The Governor and Cabinet - Florida Department of State

Cabinet Affairs

AGENDA

Meeting of the

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood-488-4406)

The Capitol

July 9, 1996

1. Approval of minutes of meeting held on June 13, 1996. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF NOT TO EXCEED $212,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION, PUBLIC EDUCATION CAPITAL OUTLAY BONDS, 1995 SERIES (LETTER DESIGNATION(S) TO BE ASSIGNED LATER):

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 Not to Exceed $212,000,000 State of Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1995 Series (Letter Designation(s) to be assigned later), (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, pursuant to Section 9(a)(2), Article XII of the Constitution of Florida, as amended. The Governor and Cabinet adopted on June 25, 1996 the Sale Resolution authorizing the sale of the Bonds.

The State Board of Education has heretofore issued Public Education Bonds, Series A and B of which $136,315,000 in principal amount was outstanding and unpaid on June 10, 1996; and which bonds constitute a prior lien on the Gross Receipts Taxes which are required to be deposited in the Public Education Capital Outlay and Debt Service Trust Fund (the "Gross Receipts Taxes.")

The State Board has heretofore issued Public Education Capital Outlay Bonds, Series 1985, 1985-A, 1986-B, 1986-C, 1987-A, 1989-A, 1989-B, 1990, 1991-A, 1991-B,

1991-C and 1992-A, 1992 Series B, 1992 Series C, 1992 Series D, 1992 Series E, 1993 Series A, 1993 Series B, 1993 Series C, 1993 Series D, 1993 Series E, 1993 Series F, 1994 Series A, 1994 Series B, 1994 Series C, 1995 Series A, 1995 Series B, 1995 Series C, 1995 Series D, and 1995 Series E of which $5,596,080,000 in principal amount was outstanding and unpaid on June 10, 1996. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Bonds, Series A and B not refunded, inclusive, and to the outstanding and unpaid 1992 A Bonds, and the unrefunded portion of Series 1985, 1985-A, 1986-B, 1986-C

1987-A, 1989-A 1989-B 1990, 1991-A, 1991-B and 1991-C Bonds 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, 1992 Series C, 1992 Series D, 1992 Series E, 1993 Series A, 1993 Series B, 1993 Series C, 1993 Series D, 1993 Series E, 1993 Series F, 1994 Series A, 1994 Series B, 1994 Series C, 1995 Series A, 1995 Series B, 1995 Series C, 1995 Series D, and 1995 Series E.

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 NOT TO EXCEED $9,700,000 FLORIDA HOUSING FINANCE AGENCY HOUSING REVENUE BONDS, 1996 SERIES (TO BE DESIGNATED) (ST. CLOUD VILLAGE APARTMENTS PROJECT):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of and in the name of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue Not to Exceed $9,700,000 Florida Housing Finance Agency Housing Revenue Bonds, 1996 Series (to be designated) (St. Cloud Village Apartments Project), (the "Bonds.")

The proceeds of the Bonds will be used to construct a multi-family project of 208 dwelling units, fund reserves and capitalized interest accounts, and pay the costs of issuance. 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 are 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 monies expected to accrue indicate that the issue is fiscally sufficient, and the Acting Executive Director recommends that the Board approve the fiscal sufficiency thereof. It is further recommended that, pursuant to the fiscal sufficiency 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. (Att. #3)

4. APPROVAL OF FISCAL SUFFICIENCY OF AN ISSUE OF NOT TO EXCEED $275,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY ACQUISITION AND BRIDGE CONSTRUCTION BONDS, (SERIES TO BE DESIGNATED):

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 to Exceed $275,000,000 State of Florida, Full Faith and Credit, Department of Transportation Right-of-Way Acquisition and Bridge Construction Bonds, (Series to be designated) (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 bridge construction. The Governing Board of the Division approved the authorizing resolution for the proposed bonds on February 28, 1989, as supplemented and amended September 24, 1991, June 8, 1993, March 29, 1995, January 23, 1996, and June 25, 1996.

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, 1993 and 1995 and, if and when issued, the proposed $50,000,000 State of Florida, Full Faith and Credit, Department of Transportation Right-of-Way Acquisition and Bridge Construction Refunding Bonds, (Series to be designated).

