The Governor and Cabinet - Florida Department of State

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AGENDA

MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

July 25, 2000

Approval of minutes of meeting held July 11, 2000. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $220,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY BONDS, 2000 SERIES (LETTER DESIGNATION(S) TO BE DETERMINED):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the State Board of Education, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not Exceeding $220,000,000 State of Florida, Full Faith and Credit State Board of Education Public Education Capital Outlay Bonds, 2000 Series (Letter Designations to be determined) (the "Bonds") for the purpose of financing capital outlay projects for the State System of Public Education in Florida; provided, however, that none of the said Bonds shall be issued in excess of the amount which can be issued in full compliance with the State Bond Act and other applicable provisions of law, and pursuant to Section 9(a)(2), Article XII of the Constitution of Florida, as amended. It is anticipated the Governor and Cabinet will adopt on July 25, 2000 the Twentieth Supplemental Authorizing Resolution authorizing the issuance of the 2000 Series Bonds and a sale resolution for the Bonds.

The State Board of Education has heretofore issued Public Education Capital Outlay Bonds, Series 1985 through 1999 Series D of which $7,070,640,000 in principal amount was outstanding and unpaid on June 30, 2000. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay Bonds Series 1985 through 1992-A as to lien on and source and security for payment from the Gross Receipts Taxes. The proposed Bonds shall be issued on a parity as to lien on and source and security for payment from the Gross Receipts Taxes with the outstanding and unpaid Public Education Capital Outlay Bonds, 1992 Series B through 1999 Series D.

A study of this proposal and the estimates of revenue expected to accrue from the Gross Receipts Tax, indicate that the proposed Bonds and all other outstanding bonds having a lien on the Gross Receipts Tax are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #2)

SBA AGENDA

July 25, 2000

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3. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $24,400,000 STATE OF FLORIDA, BOARD OF REGENTS, FLORIDA ATLANTIC UNIVERSITY HOUSING REVENUE BONDS, SERIES 2000:

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Board of Regents, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not Exceeding $24,400,000 State of Florida, Board of Regents, Florida Atlantic University Housing Revenue Bonds, Series 2000 (the "Bonds") for the purpose of paying the cost of constructing a student housing complex on the main campus of the Florida Atlantic University, providing for capitalized interest, purchasing a municipal bond insurance policy, funding a reserve account and paying certain costs associated with the issuance and sale of the 2000 Bonds.

The lien of the Bonds on the Pledged Revenues shall be junior and subordinate to the lien thereon of the Florida Atlantic University Dormitory Revenue Certificates, Series 1964, 1966A and 1966B of which an aggregate principal amount of $678,000 was outstanding as of June 30, 2000. The Bonds shall be payable on a parity and rank equally as to lien on and source and security for payment from the Pledged Revenues and in all other respects, with the State of Florida, Board of Regents, Florida Atlantic University Diversified Student Apartment Facility Revenue Bonds, Series 1993 of which the principal amount of $15,295,000 was outstanding as of June 30, 2000.

The Bonds are being issued pursuant to the Original Authorizing Resolution adopted by the Governor and Cabinet on July 21, 1992, as supplemented on June 13, 2000. It is anticipated the Governor and Cabinet will adopt a sale resolution for the Bonds at the Cabinet meeting of July 25, 2000.

A study of this proposal and the estimates of revenue expected to accrue from the Pledged Revenues indicate that the proposed bonds and all other outstanding bonds having a lien on the Pledged Revenues are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #3)

SBA AGENDA

July 25, 2000

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4. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $12,200,000 TAX EXEMPT AND $2,350,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (VILLAS DE MALLORCA APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $12,200,000 Tax exempt and $2,350,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Broward County, Florida (Villas de Mallorca Apartments).

The Bonds shall not constitute an obligation, either general or special, of the State or of any local government thereof; neither the State nor any local government thereof shall be liable thereon. Neither the full faith, revenue, credit nor taxing power of the State of Florida, or any local governments thereof shall be pledged to the payment of the principal of, premium (if any), or interest on the Bonds. The Bonds shall be payable as to principal, premium (if any), and interest solely out of revenues and other amounts pledged therefor.

RECOMMENDATION: A study of this proposal and of estimates of revenue and other available moneys expected to accrue indicate that the issue meets the requirements for the fiscal determination required by Section 420.509, Florida Statutes, as stated in Article VII, Subsection 16(c) of the revised Constitution of 1968, and the Executive Director recommends that the State Board of Administration of Florida (the "Board") approve the fiscal determination thereof. It is further recommended that, pursuant to the fiscal determination requirements of Subsection 16(c) of Article VII of the revised Constitution of 1968, the Board find and determine that in no State fiscal year will the debt service requirements of the Bonds proposed to be issued and all other bonds secured by the same pledged revenues exceed the pledged revenues available for payment of such debt service requirements. The Board has relied upon information from others but has not independently verified the accuracy or completeness of such information. The Board does not assume any responsibility for, and makes no warranty (express or implied) with respect to any other aspect of this bond issue except for fiscal determination. (Att. #4)

5. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $10,010,000 TAX EXEMPT AND $6,275,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (SUNDANCE POINTE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $10,010,000 Tax Exempt and

SBA AGENDA

July 25, 2000

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$6,275,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Duval County, Florida (Sundance Pointe Apartments).

6. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $7,200,000 TAX EXEMPT AND $1,830,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (WALKER AVENUE CLUB APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $7,200,000 Tax Exempt and $1,830,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Indian River County, Florida (Walker Avenue Club Apartments).

SBA AGENDA

July 25, 2000

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The Bonds shall not constitute an obligation, either general or special, of the State or of any local government thereof; neither the State nor any local government thereof shall be liable

thereon. Neither the full faith, revenue, credit nor taxing power of the State of Florida, or any local governments thereof shall be pledged to the payment of the principal of, premium (if any), or interest on the Bonds. The Bonds shall be payable as to principal, premium (if any), and interest solely out of revenues and other amounts pledged therefor.

7. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $11,045,000 TAX EXEMPT AND $5,665,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (SABAL CHASE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $11,045,000 Tax Exempt and $5,665,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in St. Lucie County, Florida (Sabal Chase Apartments).

SBA AGENDA

July 25, 2000

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8. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $14,200,000 FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (RIVERSIDE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount Not Exceeding $14,200,000 Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Pinellas County, Florida (Riverside Apartments).

SBA AGENDA

July 25, 2000

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1968, the Board find and determine that in no State fiscal year will the debt service requirements of the Bonds proposed to be issued and all other bonds secured by the same

pledged revenues exceed the pledged revenues available for payment of such debt service requirements. The Board has relied upon information from others but has not independently verified the accuracy or completeness of such information. The Board does not assume any responsibility for, and makes no warranty (express or implied) with respect to any other aspect of this bond issue except for fiscal determination. (Att. #8)

9. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $12,965,000 TAX EXEMPT AND $6,325,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2000 SERIES (SERIES TO BE DESIGNATED) (STRATFORD POINTE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $12,965,000 Tax Exempt and $6,325,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2000 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Seminole County, Florida (Stratford Pointe Apartments).

SBA AGENDA

July 25, 2000

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responsibility for, and makes no warranty (express or implied) with respect to any other aspect of this bond issue except for fiscal determination. (Att. #9)

INTERNATIONAL PROXY VOTING GUIDELINES FOR APPROVAL:

International Proxy Voting Guidelines have been developed by SBA staff for distribution to external investment managers within the international (non-U.S.) asset class. These policies are an outgrowth of the SBA�s analysis over the last several years of proxy voting among our external investment managers. The international equity asset class has grown considerably over the same time period and now represents over 12% of FRS fund assets. The Guidelines are largely based on our long-standing policies towards U.S. companies, with frequent adaptations made to reflect the unique characteristics exhibited within various global capital markets.

SBA Guidelines were constructed to give our investment managers maximum flexibility with their proxy voting programs. While these guidelines are not intended to be "instructions", per se, we do expect that voting patterns will be executed with the broad goals of the SBA�s voting guidelines in mind. Depending on the specific capital market and the company in question, a certain level of discretion is given to each investment manager when executing complex votes.

Finally, external investment managers will be periodically subject to monitoring and analysis of their proxy voting decisions. (Att. #10)

REPORT BY THE EXECUTIVE DIRECTOR:

Submitted for information and review is the fund activity analysis report for the month of May 2000. (Att. #11)

12. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS APPROVAL OF THE FOLLOWING ITEM:

The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing the following rule for adoption: the amendment of Rule 19-8.013 to implement changes to the FHCF statute enacted in the 1999 legislative session. The proposed amended rule was the subject of a rule development workshop on May 31, 2000, was approved by the Advisory Council for filing for notice on that same day, was approved by the Trustees for filing for notice on June 13, 2000, was the subject of a rule hearing on July 18, 2000, and was

approved by the Advisory Council for adoption that same day. (The back-up material will be provided prior to meeting.)

SBA AGENDA

July 25, 2000

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13. STATUS REPORT ON THE IMPLEMENTATION OF THE DEFINED CONTRIBUTION PLAN: (Att. #13)

REVIEW OF SBA PERFORMANCE FOR FY 1999-2000: (Backup material will be provided prior to meeting.)

CONSIDER SBA PERFORMANCE CONTRACT FOR FY 2000-2001: (Backup material will be provided prior to meeting.)

16. THE FLORIDA WATER POLLUTION CONTROL FINANCING CORPORATION � INFORMATION ONLY:

The Florida Water Pollution Control Financing Corporation (the "Corporation") was authorized by the legislature last session in Section 403.1837, Florida Statutes, to provide for the financing of water pollution control projects through the issuance of bonds. (Exhibit 1)

INFORMATION ONLY AGENDA

THE FLORIDA WATER POLLUTION CONTROL FINANCING CORPORATION

THE CAPITOL

JULY 25, 2000

The Executive Director of the State Board of Administration, in his capacity as the future Chief Executive Officer of the Corporation, as set forth in Section 403.1837(2), Florida Statutes, has distributed drafts of the Articles of Incorporation, By-Laws, and Requests for Proposals for bond counsel, disclosure counsel, financial advisor and underwriters to the members of the future Board of Directors, for informational purposes only.

The organizational meeting of the Board of Directors of the Corporation is scheduled to be held immediately following the September 12, 2000, meeting of the Trustees of the State Board of Administration. At that meeting the Articles of Incorporation and the By-Laws will be submitted for approval by the Board of Directors, corporate officers will be appointed, and the distribution of the four Requests for Proposal in July will be submitted for Board of Director ratification.

EXHIBIT 1