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STATEMENT TO THE JOINT SENRTE AND HOUSE
COMMITTEE STUDYING THE ISSUANCE AND SALE
OF REVENUE BONDS 0R CERTIFICATES IN THE
STATE OF FLORIDA.
The Board of Administration functions in a number of
capacities. We have been an issuer of bonds or refunding
bonds on behalf of the several counties. We have assisted
in the formulation of funding programs of the Florida
Development Commission. The Board has not only sold bonds
as an issuer, but has sold bonds from the portfolios of
the various funds. The Board administers and manages the
debt of the several bond issues described hereafter. The
Board is Florida's largest investor. Acting in these sev-
eral capacities becomes complicated at times but is most
helpful in gaining an understanding of the over-all bond
program of the State. We have been asked to participate
in areas that are not within our legal area of responsi-
bility or administrative authority. we have done so will-
ingly. We have tried to be constructively helpful. We
have tried not to offend. we have tried in every way to
fulfill our responsibilities in keeping with our consti-
tutional responsibility to the people of Florida.
I will give you a brief historical review of the
State Board of Administration, describing its areas of re-
sponsibility and authority and describing its functions
and procedures in relationship to the different facets of
its operations and activities. Any opinions I might ex-
press are personal opinions and do not necessarily reflect
the opinions of the Board or its respective members.
The Board of Administration was created by statute in
1929, and assumed the responsibilities of counties and the
several road and bridge districts of the State in regard
to some 600 issues of road and bridge bonds which were
assumed by the Board and paid from gas tax revenues.
In lghl the legislature passed a constitutional amend-
ment providing for the dedication for a period of fifty
years from January 1, 19u3. of the constitutional two-cents
second gasoline tax to be paid monthly to the State Board
of Administration, which was created by the amendment, and
consisted of the Governor, as Chairman, the State Treasurer
and the State Comptroller. This constitutional amendment
was voted on in the General Election of 19h2 and the Board
was organized and began operation in January 19u3. At the
time of the organization of the constitutional Board there
was approximately $16h,000,000 of principal debt outstand~
ing, consisting of bonds of the several counties and spe-
cial road and bridge districts issued prior to July 1.
1931, or refunding issues thereof. These debts were pay-
able from the proceeds of the constitutional two-centa
second gasoline tax allocated to the counties according to
the formula spelled out in the constitutional amendment
(Section 16. Article IX). This debt has decreased from the
original $164,000,000 of principal outstanding to the
present amount of $17,865,000 as of April 1, 1963-
Through the years there has been an increasing need to
finance road and bridge improvements in this State by the
issuance of revenue bonds or certificates. This was done
by the issuance of fuel tax anticipation certificates sold
by the State Board of Administration on behalf of the State
Road Department and the State Road Department has issued
fuel tax anticipation certificates on behalf of the several
counties, but the bulk of the bonds have been issued by the
Florida State Improvement Commission and its statutory suc-
cessor, the Florida Development Commission. The present
volume of debt payable from the surplus gasoline tax money
is limited to those issues of the Florida Development Com-
mission and its statutory predecessor. together with a few
bonds being paid under lease-purchase agreements between
the State Road Department and the respective county or dis-
trict. This latter type of debt represents a very small
percentage of the $197,339,000 principal debt outstanding
today.
In the development of a new or proposed road or bridge
issue the following steps are taken:
The Board of County Commissioners of a county requests
a determination of bond funding potentials and an estimate
of project construction costs.
The Board of Administration makes an analysis of debt
outstanding and determines approximate limitations of
potential financing.
The Road Department makes a cost analysis of the pro-
posed proJect to determine whether the two factors of cost
and financing potential are compatible. If this is the
case and the county wishes to proceed, the County Board re-
quests the Florida Development Commission to issue X dollars
volume of bonds for the financing of certain
specific projects. The Development Commission
prepares the bond authorizing resolutions.
lease-purchase agreements, etc.. in cooperation
with the Board of Administration and the State
Road Department. The Board of Administration
in the formulation of a debt retirement schedule
prepares a complete analysis of outstanding debt,
suggesting and recommending a financial structure
for the proposed issue. It is necessary to take
such factors into consideration as general market
conditions, rating bureau requirements and in-
vestor requirements. We attempt in every way to
develop a sound fiscal program on a conservative
basis that can be sold at the lowest possible
interest cost. The issues of bonds issued to
finance road and bridge projects have pledged the
surplus second gasoline tax. tolls, a combination
of the gas tax and tolls, and in one instance by
special statutory authority, a combination of
tolls. gas tax and the full faith and credit of
a road district.
There have been revenue financing programs
payable from rentals for the construction of
public buildings. These include such projects
as Highway Patrol Stations, Welfare Buildings,
State Citrus Commission Building, Agriculture
and Livestock Markets, and on behalf of the
Board of Control, University Building facili-
ties, and on behalf of the Board of Commission
ers of State Institutions, State Office Build-
ings.u The State Board of Education under
Section 18 of Article XII of the Constitution,
receives certain proceeds of motor vehicle
license tag money, based on a fixed formula.
