Transcript

AGENDA

MEETING OF THE
STATE BOARD OF ADMINISTRATION
(Contact Person: Dorothy Westwood - (850) 488-4406)
SUPREME COURT BUILDING
November 27, 2001

1. APPROVAL OF MINUTES OF MEETING HELD NOVEMBER 14, 2001. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN ISSUE OF NOT EXCEEDING $50,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY ACQUISITION AND BRIDGE CONSTRUCTION BONDS, SERIES 2002:

The Division of Bond Finance of the State Board of Administration (the Division) has submitted for approval as to fiscal sufficiency a proposal to issue Not Exceeding $50,000,000 State of Florida, Full Faith and Credit, Department of Transportation Right-of-Way Acquisition and Bridge Construction Bonds, Series 2002 (the Bonds) for the purpose of financing or refinancing the cost of acquiring real property or the rights to real property for state roads as defined by law, or to finance or refinance the cost of state bridge construction, and purposes incidental to such property acquisition or State bridge construction. The Governing Board of the Division approved the authorizing resolution for the proposed Bonds on February 28, 1989, as amended on September 24, 1991, June 8, 1993 and January 23, 1996, and as supplemented. It is anticipated the Governing Board of the Division will adopt a resolution authorizing the sale of the Bonds on November 27, 2001.

The Bonds to be issued pursuant to Section 17 of Article VII of the State Constitution and Chapter 88-247, Laws of Florida, are to be secured by a pledge of and shall be payable primarily from motor fuel and special fuel taxes, except those defined in Section 9(c) of Article XII of the State Constitution, as provided by law (the Pledged Gas Taxes), and shall additionally be secured by the full faith and credit of the State. The Bonds will be issued on a parity as to lien and security for payment from the Pledged Gas Taxes with the outstanding State of Florida, Full Faith and Credit, Department of Transportation Right-of-Way Acquisition and Bridge Construction Bonds, Series 1991 through 1999A and Refunding Bonds, Series 1996, and the previously approved but unissued Department of Transportation Right-of-Way Acquisition and Bridge Construction Bonds, Series 2000.

A study of this proposal and the estimates of revenue expected to accrue from the Pledged Gas Taxes, indicate that the proposed Bonds are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

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AGENDA
November 27, 2001
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RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #2)

3. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $25,500,000 STATE OF FLORIDA, FLORIDA BOARD OF EDUCATION, FLORIDA STATE UNIVERSITY HOUSING FACILITY REVENUE BONDS, SERIES 2001A:

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 $25,500,000 State of Florida, Florida Board of Education, Florida State University Housing Facility Revenue Bonds, Series 2001A (the Bonds) for the purpose of paying the cost of constructing a student housing facility on the campus of the Florida State University, purchasing a municipal bond insurance policy, funding a reserve account and paying certain costs associated with the issuance and sale of the Bonds.

The Bonds are being issued pursuant to the Original Authorizing Resolution adopted by the Governor and Cabinet on November 17, 1992, as amended and restated on July 25, 2000 and the Fourth Supplemental Resolution adopted by the Governor and Cabinet on September 11, 2001. It is anticipated the Governor and Cabinet will adopt a sale resolution for the Bonds on November 27, 2001.

The Division on behalf of the Florida Board of Regents has heretofore issued Florida State University Housing Revenue Certificates, Series 1993 and Housing Facility Revenue Bonds Series, 1994, Series 1996 and Series 2001 (the Previous Bonds). 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 (as defined in the resolution) and in all other respects, with the Previous Bonds.

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)

STATE BOARD OF ADMINISTRATION
AGENDA
November 27, 2001
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4. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $35,000,000 STATE OF FLORIDA, FLORIDA BOARD OF EDUCATION, UNIVERSITY SYSTEM IMPROVEMENT REVENUE BONDS, SERIES 2001:

The Division of Bond Finance of the State Board of Administration (the Division), on behalf of and in the name of the Florida Board of Education, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not Exceeding $35,000,000 State of Florida, Florida Board of Education, University System Improvement Revenue Bonds, Series 2001, (the Bonds) for the purpose of financing a portion of the cost of the acquisition and construction of capital projects of the State University System of Florida and paying certain costs associated with the issuance of the Bonds. The Authorizing Resolution for the bonds was adopted by the Governor and Cabinet on August 28, 2001. It is anticipated the Governor and Cabinet will adopt the sale resolution for the Bonds on November 27, 2001.

The Division on behalf of the Florida Board of Regents has heretofore issued State of Florida, Board of Regents, University System Improvement Revenue Certificates, Series 1991 and 1993 and University System Improvement Revenue and Revenue Refunding Bonds, Series 1997, 1997A and 1998 (collectively, the (Previous Bonds)). 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 Previous Bonds.

A study of this proposal and the estimates of revenue expected to accrue from the Pledged Revenues indicate that the proposed Bonds 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. #4)

5. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $5,150,000 TAX EXEMPT AND $1,715,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (SHERIDAN PLACE APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal
determination a proposal to issue amounts Not Exceeding $5,150,000 Tax Exempt

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AGENDA
November 27, 2001
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and $1,715,000 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 Manatee County, Florida (Sheridan Place 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. #5)

6. THE STATE BOARD OF ADMINISTRATION REQUESTS APPROVAL OF THE FOLLOWING RULES:

The staff of the State Board of Administration requests that the Trustees approve filing Rules 19-7.001 through 19-7.017 for notice. These rules implement Part IV of Chapter 218, Florida Statutes, regarding investments in local government pools. Proposed amended rule 19-7.001 sets out the purpose of the rules. Proposed amended rule 19-7.010 describes Rules 19-7.010 through 19-7.016 as relating to the Local Government Pooled Investment Account. Proposed amended rule 19-7.011

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provides the rate of return calculation for the Pooled Investment Account. Proposed amended rule 19-7.012 provides a method for investing surplus funds. Proposed amended rule 19-7.013 provides reporting procedures for the pool. Proposed amended rule 19-7.014 provides the maximum number of accounts. Proposed amended rule 19-7.015 provides for allocation of earnings for accounts participating in the Pooled Investment Account. Proposed amended rule 19-7.016 provides procedures for investments based on when the Board's records are balanced. Proposed amended rule 19-7.017 provides procedures for establishing a reserve fund.

A rule development workshop was scheduled for October 31, 2001, but was not held because it was not requested. If the Trustees give permission to file for notice, the rule hearing will be scheduled for January 3, 2002. If the Joint Administrative Procedures Committee has only technical comments or suggestions, staff will ask for permission to file for adoption on January 22, 2002. (Att. #6)

7. FINAL RECOMMENDATIONS OF THE STATE BOARD OF ADMINISTRATION STAFF ON THE SELECTION OF BUNDLED PROVIDERS:

Pursuant to the direction of the Trustees issued at their November 14, 2001 meeting, the staff has completed negotiations with each of the five bundled providers, and makes the following recommendation. (Backup will be provided preceding meeting).

8. REPORT BY THE EXECUTIVE DIRECTOR:Submitted for information and review is the Fund Activity Analysis for the month of September 2001. (Att. #8)