MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

APRIL 28, 1998

1. Approval of minutes of meeting held on April 14, 1998. (Att. #1)

2. A RESOLUTION OF THE STATE BOARD OF ADMINISTRATION APPROVING THE FISCAL SUFFICIENCY OF NOT EXCEEDING $220,000,000 STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION TURNPIKE REVENUE BONDS, SERIES 1998B AND A RESOLUTION OF THE STATE BOARD OF ADMINISTRATION RESCINDING THE $96,385,000 OF THE FISCAL SUFFICIENCY APPROVAL REMAINING FROM THE FISCAL SUFFICIENCY RESOLUTION ADOPTED NOVEMBER 18, 1997 FOR TURNPIKE REVENUE BONDS AUTHORIZED, BUT NOT ISSUED:

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 $220,000,000 State of Florida, Department of Transportation Turnpike Revenue Bonds, Series 1998 (the "Bonds") to fund various Turnpike Projects. In addition, the Division, on behalf of the State of Florida, Department of Transportation, has requested that the $96,385,000 of the fiscal sufficiency approval remaining from the fiscal sufficiency resolution adopted November 18, 1997 for Turnpike Revenue Bonds authorized, but not issued, be rescinded. It is anticipated that the Governing Board of the Division will adopt a resolution authorizing the sale of the Bonds on April 28, 1998.

The proposed Bonds shall be secured, along with certain other previously issued parity bonds, by a first lien upon Net Revenues of the Turnpike System, which consists of all tolls, revenues, rates, fees, charges, receipts, rents or other income derived from, or in connection with, the operation of the Florida Turnpike, less any necessary contribution to fund the Cost of Maintenance and Cost of Operation after taking into account other sources of funds available to fund the Cost of Maintenance and Cost of Operation. The tolls are required to be fixed, and adjusted if necessary, so that gross revenues shall be sufficient to pay at least (i) 100% of Operation and

AGENDA

April 28, 1998

Page Two

Maintenance costs; (ii) 120% of the Annual Debt Service Requirement; and (iii) 100% of all other payments required by the Authorizing Resolution.

RECOMMENDATION: A study of this proposal and the estimates of revenue expected to accrue indicate that the proposed Bonds are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law. It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. In addition, it is recommended that the $96,385,000 of the fiscal sufficiency approval remaining from the fiscal sufficiency resolution adopted November 18, 1997 for Turnpike Revenue Bonds authorized, but not issued, be rescinded. (Att. #2)

3. A RESOLUTION OF THE STATE BOARD OF ADMINISTRATION APPROVING THE FISCAL SUFFICIENCY OF NOT EXCEEDING $125,000,000 STATE OF FLORIDA, STATE BOARD OF EDUCATION LOTTERY REVENUE BONDS, SERIES 1998A:

The Division of Bond Finance of the State Board of Administration of Florida (the "Division") has submitted for approval as to fiscal sufficiency a proposal to issue Not Exceeding $125,000,000 State of Florida, State Board of Education Lottery Revenue Bonds, Series 1998A (the "Bonds") for the purpose of providing funds for the financing of the costs of classrooms and educational facilities. It is anticipated that the amended and restated Authorizing Resolution and the Sale Resolution for the Bonds will be adopted by the Governor and Cabinet on April 28, 1998.

The proposed Bonds shall be secured by a first lien upon the Pledged Revenues which are defined by the Authorizing Resolution as all revenues pledged pursuant to Section 24.121(2), Florida Statutes for bonds issued pursuant to Sections 235.187 or 235.2195, Florida Statutes.

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. #3)

AGENDA

April 28, 1998

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4. FLORIDA HURRICANE CATASTROPHE FUND:

(A) The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing the following rules for adoption to implement the 1998-1999 contract year: the amendment of Rule 19-8.010 to adopt the reimbursement contract for the 1998-1999 contract year; and new rules 19-8.024, regarding definitions for the 1998-1999 contract year, 19-8.025, regarding the 1998 premium formula, 19-8.026, regarding the 1998 insurer reporting requirements. The proposed new and amended rules were the subject of a rule development workshop on February 5, 1998, were approved by the Advisory Council for filing for notice on March 5, 1998, were approved by the Trustees to file for notice on March 10, were the subject of a rule hearing on April 16, were approved by the Advisory Council to file for adoption on April 16, and were not subject to any objections by the Joint Administrative Procedures Committee.

(B) The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing the following rule for repeal: Rule 19-8.008, as unnecessary. This rule recites that the Department of Insurance shall enforce any violation of Section 215.555 as if it were a violation of the Florida Insurance Code. This rule duplicates existing Section 215.555(10) and is therefore not needed. The Advisory Council approved filing the repeal of this rule for notice on March 5, 1998; there was no objection at the rule hearing on April 16; the Advisory Council approved filing for adoption on April 16; and there were no objections from the Joint Administrative Procedures Committee. (Backup to follow.)

5. REPORTS BY THE EXECUTIVE DIRECTOR:

Submitted for information and review are the investment performance and fund balance analysis for the month of March 1998. (Att. #4)