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

March 25, 1997

1. Approval of minutes of meeting held on February 25, 1997. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT TO EXCEED $15,000,000 FLORIDA HOUSING FINANCE AGENCY, HOUSING REVENUE BONDS, 1997 SERIES (TO BE DESIGNATED) (MAR LAGO VILLAGE PROJECT):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not to exceed $15,000,000 Florida Housing Finance Agency, Housing Revenue Bonds, 1997 Series (to be designated) (Mar Lago Village Project) (the "Bonds.")

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.

approve the fiscal sufficiency thereof. It is further recommended that,

pursuant to the fiscal sufficiency 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

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not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, any other aspect of this bond issue except for fiscal sufficiency. (Att. #2)

3. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT TO EXCEED $15,640,000 FLORIDA HOUSING FINANCE AGENCY, HOUSING REVENUE BONDS, 1997 SERIES (TO BE DESIGNATED) (RIVERFRONT APARTMENTS PROJECT):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not to exceed $15,640,000 Florida Housing Finance Agency, Housing Revenue Bonds, 1997 Series (to be designated) (Riverfront Apartments Project) (the "Bonds.")

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.

approve the fiscal sufficiency thereof. It is further recommended that,

pursuant to the fiscal sufficiency requirements of Subsection 16(c) of Article

the pledged revenues available for payment of such debt service requirements. The State Board Administration of Florida has relied upon information from others but has not independently verified the accuracy or completeness of such information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, any other aspect of this bond issue except for fiscal sufficiency. (Att. #3)

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4. APPROVAL OF FISCAL SUFFICIENCY OF ONE OR MORE SERIES IN AN AGGREGATE AMOUNT NOT TO EXCEED $202,000,000 FLORIDA HOUSING FINANCE AGENCY, HOMEOWNER MORTGAGE REVENUE BONDS, 1997 SERIES 1, 1997 SERIES 2, 1997 SERIES 3 AND 1997 SERIES 4 (AND IF SO DETERMINED, ADDITIONAL SERIES TO BE SUBSEQUENTLY DESIGNATED) PROVIDING FOR THE APPLICATION OF THE NET PROCEEDS OF THE BONDS FOR, AMONG OTHER THINGS, THE PURCHASE OF CERTAIN SINGLE FAMILY MORTGAGE LOANS IN ORDER TO FINANCE QUALIFIED RESIDENCES INTENDED FOR USE BY PERSONS OF LOW, MODERATE OR MIDDLE INCOME AND THE REFUNDING OF ALL OR A PORTION OF VARIOUS OUTSTANDING SERIES OF SINGLE FAMILY MORTGAGE REVENUE BONDS OF THE FLORIDA HOUSING FINANCE AGENCY:

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue one or more series in an aggregate amount Not to Exceed $202,000,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 1997 Series 1, 1997 Series 2, 1997 Series 3 and 1997 Series 4 (and if so determined, additional series to be subsequently designated) (the "Bonds") for the purpose of providing for the application of the net proceeds of the Bonds for, among other things, the purchase of certain single family mortgage loans in order to finance qualified residences intended for use by persons of low, moderate or middle income and the refunding of all or a portion of various outstanding series of single family mortgage revenue bonds of the Agency.

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.

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RECOMMENDATION: A study of this proposal and of estimates of

revenue and other available monies expected to accrue indicate the issue is fiscally sufficient, and the Executive Director recommends that the Board approve the fiscal sufficiency thereof. It is further recommended that, pursuant to the fiscal sufficiency 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

not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, any other aspect of this bond issue except for fiscal

sufficiency. (Att. #4)

5. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT TO EXCEED $9,900,000 FLORIDA HOUSING FINANCE AGENCY, HOUSING REVENUE BONDS, 1997 SERIES (TO BE DESIGNATED) AND NOT TO EXCEED $1,000,000 FLORIDA HOUSING FINANCE AGENCY, TAXABLE HOUSING REVENUE BONDS, 1997 SERIES (TO BE DESIGNATED) (CEDARS OF BAYMEADOWS AND EAGLES POINT NORTH PROJECTS):

The Division of Bond Finance of the State Board of Administration (the "Division"), on behalf of the Florida Housing Finance Agency, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not to Exceed $9,900,000 Florida Housing Finance Agency, Housing Revenue Bonds, 1997 Series (to be designated) and Not to Exceed $1,000,000 Florida

Housing Finance Agency, Taxable Housing Revenue Bonds, 1997 Series (to be designated) (Cedars of Baymeadows and Eagles Point North Projects) (the "Bonds.")

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RECOMMENDATION: A study of this proposal and of estimates of revenue and other available monies expected to accrue indicate the issue is fiscally sufficient, and the Executive Director recommends that the Board approve the fiscal sufficiency thereof. It is further recommended that, pursuant to the fiscal sufficiency 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

not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, any other aspect of this bond issue except for fiscal

sufficiency. (Att. #5)

6. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $300,000,000 STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION, PRESERVATION 2000 REVENUE BONDS, SERIES 1997:

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 Not Exceeding $300,000,000 State of Florida, Department of Environmental Protection, Preservation 2000 Revenue Bonds, Series 1997A (the "Bonds.") The proceeds of the Bonds are to be used to finance the acquisition of lands in Florida, for the purposes of outdoor recreation and natural resources preservation. It is anticipated the Governor and Cabinet will adopt on March 25, 1997 the fourth Subsequent Resolution authorizing the sale and issuance of the Bonds.

