Transcript

AGENDA

MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

February 6, 2001

1. Approval of minutes of meeting held January 23, 2001. (Att. #1)

2. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S:

The Florida Housing Finance Corporation (the "Corporation") has submitted a request for authority to issue bonds at an interest rate Not Exceeding 8.05% for an amount Not Exceeding $27,455,000 Tax Exempt Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds.")

The Bonds are being issued for the purpose of financing the acquisition and rehabilitation of a multifamily residential rental development located in Broward County, Florida (Pembroke Village Apartments). The principal of and all interest on the Bonds shall be payable solely out of revenues and other amounts pledged therefor, as described in the Trust Indenture and other required bond documents. The Bonds shall not constitute an obligation or debt, either general or special, of the State of Florida or any of its units of local government, and the State of Florida or any unit of local government shall not be liable thereon. The Corporation shall not have the power to pledge the credit, the revenue, or the taxing power of the State or of any unit of local government; and neither the credit, the revenues, nor the taxing power of the State or of any unit of local government shall be deemed to be pledged to the payment of these Bonds.

The Bonds are being privately placed with institutional investors through Prager, McCarthy & Sealy, LLC, in minimum denominations of $250,000. The Bonds shall not be sold to the general public. The interest rate on the Bonds shall not exceed 8.05 percent per annum. The maximum interest rate for the month of January 2001 is 8.14 percent. The District intends to sell the Bonds in February 2001. Although the proposed rate of interest on the Bonds does not exceed the maximum interest rate in effect for January 2001, the District is requesting an authorization at 8.05 percent to ensure they will be authorized to sell the Bonds in the event that the maximum rate for February 2001 drops below 8.05 percent.

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize a rate Not Exceeding 8.05 percent per annum. This interest rate exception shall be effective for 180 days from the date of approval. This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest

SBA Agenda

February 6, 2001

Page Two

rate exception, the State Board of Administration has relied upon certain information provided by the Florida Housing Finance Corporation. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to the accuracy or completeness of said information. (Att. #2)

3. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S:

The Walkabout Community Development District (the "District") (Brevard County, Florida), has submitted a request for authority to issue bonds at an interest rate Not Exceeding 8.50% for an amount Not Exceeding $15,000,000 Walkabout Community Development District Special Assessment Bonds, Series 2001 (the "Bonds.")

The Bonds are being issued for the purpose of (i) financing the cost of acquiring, constructing, installing and equipping of the first phase of the water management improvements, water and wastewater utilities, road and right-of-way improvements, wetland mitigation, landscaping and irrigation, recreation facilities, and the construction of a maintenance and administration building for the District, (ii) funding a Debt Service Reserve Account, (iii) paying capitalized interest on the Bonds, and (iv) paying the costs of issuance of the Bonds. The Bonds are primarily secured by and payable from special assessments levied by the District pursuant to Chapter 170, Florida Statutes, on real property within the District deriving a benefit from the assessable improvements financed thereby. The Bonds are limited obligations of the District payable solely out of the pledged revenues therefor under the Indenture and neither the property, the full faith and credit, nor the taxing power of the District, Brevard County, Florida, the State of Florida, or any political subdivision thereof, is pledged as security for the payment of the Bonds, except that the District is obligated under the Indenture to levy, and to evidence and certify, or cause to be certified, for collection, special assessments to secure and pay the Bonds. The Bonds do not constitute an indebtedness of the District, Brevard County, Florida, the State of Florida, or any political subdivision thereof, within the meaning of any constitutional or statutory provision or limitation.

The Bonds are being sold by William R. Hough & Co. in a limited offering to qualified institutional buyers in minimum denominations of $100,000 at a discount of approximately 2.00 percent. The Bonds shall not be sold to the general public. The interest rate on the Bonds shall not exceed 8.50 percent per annum. The maximum interest rate for the month of January 2001 is 8.14 percent.

SBA Agenda

February 6, 2001

Page three

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize a rate Not Exceeding 8.50 percent per annum. This interest rate exception shall be effective for 180 days from the date of approval. This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest rate exception, the State Board of Administration has relied upon certain information provided by the Walkabout Community Development District. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to the accuracy or completeness of said information. (Att. #3)

4. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84 F.S.:

The Florida Housing Finance Corporation (the "Corporation") has submitted a request for authority to issue bonds at an interest rate Not Exceeding 8.05% for an amount Not Exceeding $12, 880,000 Tax Exempt Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds.")

The Bonds are being issued for the purpose of financing the acquisition and rehabilitation of a multifamily residential rental development located in Clay County, Florida (River Run Apartments). The principal of and all interest on the Bonds shall be payable solely out of revenues and other amounts pledged therefor, as described in the Trust Indenture and other required bond documents. The Bonds shall not constitute an obligation or debt, either general or special, of the State of Florida or any of its units of local government, and the State of Florida or any unit of local government shall not be liable thereon. The Corporation shall not have the power to pledge the credit, the revenue, or the taxing power of the State or of any unit of local government; and neither the credit, the revenues, nor the taxing power of the State or of any unit of local government shall be deemed to be pledged to the payment of these Bonds.

