Summary

Cash Balances

The level of daily cash balances in the New York City Central Treasury reflects the slowdown in non-property tax collections.The average 3Q daily cash balance increased each year between FY12 and FY16, reaching $11.775 billion in 3Q16.During 3Q17, the average daily cash balance measured $9.993 billion, $1.782 billion lower than last year, but still high compared to historical levels.

As usual for this time of the year, cash balances faded through most of the quarter, slipping from January highs that came on the heels of semi-annual real estate tax receipts.This trend reversed in mid-March, behind the receipts of real estate taxes due by April 1. The period finished strong with the receipt of $3.9 billion in State aid, which included the “Spring advance,” a component of State education aid.

The City of New York began FY17 (in July 2016) with $11.719 billion in cash-on-hand.  By the end of 3Q17, the City’s unrestricted cash balance increased slightly to $11.803 billion, compared to $13.716 billion at the same time last year.FYTD17 receipts exceeded expenditures by only $84 million.In comparison, receipts exceeded expenditures in FYTD13, FYTD14, FYTD15, and FYTD16 by $2.457 billion, $3.504 billion, $2.510 billion, and $4.214 billion, respectively.

Cash Receipts

Total receipts in 3Q17 totaled $24.099 billion, up 2.3% versus a year-ago.This total includes $1.654 billion in reimbursements for capital expenditures. Net of these capital transfers, receipts increased 3.8%.During 3Q17 the City received $7.5 billion in federal and state aid, up 12.9% compared to 3Q16.Miscellaneous revenue rose 8%.

The City collected $12.9 billion in tax revenues in 3Q17, the same amount as last year.Real property tax collections rose 3.1%, and PIT receipts increased 7.9%. Sales tax receipts fell 11.9%, in part due to the State intercept of sales tax revenue to recoup savings from refinancing the State-backed Sales Tax Asset Receivable Corporation (STARC) bonds.The State’s FY 2016-17 Adopted Budget included a provision that authorizes a three-year sales tax revenue intercept to recapture benefits accrued to the City from refinancing STARC bonds. Beginning in May 2016, the State is authorized to retain $16.7 million from the City’s sales tax each month, for a total of $50 million per quarter.

Federal and State aid receipts accounted for 31% of total cash receipts, a larger percentage than in previous years. In 3   Q17, the City received $1.1 billion in federal education aid compared to $376 million at the same time last year.The increase is primarily due to the late arrival of Title I funding from the federal government. On March 1, 2017, the City received $389 million in Title I prior year aid for FY16.

FYTD17 cash receipts totaled $68.384 billion, down $2.845 billion from the previous year.Removing the effect of CapEx reimbursements, net cash receipts declined 4.7%.Even though cash receipts are down compared to FYTD16, they are still high compared to historical figures.

FYTD17 tax receipts rose 0.5% versus a year-ago. Real property and personal income taxes grew 3.7% and 4%, respectively.The largest drag on tax receipts was the banking corporation tax, which slipped 45% versus a year-ago.Beginning in tax year 2015, the general corporation tax and the banking corporation tax merged. All New York City C-corporations now pay under the general corporation tax.

The City received $15.2 billion from the Federal and State governments during FYTD17.Federal and NYS education aid receipts were up 7% and 5.1% respectively compared to FYTD16.Federal and NYS welfare receipts were down 10.5% and 9.5% respectively compared to FYTD16.

Cash Expenditures

Cash expenditures, including capital, totaled $22.645 billion in 3Q17, averaging $365 million daily. During the same period last year, cash expenditures totaled $21.445 billion and averaged $346 million daily.Personal service expenditures grew 1.8% versus a year-ago, largely due to rising pension and healthcare costs. Other-than-personal-service expenditures (OTPS) rose 5% during the same time frame.The growth in OTPS is attributable to the increase in public assistance (up 15%) and vendor and other spending (up 10.3%).Meanwhile, the expenditure category titled “All Other” increased by $617 million compared to the same period last year due to higher City-funded capital expenditures, payments to Health + Hospitals (H+H), and tax refunds.

FYTD17 expenditures rose 1.9% versus a year-ago.Gross payroll decreased 1.2%, while other personal service expenditures increased 6.8%.OTPS outflows rose 5.1%, boosted by increases in spending on public assistance (up 11.9%), vendor and other spending (up 8.9%), and other social services (up 5.1%).Other social services expenditures include, but are not limited to, payments made to various charitable and other non-for-profit organizations that provide services to the homeless, hungry or disabled people, senior citizens, disadvantaged children, and other people in need.When the impact of CapEx is removed, FYTD17 net expenditures reflect a gain of 1.7% versus a year-ago.