The Florida Outdoor Recreational Development Council, predecessor to the Department of Natural Resources, heretofore issued $20,000,000 State of Florida, Florida Outdoor Recreation Revenue Bonds, dated July 1, 1968, of which $2,700,000 in principal amount was outstanding and unpaid on February 23, 1997 (the "Prior Lien Obligations.") The Prior Lien Obligations have a first lien on the pledged revenues and the lien of the Preservation 2000 Revenue Bonds shall be junior, subordinate, and inferior to the claim of the Prior Lien Obligations against the pledged revenues.

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The Department of Environmental Protection has heretofore issued $1,800,000,000 Preservation 2000 Revenue Bonds, Series 1991A, 1992A, 1993A, 1994A, 1995A and 1996A of which $1,668,600,000 in principal amount was outstanding and unpaid on February 28, 1997. The proposed Bonds shall be issued on parity with the outstanding and unpaid Preservation 2000 Revenue Bonds, Series 1991A, 1992A, 1993A, 1994A 1995A and 1996A as to source and security for payment.

The Bonds shall not be secured by a pledge of the full faith and credit nor 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. #6)

7. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84 F.S.:

The Riverwood Community Development District (the "District") (Charlotte County, Florida), has submitted a request for authority to issue bonds at an interest rate Not to Exceed 8.50% for an aggregate amount Not to Exceed $12,980,000 Riverwood Community Development District, Special Assessment Revenue Refunding Bonds, Series 1997A and Riverwood Community Development District, Special Assessment Revenue Refunding Bonds, Series 1997B (collectively, the "Bonds.")

The Bonds are being issued for the purpose of refunding and restructuring debt service on the District's Special Assessment Revenue Bonds, Series 1992A and 1992B. The Bonds are primarily secured by and payable from non ad valorem assessments levied by the District pursuant to Chapter 170, Florida Statutes, on real property within the District deriving a benefit from the assessable improvements financed thereby. The Bonds are limited obligations of the District payable solely out of the amounts pledged therefor under the Indenture. Neither the property, the full faith and credit, nor the taxing power of the District, Charlotte County, Florida, the State of Florida, or any political subdivision thereof, is pledged as security for the payment of the Bonds. The Bonds do not constitute an indebtedness of the District,

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Charlotte County, Florida, the State of Florida, or any political subdivision thereof, within the meaning of any constitutional or statutory provisions or limitation.

The Bonds are expected to be sold via negotiated sale to Prager, McCarthy & Sealy at a private sale at an aggregate discount including underwriter's and original issue discount, estimated not to exceed 3.50%. The Bonds shall not be sold to the general public. The interest rate on the Bonds shall not exceed 8.50 percent per annum. The maximum interest rate for the month of March 1997 is 8.65 percent. The District intends to sell the Bonds in April 1997. Although the proposed rate of interest on the Bonds does not exceed the maximum interest rate in effect for March 1997, the District is requesting an authorization at 8.50% to insure they will be authorized to sell the Bonds in the event that the maximum rate for April 1997 drops below 8.50%.

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize a rate Not to Exceed 8.50 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 Riverwood Community Development District. 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. #7)

8. PROPOSED CHANGE IN THE TOTAL FUND INVESTMENT PLAN FOR THE FLORIDA RETIREMENT SYSTEM:

RECOMMENDATION: Approve proposed change to the Total Fund Investment Plan (to be effective August 1, 1997) t o revise the benchmark for Fixed Income reflecting the addition of high yield bonds to the portfolio. (Att. #8)

REPORTS BY THE EXECUTIVE DIRECTOR:

9. Submitted for information and review are the investment performance and fund balance analysis for the month of February 1997. (Att. #9)

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10. INLAND PROTECTION FINANCING CORPORATION:

The Inland Protection Financing Corporation requests that the Trustees, in their capacities as directors, hold a Board of Directors meeting of the Inland Protection Financing Corporation. This Corporation was created in Section 376.3075(1) by House Bill 1127 during the 1996 legislative session. A board meeting is necessary to disclose the selection of disclosure counsel for the bond issuance proposed in Section 376.3075 F.S. (Exhibit 1)

AGENDA

MEETING OF THE INLAND PROTECTION FINANCING CORPORATION

The Capitol

March 25, 1997

The Inland Protection Financing Corporation requests that the Trustees, in their capacities as directors, hold a Board of Directors meeting of the Inland Protection Financing Corporation. This Corporation was created in Section 376.2075(1) by House Bill 1127 during the 1996 legislative session. A board meeting is necessary to disclose the selection of disclosure counsel for the bond issuance proposed in Section 376.3075 F.S.

1. The Executive Director's representative will call Virginia Wetherell, Secretary of the Department of Environmental Protection, and Keith Carswell, Chairman of the Black Business Investment Board, to the podium and requests the Governor to call the Board of Directors meeting of the Corporation to order.

2. All the members of the Board of Directors being present, motion and second that the Board of Directors take the following action:

a. Selection of Bond Disclosure Counsel.

b. Direction to the Secretary to set out this action in the Minutes of the Corporation.

3. There being no further business, motion and second to adjourn the meeting.

EXHIBIT 1