July 23, 1997

The State Finance Committee met in special meeting after notice duly given to the press and radio of Thurston County.

Present:

Michael J. Murphy, State Treasurer Gary Locke, Governor

Also Present:

Kay L. King, Office of the State Treasurer Lynn Rodeheaver, Office of the State Treasurer Betty Pearson, Office of the State Treasurer Michael Clarey, Office of the State Treasurer Svein Braseth, Office of the State Treasurer John Fricke, Office of Financial Management Doug Vaughn, Department of Transportation Dan Gottlieb, Graham & James/Riddell Williams Dean Torkelson, Seattle Northwest Securities Nancy Adams, Office of the State Treasurer Jay Kirkevold, Office of the State Treasurer Vicki Cox, Office of the State Treasurer Gina Terry, Office of Financial Management Maureen Morris, Office of Financial Management

Governor Locke moved the minutes for the July 9, 1997, meeting be approved.  Chairman Murphy seconded the motion.  The motion passed and the minutes were adopted.

Mr. Kerr stated that we got very good results on the bids today.  The revised amount of R-98A refunding bonds was $124,850,000.  He said the apparent low bidder for the Series R-98A bonds was Lehman Brothers with a true interest rate of 5.0773%.  Merrill Lynch submitted a bid with a true interest rate of 5.095% and Morgan Stanley submitted a bid with a true interest rate of 5.129%.  Mr. Kerr also stated that the market had been very strong and had not been anticipated to continue to strengthen in the state’s favor.  Mr. Kerr said today was the last day to sell these bonds in order to blend allowable bond yields in accordance with federal tax laws.  The yield on the refunding bonds could be combined with the higher yield on the $265 million General Obligation Bonds sold on July 9.  Mr. Torkelson said the savings derived from blending amounted to an additional $200,000 from the ability to earn more in the refunding escrow.

Mr. Kerr presented proposed Resolution No. 866 to the committee.

Resolution No. 866 provides for the award of sale of $125,195,000, more or less, [revised amount of $124,850,000] State of Washington Various Purpose General Obligation Refunding Bonds, Series R-98A, authorized by Chapters 39.42 and 39.53 RCW and Resolution No. 818 of the State Finance Committee.

Governor Locke moved adoption of Resolution No. 866.  Chairman Murphy seconded the motion and the resolution was adopted.

Chairman Murphy introduced Mr. Gottlieb, bond counsel, to Governor Locke.  He explained that bond counsel are appointed by the Attorney General’s Office through a bid process.  Chairman Murphy thanked Mr. Gottlieb and the staff for the good job they had done.

There being nothing further to come before the committee, the meeting was adjourned at 11:41 AM.

	STATE FINANCE COMMITTEE STATE OF WASHINGTON   _______________________________________ Michael J. Murphy, State Treasurer & Chairman   ________________________________________ Gary Locke, Governor   ________________________________________ Brad Owen, Lieutenant Governor
________________________________________ Tim Kerr Deputy State Treasurer & Secretary