Their bonds are generally very well recognized
and are rated A by Moody's Investor Service
and AA by Standard and Poor's. The State
Board of Education has marketed these bonds
over a period of the last ten years with very
good buyer reception. The financing program
of the Board of Education, on behalf of the
several counties, started in l95h, with a
$15,000,000 principal outstandi at July lst
of that year. As of April 1, l 3, this has
increased to $120,230,000.
*Prior to vali-
dation all
resolutions
are officially
adopted by
Boards of
County Commie-
sioners,
Florida Devel-
opmcnt Commis
sion, and
State Road De-
partment. .
State Board of
Administration
officially en-
proves the
legal and fis-
sal suffi-
ciency of all
Florida Devel-
opment Commis-
sion issues.
(See also ")
*The State Board of Administration ad-
ministers the debt of all of the bond issues
referred to above, receiving the moneys, in-
vesting the sinking funds of the several issues,
sending the moneys to the paying banks to meet
maturities, verifying and reconciling the paid
bonds and coupons when they are returned by the
paying banks with the fund balances in the
paying banks.
There is before this session of the legis-
lature a proposal to grant authority on a per-
missive basis to the Board of Control to dele-
gate its responsibility for the administration
of debt or debt management or its issues to the
State Board of Administration. It is my under-
standing that the Board cr Control has considered
this proposal and intends to utilize the authority
if it is granted. The Board of Control has issued
bonds pledging dormitory rentals, student building
fees, athletic activities and student health fees.
The Board of Administration has an active
investment program for the investment of the
sinking funds of the various bond issues, or
construction trust funds of the various bond
issues, and for the investment or various other
trust funds of the several agencies. Each fund
presents investment objective problems unique
unto itself. We are bound by the terms and con-
ditiLns in each sinking fund to those spelled
out in the bond authorizing resolution. In gen-
eral terms that would apply to all such funds,
our main objectives are the preservation of
principal, achieving the maximum earnings for
the funds, and to maintain prudent investment
liquidity to meet fund requirements. I respect-
rully submit for your information, a schedule
reflecting the net income on investments of
this type during the past twenty years. You
will note that some 12-1/2 million dollars in-
come has been realized since July 1, 1957. This
reflects a net saving of interest costs to the
issues involved in the same amount.
The Board has pursued a conservative, yet
agressive investment program. striving for im-
provement of both quality and earnings. One of
Bxplanation of
schedule or
principal debt
outstanding
during past 10
years.
*Explsnation of
statement of
net income on
investments -
past 20 years.
The road and
bridge debt has
shown a consist-
ent pattern of
growth through-
out the period.
$6 million
earned in last
year and 9
months.
the big problems was the element of time. It
has been necessary to streamline procedures not
only within the Board of Administration. but in
offices of the State Comptroller, State Treasurer,
the Development Commission, the State Road Depart-
ment, the Board of Control, the Board of Commis-
sioners of State Institutions. or any other Board
for whom bonds might be issued. With the support
and cooperation of the entire State Cabinet, we
were able to secure the serious attention of all
agencies and departments involved in the detailed
processing of the funds. A typical example is
the delivery of an issue or bonds by the Develop-
ment Commission who receives the money in New York.
The proceeds are deposited to their credit in the
State Treasurer's account. The State Treasurer's
Office in Tallahassee receives an advice of the
deposit and processes a statement to the State
Comptroller. who in turn advises the Florida
Development Commission that the money is avail-
able. The Development Commission can then draw
on the funds. making the distribution to the State
Road Department, and possibly, to the Board of
Administration to meet the requirements of the
authorizing resolution. After the drawing of a
warrant and its transmittal to and receipt by the
State Road Department, they in turn deposit the
funds. After a period of accounting, it then
becomes available for withdrawal by the State Road
Department and transmission to the Board of
Administration for investment.
We haVe developed a time-saving game. This
is a serious game to us. It is one of saving
time and ore-planning and pre-processing all of
these vouchers so that when the funds are received
on the physical delivery of bonds in New York, all
of these processes planned in advance are accom-
plished simultaneously and the funds made available
to the Board of Administration the day after delivo
cry of the bonds in many instances.* We pay special
tribute to the staff or the State Comptroller and
to the State Treasurer for their assistance in this
work. The time saved when money is originally
credited to the State is only one instance or time
saved. Many of the short-term investments roll over
several times each year. When we save from one to
five or six weeks in each instance it soon becomes
apparent that great savings are made or additional
earnings are possible.
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1"This has
not exceeded
three (3)
days since
acceler-
ated pro-
gram
initiated.
In handling the investment of the funds, time becomes
very important. In order to take advantage of market con-
ditions to improve the earnings capacity of the funds it
is necessary to achieve the maximum of flexibility; when
the time is right action must be taken without delay. This
is not Just desirable but is a must.