Capital Expenditures (CapEx) and Reimbursements

CapEx totaled $2.428 billion in 3Q17, up 9.2% from $2.224 billion in 3Q16. City-funded CapEx increased 21.5% while Non-City-funded CapEx declined 31%.

During 3Q17, eligible CapEx exceeded reimbursements, decreasing the City’s cash balance by $592 million.Table 13 shows that eligible CapEx exceeded reimbursements in seven out of the last ten 3Q periods (FY08-FY17), resulting in a total drain of $1.266 billion to the Central Treasury.

FYTD17, total CapEx increased 3.9% versus a year-ago.The City-funded CapEx jumped 12.8%, while Non-City CapEx declined 23.4%.

FYTD17 reimbursements exceeded eligible CapEx by $241 million, or 4.2%.Over the long term, CapEx and reimbursements offset each other.Over the past ten FYTD periods they have been closely paired, with reimbursements exceeding CapEx by only 5.5%.

Financings

In FY17, the City plans to issue $5.6 billion in General Obligation (GO) and Transitional Finance Authority Personal Income Tax (TFA PIT) bonds for new money capital purposes.The City issued $4.5 billion of new money debt FYTD17.

There were no new money sales in 3Q17.Two bond sales refinanced outstanding debt.The first transaction was a GO sale of $900 million of refunding bonds.The refunding achieved $133.7 million in budget savings, or more than $118.8 million on a present-value basis.The second transaction was a TFA sale of $795 million of refunding bonds.The refunding achieved $99.2 million in budget savings, or more than $84.9 million on a present-value basis.

The pace of bond issuance in FYTD17 exceeded last year’s pace.In FYTD17 the City issued $6.2 billion in new money and refunding bonds versus $5.7 billion in FYTD16.

I. Cash Balances[1]

January 2017 – March 2017 (3Q17)

Chart 1. Daily Cash Balances in the NYC Central Treasury, 3Q12, 3Q16, & 3Q17

($ in millions)

The level of daily cash balances in the New York City Central Treasury reflects the slowdown in non-property tax collections.The average 3Q daily cash balance increased each year between FY12 and FY16, reaching $11.775 billion in 3Q16.During 3Q17, the average daily cash balance measured $9.993 billion, $1.782 billion lower than last year, but still high compared to historical levels.

As usual for this time of the year, cash balances faded through most of the quarter, slipping from January highs that came on the heels of semi-annual real estate tax receipts.This trend reversed in mid-March, behind the receipts of real estate taxes due by April 1. The period finished strong with the receipt of $3.9 billion in State aid, which included the “Spring advance,” a component of State education aid.

Table 1. Cash Position in the NYC Central Treasury, 3Q, 2008 – 2017

($ in millions)

  FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Opening Balance a $6,750 $2,820 $5,092 $6,144 $6,354 $6,196 $8,537 $9,199 $11,604 $10,349
Total Receipts 20,539 22,492 18,439 20,967 20,004 22,179 22,377 25,740 23,557 24,099
Total Expenditures b 17,232 17,550 17,343 19,011 18,615 19,621 19,466 22,571 21,445 22,645
Closing Balance $10,057 $7,762  $6,188  $8,101  $7,742 $8,754 $11,448 $12,368 $13,716 $11,803
Avg. Daily Balance $8,318 $5,536 $5,426 $5,806 $5,709 $6,461 $9,029 $10,692 $11,775 $9,993
  1. a. Opening balances are before City audits.
  2. Total expenditures include capital expenditures.

July 2016 – March 2017 (FYTD17)

Chart 2. Daily Cash Balances in the NYC Central Treasury, FYTD, 2012, 2016, & 2017

($ in millions)

Table 2. Cash Position in the NYC Central Treasury, FYTD08 – FYTD17

  FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Opening Balance a $4,473 $4,988 $5,839 $4,604 $5,041 $6,297 $7,944 $9,858 $9,502 $11,719
Total Receipts 56,072 57,303 55,004 59,639 59,072 60,126 64,039 66,066 71,229 68,384
Total Expenditures b 50,488 54,529 54,655 56,142 56,370 57,669 60,535 63,556 67,015 68,300
Closing Balance $10,057 $7,762 $6,188 $8,101 $7,742 $8,754 $11,448 $12,368 $13,716 $11,803
Avg. Daily Balance $5,957 $5,453 $4,963 $4,602 $5,013 $5,766 $7,161 $8,963 $10,216 $9,551

($ in millions)

  1. a. Opening balances are before City audits.
  2. Total expenditures include capital expenditures.

