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

August 28, 1997

1. Approval of minutes of meeting held on August 12, 1997. (Att. #1)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN ISSUE OF NOT EXCEEDING $250,000,000 STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION TURNPIKE REVENUE REFUNDING BONDS, SERIES 1997A:

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 $250,000,000 State of Florida, Department of Transportation Turnpike Revenue Refunding Bonds, Series 1997A (the "Bonds") for the purpose of refunding a portion of the outstanding State of Florida, Department of Transportation Turnpike Revenue Bonds, Series 1989A, 1991A and 1992A. It is anticipated that on August 28, 1997 the Governing Board of the Division will adopt a resolution authorizing the sale of the Bonds.

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 the deduction of Cost of Maintenance and Cost of Operations. The tolls are required to be fixed, and adjusted if necessary, 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. #2)

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3. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S., AND APPROVAL OF NEGOTIATED SALE PURSUANT TO SECTION 159.613, F.S.:

The Housing Finance Authority of Volusia County, Florida (the "Authority") (the "Issuer") has submitted a request for approval of an interest rate exception and approval of negotiated sale on an issue of Not Exceeding $1,650,000 Housing Finance Authority of Volusia County, Florida, Multifamily Housing Subordinate Revenue Refunding Bonds, Series 1997C (the "Bonds.")

The Bonds are being issued, together with the Authority's Variable Rate Demand Multifamily Housing Revenue Refunding Bonds, Series 1997B ("Series 1997B Bonds") for the purpose of refunding a portion of the Authority's Multifamily Housing Revenue Bonds, Series 1985D (Ocean Oaks Apartments) (the "Project.") The Bonds will be secured by a mortgage encumbering the Project which will be junior and subordinate to any mortgage granted to the issuer of the letter of credit securing the Series 1997B Bonds. The Bonds are limited obligations of the Issuer and are payable solely from the revenues pledged to their payment. The Bonds do not constitute, within the meaning of any statutory or constitutional provision, an indebtedness, an obligation, or a loan of credit of the State of Florida, Volusia County, Florida, or any municipality, county, or other municipal or political corporation or subdivision of the State of Florida.

The Bonds will be privately placed as a single bond to an Accredited Investor (as defined in the Indenture) who delivers to the Issuer and the Trustee an Investor Letter (as required by the Indenture). The interest rate on the Bonds shall not exceed 8.50 percent per annum. The maximum interest rate for the month of August 1997 is 8.23 percent.

RECOMMENDATION: The Executive Director recommends that the Board approve the negotiated sale of the Bonds and authorize an interest rate Not Exceeding 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 Housing Finance Authority of Volusia County, Florida. 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

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(expressed or implied) with respect to, the accuracy or completeness of said information. (Att. #3)

4. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S., AND APPROVAL OF NEGOTIATED SALE PURSUANT TO SECTION 159.613, F.S.:

The Housing Finance Authority of Palm Beach County, Florida (the "Authority") (the "Issuer") has submitted a request for approval of an interest rate exception and approval of negotiated sale on an issue of Not Exceeding $3,000,000 Housing Finance Authority of Palm Beach County, Florida, Subordinate Series Multifamily Housing Revenue Refunding Bonds, Series 1997B (the "Bonds.")

The Bonds are being issued together with the Authority's Variable Rate Demand Multifamily Housing Revenue Refunding Bonds, Series 1997A ("Series 1997A Bonds"), for the purpose of refunding the Authority's Multifamily Housing Revenue Bonds, Series 1985H (Haverhill Commons Phase I Project) and Series 1985I (Haverhill Commons Phase II Project) (collectively, the "Project.") The Bonds will be secured by a mortgage on the Project which will be junior to the mortgage granted for the benefit of the holders of the Series 1997A Bonds. The Bonds are limited obligations of the Issuer and are payable solely from the revenues pledged to their payment. The Bonds do not constitute, within the meaning of any statutory or constitutional provision, an indebtedness, an obligation, or a loan of credit of the State of Florida, Volusia County, Florida, or any municipality, county, or other municipal or political corporation or subdivision of the State of Florida.

The Bonds will be privately placed by either William R. Hough & Co. as placement agent or Ambassador CRM Florida Partners Limited Partnership (the Project owner) to sophisticated investors who are able to deliver an "Investor Letter" (as defined in the Indenture) to the Issuer and the Trustee. The interest rate on the Bonds shall not exceed 8.50 percent per annum. The maximum interest rate for the month of August 1997 is 8.23 percent.

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Administration has relied upon certain information provided by the Housing Finance Authority of Palm Beach County, Florida. 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. #4)

5. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS THE TRUSTEES APPROVAL ON THE FOLLOWING ITEMS:

(1) The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing Rule 19-8.013 for adoption. This rule relates to the Fund's bonding program. The public hearing was held on July 23, 1997, and the Advisory Council approved filing the rule for adoption on August 20, 1997.

(2) The Florida Hurricane Catastrophe Fund requests that the Trustees approve filing proposed amendments to Rule 19-8.011 for notice. The rule establishes the Fund's loss reimbursement procedures and the proposed amendments relate to the payment of reimbursement. The workshop was held on August 13, 1997, and the Advisory Council approved filing the rule for notice on August 20, 1997. (Backup will be provided preceding meeting).