The 1957 legislature conveyed to the State Board of Ad-
ministration the investment authority previously vested by
law in the several State agencies, departments, boards and
commissions. This Act, for all practical purposes, dealt
mainly with permanent trust fund investments. Most of the
added investment activityis confined to the pension fund
portfolio management. I submit for your information. a
flow chart which explains and pictures the steps taken in
the investment of these funds. (Explain flow chart). At
July 1, 1957, the average yield of these permanent trust
funds was 2.97%.
There were several major steps necessary in the improve-
ment of these investment portfolios. The Board engaged in an
active program of buying and selling U. 8. Treasury obliga-
tions, taking advantage of changing market conditions and
improving the yield to the funds. Some $30,000,000 in low-
yielding municipal bonds were sold from the investment port-
folios. This was done taking into consideration the market-
ing by the counties or by the State Board of Education cfbonds
of similar nature. We did not compete with the new issues
market. The bonds were sold at an over-all profit to the
funds, but of more importance is the reinvestment of the pro-
ceeds of the sale in higher-yielding U. 3. Treasury obliga-
tions or in corporate bonds which were authorized by the
1961 legislature. The 1961 session authorized the Board to
invest not more than 25$ of any fund, based upon the par
value, in corporate bonds rated by two nationally recognised
rating services in any one of the three highest of the four
classifications which are eligible as investments for
national banks. In the implementation of this authority,
the Board was more conservative. It established a policy of
buying c.rporate bonds of only the two highest classifica-
tions and the present corporate portfolio totaling approxi-
mately $57,000,000. is comprised of h5$ AAA rated bonds. and
555 AA rated bonds of well known U. S. carporations. Because
cf the narrow yield spread differential between corporate
bonds and U. 3. Treasury obligations the Board has not pur-
chased corporatc bonds since the first of August, 1962. There
was a proposal made to this session of the legislature to in-
crease the percentage of corporate bonds from 25% to 50$ of
any portfclio. It is hoped that the legislature will see fit
-6-
to grant this request. I submit for your infor~
mation a schedule reflecting the yield improvement
of the several pension funds from June 30. 1960 to
M3rh 31. 1963. In considering this schedule, it
should be borne in mind that the average yield of
these funds was 2.97% at July 1. 1957. It should
also be remembered that an improvement of 1% in
yield offsets 25% to 30% of the cost of benefits
granted under our retirement program. The better
than 1% improvement that has been accomplished dur-
ing the period from July 1, 1957 represents a sub-
stantial saving to the State of Florida in meeting
this liability of retirement benefits.
The Board could have shown a statistical
picture improved beyond that which you have been
given had it been willing to sacrifice the over-
all investment objectives and had looked for
immediate results rather than a greater improve-
ment of the fund both in quality and yield over
a long period of years.
As in chess or checkers. many potential in-
vestment moves are set up early in the game. There
are numerous potential transactions that will
either be executed by us in the future or by those
who follow us, depending entirely on market
conditions.
The band program of Florida is not unlike a
ball game. It looks different to the spectator
in the bleachers than it does to the coach on the
bench, or to the player who didn't play and con-
sequently, did not have to make the decision, or
to the official who calls the man safe or out, or
to the ball player who is actually in the ball
game. We do the best Job that we can with the pro-
gram under the legal authority granted by the
legislature and by the people of Florida.
Revenue bond financing at its best. is the
most expensive type of public financing. "Con-
stitutional Restrictions Against State Debt are
not unique to Florida. We have the company of
many States. I call your attention to the tables
on pages 38, 39, no and #1. I suggest that the
book referred to be considered carefully. "In-
tegrity" is the basis of all financing. The
securities business is the only business or pro
fession, to my knowledge. where transactions
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l"The legis-
lative and
actuarial
study has
placed em-
phasis on
the need
for reme-
dial meas-
ures to meet
the finan-
cial liabil-
ity posed by
retirement
benefits in
future years.
The yield im-
provement
made in the
past two
years repre-
sents addi-
tional in-
come exceed-
ing $18 mil
lion in next
20 years.
*Constitu-
tional re-
strictions
against
State debt.
involving large sums of money are consumated
by verbal agreement and fulfilled to the
letter. There are no secrets in a sound bond
financing program and it, Just as we. must stand
the light of day and the closest scrutiny. We
in the Board of Administration in all of our
functions, for all intent and purposes, operate
in a goldfish bowl.*
I respectfully suggest that the committee
consider recommending the elimination of the
constitutional prohibition against public debt
and authcrizing the issuance of bonds in this
order of preference:
(1) Pledging the full faith and credit of
the State of Florida;
(2) Authorizing the issuance of bonds by
constitutional authority with a secondary pledge
of the full faith and credit of the State;"
(3) Authorize the issuance of bonds by
statutory authority with a secondary pledge of
the full faith and credit of the State.
