The Governor and Cabinet - Florida Department of State

MEETING OF THE

FLORIDA STATE BOARD OF ADMINISTRATION

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

THE CAPITOL

TALLAHASSEE, FLORIDA

January 28, 2003

1. APPROVAL OF MINUTES FROM THE MEETING ON DECEMBER 11, 2002.

(Att. #1)

(ACTION REQUIRED)

2. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $237,600,000 STATE OF FLORIDA, FULL FAITH AND CREDIT STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY BONDS, 2001 SERIES [LETTER DESIGNATION(S) TO BE DETERMINED]:

(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 $237,600,000 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. The Bonds will be issued pursuant to an authorizing resolution adopted by the State Board of Education on July 21, 1992; the Twenty-second Supplemental Authorizing Resolution adopted August 14, 2001 and the amending and supplemental resolution adopted September 10, 2002; and a sale resolution adopted by the State Board of Education on January 21, 2003.

The State Board of Education has heretofore issued Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, Series 1985 through 2002 Series C of which $8,017,485,000 in principal amount was outstanding and unpaid on December 31, 2002. The State Board of Education has requested approval as to fiscal sufficiency for an amount not exceeding $175,000,000 Public Education Capital Outlay Refunding Bonds (series to be determined) (the Refunding Bonds) at the January 28, 2003 meeting of the State Board of Administration. 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

FSBA AGENDA

January 28, 2003

Page two

Series 1985 through 1989-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 Public Education Capital Outlay Refunding Bonds, 1992 Series C through 2002 Series C and, if issued, the proposed Refunding 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 $175,000,000 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 $175,000,000 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 1993 Series B 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 Twenty-Eighth Supplemental Authorizing Resolution and a sale resolution, both adopted by the State Board of Education on January 21, 2003.

FSBA AGENDA

January 28, 2003

Page three

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. 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 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 2002 Series C and, if issued, the proposed 2001 Bonds.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #3)

4. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $150,000,000 STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION FLORIDA FOREVER REVENUE BONDS, SERIES 2003A:

(ACTION REQUIRED)

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 $150,000,000 State of Florida Department of Environmental Protection, Florida Forever Revenue Bonds, Series 2003A (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 Twenty-first Subsequent Resolution authorizing the sale of the Bonds at the Cabinet meeting of January 28, 2003.

FSBA AGENDA

January 28, 2003

Page four

The Department of Environmental Protection has heretofore issued Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1993A through 2001A and Florida Forever Revenue Bonds, Series 2001A through 2002B of which a combined total of $2,649,890,000 in principal amount was outstanding and unpaid on December 31, 2002. The proposed Bonds shall be issued on a parity with the outstanding and unpaid Preservation 2000 Revenue and Revenue Refunding Bonds, Series 1993A through 2001A and the Florida Forever Revenue Bonds, Series 2001A through 2002B 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. #4)

5. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $19,570,000 TAX EXEMPT AND $450,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2002 SERIES (SERIES TO BE DESIGNATED) (PORTOFINO APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $19,570,000 Tax Exempt and $450,000 Taxable Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2002 Series (series to be designated) (the Bonds) for the purpose of financing the development and construction of a multifamily residential rental development located in Palm Beach County, Florida (Portofino 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.

FSBA AGENDA

January 28, 2003

Page five

RECOMMENDATION: A study of this proposal and of estimates of revenue and other available moneys expected to accrue indicate that the issue meets the requirements for the fiscal determination required by Section 420.509, Florida Statutes, as stated in Article VII, Subsection 16(c) of the revised Constitution of 1968, and the Executive Director recommends that the State Board of Administration of Florida (the Board) approve the fiscal determination thereof. 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 has relied upon information from others but has not independently verified the accuracy or completeness of such information. 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. #5)

6. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $8,700,000 TAX EXEMPT AND $115,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2003 SERIES (SERIES TO BE DESIGNATED) (ST. ANDREWS POINTE APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $8,700,000 Tax Exempt and $115,000 Taxable Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2003 Series (series to be designated) (the Bonds) for the purpose of financing the development and construction of a multifamily residential rental development located in St. Lucie County, Florida (St. Andrews Pointe Apartments).

RECOMMENDATION: A study of this proposal and of estimates of revenue and other available moneys expected to accrue indicate that the issue meets the

FSBA AGENDA

January 28, 2003

Page six

requirements for the fiscal determination required by Section 420.509, Florida Statutes, as stated in Article VII, Subsection 16(c) of the revised Constitution of 1968, and the Executive Director recommends that the State Board of Administration of Florida (the Board) approve the fiscal determination thereof. 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 has relied upon information from others but has not independently verified the accuracy or completeness of such information. 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. #6)

7. APPROVAL OF FISCAL DETERMINATION OF AMOUNTS NOT EXCEEDING $11,020,000 TAX EXEMPT AND $2,180,000 TAXABLE FLORIDA HOUSING FINANCE CORPORATION MULTIFAMILY MORTGAGE REVENUE BONDS, 2002 SERIES (SERIES TO BE DESIGNATED) (HAMPTON POINT APARTMENTS):

(ACTION REQUIRED)

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue amounts Not Exceeding $11,020,000 Tax Exempt and $2,180,000 Taxable Florida Housing Finance Corporation Multifamily Mortgage Revenue Bonds, 2002 Series (series to be designated) (the Bonds) for the purpose of financing the development and construction of a multifamily residential rental development located in Charlotte County, Florida (Hampton Point Apartments).

FSBA AGENDA

January 28, 2003

Page seven

1968, and the Executive Director recommends that the State Board of Administration of Florida (the Board) approve the fiscal determination thereof. 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 has relied upon information from others but has not independently verified the accuracy or completeness of such information. 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. #7)

8. ANTICIPATED DEFINED CONTRIBUTION AND EDUCATION PROGRAM COST REDUCTIONS. (Att. #8)

(DISCUSSION)

9. TOTAL FUND INVESTMENT PLAN PROPOSED CHANGES.

An FRS Asset Liability Study has been completed. The Study, which began in October 2002, resulted in recommended changes to the FSBA Total Fund Investment Plan. The principal work was done by FSBA's general consultant, Ennis, Knupp & Associates, and augmented by FSBA staff. The Study and recommendation were supported by Callan Associates, FSBA's investment consultant, and the Investment Advisory Council.

(Backup to follow.)

(ACTION REQUIRED)

10. 2003 FLORIDA HURRICANE CATASTROPHE FUND LEGISLATIVE PROPOSALS. (Att. #10)

(DISCUSSION)