The City of New York began FY17 (in July 2016) with $11.719 billion in cash-on-hand.By the end of 3Q17, the City’s unrestricted cash balance increased slightly to $11.803 billion, compared to $13.716 billion at the same time last year.FYTD17 receipts exceeded expenditures by only $84 million.In comparison, receipts exceeded expenditures in FYTD13, FYTD14, FYTD15, and FYTD16 by $2.457 billion, $3.504 billion, $2.510 billion, and $4.214 billion, respectively.

II. Cash Receipts

January 2017 – March 2017 (3Q17)

Receipts at a Glance

Table 3. Cash Receipts by Category, 3Q, FY08 – FY17

($ in millions)

  FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Real Property Tax  $2,737 $5,153 $3,176 $3,295 $3,399 $3,643 $3,789 $3,879 $4,464 $4,601
Other Taxes 7,331 6,196 6,258 6,457 6,636 7,614 8,481 8,538 8,423 8,265
Total Taxes 10,068  11,349 9,434 9,752 10,035 11,257 12,270 12,417 12,887 12,866
Federal and State Aid 6,568 6,315 5,258 7,021 6,615 6,485 6,476 6,099 6,624 7,480
Debt Service Funding (4) (31) 0 (650) (907) (1,127) (966) (657) (899)  (1,050)
Miscellaneous 1,417 1,569 1,462 1,525 1,726 1,945 1,944 1,872 1,491 1,610
Intergovernmental Aid 0 0 24 14 0 0 1 0 2 0
Other 2,490 3,290 2,261 3,305 2,534 3,619 2,652 6,009 3,452 3,193
3Q Total $20,539 $22,492 $18,439 $20,967 $20,003 $22,179 $22,377 $25,740 $23,557 $24,099
                     
Total, Net of CapEx Reimbursements $18,984 $20,041 $17,098 $18,583 $18,478 $20,097 $20,618 $23,451 $21,619 $22,445

Total receipts in 3Q17 totaled $24.099 billion, up 2.3% versus a year-ago.This total includes $1.654 billion in reimbursements for capital expenditures. Net of these capital transfers, receipts increased 3.8%.During 3Q17 the City received $7.5 billion in federal and state aid, up 12.9% compared to 3Q16.Miscellaneous revenue rose 8%.

Taxes[2]

Table 4. Tax Receipts, 3Q12, 3Q16, & 3Q17

($ in millions)

FY12 FY16 FY17 % Change FY17/FY12 % Change FY17/FY16
Real Property Tax $3,399 $4,464 $4,601 35.4% 3.1%
Personal Income Tax 2,358 3,144 3,391 43.8 7.9
Sales Tax 1,360 1,716 1,511 11.1 (11.9)
General Corporation Tax 1,055 1,303 1,125 6.6 (13.7)
Unincorporated Business Tax 444 556 770 73.4 38.5
Mortgage and Real Property Transfer Taxes 338 804 653 93.2 (18.8)
Commercial Rent Tax 183 206 214 16.9 3.9
STAR 212 207 203 (4.2) (1.9)
Hotel Occupancy Tax 104 116 122 17.3 5.2
Utility Tax 132 81 102 (22.7) 25.9
Other Taxes 450 290 174 (61.3) (40.0)
3Q Total $10,035 $12,887 $12,866 28.2% (0.2)%

The City collected $12.9 billion in tax revenues in 3Q17, the same amount as last year.Real property tax collections rose 3.1%, and PIT receipts increased 7.9%. Sales tax receipts fell 11.9%, in part due to the State intercept of sales tax revenue to recoup savings from refinancing the State-backed Sales Tax Asset Receivable Corporation (STARC) bonds.The State’s FY 2016-17 Adopted Budget included a provision that authorizes a three-year sales tax revenue intercept to recapture benefits accrued to the City from refinancing STARC bonds. Beginning in May 2016, the State is authorized to retain $16.7 million from the City’s sales tax each month, for a total of $50 million per quarter.

