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

April 15, 1997

1. Approval of minutes of meeting held on March 25, 1997. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $9,780,000 STATE OF FLORIDA, BOARD OF REGENTS, UNIVERSITY OF CENTRAL FLORIDA PARKING FACILITY REVENUE BONDS, SERIES 1997:

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 $9,780,000 State of Florida, Board of Regents, University of Central Florida Parking Facility Revenue Bonds, Series 1997 (the "Bonds") for the purpose of providing funds for the construction and equipping of a parking facility on the campus of the University of Central Florida, providing for capitalized interest, funding a reserve account, purchasing a municipal bond insurance policy and paying certain costs associated with the issuance and sale of the Bonds. It is anticipated that the reserve account will be funded with a debt service surety bond. The Bonds will be payable on a parity with the $7,000,000 State of Florida, Board of Regents, University of Central Florida Parking Facility Revenue Bonds, Series 1995 from the pledged parking system revenues. The Governing Board of the Division adopted the Supplemental Authorizing Resolution for the proposed bonds on October 8, 1996.

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. #2)

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3. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $7,780,000 STATE OF FLORIDA, BOARD OF REGENTS, FLORIDA AGRICULTURAL AND MECHANICAL UNIVERSITY STUDENT SEVICES CENTER REVENUE BONDS, SERIES 1997:

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 $7,780,000 State of Florida, Board of Regents, Florida Agricultural and Mechanical University Student Services Center Revenue Bonds, Series 1997 (the "Bonds") for the purpose of providing funds for the construction, furnishing and equipping of a student services center on the campus of the Florida Agricultural and Mechanical University, providing for capitalized interest, purchasing a municipal bond insurance policy, funding a reserve account and paying certain costs associated with the issuance and sale of the Bonds. It is anticipated that the reserve account will be funded with a debt service surety bond. In the event that this does not occur, the debt service reserve fund will be funded from bond proceeds. The Governing Board of the Division adopted the Authorizing Resolution for the proposed bonds on October 22, 1996.

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)

4. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $3,605,000 STATE OF FLORIDA, BOARD OF REGENTS, FLORIDA AGRICULTURAL AND MECHANICAL UNIVERSITY PARKING FACILITY REVENUE BONDS, SERIES 1997:

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State of Florida, Board of Regents, Florida Agricultural and Mechanical University Parking Facility Revenue Bonds, Series 1997 (the "Bonds") for the purpose of providing funds for the construction, furnishing and equipping of a parking facility on the campus of Florida Agricultural and Mechanical University, providing for capitalized interest, purchasing a municipal bond insurance policy, funding a reserve account and paying certain costs associated with the issuance and sale of the Bonds. It is anticipated that the reserve account will be funded with a debt service surety bond. In the event that this does not occur, the debt service reserve fund will be funded from bond proceeds. The Governing Board of the Division adopted the Authorizing Resolution for the proposed bonds on October 22, 1996.

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

5. FLORIDA STATE BOARD OF ADMINISTRATION 1996 PERFORMANCE SUMMARY FRS INVESTMENTS. (Att. #5)

6. THE FLORIDA HURRICANE CATASTROPHE FUND:

(A) The Florida Hurricane Catastrophe Fund requests that the Trustees approve the premium formula for the rates for reimbursement premiums for the 1997-1998 contract year, pursuant to Section 215.555(5)(b). The Advisory Council approved the 1997 premium formula for consideration by the Trustees at its meeting on March 19, 1997. Also at the March 19, 1997 meeting the FHCF'S Actuarial Consultant expressed the opinion that, based on the premium formula, any additional moneys appropriated from the FHCF above the $10 million contemplated for mitigation would jeopardize the actuarial soundness of the FHCF, pursuant to Section 215.555(7)(c). The Advisory Council voted to accept this opinion. The FHCF requests that the Trustees vote to accept the opinion of the Actuarial Consultant. The impact of this action will be to limit the Legislature's appropriation for mitigation to $10 million rather than 35% of investment income. Without this limitation,

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the rates to be calculated from the premium formula would be inadequate and therefore, the rates would have to be increased to accommodate the extra dollars being removed from the FHCF.

(B) The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing four rules for notice, pursuant to Section 120.54(3)(a)1, Florida Statutes. These are the rules applicable to the 1997-1998 contract year. Rule 19-8.010 is amended to adopt the 1997-1998 Reimbursement Contract. Rule 19-8.021 provides the definitions applicable to the 1997-1998 contract year. Rule 19-8.022 incorporates and adopts the 1997 premium formula, pursuant to Section 215.555(5)(b). Rule 19-8.023 incorporates insurer reporting requirements, particularly the 1997 exposure reporting requirements, pursuant to Section 215.555(5)(c). The Advisory Council approved these rules for filing for notice at its meeting on March 19, 1997. The FHCF anticipates asking the Trustees for approval to file for adoption at the May 28, 1997 meeting.

(C) The Florida Hurricane Catastrophe Fund requests permission to provide an up-date of the FHCF'S bonding activities, including the progress of its contract with its Financial Advisor; the progress of the validation process; and a discussion of the possibility of issuing bonds on a pre-event basis.

(Back-up will be furnished preceding meeting)