenues of the City,as further specified by subsequent resolution of
the Commission;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA:
Section 1. Recitals Adopted. Each of the above-stated recitals is hereby adopted and
confirmed.
Section 2. Authorization to Issue Bonds. In accordance with the provisions of the
Charter of the City and Chapter 166,Florida Statutes,there is hereby authorized to be issued Capital
Improvement Bonds, in an aggregate principal amount not to exceed $7,100,000, in one or more
series,for the purpose of financing a portion of the cost of the Project and paying costs of issuance of
the Bonds. The Commission hereby accepts the Bank's proposal,attached hereto as Exhibit"A"(the
"Proposal"), to purchase the bonds. The Bonds shall be designated "City of Aventura, Florida
Capital Improvement Bonds, Series 2018," or such other designation as may be approved by
supplemental resolution, shall be dated such date,shall be in such denominations, shall be stated to
mature no later than August 1,2038,and shall bear interest at the rate,shall be subject to redemption
at the option of the City at such times and prices,and shall have such other details,all as set forth in
the Proposal,with the final terms of the Bonds to be approved by the Commission by supplemental
resolution (the "Bond Resolution"). The Bonds shall be secured by a covenant to budget and
appropriate Non-Ad Valorem Revenues, as further specified in the Bond Resolution. The Bond
Resolution may be adopted,and the Bonds may be issued,at any time after the effective date of this
Ordinance.
1
City of Aventura Ordinance No. 2018-_
Section 3. Authorization of Officers and Advisors. The City Manager, the City
Finance Director,the City Attorney,Bond Counsel to the City and the Financial Advisor for the City
are each hereby authorized to negotiate with the Bank with respect to the final terms of the Bonds.
The final terms of the Bonds shall be set forth in the Bond Resolution. The City Attorney and Bond
Counsel to the City are hereby authorized to draft documents and to do all other things necessary to
accomplish the issuance and sale of the Bonds.
Section 4. Severability. The provisions of this Ordinance are declared to be severable and
if any section,sentence,clause or phrase of this Ordinance shall for any reason be held to be invalid or
unconstitutional,such decision shall not affect the validity of the remaining sections,sentences,clauses,
and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this
Ordinance shall stand notwithstanding the invalidity of any part.
Section 5. Effective Date. This Ordinance shall be effective immediately upon adoption
on second reading.
The foregoing Ordinance was offered by Commissioner ,who moved its adoption
on first reading. This motion was seconded by Commissioner and upon being put to a
vote, the vote was as follows:
Commissioner Denise Landman
Commissioner Dr. Linda Marks
Commissioner Gladys Mezrahi
Commissioner Marc Narotsky
Commissioner Howard Weinberg
Vice Mayor Robert Shelley
Mayor Enid Weisman
The foregoing Ordinance was offered by Commissioner ,who moved its adoption
on second reading. This motion was seconded by Commissioner and upon being put to a
vote, the vote was as follows:
Commissioner Denise Landman
Commissioner Dr. Linda Marks
Commissioner Gladys Mezrahi
Commissioner Marc Narotsky
Commissioner Howard Weinberg
Vice Mayor Robert Shelley
Mayor Enid Weisman
Page 2 of 4
City of Aventura Ordinance No. 2018-
PASSED on first reading on this 18th day of January, 2018.
PASSED AND ADOPTED on second reading on this 6'h day of February, 2018.
ENID WEISMAN, MAYOR
ATTEST:
ELLISA L. HORVATH, MMC
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY
This Ordinance was filed in the Office of the City Clerk this day of , 2018.
Page 3 of 4
City of Aventura Ordinance No. 2018-
EXHIBIT"A"
Copy of Bank's Proposal Letter
Page 4 of 4
1313811 Branch Banking & Trust Company
Governmental Finance
1201 Main Street 76 Floor
Suite 700
Columbia,SC 29201
Office:(803)251-1328
January 5,2018
Indra K.Satju
Purchasing Agent
City of Aventura
19200 West Country Club Drive
Aventura,FL 33180-2403
Dear Indra K.Sarin:
Branch Banking and Trust Company("BB&T")is pleased to offer this proposal for the financing requested by
City of Aventura("City").Our Federal ID number is 57-1074313.