Selected Cash Receipts

Table 5. Selected Cash Receipts, 3Q, 2013 – 2017

($ in millions)

FY13 FY14 FY15 FY16 FY17
Real Property Tax $3,643 $3,789 $3,879 $4,464 $4,601
NYS Education Aid 3,154 3,397 3,209 3,683 3,917
Personal Income Tax 2,721 2,966 3,205 3,144 3,391
Sales Tax 1,445 1,496 1,579 1,716 1,511
General Corporation Tax 1,190 1,614 1,282 1,303 1,125
Federal Education Aid 252 439 432 376 1,069
Unincorporated Business Tax 517 568 517 556 770
Mortgage and Real Property Transfer Taxes 547 656 803 804 653
NYS Higher Education Aid 572 566 603 619 606
Federal Welfare 1,077 752 627 654 550
Senior College Fees 478 527 481 502 485
NYS Welfare 358 530 479 498 446
Fines and Forfeitures 206 236 240 262 265
Commercial Rent Tax 192 204 192 206 214
STAR 219 225 201 207 203
Community College Fees 170 184 196 199 196

Federal and State Aid

Chart 3. Federal & State Aid to NYC, 3Q, FY13 – FY17

($ in billions)

Chart 4. Federal & State Aid as % of Total Cash Receipts, 3Q, FY13 – FY17

Chart 5. Components of State Aid, 3Q, FY13 – FY17

($ in billions)

Chart 6. Components of Federal Aid, 3Q, FY13 – FY17

($ in billions)

Federal and State aid receipts accounted for 31% of total cash receipts, a larger percentage than in previous years. In 3   Q17, the City received $1.1 billion in federal education aid compared to $376 million at the same time last year.The increase is primarily due to the late arrival of Title I funding from the federal government. On March 1, 2017, the City received $389 million in Title I prior year aid for FY16.

July 2016 – March 2017 (FYTD17)

Receipts at a Glance

Table 6. Cash Receipts by Category, FYTD, 2008 – 2017

($ in millions)

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Real Property Tax $10,715 $11,620 $11,566 $12,422 $13,419 $13,544 $14,739 $15,152 $16,548 $17,162
Other Taxes 19,114 16,860 15,687 16,879 17,696 19,058 20,753 22,133 22,786 22,388
Total Taxes 29,829 28,480 27,253 29,301 31,115 32,602 35,492 37,285 39,334 39,550
Federal and State Aid 12,897 13,634 13,437 15,893 14,819 14,880 14,659 14,568 15,239 15,254
Debt Service Funding (4) (31) 0 (916) (1,053) (2,784) (1,991) (3,394) 229 (1,993)
Miscellaneous 4,551 4,397 4,721 4,612 4,738 4,975 5,339 5,199 5,361 4,830
Intergovernmental Aid 10 228 280 14 1 1 1 0 6 59
Other 8,789 10,595 9,313 10,735 9,451 10,451 10,539 12,409 11,060 10,684
FYTD Total $56,072 $57,303 $55,004 $59,639 $59,071 $60,125 $64,039 $66,067 $71,229 $68,384
                     
Total, Net of CapEx Reimbursements $50,705 $49,772 $48,602 $51,911 $53,010 $53,922 $57,957 $60,794 $65,456 $62,370

FYTD17 cash receipts totaled $68.384 billion, down $2.845 billion from the previous year.Removing the effect of CapEx reimbursements, net cash receipts declined 4.7%.Even though cash receipts are down compared to FYTD16, they are still high compared to historical figures.

Taxes[3]

Table 7. Major Tax Receipts, FYTD, 2012, 2016, & 2017

($ in millions)

  FY12  FY16  FY17 % Change FY17/FY12 % Change FY17/FY16
Real Property Tax $13,419 $16,548 $17,162 27.9%  3.7%
Personal Income Tax 5,842 7,838 8,152 39.5 4.0
Sales Tax 4,239 5,322 4,972 17.3 (6.6)
General Corporation Tax 2,539 3,185 3,258 28.3 2.3
Mortgage and Real Property Transfer Taxes 1,090 2,280 2,019 85.2 (11.4)
Unincorporated Business Tax 1,053 1,328 1,535 45.8 15.6
Commercial Rent Tax 505 636 639 26.5 0.5
Hotel Occupancy Tax 364 429 434 19.2 1.2
Banking Corporation Tax 1,071 747 411 (61.6) (45.0)
STAR 390 394 311 (20.3) (21.1)
All Other Taxes 843 627 657 (22.1) 4.8
FYTD Total $31,115 $39,334 $39,550 27.1% 0.5%

