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									                             TREASURY BOARD
                       COMMONWEALTH OF VIRGINIA
                                 July 19, 2006
                                   9:00 a.m.
                            James Monroe Building
                          101 N. 14th Street, 3rd Floor
                              Richmond, Virginia

Members Present:      J. Braxton Powell, Chairman
                      K. David Boyer, Jr.
                      Dr. Kenneth Daniels
                      Douglas W. Densmore
                      David A. Von Moll

Members Absent:       Janie E. Bowen
                      Robert C. Goodman, Jr.

Others Present:       Janet Aylor                             Department of the Treasury
                      Belinda Blanchard                       Department of the Treasury
                      Richard A. Davis                        Department of the Treasury
                      Leslie English                          Department of the Treasury
                      Kristin Reiter                          Department of the Treasury
                      Kathi B. Scearce                        Department of the Treasury
                      George Consolvo                         Kaufman & Canoles
                      E.D. David                              David, Kamp & Frank
                      Richard Grattan                         Wachovia Bank
                      Stephanie Foster                        Wachovia Bank
                      Doug Hornsby                            CNU Real Estate Foundation
                      Bill Brauer                             Christopher Newport University
                      Anne Conner                             CNU Educational Foundation
                      Jim Johnson                             Morgan Keegan

Call to Order and Approval of Minutes

Chairman Powell welcomed Board members and called the meeting to order at 9:00 a.m. He
asked if there were any additions or revisions to the minutes of the June 21, 2006 Meeting. There
being none, Mr. Von Moll moved the approval of the minutes as submitted. Mr. Boyer seconded,
and the motion carried unanimously.
Board Minutes                           July 19, 2006                                  Page 2

Public Comment


Agenda Items

Resolution Approving Proposed Terms and Structure of Bonds to be Issued by the
Industrial Development Authority of the City of Newport News for the Benefit of
Christopher Newport University (CNU)

Ms. Leslie English presented the resolution to the Board. She reviewed the first draft of the
financing summary, which reflected an increase in the size of the bond issue to $17.5 million.
Proceeds will be used to refinance bonds that were issued to benefit the university. There will be
a new public hearing on August 4, 2006 by the Industrial Development Authority (IDA) of the
City Newport News to address a technical error in the notice for the original public hearing.

Jim Johnson, Financial Advisor, with Morgan Keegan outlined in further detail the bond

Dr. Daniels asked how the letter of credit provider was selected, and Mr. Johnson explained the
structure of the selection process. Dr. Daniels also asked about the cost of the letter of credit,
which Mr. Johnson stated was market driven. Mr. Boyer asked if the evaluation team consisted
of individuals from only one of the foundations involved or if the members were a composite of
both of the foundations. Anne Conner with the CNU Educational Foundation indicated that the
team was a composite of members from each entity involved in the project.

Bill Brauer from CNU commented that the projects will benefit both CNU, and the community
as a whole. They have worked closely with the IDA of the City of Newport News, the Virginia
Department of Transportation and the Federal Housing and Urban Development on these
projects. The projects are not just beneficial to the educational mission of CNU, but they are also
urban revitalization projects that will stimulate and expand the economic base of the city.

George Consolvo, bond counsel, provided an explanation of how the delegation of final pricing
will be assigned to the State Treasurer for final approval.

Mr. Densmore asked if the Treasury Board resolution is contingent on the IDA ratifying and
confirming its approval of the issuance of the bonds at their August 4, 2006 meeting. Mr.
Consolvo explained the technical error in the original resolution and how the revised resolution
addressed that issue.

Chairman Powell asked if there were any further questions. There being none, the Chairman
asked for a motion to approve the Resolution. Mr. Densmore moved that the Resolution be
adopted. Mr. Boyer seconded, and the motion carried unanimously.

Staff Reports:
Board Minutes                         July 19, 2006                                 Page 3

Debt Management

Ms. Aylor reviewed the Debt Calendar as of July 13, 2006 and the MELP report for the period
ending June 30, 2006.

Security for Public Deposits

Ms. Reiter reviewed the Security for Public Deposits report for the month ending May 31, 2006.

State Non-Arbitrage Program (SNAP)

Ms. Blanchard reviewed the SNAP report for the month ending June 30, 2006. She asked Nelson
Bush with PRM to introduce Diane Cahill who is working with Mr. Bush on Treasury issues.


Ms. Blanchard reviewed the Investment Report for July 2006, and provided the Board with an
updated handout of the portfolio. Ms. Blanchard reviewed the status of the Fed and comments
made to Congress by Federal Reserve Chairman Bernake. She indicated that the LGIP set a new
record in late June at 3.1 million. The Total Return Pool saw all managers meeting or exceeding
the bench mark despite a tough year.

Other Business:

Chairman Powell indicated that Human Resources has begun the recruitment process for the
Director of Cash Management and Investments position.


Chairman Powell then asked if there was any further business to come before the Board. There
being none, the Chairman asked for a motion to adjourn. Mr. Boyer moved the approval of the
moved adjournment, Mr. Von Moll seconded, and the motion carried unanimously.

Respectfully submitted,

J. Braxton Powell, Chairman
Commonwealth of Virginia Treasury Board
Board Minutes             July 19, 2006                 Page 4

                         Attachment "A"
                         Attachment "B"
                         Attachment "C"
                         Attachment "D"

                Documents are available for review at

                  The Department of the Treasury

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