MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

SEPTEMBER 9, 1998

1. Approval of minutes of meeting held on July 28, 1998. (Att. #1)

2. Approval of readoption of minutes of meeting held on July 14, 1998.

Due to a technical error in the July 14 transcript, please make the following correction:

On p. 8, line 8, strike "ten billion one hundred thousand dollar..." and insert "ten million one hundred thousand dollar..."

This dollar amount correction refers to the approval of fiscal determination of an amount not exceeding $10,100,000 Florida Housing Finance Corporation Revenue Bonds, 1998 Series (one or more series to be designated), for the College Park Apartments Project. (Att. #2)

3. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $230,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION, PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS, 1998 SERIES C (OR SUCH OTHER DESIGNATION AS MAY BE DETERMINED BY THE DIRECTOR OF THE DIVISION OF BOND FINANCE):

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 $230,000,000 State of Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Refunding Bonds, 1998 Series C (or such other designation as may be determined by the Director of the Division of Bond Finance) (the "Bonds") for the purpose of refunding a portion of the outstanding State of Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1992 Series B; 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. It is anticipated the Governor and Cabinet

AGENDA

September 9, 1998

Page 2

will adopt on September 9, 1998 the Fifteenth Supplemental Authorizing Resolution and the sale resolution authorizing the issuance and sale of the Bonds.

The State Board of Education 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, 1995 Series E, 1995 Series F, 1996 Series A, 1996 Series B, 1997 Series A, 1998 Series A and 1998 Series B of which $6,658,740,000 in principal amount was outstanding and unpaid on September 3, 1998. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid portion of the Series 1985, 1985-A, 1986-B, 1986-C, 1987-A, 1989-A, 1989-B, 1990, 1991-A, 1991-B, 1991-C and 1992-A 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 sec

urity 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, 1995 Series E, 1995 Series F, 1996 Series A, 1996 Series B, 1997 Series A, 1998 Series A and 1998 Series B.

A study of this proposal and the estimates of revenue expected to accrue from the Gross Receipts Tax, indicate that the proposed Bonds and all other outstanding bonds having a lien on the Gross Receipts Tax are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

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

4. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S., AND APPROVAL OF NEGOTIATED SALE PURSUANT TO SECTION 159.613, F.S.:

The Housing Finance Authority of Miami-Dade County, Florida (the "Authority") (the "Issuer") has submitted a request for approval of an interest rate exception and approval of negotiated sale on an issue of Not Exceeding $1,000,000 Housing Finance Authority of Miami-Dade County, Florida Multifamily, housing Subordinate Revenue Bonds, Series 1998B (the "Bonds.")

AGENDA

September 9, 1998

Page 3

The Bonds are being issued, together with the Authority's Multifamily Housing Revenue Refunding Bonds, Series 1998A ("Series 1998A Bonds") for the purpose of providing financing for the acquisition, construction and equipping of a 256 unit multifamily residential housing facility to be located in Miami-Dade County, Florida (Doral Terrace Apartments Project). The Bonds will be secured by a Subordinate Mortgage which will be subordinate to any mortgage securing the Series 1998A Bonds. The Bonds are not general obligations of the Issuer but are limited obligations payable solely from the trust estate pledged pursuant to the payment thereof and shall be a valid claim of the respective holders thereof only against the trust estate so pledged as aforesaid. Neither the State of Florida, Miami-Dade County, nor any agency or political subdivision thereof (other than the Issuer to the limited extent provided in the Indenture) shall be obligated to pay the principal and redemption price of the Bonds, the interest th

ereon or other costs incident thereto except from the trust estate. Neither the faith and credit nor the taxing power of the State of Florida, Miami-Dade County, or any agency or political subdivision thereof (including the Issuer) is pledged to the payment of the principal or redemption price of the Bonds or the interest thereon or other costs incident thereto.

The Bonds will be issued in minimum denominations of $100,000 and integral multiples thereof. The Bonds shall be sold only by limited private offering to one or more sophisticated investors who will be required to represent to the Authority that it is a sophisticated investor that is capable of assessing the risks and merits of investing in the Bonds and is capable of bearing the risk of loss associated with such an investment. Additionally, the Authority intends to restrict the transfer of the Bonds to sophisticated investors that can make similar representations. The interest rate on the Bonds shall not exceed 9.00 percent per annum. The maximum interest rate for the month of August 1998 is 8.16 percent.

RECOMMENDATION: The Executive Director recommends that the Board approve the negotiated sale of the Bonds and authorize an interest rate Not Exceeding 9.00 percent per annum. This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest rate exception, the State Board of Administration has relied upon certain information provided by the Housing Finance Authority of Miami-Dade County, Florida. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, the accuracy or completeness of said information. (Att. #4)

AGENDA

September 9, 1998

Page 4

5. BOARD APPROVAL OF THE PREPAID COLLEGE PROGRAM'S INVESTMENT GUIDELINES:

In compliance with Florida Statute 240.551 (6)(c) the State Board of Administration is required to approve of any changes to the Prepaid College Program's Comprehensive Investment Plan. On June 3, 1998, the Florida Prepaid College Board approved of changes to its plan. SBA staff has since reviewed the changes and recommends State Board approval. (Att. #5)

6. REPORTS BY THE EXECUTIVE DIRECTOR:

Submitted for information and review are the investment performance and fund balance analysis for the month of July 1998. (Att. #6)