In recommendations 2 or 3 above, whether
the bonds to be issued by constitutional or
statutory authority, they properly should con-
tain checks and balances for the approval of the
issuance of any specific issue of bonds to insure
the fiscal integrity of the issue in question
making certain that the coverage is ample to
insure its ability to stand on its own feet and
be paid from its own source cf revenue. The
secondary pledge of the full faith and credit
of the State should be considered in its true
light, in proclaiming to all. that the State of
Florida does acknowledge these bonds as an obli-
gation of the State and that the integrity of the
State is behind them. On behalf of the legisla-
ture and the peeple of Florida, the checks and
balances written into the constitutional or
statutory authority should insure that there is
little or no likelihood of the secondary pledge
ever being required.
authorquali-
fied book pro-
fessional in
approach but
written in a
clear and
understandable
manner.
There are
points which
are debatable
but the broad
conclusions
are irrefu-
table. (Read
summary cf
conclusions.)
*In handling
public funds
as we do ~
this is as it
should be.
*9An example of
such bonds is-
sued subject
to authorisa-
tion by consti-
tution is the
State Board of
Education type
of bond.
If favorable consideration is given to recommendation
No. l or 2, I feel that we can conservatively estimate that
the major part of all of the outstanding debt administered
by the Board could be refunded at an interest saving of
$30,000,000 or more.
If it is the wish of the legislature and the people of
Florida, we can continue to participate in the issuance of
revenue bonds, paying a premium of higher interest costs.
It appears inconsistent to me to be acting in a trust capac-
ity in the investment or trust funds and to be constantly
striving for the maximum earnings, and improvement to the
quality of the investment portfolio, and on the other hand
seeing the State or Florida continue to issue revenue bonds
and paying the unnecessary cost for doing so.
E. 0. Rolland
Executive Director
State Board of Administration
April 2, 1963.
PAGE 1
STATENENI' 20 Taif JCU:T SENJa /3D HOUSE COMMITTEE SEDYIIIG THE IEUANCE AND SALE OF REVEWE ElmiDS OR CERTIFICATES IN THE STATE OF FLCGIT:A. TJte Board of Administration funettons in a riumber of en laCiales .'n have been all iggiger of bGrida er refuridirbaride...n behalf of the several eart ide .We i-ve assisted 10 t-r.c femul;ttir:n er fur:ding prTTEin of the Florida Develop-lem. emmaien. The Board has n--t only sold bade ela F-.n issuer, be has cold bonds Proc the p-'rtfolion of U? vari a fundo. TIV:: Beard adenisters and mages the debt of th+, several bond issues dPscribed hereafter. The ard is Florija's large:-.t Lnvestor. Actirt iri EMze nyeral espacities become com:licated ai, las at 13 mest helpful. J.n galnl% ar. urderstariding of CJte Guer-all band rgen .0 +;i.e SI:-ite, we -:iave been :sked ce participate 111 -irou +;nu arnot mihin our legal area of resp;-rei bi 1 ily -r admir.istra+Ive :sthori Ly .-::e have dcre so viD !rsl';. We have tried to te const.ructively helpful. We r.ave '-rimi r=et to offend .vie have tried iri every n:: te f'.ilfil1 c:Gr responsible i itLel ir ke+3pirs v:11;n our eerst 1.tuliernl re:Seral Lbility t -= the gesple 3:d' FNelda. I ':111 g ve yo a brief !.'.suric al revievi .:f the 3-3-2 Imed ej A'IminiEinfacI:-;r=. deteralrig its areas =::" reSpGrali)ill---; arid ausherii y :arad desgribing itS fLli'etlOE and ::r':ee:bres ari el e lorship to the d i f''r-rent !'asts ...? ',to operati'::r.c ar.d att intle:rs. Arc opintom I mkht .:xpres are pera.:mil opiriions arid do net r.ecessar.' ly rel'leci; t e alrike of the Fjourrl or its rearcetive members. -r.e Board of I'.daliliacration Uas ercated by scatre iri Ms :ard .isonned the respe nsi bil i t ico cf count ieu ad t u :.c veral red ar..:1 bridge dinr.ar.s of the State iri rei'ari -a 303+3 60-:: I snet: .E r::" d and bridge bor.ds ution 1=:60 a suced by TJ:e Eioard and paid from gas tax reveriues, b. 191 1.1-.0 aci_i.slature pam:--1 a genet icut turial : mend m. r providi.rg f--r the dedi.:'ett --ra for a geri-:-j er fi -.are fror:1 Jo-isr:; l 4 1943, .:-f the cens;itui:i=:nril to-0,-nre n' De esere tax -.0 be paid monthly tc the St:-Je in url Wr'ilr.la:tre.1...r., V:hics e ere:--.2d t-y the amendraens --nd -n31st'-J :A tr.e G-:.vrarror, as Cisti.rri'm, rlie St:ate Tea:;i.trer and -.r.e ::'t de Comptrol ler .Thi a e onst ibutional amendmc-nt 9:sta voted c.n ir, the Gersrni Electicn ci 192 and the Bord