FYTD17 tax receipts rose 0.5% versus a year-ago. Real property and personal income taxes grew 3.7% and 4%, respectively.The largest drag on tax receipts was the banking corporation tax, which slipped 45% versus a year-ago.Beginning in tax year 2015, the general corporation tax and the banking corporation tax merged. All New York City C-corporations now pay under the general corporation tax.

Selected Cash Receipts

Table 8. Selected Cash Receipts, FYTD, 2013 – 2017

($ in millions)

FY13 FY14 FY15 FY16 FY17
Real Property Tax $13,544 $14,739 $15,152 $16,548 $17,162
Personal Income Tax 6,289 6,915 7,472 7,838 8,152
NYS Education Aid 5,894 6,136 6,346 6,694 7,033
Sales Tax 4,413 4,674 4,910 5,322 4,972
General Corporation Tax 2,698 3,055 2,833 3,185 3,258
Federal Welfare 2,923 2,493 2,513 2,418 2,164
Mortgage and Real Property Transfer Taxes 1,395 1,794 2,185 2,280 2,019
Unincorporated Business Tax 1,138 1,202 1,297 1,328 1,535
Federal Education Aid 826 1,158 779 1,308 1,400
Water and Sewer Fees 1,452 1,361 1,536 1,397 1,226
NYS Welfare 1,073 1,171 1,057 1,250 1,131
NYS Higher Education Aid 1,218 860 1,291 931 916
Fines and Forfeitures 783 704 751 875 796
Commercial Rent Tax 539 565 596 636 639
Senior College Fees 649 715 668 715 633
Hotel Occupancy Tax 380 395 426 429 434
Banking Corporation Tax 1,241 1,160 1,441 747 411

Federal and State Aid

Chart 7. Federal & State Aid to NYC, FYTD, FY13 – FY17

($ in billions)

Chart 8. Federal & State Aid as % of Total Cash Receipts, FYTD, FY13 – FY17

Chart 9. Components of State Aid, FYTD, FY13 – FY17

($ in billions)

Chart 10. Components of Federal Aid, FYTD, FY13 – FY17

($ in billions)

The City received $15.2 billion from the Federal and State governments during FYTD17.Federal and NYS education aid receipts were up 7% and 5.1% respectively compared to FYTD16. Federal and NYS welfare receipts were down 10.5% and 9.5% respectively compared to FYTD16.

III. Cash Expenditures (Including Capital)

January 2017 – March 2017 (3Q17)

Cash Expenditures at a Glance

Table 9. PS & OTPS, 3Q, FY08 – FY17

($ in millions)

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Gross Payroll $5,284 $5,824 $5,603 $5,747 $5,959 $6,047 $6,146 $6,840 $6,792 $6,798
Other PS 2,631 2,877 2,983 3,580 3,265 3,479 3,575 3,782 3,999 4,188
Total PS $7,915 $8,701 $8,586 $9,327 $9,224 $9,526 $9,721 $10,622 $10,791 $10,986
% of 3Q Total Exp 46% 50% 50% 49% 50% 49% 50% 47% 50% 49%
# of Bi-weekly Payrolls 6 6 6 6 7 7 7 7 6 6
Public Assistance 530 560 590 630 583 603 598 681 727 836
Medical Assistance 1,672 1,309 1,037 1,061 1,486 1,239 1,554 1,470 1,639 1,418
Other Social Services 619 567 458 612 593 646 565 584 660 667
Vendor and Other 3,569 3,409 3,306 4,037 3,757 4,401 4,163 4,428 4,798 5,291
Total OTPS $6,390 $5,845 $5,391 $6,340 $6,419 $6,889 $6,880 $7,163 $7,824 $8,212
% of 3Q Total Exp 37% 33% 31% 33% 34% 35% 35% 32% 36% 36%
All Other $2,927 $3,004 $3,366 $3,344 $2,972 $3,205 $2,865 $4,786 $2,830 $3,447
% of 3Q Total Exp 17% 17% 19% 18% 16% 16% 15% 21% 13% 15%
Total Expenditures $17,232 $17,550 $17,343 $19,011 $18,615 $19,621 $19,466 $22,570 $21,445 $22,645
                     
