The Governor and Cabinet - Florida Department of State

AGENDA

MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - (850) 488-4406)

THE CAPITOL

TALLAHASSEE, FLORIDA

August 12, 2003

1. APPROVAL OF MINUTES FROM THE MEETING ON JUNE 26, 2003.

(Att. #1)

(ACTION REQUIRED)

2. PPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $300,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY BONDS, 2003 SERIES [LETTER DESIGNATION(S) TO BE DETERMINED]:

(ACTION REQUIRED)

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 $300,000,000 State of Florida, Full Faith and Credit, State Board of Education Public Education Capital Outlay Bonds, 2003 Series [letter designation(s) 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. The Bonds will be issued pursuant to an authorizing resolution adopted by the State Board of Education on July 21, 1992, the Thirty-Second Supplemental Authorizing Resolution anticipated to be adopted by the State Board of Education August 19, 2003, and a sale resolution anticipated to be adopted by the State Board of Education on August 19, 2003.

The State Board of Education has heretofore issued Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, Series 1985 through 2003 Series A, of which $8,226,315,000 in principal amount was outstanding and unpaid on July 31, 2003. The State Board of Education received approval as to fiscal sufficiency for amounts not exceeding $363,400,000 Public Education Capital Outlay Bonds, 2002 Series and $210,000,000 Public Education Capital Outlay Refunding Bonds, (series to be determined), (together, the Previously Approved Bonds) at the June 26, 2003 meeting of the State Board of Administration. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds Series 1985 through

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1989-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 and Public Education Capital Outlay Refunding Bonds, 1993 Series A through 2003 Series A and, if issued, the Previously Approved Bonds.

A study of this proposal and the estimates of revenue expected to accrue from the Gross Receipts Taxes indicate that the proposed Bonds and all other outstanding bonds having a lien on the Gross Receipts Taxes 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)

3. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $150,000,000 STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION FLORIDA FOREVER REVENUE BONDS, SERIES 2003C:

(ACTION REQUIRED)

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 an amount not exceeding $150,000,000 State of Florida Department of Environmental Protection, Florida Forever Revenue Bonds, Series 2003C (the Bonds). The proceeds of the Bonds are to be used for the acquisition and improvement of land, water areas, and related property interests and resources to accomplish environmental restoration and enhance public access and recreational enjoyment in the State of Florida. The Bonds will be issued pursuant to the Thirteenth Subsequent Resolution authorized by the Governor and Cabinet on January 23, 2001, and the Twenty-Third Subsequent Resolution, which is anticipated by the Governor and Cabinet on August 12, 2003.

The Department of Environmental Protection has heretofore issued Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1994A through 2001A and Florida Forever Revenue Bonds, Series 2001A through 2003B of which a combined total of $2,776,315,000 in principal amount was outstanding and unpaid on July 31, 2003. The proposed Bonds shall be issued on a parity with the outstanding and unpaid Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1994A through 2001A and the Florida Forever Revenue Bonds, Series 2001A through 2003B as to source and security for payment.

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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.

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

4. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $15,000,000 TAX EXEMPT AND $2,000,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (AVALON RESERVE APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts not exceeding $15,000,000 Tax Exempt and $2,000,000 Taxable Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 Series (series to be designated) (the Bonds) for the purpose of financing the construction and equipping of a multifamily residential rental development located in Orange County, Florida (Avalon Reserve 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: It is recommended that the Board approve the fiscal determination of the proposal outlined above. 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 does not assume

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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 AN INCREASE OF AN AMOUNT NOT EXCEEDING $500,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (GRANDE COURT AT NORTH PORT APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation (the Corporation) has received approval as to fiscal determination at the June 12, 2003 meeting of the State Board of Administration of an amount not exceeding $6,300,000 Tax Exempt Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 Series (series to be designated) (the Bonds) for the purpose of financing the construction and equipping of a multifamily residential rental development located in Sarasota County, Florida (Grand Court at North Port Apartments)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to increase the amount of the Bond issue by an amount not exceeding $500,000.

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6. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $6,500,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (COLLINS COVE APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount not exceeding $6,500,000 Tax Exempt Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 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 (Collins Cove Apartments).

7. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $4,600,000 TAX EXEMPT AND $500,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (SUMERSET HOUSING APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts not exceeding $4,600,000 Tax Exempt and

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$500,000 Taxable Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 Series (series to be designated) (the Bonds) for the purpose of financing the acquisition and renovation of a multifamily residential rental development located in Orange County, Florida (Sumerset Housing Apartments).

8. PROPOSED REVISIONS TO FRS DEFINED BENEFIT TOTAL FUND INVESTMENT PLAN:)

(ACTION REQUIRED)

This agenda item represents the final phase of a comprehensive review of the FRS Defined Benefit Total Fund Investment Plan, which included the recent asset allocation and liability studies. The principal work was done by SBA�s general consultant, Ennis, Knupp & Associates, and augmented by SBA staff. The Investment Advisory Council unanimously supports the proposed revisions to the FRS Defined Benefit Total Fund Investment Plan listed below. (Att. #8)

8A. Revise the primary benchmark and adopt a secondary benchmark for the Alternative Investments Asset Class. (Att. #8A)

8B. Revise the primary and the secondary benchmarks for the Real Estate Asset Class. (Att. #8B)

8C. Revise the floating weight system for the Alternative Investments Asset Class and for the Real Estate Asset Class. (Att. #8C)