PAGE 2
:rrian1;-ed and tegari ei.orat 1:-n in .Is of the :irgarization ol' clae constit appr: ximately $164,000,000 ef princ consisttrig or bonds of the acveral rd at:3 bridge districts issued I. or refunding issues there'. t .The fro-'I the pre-ceeds of tire c ns.itut rid gasoline ax allocated to the o: -'TE']ul?1. Spelled Out in til0 1:0Datitt tion 16, Article IX). Titia debt ha inal $16',000,000 c.f princ.1pal outs ont a-r..'ot of t17,6E5,0cc as of I-.py r.reugi. .ye:tra there h:m been a rSad and bridge improvements ir ance of revenw: heads or certifics 4GshflCe GI fttal CELX aliEicipatic he State Board of Administre..lor. or Department and the State ficad Dept ';ex -t-ici:,ation eertifle:des cn 1 eles, but nie bulk of tLe be::de nas ida Ese Improvement Comi es1=::n er or, tr.e Fl::.rlda Development Commiss Tre of deur:m:/able from tite surplus
PAGE 3
volume of bcrds fcr the firme ira of er.rt sin specific pro,1eota. Tar;Developmert Commission prepctreo the bond authoriz1nr resolutions, leasegurengse agreements, etc., in cooperation with the Board of Admini3*;ration anr) the ante Road Department. The Board of Administration in the. f-r".ulation of a debe retirement schedule prepare a compliare analysis of outstanding debt sumenting arA reconmetiding a fir-ancial structure for the prepard issue. It is necesary to take such faictors into cor:alderation as general market conditions, rattriS bureau requirements and in-vc-stor requiremerits, i.:e attempt in every way to develop a should fiscal program on a c3nservative basis tEat cari te sold at the lcwegi. pcasible ir:-:resr a at .* The issues of bands issued to *Pr: inance read and bridge pr:jects have pledged the d::1 surplus :second gasollne tax, tells, a comblnation re: of the gas t-ix and tolls, and 171 one instarice by are seseDil statutory attherity, r eambination of adt tells, gas tax and the full fdth and credit of Bo. a road district rS "'here have been revenue finarcird programs FB prayable Crrm rrantals for the construction of opr public buildinco. Theoc include puch projeen a Le as Highway fatrol St atioris, Eelfare Buildings, ::21 3':ste Cir.rus Comni:mieri Building, f-Bri-ulture pm ar.d Livestock krats, atid ori behalf of the 30' Ecard of C::r:trol. *iniversity fluildig faciliAdi tiet ud or. behalf of the Beard of Co-711solen001 Prs of State Irlatitutione, State Offlee Buildpre ings."-* The State Board of Educatlori under 1+% Section 19 of c.rticle XII of the Cr:estitution, sa: recuvea cer-: sin proned:s oi' mot er vehicle c D LI:enae 2 al ocney. based or. a fixed formula. Flt to ir tenda are igenerally very .;:ell recognized -::pand are rad A by Stoody's Irn-ester service si: and M. by St andard arid foor 's .ThrEtsr(.a Ecard of Education has marketed these bonds over o. period of the lan*; ten years with very good buyer recepis[an. The financini; prograri .:..f the Sard of Eriucatica, nr. beelt of the yveral aunties, r-tarted in 1954, with a il ,00 .0'~10 princ!.pal outater.ding at Jul:r 1st
PAGE 4
*T :Suce & ard ci' lxiir i rr.ry:.1-..r. ad -Expl rrat i -:s ::.0 r!in u!ar:3 the dela -:i' all of the MrA i asues 3::horiu --e : l' rearred to --bove, receivira; r.rte m:reys, inprirc ipal delar vr-St ing thDinki ng furds Ef' the ,several issijos clut r:tMiding nridi rig the morleyr he pavin--. brite to rient c ur' ng rel: 10 sa':uri': '. r: a verifying and rncrmC i lirs the r:.aid 7:ar':. t'-~'r ~lf! st:.d -:--''@ gi:3 Wrler. ".;12-[ arrre-,urigd by tja -O~!ir:C 9:a.Dit3 -ril-r. time f'.|rd balar-ces in the :ayirs tarik3. TIM7:e is bef:.r-i *;hls 32351_7; c.f tye begg!>1:1'. 