(1) Project: Capital Improvement Bonds,Series 2018
(2) Amount to Be Financed: $7,100,000
(3) Interest Rates,Financing Terms and Corresponding Payments:
We offer a financing with the interest rate fixed at 3.68%for the entire term. Final maturity for the Bond will be
August 1,2038. Principal and interest payments shall be due semiannually commencing August 1,2018,and shall
continue each February! and August 1 thereafter through final maturity. Interest on the principal balance of the Bond
shall accrue based on a 30/360 day count basis. BB&T must approve of the final amortization schedule.
This proposal is valid for a closing no later than February 15,2018. Closing of the financing is contingent upon
completing documentation acceptable to BB&T and its counsel. The transaction will be noncallable until August I,2023
then prepayable in whole at any time thereafter without penalty.
Our underwriting fee for this transaction is $7,500. All applicable taxes, permits, costs of counsel for the City
and any other costs shall be the City's responsibility and separately payable by the City.
BB&T will require audited financial statements to be delivered within 270 days after the conclusion of each
fiscal year-end throughout the term of the financing.
The financing documents shall include provisions that will outline appropriate changes to be implemented in the
event that this transaction is determined to be taxable or non-bank qualified in accordance with Florida State Statutes or
the Internal Revenue Service code.These provisions must be acceptable to BB&T. In addition,any amount due
hereunder not paid when due shall bear interest at a default rate equal to the interest rate on the Series 2018 Note plus 2%
per annum from and after five(5)days after the date due.
The stated interest rate assumes that the City expects to borrow no more than$10,000,000 in calendar year 2018
and that the financing shall qualify as qualified tax-exempt financing under IRS Code Sections 141, 148, 149(e),
265@X3). BB&T reserves the right to terminate its interest in this bid or to negotiate a mutually acceptable rate if the
financing is not a qualified tax-exempt financing.
(4) Financing Documents:
It shall be the responsibility of the City to retain and compensate counsel to appropriately structure the financing
documents according to Florida State statutes. BB&T shall also require the City to provide an unqualified bond counsel
opinion.BB&T and its counsel reserve the right to review and approve all documentation before closing.BB&T will not
be required to present the Bond for any payment associated with this transaction.
(5) Security:
The Bond shall be secured by a Covenant to Budget and Appropriate from legally non ad-valorem revenues of
the City.
We appreciate the opportunity to present this financing scenario to the City. Please call me at(803) 251-1328
with your questions and comments. We look forward to hearing from you.
Sincerely,
Branch Banking and Trust Company
Andrew G.Smith
Senior Vice President
City of Aventura
1-18-17
Table of � -
Slides Slide Number
Charter High School Financing Background 3
2017 Review, 2018 Outlook 4
Impact of Change in Corporate Tax Rates on Tax-Exempt Yields 5
Bank Loan Vs. Bond Issue Results 6
Bank Loan vs. Bond Issue 7
Financial Advisor's Review & Recommendation 8
Feasibility Study 9
Administration's Recommendation 13
Charter High School Financing Background 'l ''
June 22, 2017 City Commission Workshop Meeting
• During that presentation& at other workshops throughout the year,the former City Manager discussed the option to obtain a bank-
qualified loan (bond) to finance a portion of the cost of constructing and equipping a charter high school within the City& pay the
costs of issuance of the bonds over 20 years.
November 1, 2017
• City issued an Invitation to Bid (ITB #18-12-08-2) to obtain proposals for the purpose of selecting a firm to provide a not-to-exceed
$7.1 M Bank-Qualified Loan to partially finance the construction of the City's Charter High School and to pay costs of issuance on
such obligations.
