Transcript

AGENDA

MEETING OF THE
STATE BOARD OF ADMINISTRATION
(Contact Person: Dorothy Westwood - 488-4406)
THE CAPITOL
August 14, 2001

1. APPROVAL OF MINUTES OF MEETINGS HELD JUNE 12 AND 26, 2001. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $250,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY BONDS, 2001 SERIES [LETTER DESIGNATION(S) TO BE DETERMINED]:

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 $250,000,000 State of Florida, Full Faith and Credit State Board of Education Public Education Capital Outlay Bonds, 2001 Series [letter designation(s) to be determined] (the Bonds) for the purpose of financing capital outlay projects for the State System of Public Education in Florida; 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 will adopt on August 14, 2001 the Twenty-second Supplemental Authorizing Resolution authorizing the issuance of the Bonds. It is anticipated the Governor and Cabinet will adopt on August 14, 2001 a sale resolution for the Bonds.

The State Board of Education has heretofore issued Public Education Capital Outlay and Capital Outlay Refunding Bonds, Series 1985 through 2001 Series B of which $7,283,740,000 in principal amount was outstanding and unpaid on July 31, 2001. The State Board of Education received approval as to fiscal sufficiency on July 25, 2000 for $220,000,000 Public Education Capital Outlay Bonds, 2000 Series [letter designation(s) to be determined], of which $20,000,000 remains unissued. The State Board of Education has submitted for approval as to fiscal sufficiency not exceeding $300,000,000 Public Education Capital Outlay Refunding Bonds, 2001 Series [letter designation(s) to be determined], to be approved at the Board meeting of August 14, 2001. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay and Capital Outlay Refunding Bonds Series 1985 through 1992-A 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 security for payment from the Gross Receipts Taxes with the outstanding and unpaid Public Education Capital Outlay and Capital Outlay Refunding

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AGENDA
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Bonds, 1992 Series B through 2001 Series B and if issued, the approved $20,000,000 Public Education Capital Outlay Bonds, 2000 Series [letter designation(s) to be determined] and the proposed not exceeding $300,000,000 Public Education Capital Outlay Refunding Bonds, 2001 Series [letter designation(s) to be determined].

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 Board approve the fiscal sufficiency of the proposal outlined above. (Att. #2)

3. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $300,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS, 2001 SERIES [LETTER DESIGNATION(S) TO BE DETERMINED]:

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 $300,000,000 State of Florida, Full Faith and Credit State Board of Education Public Education Capital Outlay Refunding Bonds, 2001 Series [letter designation(s) to be determined] (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 Refunding Bonds, Series 1992-A; 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 will adopt on August 14, 2001 the Twenty-first Supplemental Authorizing Resolution authorizing the issuance of the Bonds. It is anticipated the Governor and Cabinet will adopt on August 14, 2001 a sale resolution for the Bonds.

The State Board of Education has heretofore issued Public Education Capital Outlay and Capital Outlay Refunding Bonds, Series 1985 through 2001 Series B of which $7,283,740,000 in principal amount was outstanding and unpaid on July 31, 2001. The State Board of Education received approval as to fiscal sufficiency on July 25, 2000 for $220,000,000 Public

STATE BOARD OF ADMINISTRATION
AGENDA
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Education Capital Outlay Bonds, 2000 Series [letter designation(s) to be determined], of which $20,000,000 remains unissued. The State Board of Education has submitted for approval as to fiscal sufficiency not exceeding $250,000,000 Public Education Capital Outlay Bonds, 2001 Series [letter designation(s) to be determined], to be approved at the Board meeting of August 14, 2001. The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay and Capital Outlay Refunding Bonds Series 1985 through 1992-A 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 security for payment from the Gross Receipts Taxes with the outstanding and unpaid Public Education Capital Outlay and Capital Outlay Refunding Bonds, 1992 Series B through 2001 Series B and if issued, the approved $20,000,000 Public Education Capital Outlay Bonds, 2000 Series [letter designation(s) to be determined] and the proposed not exceeding $250,000,000 Public Education Capital Outlay Bonds, 2001 Series [letter designation(s) to be determined].

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 Board approve the fiscal sufficiency of the proposal outlined above. (Att. #3)

4. APPOINTMENT OF INVESTMENT ADVISORY COUNCIL MEMBER. (Att. #4)

5. RECOMMENDATION TO REAPPOINT THE EXECUTIVE DIRECTOR OF THE FLORIDA STATE BOARD OF ADMINISTRATION (FSBA) FOR THE PERIOD OF JULY 1, 2001 THROUGH JULY 1, 2002.

Pursuant to Section 9 of Chapter 2001-235, Laws of Florida, the Executive Director of the FSBA must be annually reappointed by the Board of Trustees. Section 9 of Chapter 2001-235, Laws of Florida further specifies that a majority vote is required, and the Governor must vote on the prevailing side. This recommendation contemplates that the current Executive Director be reappointed and serve, unless discharged by a majority vote, until the next annual review, which will be scheduled for July of 2002. (Att. #5)

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6. THE STATE BOARD OF ADMINISTRATION REQUESTS THE APPROVAL OF THE FOLLOWING RULES FOR ADOPTION:

The State Board of Administration requests that the Trustees approve filing Rule 19-10.002 and 19-10.003 for adoption. Rule 19-10.002 provides true-up procedures for the asset transfers for the initial period of choice for public employees between the defined benefit plan and the defined contribution plan. Rule 19-10.003 provides procedures for new employees to choose or not to choose the defined contribution plan. A rule development workshop was held on January 23, 2001. Several comments were received and incorporated in the draft. The Trustees gave permission to file for notice at their meeting on May 15, 2001. The rule hearing was scheduled for June 18, 2001, but was not held because no one requested the hearing. The Joint Administrative Procedures Committee suggested a few technical changes which have been incorporated in the attached material. (Att. #6)

7. DC IMPLEMENTATION STATUS REPORT #11. (Att. #7)

8. REPORTS BY THE EXECUTIVE DIRECTOR:

Submitted for information and review is the Fund Activity Analysis for the months of April and May 2001. (Att. #8)

9. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS APPROVAL OF THE FOLLOWING RULE:

The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing of Rule 19-8.028, F.A.C. to adopt the premium formula for the 2001-2002 contract year. The proposed amended rule was the subject of a rule development workshop on January 16, 2001, was approved by the FHCF Advisory Council for filing for notice on March 28, 2001, was approved by the Trustees for filing for notice on May 30, 2001, was the subject of a Rule Hearing on July 9, 2001, and was approved by the FHCF Advisory Council for adoption that same day. (Att. #9)