3.1re 3, [)? i:.Sel ';D 3Tar;t :idthCrity un F per.. ---213 to the Board c:i Ceratrol t -.. dele -e is: Pop-tr.s'.bliity for the ar]miraistration .r det--t First-!Ner|iery-, Of 11:3 lam 03 t.O EN-: 2:ird -. O Adn':lnistrattara. IT. is trJ ieder11r;; thar, Crm Board -. f Coritrol has Corindered !.:rr.r.':Seil sicj tritor cle 121 utilt.e the auLhcrity lo grante.1. The F.card of Cortrol has issued br.13 -leclgles ri.:.rrr.itory r--atals Gudent bd-d$rig -:-i, 3-,s".l.0''.1:.: 3r-Li-"ici:-s ---,d ;;:-.a.dent nea.a*.th 'ees. !!r.. g, -rVeet-nor-t 1;r _Ja Ecr i he irm'nort e i' the ritra furada of the 'Jaricus band I sanos, or -r n!)epyyJ Or! i.ru:iT: Clarids Of --M Vill"10UG 00E'id QUI.':.1, :-Irit] | r tbF j.riveSi~r'10llE Di VariCU: 01.tiPTI''-G"I'ur:"|S -. L .he 567/31:91 gliri::ies. Erch fund pre-:-n0 1r.res-zer.t by--:'. 2:e pre-o1e-'is unigralWI'alf. -~e Are b.: ra by .he tr:rma arad e ,n: Ir. r-'ter. Sirring f'ard ".O t r.:_me spe kled :u n to :-nd authorizirig resolui.lor,. In y--'rel -.y-.-ti, ',':GUtd ACJply U.: Etil GLiCh i Urid" .r: eb c.. -.igra rye the y 799, rygtige of L 2 -.leVir|g th& r-2Kirari esprirgs ['t:p T i:: r;;tirit;i.ira '-;rghyinyegdig:jjt [u 1-c:-: f!'rid re:]'llrer-ler:7,C|. I regCf!LXpiEiTigr.1::-, :. y a r -mur irlf-rrsier., a salotlule statere:;t -:'' ----r.et ini:or:e er. -.nvemmerta er mt Ener:r:e -.r; I t,3.. T.|-.e p.,.st tr. Sey ;;e;irs a 20'; 1;WG:.fr:Gil 3 101''0 i 2-1,:2 r". J.ir;_ d:.1).;ips -[ m).. r.:g.t l''~i );(-f:r-. ---r.e 15 l-r.en 0..51] 1-:.rd Sir.ce .)gl'' 1, if~:'f, Tjits hp r.-r3d rid re a r.o. m.tvLng .:.0 i:.r rm -,sts i e i!-,0 br .1;e ces a--. 2.3 :" 3 ir--;'"l'.'r--:l .t t us.: 3re"|2 :. ::-'..;|1. .0|-/.$.:[1 ;t : -ng .1 -rGr.r:l lis-iG [:1LP3LLrfrl O ec'T'SPP7a-(F ;;rt reylti t|-.U..:i-.1CT :Pa% Ve ir:V+'nl jerat |:riorgg.-j;', + -liT-6 E-ir I.r:1. 0141. ':| .try'j..-.3 -NUCil.orit ""? l)C-. L r-M Lil"'-y Abd c: lingEi, Orlo of [1.11'.071 e 11 tic29. 1TJr|
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Mle big rarabl:ma ras ci-.e elm-Tu ::' s ime .It hal been rieceG5ary 5 -Gtrer-II~rie DTocedures not oriy wit!-an the Board of Administiral;iora, but ir. offices ,1' the Scate Comptrailer, State Treaarer, r.ne Development Corinicar, blie Sta.te Road -sparlmerit, ne -eerd ci Control, rhe Beard af OctrisStoners if :::-21:0 Ir:.telturiena, or 21:/ ocher Board for '.-noit om;ds rii. -t be isstied .':!ith tne supper'sra ecoper:-.tier af tne eritire state Cabines we are able --:: secure the serLous attent-lon of all -:#1.eles and departmerits irvelved ir; the detailed proces::ig ,-.0 1:50 furrJs .A -veical ex:mple 10 t~r-e NI.ivery of ara isme of bonds by the Develap-Int 0:211sslers -::aa receiv-a che rar.ey i rt Rev: Taek Tr.e proceeds are deposiMd -it their credit in t.:e -3are Treasurer's alc::Grat .The State Treasurer's 0'"'100 in Ta .lahassee receives 'in advice of Ghe deposit arid processet: a :dateneret a the Etate 'Mip-rGlier, Wra irt turn advlogs the Florida Developme->G G-arinsicr -has the morey is avail :--.519. te Dr:wtopnier:t Comission car. then dre' T' a :'ade makirig rhe distribut for to tae M -;t-E".ad Depart'n-:rt., Ed p-sihty, a the Board of A-M r:i Er:--.i :.n te meet the requ tremer.t3 of the authorize rese:lut 1-:an, idter the drav:ing ci 2 -arrent ar.d im trar:smittal to and esips by the State Road fJ+partmer.t, the; 1, '.urn Js-perit the CJrds. AF-:er a parted 7.0 a:Teogr.'.ir:s, 12 tnere be:Caera av-.ilab: a f cr vi e-r.oral-al by tra State Imd par--r.or.3 a:.d trarsmi:ssic.;; -o ':he Scard of -..ir 2:ir:'.r.-. --r. 6-:r inve erer.t .'s Neve de--:-0.loped a tinie-savir:G Game .Thu! :s a 3+ri.:. n:: ;_-ame : -ac. It 1:: era of saving is ard r:re-r.:lar::.irg a:ad pre-I:rocesstr.s all a L: c se -:zer.ars so ".hat 2:her. tne :'urds are regelved :.r. '-ne r:h::21--at -lel iv.-ry ( f bor;ds i, ik'.I Yerk, all -f -r.en -:r-:mrg:es planr.ed i, amia::ce are accum91.' 3:.6:3 si":al':.arer.aly -tred -.be fund:a made availabi1'l U.E $0:ard '.,f Edmi.r13trii-.10. --59 da"; [Jter deliV" ry ~J IOredS ira [!i-ifi-/ iGM anc.-dE .* -.rg 9_ -, +g i g .1.riiitti; 4-4 the staff .cf _re $1-gre Ceiptrclier gy;-| E.--t --;EC -c e '-~.e Em -~reasurer for trair asist mee 1 : 3:.1: r.hree ( | -cyk. -at El:ee saved eMn :1-.rzy 1:. Grifinally days 01 -N::llt": -! 9.0 T:|,--: ST.ate' i::: ott'; cr.._= irant;--me's Of Gi--|e M celE-39-d .-any of tin :i:rs-term ir.veur-ersta 2:11 ever ated rr e er:il t ima e'ich year -a:en a save fr..m one Go gas Dr Si~/ 1-:0Cr.3 iri 90ell ...1306-!200 it30131 beCOme3 lilitia d ; event ut.9:Gre:C ::rliri_-s are m:ide or aylitional raires are gssible.
