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HFA 02-18-19RESOLUTION NO. HFA 02-18-12, A Resolution of the City of South Miami Health Facilities Authority (the "Authority") to approve and to transmit the Authority's Annual Report to the City of South Miami City Commission and Miami-Dade County Commission. WHEREAS, the City of South Miami Health Facilities Authority (the "Authority") was created pursuant to the Health Facilities Authorities Law, Part III of Chapter 154 of the Florida Statutes, as amended (the "Act"), upon a delineation of a need for the Authority by the South Miami City Commission under Section 154.207(1) of the Act; and WHEREAS, pursuant to City of South Miami Ordinance No. 11-95-1584 (the "Ordinance"), Chapter 154, Part III and Chapter 159, Part II, Florida Statutes, the Authority is vested with the power to authorize the issuance and sale of bonds, and to take various other actions for the purpose of assisting health facilities in the acquisition, construction, renovating, rehabilitating, furnishing, equipping, financing and refinancing of projects; and WHEREAS, Ordinance 11-95-1584, Section 4, sets forth the "Powers and Duties of the Authority," and requires the Authority to "To make a report to the Commission within the first 90-days of each calendar year, of the Authority's activities for the preceding calendar year. Each report shall set forth a complete operating and financial statement covering its operation during the year." WHEREAS, a copy of the financial report, by the chief financial officer for the City of South Miami prepared a financial report for the Authority which is attached hereto as Exhibit A; and WHEREAS, the Authority wishes to approve the attached Annual Report and to designate certain individuals to act on its behalf in these regards and to execute and deliver the Annual Report and take any other required actions in connection therewith. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH MIAMI HEALTH FACILITIES AUTHORITY THAT: Section 1. The Authority hereby approves the Authority'S Annual Report prepared on behalf of the Authority by the Chief Financial Officer for the City of South Miami, which is attached hereto as Exhibit A. The Annual Report will be transmitted to the City of South Miami City Commission and Miami-Dade County Commission. Section 2. Severability. If any section, paragraph, clause or provIsIOn of this Resolution shall be held to be invalid or ineffective for any reason, the remainder of this Resolution shall continue in full force and effect, it being expressly hereby found and declared that the remainder of this Resolution would have been adopted despite the invalidity or ineffectiveness of such section, paragraph, clause or provision. Section 3. Effective Date. This Resolution shall take effect immediately upon its adoption. Res. No. HFA 02-18-19 PASSED AND ADOPTED this 9.t.hday of March, 2018. APPROVED: CHAIR AUTHORITY VOTE: Chair: Vice Chair: Member: Member: (Vacant) Member: (Vacant) Page 2 of2 Subrata Basu Eugene Pugh Lydia Puente 3-0 Yea Yea Yea FINANCE DEPARTMENT March 9, 2018 Mayor and Commission Re: City of South Miami Health Facilities Authority 2017 Annual Report Hon. Mayor, Vice Mayor and Commissioners: EXIDBITA As required by Ordinance I 1-95-1584 Section 4 , "Powers and Duties of the Authority," which requires the South Miami Health Facilities Authority to "To make a report to the Commission within the first 90-days of each calendar year, of the Authority's activities for the preceding calendar year. Each report shall set forth a complete operating and financial statement covering its operation during the year." In 1995, the City Commission of the City of South Miami, Florida determined that for the benefit of the people of the City, the increase of their commerce, welfare and prosperity and the improvement of their health and living conditions, it was essential that the people of the City have access to adequate medical care and health facilities and that it was essential that health facilities be provided with appropriate additional means to assist in the development, improvement and maintenance of the public health; and that a Health Facilities Authority would provide additional means to assist in the development and maintenance of the City's health facilities; and was established under Section 154.207 of the Florida Statutes, authorizing the City to create a public body to insure that the people of the City have access to adequate medical care and health facilities. In August 12, 2013, the Internal Revenue Service completed their examination of the bond issue $800,000,000 City of South Miami Health Facilities Authority Hospital Revenue Bonds, Series 2007 (Baptist Health South Florida Obligated Group) CUSIP # 83881 OBY4, issued May 16,2007 with no change to the position that interest received by bondholders is excludable from gross income under section 103 of the Internal Revenue Code. In calendar year 2017, the South Miami Health Facility Authority issued Hospital Refunding Revenue Bonds, Series 2017 for approximately $809,565. The board met on Friday, December 8, 2017 at lOam and unanimously approved resolution HFA 03-17-17, providing authorization for such refunding. In consideration for issuing the Series 2017 bonds, the City of South Miami Health Facilities Authority received a payment of $250,000 from Baptist Health South Florida to be used in a manner which is allowed by Florida Statute. As per Florida Statute I 54.209( 14), "the health facilities authority, to donate any surplus funds that remain in its account