Download FY 2003 CAFR

New York City, through its General Fund, spent a total of $44.340 billion in fiscal year 2003, an increase of $3.480 billion (8.5 percent) over fiscal year 2002, according to the Comprehensive Annual Financial Report issued today by Comptroller William C. Thompson, Jr. The report contains New York City's official, independently audited financial statements.

"Despite serious financial difficulties, the City met its legal requirements to maintain its General Fund revenues and expenditures in balance in fiscal year 2003, reporting a $5 million surplus in its General Fund as determined under Generally Accepted Accounting Principles (GAAP) for the 23rd consecutive year," Comptroller Thompson said.

"New York City, through initiatives proposed by the Mayor and adopted by the City Council, has successfully addressed the fiscal year 2003 deficit. Moreover, the modifications made to the fiscal year 2003 budget not only closed the fiscal year 2003 gap, but also generated resources of more than $1.4 billion to help balance the fiscal year 2004 budget. We must continue to work diligently to ensure the financial health of the City."

The City's independent auditors, Deloitte & Touche LLP, gave the City's financial statements an "unqualified" opinion. This opinion means the statements are fairly presented in accordance with GAAP.

Among the results of operations reported in the Financial Report are the following:

BUDGET: Additional resources that became available during FY 2003 include nearly $1.2 billion in Federal Aid, and over $1 billion in greater than expected property tax revenue collections. These resources were offset by revenue shortfalls and greater-than-anticipated expenditures including $497 million in lower than expected collections for 'all other' taxes, $288 million in higher than expected overtime costs, $869 million in increased contractual services expenses, $209 million in greater Medicaid expenditures, and $1.413 billion to prepay certain subsidies and debt service costs.

The City had capital expenditures of about $5.7 billion in FY 2003, the majority of which were attributable to the following major program areas: Education $1.3 billion (23 percent); Environmental Protection $1.4 billion (25 percent); Transportation $1.2 billion (21 percent); Parks, Recreation and Cultural Activities $361 million (6 percent); and Housing $301 million (5 percent).

PENSION FUNDS: The City's five major pension funds have been consistent with broad market trends of the past year. As a result, the asset allocation followed by the funds produced a combined return of 3.81 % for fiscal year 2003. Our investment costs continue to remain lower than those of other large public funds.

DEBT MANAGEMENT: The City issued approximately $4.874 billion in general obligation bonds of which approximately $2.714 billion were issued to refund certain outstanding bonds and $2.15 billion were issued for capital purposes. The refundings will provide the City with about $232 million in debt service savings in fiscal year 2003.

The New York City Transitional Finance Authority (TFA) sold $3.74 billion of bonds during fiscal year 2003, of which approximately $1.2 billion redeemed previously issued bond anticipation notes, $1.99 billion refinanced outstanding bonds, and $550 million were issued for capital purposes. TFA also issued $1.1 billion of new bond anticipation notes. Initially, TFA received the authority to issue up to $7.5 billion of debt. In September 2001, the State Legislature approved a special TFA authorization of $2.5 billion to fund capital and operating costs relating to or arising from the events of September 11, 2001.

In addition, the City sold $1.5 billion of Revenue Anticipation Notes (RANs), which were backed by State education aid revenue. These RANs matured and were repaid in April 2003.

NEW FINANCIAL REPORTING MODEL: The fiscal year 2003 financial statements reflect the third year of reporting under a new financial accounting and reporting model for state and local governments. The new financial reporting model is the result of an accounting standard (Statement No. 34) issued by the Governmental Accounting Standards Board.

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