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Irriar:dl iri:2 trie iriVerii~nter;t -,:f 6:w for dG tir:le be-:-..&S vilPy 110partant.. I'l GUder to ".:2.ke adVg.trij e of "";arlN~. E ~:11di".lori:1 El", J.1T1[-r:)Vr' the (!ggralr !'-C' a[JMit C'f the Ellii"US 30 It!ae:Amary to achieve the triaxLrnurri of Cleylbility ; mori tro timra is right action :-:t:st be takEm 9:tinout. delay. Ti-.lu is ri-:I+ just desirable but La a met e 197! l--:gislature c^tve-led tthe atars Nard AJ --iG5trv I-^m --r-e irivesmeri'l authorit-; ;;revioisl,-/ 7930 ..~iv ] n +. i+? ':erersi Otate af.gra its da:9lytr)Or:t;';, bngd;: Jij Tlir'3 5,~1-:3Yi3 .This Act f-r :1.11 prg-i:-al purpcces d--':..) :. trt: '-' t -Emer":a:ar.t '.rus's fand is:estrneri'.:s .It M 6: tr. s ded ifVeltr:im T. a' tivity & 20";''ir:ed I i 1~'~.0 [.erCi~r. 'ar. .I -E'''i -r'.aG| '?tikern .I ~Qb'iti, f'.1r ?-~.:07 trai ~r'-\ati |\ .ur -r 1 -, exi::1.ainar;d piett:reo +.:a at---ps taar r. -li.7m,-tle:n1: ::f t|33Cl fuT;da. (EXplalYi fla? firs."irl ) Ist -.Ilig 1 1 ${, .22 l'/6-rig ,'{ield Of thCD ~ perrriariGri'. El'iiaE ar.-:ia -. r:s 2,gi .or': -. ere ry:verM er -top ne;;us:sty 1:1 '.:a 3 r:: e "|-.. M'.' .':.50'::.' it:'le23:'2r.t ^_.lyt f^.1 i:-;S The &c ard .::0;.:@--. .:::5 -r" r~'.Y'W '',f 01.0"174 ars :,ellig's U. S. Tra:asary .:I 14. C'.1-2 :.n".''airs aduct:e c f onGLrg marks c:,ra na o terrt./tr :,ne yield ', a the furth. 3me $30 ,000,00 ir '. wgieM0,is rnimic1931 bords verr;i sold J'rom trie inventant part C'-l102. 'E'h is llag rjorar; t&J.rg tr)to age:tdrratirli tj-le rnw|,::.-l.insby tM ci:.uraties Gr by the 3tate Board of E:Juoat is. Of U0rlda -I cir.1 Lar er.re .1:N. did n -;mpete with the no; .-;.:20 -.Al 7!-: MCd5 'rers' B-.:.ld a'. as .yl.--rill [-,r:: f i'. '. .-. .,.ryre li'iportar^ca 1 -3,:y pc [nygg+_ny:r:0 ::.: ',|.e 7. -.e Sain in diger-yi---idina (f. ."C-2-in-Jry -U L i -..--.3 ..!. a-7,:.-rat.e band:5 -21i : a 1 -re s'lth.: ri _-Ar.i t'/ t|-,.uro TG: ifa 7.02100 authorizeal the P :-tr i +. -3 .-N 1.1-.372 -.? -.7 -; f-jy-.d bag,:.d i por, e he :3;.1. ---rpcr:t'.e N:.r.2 r:ad b-: 2:0 r;at inal 17 re:-: E l ad !. ri .js i ti 37,7 -r y rg -,bya biggg!_. g:f 1,:., |-:-,r -: i to .r.3 ::1.-.h are 01'. ible -is ir,'astyg_+-e _~:-. p r.:2+ Mr .b 3. In : r.e i r 10-:+:2301-.r. Of thin auth::r' -:. he P s re concery:.::. --,.e 1-_ esi:.liblished a p:. My & C e benG3 f m'.5 tr.e T:'a height -:la::ni Si :aC--n--prian -rpural:.e rartf-.ilt total Ene. :spre:r'.D .r.ds .f a 11 ime:n 11. ,-1. :: .rp _rat.icn-;. p e -.T. P ..'l eld spre:13 :li:'1'+: rirla~. be:1.53:el c:"rDe r C I'dE -Pa24p~_." 4:112% i::r:2 ".'la Feard !-ite! ''-.-:3. --5.12r] :::.pp--.ras.e b-:-rid;; Siri:;C r.r;6 firJt (;f ag-030 1 ---pi:r.D 'I |-TGpasal. 1:1adi00t!al s gr-631% of th--ig:!'l E!latiin reusethe percentage Of ":oeparate bor.di fyr-lii N' to 50 or Ily |-',Uti .!. :'. J~. 1.;1 |-lope'll ti--t1. 1,M legisidure i;: ill J.; .C -.