The City advertised the availability of the ITB in the Daily Business Review&made available a solicitation package on
cxnana�.rlPmanrlstar.corr.. On the same day,the solicitation package was directly emailed to several banking institutions from a list
that was provided by our Financial Advisor—Craig Dunlap, of Dunlap &Associates,Inc.
On December 8, 2017 — One (1) firm submitted a proposal to the City which was forwarded to our Financial advisor for their
collective review and analysis.
January 8, 2018 —Dunlap &Associates, Inc. offers their recommendation.
January 18, 2018 — adoption of the "Not to Exceed" Ordinance on 1st Reading
February 6, 2018 — adoption of the Bond Resolution & adoption of the "Not to Exceed" Ordinance on 2,,d Reading
February 15, 2018—Bond Closing
DA
Dunlap& 3
Associates
20 17 Review, 20 18 Outlook
2017 Key Highlights
Tax Reform repealed the ability to issue tax-exempt advance refunding bonds and tax
credit bonds, preserved private activity bonds, modified individual tax rates, reduced the
corporate tax rate from 35% to 21%. limited the ability for individuals to deduct state
and local property and income taxes (up to a combined aggregate of $10,000 per year),
modified the individual AMT, and repealed the corporate AMT.
• The Federal Reserve raised interest rates in March 2017, June 2017, and December
2017- the current federal funds target rate is 1.25% to 1.50%.
2018 Outlook
Interest rates are expected to rise 0-20 bps across the curve
The Federal Reserve is expected to initiate three rate hikes in 2018
The AMT penalty is expected to tighten as a result of tax reform's modifications to the
AMT.
DA
Dunlap&
Associates
Impact of Change in Corporate Tax Rates on
Tax-Exempt Yields
BB&T Rates Offered for 20 Years
Corporate Tax Rate (CTR) 35% 21%
Tax-Exempt Rate (TEX) 3.03% 3.68%
Taxable Equivalent Yield (TEY) 4.66% 4.66%
DA
Dunlap& C,
Associates
Bank Loan vs . Bond Issue Results
Aventura, Florida
Capital Improvement Bank Loan, Series 2018
*** For Informational Purposes Only ***
Bond Issue - 20 Years Bank Loan - 20 Years
Dated/Deliver 2/15/2018 2/15/2018
Par Amount 6,720,000 7,100,000
Project Fund 7,000,000 7,000,000
Total Debt Service 10,733,684 10,168,251
DSRF (three tier test) 526,750 N/A
All-in True Interest Cost 3.57% 3.84%
Maximum Debt Service 526,750 498,932
Final Maturity 8/1/2038 8/1/2038
DA
Dunlap&
Associates
Bank Loan vs . Bond Issue
Assumptions for Analysis
• Level Debt Service
• First Principal and Interest 8/ 1 / 18
• Estimated Loan Rate 3.68% - Subject to change
• Estimated "AA-" Current Market Scale — Subject to change
• Bank Loan COI $1001000- Bond Issue COI $200,000
• Underwriter Discount - $5.00/$1 )000
• Bond Issue - 10 year Par Call
DA
Dunlap&
Associates
Financial Advisor's Review & Recommendation - '
Branch Banking and Trust Company `BB&T Bank"
"Upon our review, which was based on the Terms and Conditions, length of term for
the rate being fixed and the interest rate, Dunlap & Associates is recommending
BB&T Bank based on the following:
1. The Bank Qualified Tax-Exempt fixed rate indicated of 3.68% is for a full term
of the loan (final maturity August 1, 2038).
2. Callable after August 1, 2023 at any time without penalty.
3. Default Rate Equals Bank Rate plus 2.00%
4. Current Term is not subject to "Tax Gross Up" Provisions
DA
Dunlap&
Associates
FeasibilityStudy
�rod�x
Prior to the issuance of any debt by the City, Section 4. 10 of
the City's Charter requires:
(i) the approval of five City Commissioners and
(ii) the receipt by the City Commission of a feasibility study
from the City Manager and the Finance Director
concluding that sufficient revenues are available to repay
the indebtedness and that the funds are being borrowed for
a valid public purpose.
