What is a G.O. Bond? General Obligation bonds are a form of debt financing Used to finance capital projects Payable from property taxes Approved by voter referendum Backed by a pledge of the City’s “full faith and credit” Last G.O. Bond program approved in 1999

1999 G.O. Bond Program $92 million bond program Approved by voters on November 2, 1999 Parks & Beaches Fire Safety Facilities & Equipment Neighborhood Improvements 68.5% approval 56.9% 54.2% $9.7 million $24.8 million $57.9 million

Of 62 total projects, 57 are completed or in progress 1999 G.O. Bond Program Of 62 total projects, 57 are completed or in progress 4 Fire Safety Facilities Projects Fire Station #2 Renovations 2018 GO MIAMIBEACH

Of 62 total projects, 57 are completed or in progress 1999 G.O. Bond Program Of 62 total projects, 57 are completed or in progress North Shore Youth Center 31 Parks & Beaches Projects 4 Fire Safety Facilities Projects Fire Station #2 Renovations 2018 GO MIAMIBEACH

Of 62 total projects, 57 are completed or in progress 1999 G.O. Bond Program Of 62 total projects, 57 are completed or in progress 22 Neighborhood Improv. Projects Lake Pancoast North Shore Youth Center 31 Parks & Beaches Projects 4 Fire Safety Facilities Projects Fire Station #2 Renovations 2018 GO MIAMIBEACH

1999 G.O. Bond Program 5 remaining projects Approximately $28 million of unfunded needs Project 1999 Bond Allocation Unfunded Needs La Gorce Neighborhood Improvements $1.1 M $14.0 M North Shore Neighborhood Improv. $4.2 M $10.0 M La Gorce Island Improvements $200K $1.0 M Public Works Facility $1.2M $1.5 M Parks Maintenance Facility $565K

2018 G.O. Bond Program Critical infrastructure needs in the community Public Safety Parks/Quality of Life Infrastructure/Resiliency

Additional Interest $500M Bond 2018 G.O. Bond Program Current funding for capital projects is very limited Still at historically low interest rates Rising rate environment Interest Rate Additional Interest $300M Bond Additional Interest $500M Bond 4.0% – 4.5% $32.0 M $53.4 M 5.0% $65.6M $109.3 M

2018 G.O. Bond Program Debt Capacity Current credit rating is AA+ Changes in credit rating methodology Moody’s report Potential downgrade(s) if climate change effects not addressed Current credit rating is AA+ If downgraded to AA-, additional interest of $7 to 8 million Debt Capacity Can issue G.O. debt up to 15% of assessed property value ($6.4B) Currently at 1.1% of debt limit ($51.4M) Best practice: 6 to 8%

Impact to Property Taxes Depends on bond program amount Considering $300 to $500 million program For every $100K of taxable value: $60 to $100 annually Timing of bond issuances Debt service would increase in steps over time Implementation would be spread over 7 to 10 years Example: $100M issued every 2 years plus refinancing of existing bonds

Impact to Property Taxes Potential millage rate changes would be phased-in over time (assumes $300M bond and $100M issuances every 2 years) Additional millage from G.O. Bond Assuming no change in current millage rate

Projected Timeline

Identify Potential Projects February/March Initial project list totaled $1.1 billion List compiled from: Input from City Commission Various master plans (ex. North Beach Master Plan) City Boards & Committees (ex. Parks & Recreation Advisory Board) Staff recommendations Projects and costs continue to be refined over time

Project Prioritization April/May Commission workshop on April 5th Reduced list from $1.1 billion to about $700 million Community input to help rank/prioritize projects Four community meetings Pop-up events Neighborhood meetings Online tools: www.GOMB2018.com 2018 GO MIAMIBEACH

Commission Review & Decisions June/July Mayor’s G.O. Bond Advisory Panel created Incorporate community input re: project priorities Discussion at Budget Workshops and other meetings By July 25th: finalize: Project list Amount of overall bond program Number and amounts for ballot measures

August/September/October Public Education August/September/October Robust public engagement during three months prior to vote Increase voter awareness Speaker’s Bureau for public meetings Educational materials Voter referendum on November 6th 2018 GO MIAMIBEACH

Projected Timeline

Project Prioritization Exercise We Want Your Input! Project Prioritization Exercise Available on website: www.GOMB2018.com Projects organized by 3 areas: Public Safety Parks & Beaches Infrastructure Rate projects on 5 point scale 5 High priority 4 Medium priority 3 Neutral 2 Low priority 1 Not a priority Submit comments Sign up for updates 2018 GO MIAMIBEACH