PAGE 7
a gruit this requm. 1 star, r your irf-wrest i on a nei-le&lle reflect in:; the field icipr: veient of the several riranalen funds frat June 30. 1915C to ferch 31, W-9. Ir: cor.ridering -ble schedule, 13 shtuld be b-rrie in mind that the average yield of 1 len 1%1-203 as 2.97;'t at July 1, 19r,7. It should disi IJe re-ri'bere-1 mat an improvement of if in -ileid of'fr-tG N 0-' 307of the coat of benefits grant-a:j -arar .ar stiremer;t prcgrara. The better trwa 13 ir:1pr::vement that has beer. accorglished durir4 Lin peri-d f'ron July 1, 1%7 represented a subs-arii. i -il 3:1vir:ig t.-> the Stat e of Flori da in met j a_ i liniill/ -i rtirement bem-;fits.* Mi-.e legis-. lative ad T':n Loard 01110 ave chev:n a etnistical senarial pl :mre liver:mri beye.d r.hat t'hich you by:e be-n o 'a..jv en fiv':fr: ruio it been vi illr< to nac rifice the overrl:tet d era il 1 i rerr'stinent objr eti'.'es and jlad looked for pilast a ...n Ernmediate resalta retur than a greater imprevetir nuea irar-t of the funrj bryth in quality and yleid over Or rcriea Jar p'.ried of years, dl at mes:is tri l'hess er checkara, r:iarly potemial ly:t:m fin-instoit rn*/es are set up early tr. -.-ra game .Tlmee e i si liai1are norms pote-nt:.1 al Grartaae e lors -hat will D:y 5 w:a by either M --a+ieuted by us ir; the fi.are :.r by those retire-:w-1:: I el Lo; ur deperdirig er:tirel::: or rarket b.:rjef9.2: 11 .4 rait t J::-rm. Mure yc era. I-h''rleld ir.-TE: L' ricl pr'gram of "'_crida i s not unlike a -:-ruveon'. inli .sin/-. It luokn different to the Rectator triade li: '.'-in the blea::her-' tjer: Eldeco t-the coa-11 on the past t':9:1 b-:.nch, a:t':: the player whc. didr:'t 91:1y and eeriyr:ars l'ofro GM'1 --/, al-1 rie han ce riskrthe decialert, or ant-i adai. L.:the -.ffical -::110 calls rhe man s.tfe or our or -.1.21 in' "i ihe oall rola-ger -.:ho 1:: ic'..ual1-: ly: the ball CM er:ee-j0-10. --d.. me best j-:,b rjiat. can w:ILS the pr: -I f s. OE m_ r:r:e ur.der i la: 1 CGal otherity grani.ed by a he 1imi 121 rext eg ia lste:ar.d by the pec:p's of F lorida, yar:e Morta Mr.0 firaaneir.g at its best is the ":c. -10 lex.--tsive typ.: : C -tiblic finar,,;igg, 00:7ar.i'unj :Cal Re rioslas Ma'-st .F:ste Not are 2..'1 unige t o Ir:.rlda. e inve the cor:sm:1y .-30 ri:tn-/ SEMel. I call y:ur stecida to the i.abics m Nec & 39. 40 and M,* I suggest to the risti".uboa referred to be enn!:tdered c:trefully. "In ral r. Merlt;r' !s t!--.r baalt! :.f all firiar.c irs. This ri e t i:-na ::. --.:..irl'.30E !>2312000 la tjo :nly business e r r:riaalrns':. Sli--ici-., 1:-J my ROC'c:le-jge !h-:re !_r-ingactl.wig .a-.y j. [_ -"f.
PAGE 8
by vrbalagremen an fulil d I"th
PAGE 9
temjrpr f ail 'f the -2 -19nin debt diise bY th -1o d -.uld I, reunded at n ntrs vngo '3,ty ,0 '_t moI Ifitisth wshofth lgiltr I-I-b.-l
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