News
April 2012 Monthly Public Finance Wrap Up
To our investor community,
The highlight of April’s financing calendar was the New York City Transitional Finance Authority (TFA) sale of $900 million subordinate Future Tax Secured Bonds. These bonds, backed primarily by the City’s personal income tax, will fund a wide array of capital projects. The sale included $800 million tax-exempt bonds and $100 million “QSCBS” – Qualified School Construction Bonds – which pay interest that is federally taxable. The City will receive a 100% interest subsidy from the federal government for the QSCBs, which exclusively fund school capital needs. (Read the press release).
Looking ahead, the last two months of our fiscal year will see bond sales from all three of the City’s major credits, G.O., TFA and New York Water. You can sign up to receive bond sale notification by emails on the Comptroller’s Public Finance Investor relations website.
May and June are also important months in the City’s budget cycle. The Mayor released his Executive Budget on May 3rd and it will go to the City Council for action. The Executive Budget is available on the Office of Management and Budget website. Under the City Charter, the Comptroller is tasked with reviewing and commenting on the proposed budget; that report is expected to be released in June. You can also sign up to receive notices of reports. The City’s new fiscal year, FY 2013, starts July 1, 2012.
Carol Kostik
Deputy Comptroller for Public Finance