Total Expenditures, Net of CapEx $15,119 $15,608 $15,083 $16,676 $16,485 $17,396 $17,403 $20,532 $19,221 $20,217

Cash expenditures, including capital, totaled $22.645 billion in 3Q17, averaging $365 million daily. During the same period last year, cash expenditures totaled $21.445 billion and averaged $346 million daily.Personal service expenditures grew 1.8% versus a year-ago, largely due to rising pension and healthcare costs. Other-than-personal-service expenditures (OTPS) rose 5% during the same time frame.The growth in OTPS is attributable to the increase in public assistance (up 15%) and vendor and other spending (up 10.3%).Meanwhile, the expenditure category titled “All Other” increased by $617 million compared to the same period last year due to higher City-funded capital expenditures, payments to Health + Hospitals (H+H), and tax refunds.

“All Other” Spending

Table 10. Major Components of “All Other” Spending, 3Q16 & 3Q17

($ in millions)

FY16 FY17 Difference
Transit Authority $0 $0 $0
Housing Authority 16 59 43
Lump Sum Payments 557 470 (87)
H+H 151 411 250
Refunds 96 234 138
City-Funded Capital 1,701 2,067 366
Non-City-FundedCapital 523 361 (162)
Fund-700 Adjustment (281) (201) 80

July 2016 – March 2017 (FYTD17)

Cash Expenditures at a Glance

Table 11. PS and OTPS Cash Expenditures, FYTD08 – FYTD17

($ in millions)

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Gross Payroll $16,283 $18,109 $17,433 $17,868 $17,910 $18,059 $18,241 $19,598 $21,112 $20,859
Other PS 7,923 8,555 9,312 9,609 9,959 10,445 10,808 11,393 11,852 12,657
Total PS $24,206 $26,664 $26,745 $27,477 $27,869 $28,504 $29,049 $30,991 $32,964 $33,516
% of 3Q Total Exp 48% 49% 49% 49% 49% 49% 48% 49% 49% 49%
Public Assistance 1,634 1,769 2,003 1,912 1,806 1,793 1,867 1,964 2,106 2,357
Medical Assistance 3,956 3,689 3,475 3,572 4,398 4,327 4,317 4,347 4,522 4,052
Other Social Services 1,789 1,877 1,881 1,862 1,775 1,841 1,801 1,858 1,967 2,067
Vendor and Other 10,359 10,531 10,290 11,256 11,492 12,127 12,932 13,994 14,708 16,020
Total OTPS $17,738 $17,866 $17,649 $18,602 $19,471 $20,088 $20,917 $22,163 $23,303 $24,496
% of 3Q Total Exp 35% 33% 32% 33% 35% 35% 35% 35% 35% 36%
All Other $8,544 $9,999 $10,261 $10,064 $9,030 $9,076 $10,568 $10,402 $10,748 $10,288
% of 3Q Total Exp 17% 18% 19% 18% 16% 16% 17% 16% 16% 15%
Total Expenditures $50,488 $54,529 $54,655 $56,142 $56,370 $57,669 $60,534 $63,555 $67,015 $68,300
                     
Total Expenditures, Net of CapEx $44,755 $47,821 $47,167 $48,813 $50,092 $51,514 $54,193 $57,946 $60,815 $61,860

FYTD17 total expenditures rose 1.9% versus a year-ago.Gross payroll decreased 1.2%, while other personal service expenditures increased 6.8%.OTPS outflows rose 5.1%, boosted by increases in spending on public assistance (up 11.9%), vendor and other spending (up 8.9%), and other social services (up 5.1%).Other social services expenditures include, but are not limited to, payments made to various charitable and other non-for-profit organizations that provide services to the homeless, hungry or disabled people, senior citizens, disadvantaged children, and other people in need.When the impact of CapEx is removed, FYTD17 net expenditures reflect a gain of 1.7% versus a year-ago.

