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

December 8, 1998

1. Approval of minutes of meeting held on November 24, 1998. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN ISSUE OF NOT EXCEEDING $350,000,000 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 Exceeding $350,000,000 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 on September 24, 1991, June 8, 1993, March 29, 1995, January 23, 1996, June 25, 1996 and December 16, 1997. It is anticipated the Governing Board of the Division will adopt a resolution authorizing the sale of the Bonds on December 8, 1998.

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, 1995, 1996, 1996 Refunding, 1997A and 1997B.

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.

AGENDA

December 8, 1998

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RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #2)

3. A RESOLUTION OF THE STATE BOARD OF ADMINISTRATION APPROVING THE FISCAL SUFFICIENCY OF NOT EXCEEDING $130,000,000 STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION TURNPIKE REVENUE BONDS, SERIES 1999A:

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 $130,000,000 State of Florida, Department of Transportation Turnpike Revenue Bonds, Series 1999A (the "Bonds") to fund various Turnpike Projects. It is anticipated that the Governing Board of the Division will adopt a resolution authorizing the sale of the Bonds on December 8, 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 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. (Att. #3)

4. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $14,500,000 TAX EXEMPT AND $500,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 1998 SERIES (SERIES TO BE DESIGNATED) (WHISTLER'S COVE APARTMENTS PROJECT):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $14,500,000 Tax exempt and $500,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 1998 Series (series to be designated) (the "Bonds") for the purpose of financing the construction and equipping of a multifamily residential rental development located in Collier County, Florida (Whistler's Cove Apartments Project).

AGENDA

December 8, 1998

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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: A study of this proposal and of estimates of revenue and other available moneys expected to accrue indicate that the issue meets the requirements for the fiscal determination required by Section 420.509, Florida Statutes, as stated in Article VII, Subsection 16(c) of the revised Constitution of 1968, and the Executive Director recommends that the State Board of Administration of Florida (the "Board") approve the fiscal determination thereof. 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 has relied upon information from others but has not independently verified the accuracy or completeness of such information. The Board does not assume 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 AMOUNTS NOT EXCEEDING $11,880,000 TAX EXEMPT AND $200,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 1998 SERIES (SERIES TO BE DESIGNATED) (WESTBROOK APARTMENTS PROJECT):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $11,880,000 Tax exempt and $200,000 Taxable Florida Housing Finance Corporation Housing Revenue Bonds, 1998 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 (Westbrook Apartments Project).

AGENDA

December 8, 1998

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6. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $10,725,000 FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 1998 SERIES (SERIES TO BE DESIGNATED) (BUCHANAN BAY APARTMENTS PROJECT):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount Not Exceeding $10,725,000 Florida Housing Finance Corporation Housing Revenue Bonds, 1998 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 (Buchanan Bay Apartments Project).

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December 8, 1998

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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 has relied upon information from others but has not independently verified the accuracy or completeness of such information. The Board does not assume 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. #6)

7. APPROVAL OF ADDITION TO PROXY VOTING GUIDELINES: Method of tabulating votes (Abstentions): Vote FOR

These proposals generally ask the company to exclude abstention votes in the totals of proxy tabulations. The SBA does not support the inclusion of abstention votes in voting totals. The SBA believes that abstention votes are used by shareholders not as a passive way of voting against a proxy issue but rather as a way to vote shares without taking a particular position on a proposal. Shares voted as abstentions should not be confused with proxies not voted-the former is a deliberate vote to abstain, the latter is not a vote at all. (Please refer to page 13 in the FY98 Annual Report on Corporate Governance. (This report will be forwarded preceding meeting.)

8. APPOINTMENT OF INVESTMENT ADVISORY COUNCIL MEMBER:

9. REPORTS BY THE EXECUTIVE DIRECTOR:

A. Submitted for information and review are the investment performance and fund balance analysis for the month of October 1998. (Att. #9A)

B. FY98 Annual Report on Corporate Governance (informational item).