DA
Dunlap&
Associates
FeasibilityStudy - Continued
Although the City Charter makes no reference to limitations in establishing debt, the City has limited its borrowing to prudent
levels that are able to be satisfied with existing revenue and cash flow projections. The City utilizes debt financing on large
expenditures for capital projects or purchases that may be depreciated over their useful lives (i.e., 25 years). By using debt
financing, the cost of the expenditure is amortized over its useful life allowing the expenditure to be matched against revenue
streams from those receiving the benefits.
SUMMARY OF DEBT
Balance Due Within Balance Average
Original September 30, To Be Issued One Year September 30, Interest Annual
Issue 2017 02/15/2018 09/30/2018 2018 Rate Debt Service Maturity
Series 2000 Revenue
Bonds payable $ 6,555,000 $ 1,815,000 $ - $ (415,000) $ 1,400,000 5.04% $ 535,000 10/1/2020
Series 2010 Refunding
Revenue Bonds payable 10,385,000 7,595,000 - (525,000) 7,070,000 3.42% 782,000 4/1/2029
Series 2011 Refunding
Revenue Bonds payable 5,565,000 4,090,000 - (280,000) 3,810,000 3.64% 427,000 4/1/2029
Series 2012 Refunding
Revenue Bonds payable 9,885,000 6,665,000 - (600,000) 6,065,000 2.18% 777,000 8/1/2027
$ 32,390,000 $ 20,165,000 $ - $ (1,820,000) $ 18,345,000 $ 2,521,000
Series 2018 Capital
Improvement Bonds payable 7,100,000 (110,000) 6,990,000 3.68% 497,000 8/1/2038
$ 32,390,000 $ 20,165,000 $ 7,100,000 $ (1,930,000) $ 25,335,000 $ 3,018,000
DA
Dunlap& 10
Associates
Feasibility Study - Continued
City ofAventura,Florida
Anti-Dilution Test(Non-Ad Valorem Revenues)
(Assumes that No Ad Valorem is Restricted to Debt Service)
300% MADS Covenant Test
(Based on Aggregate of Unaudited/Audited Financial Statements as of September 30,2017 and September 30,2016, respectively)
Unaudited Audited
FY 2017 FY 2016 AGGREGATE
Governmental Fund Revenues* $ 53,369,264 $ 53,413,223 $ 106,782,487
Adjustments
Less Revenues
Ad Valorem Taxes** $ 16,349,090 $ 15,008,874 $ 31,357,964
Total Adjusted Governmental Fund Revenues $ 75,424,523
Less Expenditures
General Government" 5,303,765 4,786,053 $ 10,089,818
Public Safety"" 22,835,277 22,019,805 44,855,082
Total Expenditures $ 54,944,900
Total Adjusted Governmental Fund Revenues
Over Expenditures $ 20,479,623 (A)
Maximum Annual Debt Service(MADS)
Series 2000 Revenue Bonds MADS $ 1,013,636
Series 2010 Refunding Revenue Bonds MADS 786,794
Series 2011 Refunding Revenue Bonds MADS 432,450
Series 2012 Refunding Revenue Bonds MADS 840,122
Series 2018 Capital Improvement Bonds MADS(PROJECTED) 498,932
Total MADS $ 3,571,934 (B)
Debt Service Coverage Ratio 5.73 =(A/B)
DDebt Service Coverage Required 3.00
A300%ofMADS not to Exceed Total Adjusted Governmental Revenues Over Expenditures
Dunlap& ($3,571,934 x 3=$10,715,802) PASS
Associates
Feasibility Study - Continued
City ofAventura, Florida
Anti-Dilution Test(Non-Ad Valorem Revenues)
(Assumes that No Ad Valorem is Restricted to Debt Service)
20% Test-Current Year Based
(Based on Unaudited Financial Statements as of September 30, 2017)
Governmental Fund Revenues— $ 53,369,264
Adjustments
Less Revenues
Ad Valorem Taxes""($16,349,090) $ -
Total Adjusted Governmental Fund Revenues $ 53,369,264
Less Expenditures
General Government— $ 5,303,765
Public Safety"" 22,835,277
Total Expenditures $ 28,139,042
Total Adjusted Governmental Fund Revenues
Over Expenditures $ 25,230,222
Maximum Annual Debt Service(MADS)
Series 2000 Revenue Bonds MADS $ 1,013,636
Series 2010 Refunding Revenue Bonds MADS 786,794