“All Other” Spending

Table 12. Major Components of “All Other” Spending, FYTD16 & FYTD17

($ in millions)

FYTD16 FYTD17 Difference
Transit Authority $264 $251 ($13)
Housing Authority 79 94  15
Lump Sum Payments 1,932 2,241 309
H+H 711 1,061 350
Refunds 595 720 125
City-Funded Capital 4,675 5,272 597
Non-City-FundedCapital 1,524 1,168 (356)
Fund-700 Adjustment 877 (534) (1,411)

IV. Capital Expenditures[4]

January 2017 – March 2017 (3Q17)

CapEx totaled $2.428 billion in 3Q17, up 9.2% from $2.224 billion in 3Q16. City-funded CapEx increased 21.5% while Non-City-funded CapEx declined 31%.

Chart 11. Total CapEx, 3Q, FY08 – FY17

($ in millions)

Chart 12. Total CapEx as % of Total Expenditures, 3Q, FY08 – FY17

Reimbursements to the New York City Central Treasury for Capital Expenditures

Table 13. Reimbursements to the NYC Central Treasury for CapEx, 3Q, FY08 – FY17

($ in millions)

  FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total
GO $753 $969 $324 $927 $213 $476 $340 $25 $0 $936 $4,963
NY Water 538 647 623 630 534 452 426 401 343 363 4,957
TFA 30 7 394 744 376 927 994 980 1,595 355 6,402
Sub-total 1,321 1,623 1,341 2,301 1,123 1,855 1,760 1,406 1,938 1,654 16,322
TFA Building Aid 89 828 0 83 402 227 0 883 0 0 2,512
DASNY 145 0 0 0 0 0 0 0 0 0 145
Sub-total 234 828 0 83 402 227 0 883 0 0 2,657
3Q Total $1,555 $2,451 $1,341 $2,384 $1,525 $2,082 $1,760 $2,289 $1,938 $1,654 $18,979
3Q Reimbursable Capital Expenditures $2,005 $1,810 $2,125 $2,180 1,949 $2,092 $1,939 $1,874 $2,025 $2,246 $20,245
3Q Reimbursements
Less 3Q Reimbursable Capital Expenditures
($450) $641 ($784) $204 ($424) ($10) ($179) 415 ($87) ($592) ($1,266)
3Q Reimbursements
as a % of 3Q Reimbursable Capital Expenditures
77.6% 135.4% 63.1% 109.4% 78.2% 99.5% 90.8% 122.1% 95.7% 73.6% 93.7%
3Q Reimbursements as a % of Total 3Q Receipts 7.6% 10.9% 7.3% 11.4% 7.6% 9.4% 7.9% 8.9% 8.2% 6.9% 8.6%

During 3Q17, eligible CapEx exceeded reimbursements, decreasing the City’s cash balance by $592 million.Table 13 shows that eligible CapEx exceeded reimbursements in seven out of the last ten 3Q periods (FY08-FY17), resulting in a total drain of $1.266 billion to the Central Treasury.

Chart 13. Bond-Funded Reimbursements for Eligible CapEx, 3Q, FY13 – FY17

($ in millions)

July 2016 – March 2017 (FYTD17)

FYTD17, total CapEx increased 3.9% versus a year-ago.The City-funded CapEx jumped 12.8%, while Non-City CapEx declined 23.4%.

Chart 14. Total CapEx, FYTD, FY08 – FY17

($ in millions)

Chart15. Total CapEx as % of Total Expenditures, FYTD, FY08 – FY17

Reimbursements to the New York City Central Treasury for Capital Expenditures

Table 14. Reimbursements to the NYC Central Treasury, FYTD, 2008 – 2017

($ in millions)

  FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total
GO $2,179 $3,510 $2,255 $2,571 $1,646 $898 $1,712 $382 $609 $2,468 $18,230
NY Water 1,460 1,990 2,019 2,278 1,691 1,438 1,243 1,074 1,032 1,095 15,318
TFA 524 14 1,940 2,527 1,745 2,909 3,129 2,933 3,302 2,450 21,473
City-Funded Sub-total 4,163 5,514 6,214 7,376 5,082 5,245 6,084 4,389 4,943 6,013 55,021
TFA Building Aid 739 1649 182 352 979 957 0 883 832 0 6,573
DASNY 465 368 6 0 0 0 0 0 0 0  839
Non-City Sub-total 1,204 2,017 188 352 979 957 0 883 832 0  7,412
FYTD Total $5,367 $7,531 $6,402 $7,728 $6,061 $6,202 $6,084 $5,272 $5,775 $6,013  $62,433
 
