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AGENDA

 

MEETING OF THE

 STATE BOARD OF ADMINISTRATION

(Contact Person:  Dorothy Westwood - (850) 488-4406)

THE CAPITOL

TALLAHASSEE, FLORIDA

MAY 28, 2003

 

1. APPROVAL OF MINUTES FROM THE MEETING ON MAY 13, 2003.

(Att. #1)

 

(ACTION REQUIRED)

 

2.          APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $240,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS, (SERIES TO BE DETERMINED):

 

(ACTION REQUIRED)

 

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 $240,000,000 State of Florida, Full Faith and Credit, State Board of Education Public Education Capital Outlay Refunding Bonds, (series to be determined) (the Bonds) for the purpose of refunding all or a portion of the outstanding 1994 Series C Bonds; 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.  The Bonds are being issued pursuant to an authorizing resolution adopted by the State Board of Education on July 21, 1992, and the Thirtieth Supplemental Authorizing Resolution and a sale resolution, both of which are anticipated to be adopted by the State Board of Education on May 20, 2003.

 

The State Board of Education has heretofore issued Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, Series 1985 through 2003 Series A of which $8,715,165,000 in principal amount was outstanding and unpaid on April 30, 2003.  The State Board of Education has received approval as to fiscal sufficiency for an amount not exceeding $237,600,000 Public Education Capital Outlay Bonds, 2001 Series [letter designation(s) to be determined] (the "2001 Bonds") at the January 28, 2003 meeting of the State Board of Administration, of which $112,600,000 remains unissued.  The proposed Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds Series 1985 through 1989-A as to lien  on  and  source  and  security  for  payment  from  the  Gross Receipts Taxes.  The

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May 28, 2003

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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 Public Education Capital Outlay Refunding Bonds, 1992 Series C through 2003 Series A and, if issued, the approved 2001 Bonds. 

 

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 $44,630,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION CAPITAL OUTLAY BONDS, 2003 SERIES A:

 

(ACTION REQUIRED)

 

The State Board of Education of Florida has submitted for approval as to fiscal sufficiency a proposal to issue Not Exceeding $44,630,000 State of Florida, Full Faith and Credit, State Board of Education Capital Outlay Bonds, 2003 Series A (the Bonds) for the purpose of financing the cost of capital outlay projects for school purposes for various school and community college districts.

 

The State Board of Education is authorized to issue bonds pledging the full faith and credit of the State payable primarily from funds provided in Subsection (d) of Section 9 of Article XII of the Constitution of Florida, as amended (the School Capital Outlay Amendment), for the purpose of providing funds to finance capital outlay projects for school purposes in the manner provided therein, upon the application of the School Boards of the School Districts of the State, and the Boards of Trustees of the Community College Districts of the State.

 

The Bonds are being issued pursuant to the Fourteenth Supplemental Authorizing Resolution adopted by the State Board of Education on April 15, 2003.  The State Board of Education adopted a sale resolution authorizing the sale of the Bonds on April 15, 2003.

 

The State Board of Education of Florida has heretofore issued Capital Outlay Bonds, 1992 Series B through 2002 Series B of which $896,955,000 in principal amount was outstanding and unpaid on April 30, 2003.  The Outstanding Capital Outlay Bonds, 1992 Series B through 2002 Series B heretofore issued, and the Bonds proposed to be

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May 28, 2003

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issued, shall rank equally and be on a parity in all respects as to lien on and source and  security  for  payment  from  the State Motor Vehicle License Taxes distributable

for the account of certain School Districts and Community College Districts in Florida, under the provisions of said School Capital Outlay Amendment.

 

A study of this proposal and the estimates of revenue expected to accrue from the Motor Vehicle License Taxes indicate that the proposed Bonds and all other outstanding bonds having a lien on the Motor Vehicle License Taxes 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.      APPROVAL OF THE FISCAL DETERMINATION OF AGGREGATE AMOUNTS NOT EXCEEDING $50,000,000 FLORIDA HOUSING FINANCE CORPORATION HOMEOWNER MORTGAGE REVENUE BONDS, 2003 (MULTIPLE SERIES TO BE DETERMINED) AND $65,000,000 FLORIDA HOUSING FINANCE CORPORATION HOMEOWNER MORTGAGE REVENUE BONDS, 2003 (MULTIPLE SERIES TO BE DETERMINED):

 

(ACTION REQUIRED)

 

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue aggregate amounts Not Exceeding $50,000,000 Florida Housing Finance Corporation Homeowner Mortgage Revenue Bonds, 2003 (multiple series to be determined) and $65,000,000 Florida Housing Finance Corporation Homeowner Mortgage Revenue Bonds, 2003 (multiple series to be determined) (together, the Bonds) for the purpose of providing funds for (i) the origination or purchase of low interest rate mortgage loans to be made to low, moderate or middle income persons or families financing existing or newly constructed single family residential housing or the purchase of obligations secured by such mortgage loans and (ii) refunding the Corporation's Federal Home Loan Bank Liquidity Advance Line (the LAL) to allow the funds invested under the LAL to be invested under more advantageous terms.

 

The Bonds shall not constitute obligations, 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 the 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

 

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shall be payable as to principal, premium (if any), and interest solely out of revenues and other amounts pledged therefor.

 

RECOMMENDATION:  It is recommended that the Board approve the fiscal determination  of  the  proposal  outlined  above.  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 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 AN AMOUNT NOT EXCEEDING $12,200,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (THOMAS CHASE APARTMENTS):

 

(ACTION REQUIRED)

 

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount not exceeding $12,200,000 Tax Exempt Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 Series (series to be designated) (the Bonds) for the purpose of financing the construction and equipping of a multifamily residential rental development located in Duval County, Florida (Thomas Chase Apartments).

 

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:  It is recommended that the Board approve the fiscal determination of the proposal outlined above.  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 does not assume

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May 28, 2003

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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. #5)

 

6. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS CONSIDERATION OF THE FOLLOWING:

 

(ACTION REQUIRED)

 

6.1. The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing Rule 19-8.028, F.A.C. (Reimbursement Premium Formula) for adoption.

 

This rule was the subject of a rule development workshop on January 9, 2003, a rule hearing on May 20, 2003 and, also on May 20, 2003, the Advisory Council approved the filing of Rule 19-8.028, F.A.C. along with the forms incorporated therein, for adoption.

 

A copy of the proposed amended rule (without the incorporated forms previously approved by the Trustees on April 8, 2003) is attached hereto.  (Att. #6.1)

 

6.2.  The Florida Hurricane Catastrophe Fund requests that the Trustees approve the determination of claims paying capacity for the 2003 contract year as recommended by the Florida Hurricane Catastrophe Fund Advisory Council on May 20, 2003.  (Backup to follow)