Series 2011 Refunding Revenue Bonds MADS 432,450
Series 2012 Refunding Revenue Bonds MADS 840,122
Series 2018 Capital Improvement Bonds MADS (PROJECTED) 498,932
Total MADS $ 3,571,934
20%of Total Adjusted Governmental Revenues Over Expenditures $ 5,046,044
D A 20%of Total Adjusted Governmental Revenues Over Expenditures
Exceeds Total MADS PASS
Dunlap&
Associates
Administration's Recommendation
Based on the foregoing, the Administration is recommending:
that the City Commission approve the attached Ordinance authorizing the
issuance of capital improvement bonds by the City in an amount not exceeding
$7,100,000 for the purpose of financing a portion of the cost of constructing and
equipping a charter high school within the City, and paying costs of issuance of
the bonds and accepting a proposal from Branch Banking and Trust Company to
purchase the bonds.
A copy of the Bank's Proposal Letter(EXHIBIT"A") is attached to the Ordinance which was drafted
by our Bond Counsel —Jeff DeCarlo of Weiss Serota Helfman Cole & Bierman, P.L. and has been
reviewed by our City Attorney.
DA
Dunlap& 13
Associates
Any Questions?
Thank You !
DA
CITY OF AVENTURA
OFFICE OF THE CITY MANAGER
MEMORANDUM
TO: City Commission ,.
FROM: Susan Grant, City Manager A,441
DATE: January 12, 2018
SUBJECT: Disbursement of Police Forfeiture Funds 2
January 18, 2018 City Commission Meeting Agenda Item , J
RECOMMENDATION
It is recommended that the City Commission adopt the following Motion to expend funds
from the Police State Forfeiture Fund:
"Motion authorizing the appropriation of up to $4,500 for the LEO Foundation
from the Police State Forfeiture Funds in accordance with the City Manager's
Memorandum.
If you have any questions, please feel free to contact me.
SG/act
Attachment
CCO1750-18
CITY OF AVENTURA
POLICE DEPARTMENT
INTER OFFICE MEMORANDUM
TO: Susan Grant, City Manager ep
FROM: Bryan Pegues, Chief of Police
DATE: 12 January 2018
SUBJECT: Use of Forfeiture Funds
Florida State Statute 932.704 requires that money resulting from forfeitures be
maintained in a special law enforcement trust fund, and that the funds be
expended only upon request of the Chief of Police to the governing body of the
municipality and approval of the governing body.
I am requesting City Commission approval for the expenditure of funds for:
LEO Foundation $4,500
Total Expenditure Request: $4,500
I certify that this requested expenditure complies with Florida State Statute
932.704 in that:
1. Funds will be used for an appropriate law enforcement purpose.
2. Funds are not being used as a normal source of revenue for the
Police Department.
3. Funds were not considered in the adoption and approval of the budget
of the Police Department.
Summary
LEO Foundation — The LEO Foundation is a non-profit charity organization that
sponsors the LEO Awards each year in Miami-Dade County. These awards
honor the women and men of law enforcement, both sworn and civilian, for their
outstanding efforts in protecting and serving their communities. This year the
Aventura Police Department has a total of 5 employees eligible for the award.
Attached is the IRS paperwork showing that the LEO Foundation is recognized
as a 501(c)(3) charitable organization.
1I/YU/2004 U8:42 FAX 813 303 3756 TE/CE CINTI @00Z/002
i
Internal Revenue Service
Depa ant of the Treasury
Date: November 24, 2004 P. O. B x 2508
Cincin ati,OH 46201
Law Enforcement Officers Charitable Person Contact
Foundation, Inc. Jam. Bowling 31-08346
%Ronald K. Stern Cus$omer Service Representative
P.O. Box 11510 Toll Fr.Telephone Number.