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.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #4)

5. APPROVAL OF FISCAL SUFFICIENCY OF NOT TO EXCEED $19,100,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION CAPITAL OUTLAY REFUNDING BONDS, 1996 SERIES B:

The State Board of Education of Florida has submitted for approval as to fiscal sufficiency a proposal to issue Not to Exceed $19,100,000 State of Florida, Full Faith and Credit, State Board of Education Capital Outlay Refunding Bonds, 1996 Series B (the "Bonds") for the purpose of refinancing all or a portion of the outstanding State of Florida, Full Faith and Credit, State Board of Education Capital Outlay Bonds, Series 1980-A, 1986-A, 1988-A and 1990-A.

The State Board of Education is authorized to issue bonds pledging the full faith and credit of the State payable primarily from funds provided in Subsection (d) of Section 9 of Article XII of the Constitution of Florida, as amended (the "School Capital Outlay Amendment"), for the purpose of providing funds to finance capital outlay projects for school purposes in the manner provided therein, upon application of the School Boards of the School Districts of the State, and the Boards of Trustees of the Community College Districts of the State, and to refund previously issued bonds.

The State Board of Education has heretofore pledged the State Motor Vehicle License Taxes distributable to the account of the School Districts, pursuant to said School Capital Outlay Amendment, to the payment of debt service on the Outstanding Capital Outlay Bonds, Series 1975-A, Series 1975-B, Series 1976-A, Series 1977-A, Series 1978-A, Series 1979-A, Series 1980-A, Series 1986-A, Series 1988-A, Series 1990-A and Series 1991-A heretofore issued which bonds constitute a prior lien on the State Motor Vehicle License Taxes.

The Capital Outlay Bonds, 1992 Series A, 1992 Series B, 1994 Series A, 1995 Series A and 1996 Series A heretofore issued and the Bonds proposed to be issued shall rank equally and be on a parity in all respects as to lien on and source and security for payment from the State Motor Vehicle License Taxes distributable for the account of certain School Districts and Community College Districts in Florida, under the provisions of said School Capital Outlay Amendment.

A study of this proposal and the estimates of revenue expected to accrue from the Motor Vehicle License Taxes, indicate that the proposed Bonds and all other outstanding bonds having a lien on the Motor Vehicle License 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. #5)

6. APPROVAL OF FISCAL SUFFICIENCY OF NOT TO EXCEED $9,800,000 FLORIDA HOUSING FINANCE AGENCY HOUSING REVENUE BONDS, 1996 SERIES (TO BE DESIGNATED) (VILLAS OF CAPRI PROJECT):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of and in the name of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue Not to Exceed $9,800,000 Florida Housing Finance Agency Housing Revenue Bonds, 1996 Series (to be designated) (Villas of Capri Project), (the "Bonds.")

The proceeds of the Bonds will be used to finance the acquisition and construction of a multi-family residential rental development located in Collier County, Florida in the City of Naples. The Villas of Capri Project will consist of 235 garden-style apartment units and related amenities. 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 are payable as to principal, premium (if any), and interest solely out of revenues and other amounts pledged therefor.

7. SBA BUDGET FOR FISCAL YEAR 1996-97:

The Acting Executive Director recommends approval of a proposed Operating Budget for fiscal Year 1996-97. (Back-up was previously furnished.)

8. PERSONNEL - SEARCH AND SELECTION PROCESS FOR EXECUTIVE DIRECTOR:

Development and initiation of the search and selection process for a permanent Excutive Director of the State Board of Administration. (Back-up will be provided preceding meeting).

9. THE FLORIDA HURRICANE FUND REQUESTS PERMISSION TO ADOPT THE FUND'S 1996 RULES:

The Florida Hurricane Catastrophe Fund requests permission of the Trustees to adopt the Fund's 1996 Rules, previously approved by the Advisory Council and approved by the Trustees. These Rules are 19-8.018, "Definitions"; 19-8.019, "Premium Formulas"; and 19-8.020, "Insurer Reporting." (Back-up will be provided preceding meeting.)