AGENDA MEETING OF THE STATE BOARD OF ADMINISTRATION (Contact Person: Dorothy Westwood - 488-4406) THE CAPITOL February 10, 1998 1. Approval of minutes of meeting held on January 21, 1998. (Att. #1) 2. APPROVAL OF FISCAL SUFFICIENCY OF NOT EXCEEDING $375,000,000 STATE OF FLORIDA,
FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION CAPITAL OUTLAY BONDS, 1998 SERIES
A: The State Board of Education of Florida has submitted for approval as to fiscal
sufficiency a proposal to issue Not Exceeding $375,000,000 State of Florida,
Full Faith and Credit, State Board of Education Capital Outlay Bonds, 1998 Series
A (the "Bonds") for the purpose of financing the cost of capital outlay projects
for school purposes in certain school districts 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 State Board of Education has heretofore pledged the State Motor Vehicle
License Taxes distributable to the account of various School and Community College
Districts, pursuant to said School Capital Outlay Amendment, to the payment
of debt service on the Outstanding Capital Outlay Bonds, Series 1977-A, Series
1978-A, Series 1979-A, Series 1988-A, Series 1990-A and Series 1991-A heretofore
issued which bonds constitute a prior lien on the State Motor Vehicle License
Taxes. The Outstanding Capital Outlay Bonds, 1992 Series A, 1992 Series B, 1994 Series
A, 1995 Series A, 1996 Series A, 1996 Series B, and 1997 Series A heretofore
issued and the Bonds proposed to be issued shall rank equally and be on a parity
in all respects as to lien on and source and security for payment AGENDA February 10, 1998 Page two 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. #2) 3. PROPOSED CHANGE IN THE TOTAL FUND INVESTMENT PLAN FOR THE FLORIDA RETIREMENT
SYSTEM: Consistent with the directive from our Trustees to divest tobacco holdings,
the attached modification to our total fund investment plan was proposed at
the October 8, 1997 IAC meeting. The single change is on page five, where the
performance benchmark for Domestic Equities is changed from the Wilshire 2500
to the Wilshire 2500 excluding tobacco-related companies. For performance measurement purposes, the change was recommended to take effect
retroactively to June 1997, the month in which the bulk of the divestitures
occurred. For your information the attached memo from Karen Matthews dated September
17, 1997 delineates the 16 specific companies to be excluded. (Att. #3) 4. REPORTS BY THE EXECUTIVE DIRECTOR: Submitted for information and review are the investment performance and fund
balance analysis for the months of November and December 1997. (Att. #4) AGENDA February 10, 1998 Page three 5. 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. A board meeting is necessary to report the award of $253,335,000 Inland Protection Financing Corporation Special Obligation
Bonds, Series 1997. (Exhibit 1) MEETING OF THE INLAND PROTECTION FINANCING CORPORATION The Capitol February 10, 1998 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. A board meeting is necessary to report the
award of $253,335,000 Inland Protection Financing Corporation Special Obligation
Bonds, Series 1997. 1. The Executive Director 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. Report of award of $253,335,000 Inland Protection Financing Corporation
Special Obligation Bonds, Series 1997, to the low bidder for such bonds. The Inland Protection Financing Corporation was authorized to receive bids
for these bonds and award them to the low bidder, by resolution adopted by the
Board of Directors of the Inland Protection Financing Corporation. Bids for
the bonds were received at the office of the Division of Bond Finance at 12:00
noon, Wednesday, January 21, 1998, and the bonds were awarded to Morgan Stanley
& Co., Inc., which submitted a bid at an annual true interest cost rate
of 4.0097%. The bonds are scheduled to be delivered on February 11, 1998. A report and tabulation of bids received is attached. (Att. #1) 3. There being no further business, motion and second and adjourn the meeting. EXHIBIT 1