Miami, FL 33101 8:OOta.m.to 6:30 p.m. EST
877. 295500
Fax Nu(nben
513.283-3756
Fader
s$Identification Number:
65- 0694
Dear Sir or Madam:
This is In response to your request of November 24, 2004, :ding your organIzation's tax-
exempt status.
In February 1999 we Issued a determination letter that recog ed your organization as
exempt from federal Income tax. Our records Indicate that yo r organization is currently
exempt under section 501(0)(3) of the Internal Revenue
$:
Our records Indicate that your organization is also classified a public charity under
sections 509(a)(1)and 170(b)(1)(A)(vi) of the internal Raven Code.
Our records indicate that conslbutlons to your organization ale deductible under section 170
of the Code, and that you are qualified to receive tax deductible bequests, devises, transfers
or gifts under section 2055,2106 or 2522 of the Internal Revenue Code.
If you have any questions, please call us at the telephone nu nber shown In the heading of
this letter.
buarimie")
Janne K. Skufca, DI)ector, TERdE
Customer Account$I antes
INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
DISTRICT DIRECTOR
P. 0. BOX 2508
CINCINNATI, OH 46201
- Employer Identification Number:
Date: 65-050694 -
.
1 55-0850r�9d_ _..
1705.32533073008
LAW ENFORCEMENT OFFICERS CHARITABLE. Contact Person:- -� - '
FOUNDATION INC 0. A. DOWNING IDS 31506
C/O RONALD K STERN Contact Telephone Number: ' .
3211 PONCE DE LEON BLVD SUITE 200 (877) 829-5500
CORAL SABLES, FL 33134
Accounting Period Ending:
December 31
- - Foundation Status Cfassificaticm: -
170(b)(1 )(A)(vi )
Advance Ruling Period Begins:
April 30, 1998
- - Advance Ruling Period Enciti -- -
December 31, 2002
Addendum Applies:
No
Dear Applicant: - -
Based on informatics you suppiiec, and assumingyour operations will be as
stated in your 'application for recngniticm of exemptloin,_wt- have determined you
are exempt from federal income tax under section 501 (a) of the Internal Revenue
Code as an organization described in section 501(c)(3).
Because you are a newly created organization, we are not now making .
final determination of your foundation status under_sectlon 509(a) of the Code.
However, we have determined that you 'can reasonably expectto be a publicly: _
supported organization described In sections 609(a).(1) .and 170(b)l1>0A)(vi).
Accordingly, during an id-Vance ruling period you mill be treated as a.
publiclysupported organization, and not es a private foundation. This advance
ruling period begins and ends cm the dates shown above. _ - =
Within 90 .days after the end of your advance ruling period, you must
send us the information needed .to determine whether you have met the :require-
ments of the applicable support test during the advanta -ruling period. - If-you,
establish that you have been -a publicly supported organization, se mill classi-
• fy you as a section 509(a)(1). or 509(0)(2) organization as long as you continue
to meet the requirements of the applicable support test. If you do not meet . -
. the public support requirements d uri-g-thr-edvance-rullog periods we Will ` - -
- . c lasslfy you as a private foundation-for futures-periods.-A4se r-if oe-c)e ss+iy ---
- „ you as a private loantletioni we wjirtreat,'youas iCprivate iopndatnan tror
- - -- - your beginnipg date for :purpnlsbB-67-TbttT n-607d) and "4940. - - -
. - Grantors 'and contributors may rely on Our determination that you are not a
private foundation. until 90 Maya-after- the- end -of your advance ruling period.
If you send us. the required information :within the..94 days, grantors and
contributors may continue to rely on the advance determination until we make
a final determination of your foundation status.
- - .. .. Letter 1045 (00/CO)
•
•
•
LAW ENFORCEMENT OFFICERS CHARITABLE ..