at the end of the fiscal year after those costs and expenses are paid, which funds may include fees or accrued interest, to the governing body of the local agency that created the health facilities authority." The fiscal year ends on September 30, 2018, and at that time or anytime thereafter, the Health Facilities Authority may, via resolution, donate the surplus funds of approximately $250,000 to the City of South Miami, which must be used as required by law. The City of South Miami Health Facilities Authority last annual meeting was on March 3, 2016 and met to approve and to transmit the Authority's Annual Report. Furthermore, at this time the South Miami Health Facility Authority has no bank account and has not conducted any further operation. If you should have any questions, please feel free to contact me at any time. Thank you always for the continued support. '" Chief Financial Officer City of South Miami, Florida Notes to the Basic Financial Statements September 30, 2016 Note 9 -Long Term Liabilities of Governmental Activities (continued) Conduit Debt Obligation: The City of South Miami Health Facilities Authority was created to issue Healthcare Facilities Revenue Bonds to provide financial assistance to the City's private-sector hospitals for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from revenues derived from the private-sector hospitals. In 2007, the Baptist Health South Florida ("BHSF") issued through the City of South Miami Health Facilities Authority, $ 800,000,000 of its Hospital Revenue" Bonds, Series 2007 ("2007 Bonds"). The proceeds from the bonds were used to refund then outstanding bonds and to acquire, construct, equip, and rehabilitate certain health care facilities of BHSF. The 2007 Bonds bear interest at rates ranging from 4.62% to 5.00%, payable semiannually each February 15 and August 15, and mature annually through 2042. As of September 3D, 2016, the outstanding principal amount payable was $ 701,765,000. The City acts solely as a lawful conduit in the issuance of the bonds and is not obligated in any manner for their repayment. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Note 10 -Commitments and Contingencies Grants: Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the City. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. Litigation -General Matters: The City is currently a defendant in several pending claims and other legal proceedings incidental to the operations of the City. The City attorneys are vigorously defending each action. The ultimate liability and likelihood related to these claims is not presently determinable. Note 11 -Other Post-Employment Benefits The City previously implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions ("OPEB"). This Statement established accounting standards for post-retirement benefits other than pensions. The Statement does not require funding of OPEB expense, but any difference between the annual required contribution ("ARC") and the amount funded during the year is required to be recorded in the City's statement of net position as an increase (or decrease) in the OPEB obligation. Plan Description and Funding Policy: Employees who retire from the City and their dependents are eligible to continue to participate (single employer plan) in the City's health insurance, dental, and vision plans currently offered through the City at the "blended" employee group rate, which is determined annually by the City. The retiree must continue to meet all partiCipation requirements and pay all applicable premiums by the specified due date. As of October I, 2014, the date of the most recent actuarial evaluation, there are five participating retirees in the group health program. The City provides no funding for any portion of the premiums after retirement. However, the City recognizes that there is an "implicit subsidy" arising as a result of the blended rate premium since retiree health care costs, on average, are higher than active employee healthcare costs. The plan is not accounted for as a trust fund and an irrevocable trust has not been established to fund this plan. The plan does not issue a separate financial report. It is the City's current policy to fund the plan on a "pay-as-you-go" basis. 38 MIAMI DAILY BUSINESS REVIEW Published Dally excepl Salurday, Sunday and Legal Holidays Miami, Miami-Dade Counly, Florida STATE OF FLORIDA COUNTY OF MIAMI-DADE: Before the undersigned authority personally appeared JOHANA OLIVA, who on oath says that he or she is the LEGAL CLERK, Legal Notices of the Miami Daily Business Review 11k/a Miami Review, a daily (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami in Miami-Dade County, Florida; that the attached copy of advertisement. being a Legal Advertisement of Notice in the matter of NOTICE OF ANNUAL MEETING -CITY OF SOUTH MIAMI - HEALTH FACILITIES AUTHORITY -MAR 9, 2018 in the XXXX Court, was published in said newspaper in the issues of 03106/2018 Affiant further says that the said Miami Daily Business Review is a newspaper published at Miami, in said Miami-Dade County, Florida and that the said newspaper has heretofore been continuously published in said Miami -Dade County, Florida each day (except Saturday, Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami in said Miami-Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspape r. , ~""'tlil "'~:l:!~ll::~,,, MARIA I. MESA l~o" /~i Notary Public -Slate 01 Florida ... tr '0" ~. ~ ~9 • ~ Commission # FF 935208 ~!'}:~ y,,-~,~~ o~" My Comm. Expires Mar 4, 2020 I" OFf~ \,'t: ,,,,, .... , Bonde~ !hrO~gh ~a~o.~~~~~r~~,:~n.