The Bonds are being privately placed with institutional investors through Prager, McCarthy & Sealy, LLC, in minimum denominations of $250,000. The Bonds shall not be sold to the general public. The interest rate on the Bonds shall not exceed 8.05 percent per annum. The maximum interest rate for the month of January 2001 is 8.14 percent. The district intends to sell the Bonds in February 2001. Although the proposed rate of interest on the Bonds does not exceed the maximum interest rate in effect for January 2001, the District is requesting an authorization at 8.05 percent to ensure they will be authorized to sell the Bonds in the event that the maximum rate for February 2001 drops below 8.05 percent.

SBA Agenda

February 6, 2001

Page Four

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize a rate Not Exceeding 8.05 percent per annum. This interest rate exception shall be effective for 180 days from the date of approval. This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest rate exception, the State Board of Administration has relied upon certain information provided by the Florida Housing Finance Corporation. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to the accuracy or completeness of said information. (Att. #4)

5. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $210,000,000 STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION, PRESERVATION 2000 REVENUE REFUNDING BONDS, SERIES (TO BE DESIGNATED):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Department of Environmental Protection of Florida, has submitted for approval as to fiscal sufficiency a proposal to issue Not Exceeding $210,000,000 State of Florida, Department of Environmental Protection, Preservation 2000 Revenue Refunding Bonds, Series (to be designated) (the "Bonds.") The proceeds of the Bonds are to be used for the purpose of refunding the callable portion of the Preservation 2000 Revenue Bonds, Series 1993A. It is anticipated the Governor and Cabinet will adopt on February 6, 2001 the Fourteenth Subsequent Resolution authorizing the sale and issuance of the Bonds.

The Department of Environmental Protection has heretofore issued $3,402,615,000 Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1991A through 2000A of which $2,504,870,000 in principal amount was outstanding and unpaid on December 31, 2000. The proposed Bonds shall be issued on parity with the outstanding and unpaid Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1991A through 2000A as to source and security for payment.

The Bonds shall not be secured by a pledge of the full faith and credit or the taxing power of the State of Florida or any political subdivision thereof.

The estimate of funds pledged to the Bonds indicates that sufficient monies can be pledged to exceed the debt service requirements of the proposed issue and that in no State fiscal year will the monies pledged for the debt service requirement of the proposed issue be less than the required coverage amount.

SBA AGENDA

February 6, 2001

Page Five

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #5)

6. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $12,880,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (RIVER RUN APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount Not Exceeding $12,880,000 Tax Exempt Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds") for the purpose of financing the acquisition and rehabilitation of a multifamily residential rental development located in Clay County, Florida (River Run 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. #6)

SBA AGENDA

February 6, 2001

Page Six

7. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $27,455,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (PEMBROKE VILLAGE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount Not Exceeding $27,455,000 Tax Exempt Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds") for the purpose of financing the acquisition and rehabilitation of a multifamily residential rental development located in Broward County, Florida (Pembroke Village 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. #7)

8. APPROVAL OF THIRD PARTY ADMINISTRATOR FOR THE PEORP. (Att. #8)

9. REVIEW AND APPROVAL OF PROPOSED TIMELINES FOR UNBUNDLED AND BUNDLED INVESTMENT PRODUCTS: (Att. #9)

SBA AGENDA

February 6, 2001

Page Seven

10 PRESENTATION AND DISCUSSION OF THE INVESTMENT POLICY STATEMENT:

The State Board of Administration Staff requests approval from the Trustees either to withdraw proposed Rule 19-9.001, which adopts the Investment Policy Statement approved by the Trustees on September 26, 2000, or to ratify the partial withdrawal of the Investment Policy Statement accomplished by a Notice of Change printed in the Florida Administrative Weekly on December 29, 2000. If the Trustees approve withdrawal of the entire rule, then the State Board of Administration staff will recommend amendments to the Investment Policy Statement for consideration by the Trustees at their meeting on February 27, 2001. If those amendments are approved, the State Board of Administration staff will begin the formal rulemaking process to adopt the amended version of the Investment Policy Statement by rule. If the Trustees ratify the withdrawal of part of the Investment Policy Statement, rulemaking will continue for both parts of the Investment Policy Statement separately. The State Board of Administration also requests that the Trustees direct the Executive Director to accomplish the rulemaking as circumstances might require and in accordance with Chapter 120, Florida Statutes. Of these two alternatives Staff recommends withdrawal of proposed Rule 19-9.001. (Att. #10)

11. PRESENTATION AND DISCUSSION OF THE REPORT ON SURPLUS MANAGEMENT AND 2000 ACTUARIAL EVALUATION:

This agenda item was deferred from the January 23, 2001 meeting. (Att. #11)

12. APPOINTMENT OF INVESTMENT ADVISORY COUNCIL MEMBER. (Att. #12)

13. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS APPROVAL OF THE FOLLOWING:

The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing the following rules for notice of proposed rulemaking: Rule 19-8.010, F.A.C., and Rule 19-8.029, F.A.C. These proposed amended rules, and the forms incorporated into the rules, were the subject of a rule development workshop on January 16, 2001. On February 2, 2001, the Advisory Council will review these rules and forms, and, we anticipate, grant permission to file the rules for Noticed of Proposed Rulemaking. (Att. #13)

14. REPORT BY THE EXECUTIVE DIRECTOR:

Submitted for information and review is the Annual Report on Corporate Governance for the period of July 1, 1999 to June 30, 2000. (Att. #14)