Miami-Dade County, Florida, sold $172.4 million in bonds to finance a series of capital improvement projects.
The issuance includes serial bonds and term bonds. The serials mature between 2024 and 2045, yielding between 2.67% and 3.75%. The term bonds mature on April 1, 2048, yielding 3.89%. All of the bonds pay interest at 5%. The securities received a rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings.
“The Aa2 issuer rating reflects the county’s dynamic and growing economy with strong wealth metrics and below average income levels,” according to Moody’s.
The issuance comes weeks after Miami-Dade mayor Daniella Levine Cava unveiled her $11.7 billion budget proposal for the upcoming fiscal year. The budget includes a 1% property tax cut and a 17% boost in public safety spending. If adopted by county lawmakers in September, the budget would represent the largest spending plan in county history.
The county expects to finance $190 million worth of improvements with the bond proceeds and the issue premium. These include radio replacements for police officers and firemen, a new courthouse in downtown Miami, renovation of affordable housing units, and infrastructure improvements at parks throughout the county.
The bonds are special obligations of the county, backed by any county revenue unrelated to property taxes.
Morgan Stanley & Co LLC served as underwriter on the issuance, purchasing the bonds for $191 million. The price reflected a premium of $19 million.