Transcript

AGENDA

MEETING OF THE

STATE BOARD OF ADMINISTRATION

(Contact Person: Dorothy Westwood - 488-4406)

THE CAPITOL

May 30, 2001

1. Approval of minutes of meeting held May 15, 2001. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $50,000,000 STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION FLORIDA FOREVER REVENUE BONDS, SERIES 2001A:

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Department of Environmental Protection of Florida, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not Exceeding $50,000,000 State of Florida, Department of Environmental Protection Florida Forever Revenue Bonds, Series 2001A (the "Bonds.") The proceeds of the Bonds are to be used for the acquisition and improvement of land, water areas, and related property interests and resources to accomplish environmental restoration and enhance public access and recreational enjoyment in the State of Florida. The Governor and Cabinet adopted the Florida Forever Authorizing Resolution (the thirteenth Subsequent Resolution), which authorizes the issuance of the Florida Forever Bonds, at the Cabinet meeting of January 23, 2001. It is anticipated the Governor and Cabinet will adopt the fifteenth Supplemental Resolution authorizing the sale and issuance of the Bonds at the Cabinet meeting of May 30, 2001.

The Department of Environmental Protection has heretofore issued $3,402,615,000 Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1991A through 2000A of which $2,504,870,000 in principal amount was outstanding and unpaid on April 30, 2001. The proposed Bonds shall be issued on parity with the outstanding and unpaid Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1991A through 2000A and the authorized but unissued not exceeding $210,000,000 Preservation 2000 Revenue Refunding Bonds, Series (to be designated) as to source and security for payment.

The Bonds shall not be secured by a pledge of the full faith and credit or the taxing power of the State of Florida or any political subdivision thereof.

The estimate of funds pledged to the Bonds indicates that sufficient monies can be pledged to exceed the debt service requirements of the proposed issue and that in no State fiscal year will the monies pledged for the debt service requirement of the proposed issue be less than the required coverage amount.

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

SBA AGENDA

May 30, 2001

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3. THE STATE BOARD OF ADMINISTRATION REQUESTS THE FOLLOWING:

The staff of the State Board of Administration requests that the Trustees approve filing the Investment Policy Statement, which was approved at the Trustees meeting on February 27, 2001, in Rule 19-9.001 for adoption. The proposed rulemaking was the subject of an initial rule development workshop on October 13, 2000. The Investment Policy Statement was approved by the Trustees on September 26, 2000, and shortly thereafter became the subject of rule challenges by several parties. The rule was withdrawn on February 6, 2001.

The Trustees approved a revised version of the Investment Policy Statement on February 27, 2001, and again gave permission to file the rule for notice. In addition, at the February 27, 2001 meeting, the Trustees stated that no further rule development workshops were warranted. The rule hearing was held on April 3, 2001. Three changes are proposed as a result of the rule hearing. Those changes are contained in a Notice of Change which, upon the Trustees' approval, will be filed with the Secretary of State for publication in the Florida Administrative Weekly. (Att. #3)

(Note: A fully highlighted version of the various changes in the Investment Policy Statement since September 26, 2000 is available upon request.)

4. THE STATE BOARD OF ADMINISTRATION REQUESTS THE FOLLOWING:

Recommend the dissolution of any non-statutory based restrictions on the investment authority of the State Board of Administration. Furthermore, staff would be authorized to make the appropriate corresponding change to the Total Fund Investment Plan (TFIP) to reflect the elimination of these restrictions. (Att. #4)

5. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS APPROVAL OF THE FOLLOWING:

(A)The Florida Hurricane Catastrophe Fund requests, that pursuant to Section 215.555(5)(b), Florida Statutes, the Trustees approve the premium formula for the 2001-2002 Contract Year. The Advisory Council reviewed the premium formula on March 15, 2001, and approved it on March 28, 2001, with $10 million incorporated for mitigation expenditures. Final action on this item was deferred at the April 10, 2001 meeting of the Trustees due to uncertainty regarding the amount of mitigation dollars that would ultimately be appropriated by the Legislature. The item was again deferred at the May 15, 2001 SBA Trustees meeting. The premium formula has been revised to establish additional rates based upon the proposed 2001-2002 state budget, which includes $30 million for mitigation expenditures. The premium formula submitted provides rates for either level of mitigation funding contingent upon the final state budget. SBA staff are recommending that the Trustees approve both premium proposals and the Florida Hurricane Catastrophe Fund will implement the appropriate one after the Governor has acted on the Appropriations Bill – SB 2002. Relevant portions of SB 2002, showing the $30 million appropriated for mitigation and a copy of the Addendum to the March 15, 2001 Ratemaking Report have been previously provided.

SBA AGENDA

May 30, 2001

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(B) The Florida Hurricane Catastrophe Fund requests that the Trustees approve the filing of Rule 19-8.028, F.A.C. (2001 Premium Formula) for Notice of Proposed Rulemaking, a copy of which is attached hereto. Rule 19-8.028, F.A.C. was the subject of a rule development workshop on January 16, 2001, and, on March 28, 2001, the Advisory Council approved the 2001 Ratemaking Formula Report, the 2001 Rates, and the filing of Rule 19-8.028, F.A.C. for Notice of Proposed Rulemaking. (Att. #5-B)

Submitted for information and review is the Fund Activity Anaylsis for the month of March 2001. (Att. #6)