If we publish a notice in the Internal Revenue Bulletin stating that we
will no longer treat you as a publicly supported organization, grantors and
contributors may not rely on this determination after the datawe publish the
notice. In addition, if you lose your status as a publicly supported organi-
zation, and a grantor :,r contributor was responsible for, or was aware oft the
• act or failure to act, that resulted in your loss of such status, that person
may not rely cm this determination from the date of the act or failure to act.
• Also, if a grantor or contributor learned that we had given notice that you
would be removed from classification as a publicly supported organization, then
that person may not rely on this determination as of the date he or sue
acquired such knowledge. - '"' . _.
If you change your sour::es of support, your Purposes. character; or method
of operation, please lot us know so we can consider the effect of the change on
youy exempt status and foundation status. If you amend.your organizational
document or bylaws, please send us a copy of the amended document or bylaws.
Also, let us know all changes in your name or address.
As of January 1, 19841 you are liable for social security taxes under
the Federal Insurance Contributicmc Act on amounts of $100 or. more you pay to
each of your employees during a calendar year. You are not liable for the tax
imposed under the Federal Unemployment Tax Act (FUTA).
Organizations that are not private foundations are not subject to the- pri-
vete foundation excise taxes under Chapter 42 of the Internal Revenue Code.
However, you are not automatically exempt from other federal excise taxes: :-. If
you have any questions about excise, employment, or other federal taxes+ please
let us know. - - -
-Donors may deduct contributions to you as providedin section 170 of the
Internal Revenue Code. Bequests. legacies, devises, transfer's, or gifts to you
or for your use are deductible for Federal estate and gift tax purposes -if they
meet the applicable provisions cd sections 2065, 2106+. and 2522of the Code.
Donors maydeduct contributions to you,only to the extent that their
contribution: are gifts, with no consideration received. Ticket purchases and
similar payments in conJunction with fundraising events may not necessarily
• qualify as deductible contributions+ depending on the circumstances. Revenue
Ruling 67-2461 published in CumufatiwBule
- ltin-1967-2,`on page1104, gives. -
.._
guidelines regarding when taxpayers ma ray deduct-paymentr for-admission—tor-or - - —
other participation inr 1undrefe.ing ctfvitles for -charity. --
Contributions to you are deductible by donors beginning April 301 1998.
• You are not required 't2 fiTe-Forri990, Return of Organization Exempt Fro*
Income Tag, if your gross receipts each year. are normally $25,000 or less. - If
you recei'e a Form 990 packagn in the mail, simply attach the label provided,
check the box in the heading to Indicate that your annual gross receipts are
normally $.'.5,000 or leas, and 'sign the return. Because you will be treated a$
•
Letter t045 (DD/CG)
•
3
LAW ENFORCEMENT OFFICERS CHARITABLE -
a public charity for r,.turn filing purposes during your-entire advance ruling
period, you should file Form 990 for each year in your advance ruling period
that you exceed the $25,000 filing threshold even if your-sources of support
do not satisfy the public support test specified in the heading of this letter.
If a return is required, it must be filed by the 15th day of the fifth
month after the end of your annual accounting period. A penalty of $20 a day
is charged when a return is filed late, unless there is reasonable cause for
the delay. However, the maximum penalty charged cannot exceed $10,000 or
5 percent of your gross receipts for the years whichever is less. For
organizations with gross receipts exceeding $1,000,000 in any year, the penalty
is $100 per.day per return, unless there is reasonable cause-for- the delay: - -
. The maximum penalty for an organization with gross receipts exceeding
$1,000,000 shall not exceed $50,000. This penalty may also be charged if a
return is not complete. Sts please be sure your return is complete before you
file it.
You are not required to file federal income tax returns unless you are
subject to the tare on unrelated business income under section 511 of the Code.
If you are subJect to this tax, you must file an income tax return on-Form
990-i, Exempt Organization Business Income Tax Return. In this letter we are
not determining whether any of your present or proposed activities are unre-
lated trade or business as defined in section 513 of the Code.
