|
|||||||||||
|
|
||||||||
|
New York City sells bonds to borrow the money needed to pay for
construction and repair of capital projects such as roads, bridges
and The Comptroller shares with the Mayor the responsibility for issuing City General Obligation bonds and notes. Working with the Mayor’s staff, the Comptroller’s Public Finance staff determines and approves structures, terms, and conditions for all city debt (please see Overview of Bond Issuance for more information on the process of bond issuance.) The Bureau also approves Transitional Finance Authority, Water Authority, TSASC., Inc (borrowing against tobacco settlement proceeds), Housing Development Corporation, Trust for Cultural Resources and Health and Hospitals Corporation debt issues.
New York City does not sell bonds directly to the public, but sells bonds through registered broker dealers. Before purchasing a New York City bond, one should read the City’s Official Statement, which includes more complete information on the City’s finances. To obtain an Official Statement, please contact one of the Nationally Recognized Municipal Securities Information Repositories listed on this site, or contact our office directly. GO bonds are backed by New York City property taxes, which are the largest single source of the City's revenue. The City expects to derive approximately 36% of its total tax revenues and 22% of its total revenue for fiscal year 2008 from real property taxes. The GO debt limit is equivalent to 10% of the five-year average full value of taxable real estate in New York City. GO bonds are a major source of funding for the City’s capital program, but bonds issued by the NYC Transitional Finance Authority, the NYC Municipal Water Finance Authority, TSASC, Inc., Dormitory Authority of the State of New York and other conduit financing also pay for capital projects. Click a thumb-nail to view the full size image and description for each portfolio. All data is as of of June 30, 2007.
|
||||||||
schools. The reason
the City borrows to pay for these projects is that they will last
for many years. Since future taxpayers will share in the benefit
of a school building for many years, it is reasonable that future
taxpayers help to pay for the construction. 
For residents of New York City, City bonds
are usually triple-tax exempt. That means that investors
who buy the bonds do not have to pay federal tax or New York State
or City income taxes on the interest they receive. 
