Transcript

AGENDA

MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

May 15, 2001

1. Approval of minutes of meeting held April 24, 2001. (Att. #1)

2. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $13,500,000 TAX EXEMPT AND $6,210,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (HERITAGE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $13,500,000 Tax Exempt and $6,210,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Collier County, Florida (Heritage 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. #2)

SBA AGENDA

May 15, 2001

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3. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $8,000,000 TAX EXEMPT AND $2,100,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (STUART POINTE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $8,000,000 Tax Exempt and $2,100,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Martin County, Florida (Stuart Pointe 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. #3)

The staff of the State Board of Administration requests permission from the Trustees to file

proposed new Rules 19-10.002 and 19-10.003 for notice. These rules implement two other

AGENDA

May 15, 2001

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asset transfer procedures after the initial transfer which occurs between July 1, 2002 and

March 31, 2003. Rule 19-10.002 adopts procedures for the true-up transfer from the SBA

defined benefit plan to the defined contribution plan after the initial transfers outlined in Rule 19-10.001. Rule 19-10.003 adopts asset transfer procedures for employees hired after the initial transfer dates set out in Rule 19-10.001 and adopts an enrollment election form. The rule development workshop was held on January 23, 2001. If the Trustees grant permission to file these rules for notice, the rule hearing will be scheduled for June 18, 2001. After the rule hearing, the Trustees will be asked for permission to file for adoption. The anticipated filing date is June 27, 2001. (Att. #4)

5. REVIEW AND APPROVE RECOMMENDATION FOR THE CREATION OF A FLORIDA FOCUSED VENTURE CAPITAL FUND WITHIN THE ALTERNATIVE INVESTMENT ASSET CLASS. (Att. #5)

This item was deferred from the April 10, 2001 Cabinet meeting.

6. DEFINED CONTRIBUTION STATUS REPORT #10. (Att. #6)

7. LEGISLATIVE UPDATE – INFORMATION ONLY.

(Backup will be provided)

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

The Florida Hurricane Catastrophe Fund requests, that pursuant to Section 215.555(5)(b), Florida Statutes, the Trustees approve the premium formula for the 2001-2002 Contract Year. The Advisory Council reviewed the premium formula on March 15, 2001, and approved it on March 28, 2001, with $10 million incorporated for mitigation expenditures. Final action on this item was deferred at the April 10, 2001, meeting of the Trustees due to uncertainty regarding the amount of mitigation dollars that would ultimately be appropriated by the Legislature. The premium formula has been revised to establish additional rates based upon the proposed 2001-2002 state budget, which includes $30 million for mitigation expenditures. The premium formula submitted provides rates for either level of mitigation funding contingent upon the final state budget. SBA staff are recommending that the Trustees approve both premium proposals and the Florida Hurricane Catastrophe fund will implement the appropriate one after the Governor has acted on the Appropriations Bill – SB 2002. Attached hereto are copies of the relevant portions of SB 2002, showing the $30 million appropriated for mitigation. Prior to the May 15, 2001 meeting a copy of the Addendum to the March 15, 2001 Ratemaking Report will be provided.