You are required to make your annual return available for public -
. .. ..
inspection for three years after the return is due. You are also required to
make available a copy of-your exemption applications any supporting pocgments,
and this exemption letter. Failure-to make these documents available-for
public inspection may subject you to a penalty of 420 per day for each day
there is a failure tocomply (up to a maximum of.s10,000 in the case-of an
annual return). •
You need an employer identification number even if you have no -employees.
If an employer identification number was not entered on. your application, we
will assign a number toyou andadvise you of It. please use that number on
all returns you fife and in all correspondence with the Internal Revenue
Service.
•
This determination is based on -evidence that your funds are dedicated to
the purposes listed in'sectipe141(c)(3)-of -the-Code. - To- assure your-continued •
exemption, you should keep.recerds.-to-show--that-funds are-spent-onl-y-rfar-those
. - - purposes. If you distribute fund4 :to;other organizationi your- records.ihould`
show whither they arm mxmmpt-uiSersoctiol-50t(c)(3).-"-In cases where-the•
recipient organization i1. no't .exaspt'undei--section-501(c)(3Y/ .'you must have
. evidence that the funds--Hill relate dedicated to the required purposes and that
the recipient wilt use- the-funds-for 'those purposes.
If you distribute funds-to individuals, you should keep case histories
showing the recipients' names, addresses, purposes of awards, manner of selec-
tion, and relationship (If-any) to members, officers, trustees or donors of
Letter 1045 (00:03)
LAN ENFORCEMENT OFFICERS CHARITABLE - -'--
funds to you, Sc that you can substantiate upon request by the internal Revenue
Service any and all distributions you made to Individuals. (Revenue Ruling
56-304, C.B. 1956-2. page 306. ) -- -
If we said in the heading of this letter that an addendum applies, the
addendum enclosed is an Integral part of this letter.
Because this letter could help us resolve any questions about your exempt
status and foundation status, you should keep It in your permanent records.
If you have any questions, please contact the person whose name. and
telephone number aro shown in the -heading of this letter: ---- - -
Sincerely yours,l
CPal
District Director - •
Enclosure(s): •
Form 972-C
•
•
•
•
- _.ttar 1044 (00/CO)
1/122018 Detail by FEI/EIN Number
;11.
./„/;P,torg
Department of State / D emon of Corporation= / SPA ch Re 1 / Octad 9v? nen N.n,bet /
Detail by FEI/EIN Number
Florida Not For Profit Corporation
LAW ENFORCEMENT OFFICERS CHARITABLE FOUNDATION, INC.
Filing
Information
Document Number N98000002495
FEI/EIN Number 65-0850694
Date Filed 04/30/1998
State FL
Status ACTIVE
Last Event AMENDMENT
Event Date Filed 01/19/1999
Event Effective Date NONE
principal Address
5846 S. FLAMINGO ROAD
310
COOPER CITY, FL 33330
Changed: 03/30/2015
Maili g Address
5846 S. FLAMINGO ROAD
310
COOPER CITY, FL 33330
Changed: 03/30/2015
Registered •gent Name&Address
WAAS, NORMAN M
135 San Lorenzo Ave
Suite 500
CORAL GABLES, FL 33146
Address Changed:03/30/2015
Officer/Director Detail
Name&Address
Title D
MMS, FRED CHIEF
18070 COLLINS AVENUE
hdp://searchsunbiz.org/Inquiry/corporationsearch/SearehResuliDetall?inquiryype=FeiNumber&directionType=Initial&SeemhNameOrder=650850694N_. 1/2
1/12/2018 Detail by FEI/ETN Number
SUNNY ISLES, FL 33160
Title D
VERA,ANDREW A
11049 HELENA DRIVE
COOPER CITY, FL 33026
Title EXEC
VERA,CATHERINE
11049 HELENA DRIVE
COOPER CITY, FL 33026
Annual Retorts
Report Year Filed Date
2015 03/30/2015
2016 03/07/2016
2017 01/30/2017
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