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City staff say Miami Forever bond dollars must be spent faster to avoid IRS arbitrage issues

3163899 · April 30, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the Capital Improvements Oversight Board that Miami Forever bond proceeds must be spent faster, with a target of roughly 80% expended by June 2027, because investment returns on unspent bond proceeds have created potential IRS arbitrage concerns.

City staff told the Capital Improvements Oversight Board on a capital-program update that Miami must accelerate spending of Miami Forever bond proceeds to avoid tax-law penalties tied to earnings on invested bond proceeds.

The city’s presentation showed roughly 22% of the bond funds expended to date. “We’re looking to get this really rolling forward — 80% expenditure by that [June 2027] time frame,” Hector Badia, assistant director of the Office of Capital Improvements (OCI), said during the meeting.

The city attorney explained the specific legal constraint: when a municipality issues tax-exempt bonds and earns investment…

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