YTD Reimbursable
Capital
Expenditures
$5,451 $6,275 $6,948 $6,863 $5,705 $5,662 $5,811 $5,128 $5,558 $5,772 $59,173
YTD Reimbursements Less
YTD Reimbursable
Capital Expenditures
($84) $1,256 ($546) $865 $356 $540 $273 $144 $217 $241 $3,260
YTD Reimbursements as a % of
YTD Reimbursable
Capital
Expenditures
98.5% 120.0% 92.1% 112.6% 106.2% 109.5% 104.7% 102.8% 103.9% 104.2% 105.5%
YTD Reimbursements
as a % of YTD Total
Receipts
9.6% 13.1% 11.6% 13.0% 10.3% 10.3% 9.5% 8.0% 8.1% 8.8% 10.1%

FYTD17 reimbursements exceeded eligible CapEx by $241 million, or 4.2%.Over the long term, CapEx and reimbursements offset each other.Over the past ten FYTD periods they have been closely paired, with reimbursements exceeding CapEx by only 5.5%.

Chart 16. Bond-Funded Reimbursements for Eligible CapEx, FYTD, 2013 – 2017

($ in millions)

V. Financings

In FY17, the City plans to issue $5.6 billion in General Obligation (GO) and Transitional Finance Authority Personal Income Tax (TFA PIT) bonds for new money capital purposes.The City issued $4.5 billion of new money debt FYTD17.

Table 15. FY17 Projected vs. FYTD17 Actual GO, TFA PIT, and TFA BARBs Issuance

($ in billions)

Projected New Money Issuance Actual New Money Issuance Remaining New Money Issuance
GO $2.3 $2.3 $0
TFA PIT 3.3  2.2  1.1
Total $5.6 $4.5 $1.1

Projected bond issuance is based on OMB’s April 2017 Executive Budget.

There were no new money sales in 3Q17.Two bond sales refinanced outstanding debt.The first transaction was a GO sale of $900 million of refunding bonds.The refunding achieved $133.7 million in budget savings, or more than $118.8 million on a present-value basis.The second transaction was a TFA sale of $795 million of refunding bonds.The refunding achieved $99.2 million in budget savings, or more than $84.9 million on a present-value basis.

Table 16. GO, TFA PIT, and TFA BARBs Bond Issuance, FYTD17

($ in millions)

Closing Date Deal Purpose  TE Fixed TX Fixed* TE Variable TE Index Total Par
7/28/2016 TFA 2017 A New Money $800 $250 $0 $0 $1,050
8/18/2016 GO 2017 A New Money $800 $250 $381 $0 $1,431
9/22/2016 TFA 2017 B New Money $800 $250 $0 $100 $1,150
12/20/2016 GO 2017 B New Money $650 $200 $0 $0 $850
2/22/2017 GO 2017 CD Refunding $900 $0 $0 $0 $900
3/22/2017 TFA 2017 CD Refunding $795 $0 $0 $0 $795

* Designates series of bonds that were sold via competitive sale

The table excludes conversions and re-offerings.

The pace of bond issuance in FYTD17 exceeded last year’s pace.As shown in the following chart, in FYTD17 the City issued $6.2 billion in new money and refunding bonds versus $5.7 billion in FYTD16.

Chart 17. GO, TFA PIT, and TFA BARBs Issues, FYTD16 & FYTD17

($ in billions)


Endnotes

[1]The data in this report are based on the book balances in the New York City Central Treasury as calculated by the Bureau of Budget, Office of the New York City Comptroller. Receipts are reported based on cash receipts and the analysis of bank deposits. Expenditures are reported based on warrants issued.

[2]In this report, tax receipts, with the exception of personal income tax, are gross of refunds. Real property tax and personal income tax are gross of any debt service funding.

[3]In this report, tax receipts, with the exception of personal income tax, are gross of refunds. Real property tax and personal income tax are gross of any debt service funding.

[4]City-funded capital expenditures are primarily financed from the proceeds of General Obligation (GO), New York City Transitional Finance Authority (TFA), and New York City Municipal Water Finance Authority (NY Water) debt.Capital expenditures are initially paid from the General Fund and then reimbursed from various capital accounts and State sources.


Prepared by Irina Livshits, Division Chief
Andrew Rosenthal, Analyst; Michele Griffin, Analyst; and Alex Huang, Analyst

Published by the NYC Comptroller’s Office, Bureau of Budget
Preston Niblack, Deputy Comptroller for Budget