NYC Bonds

To Our Investor Community:

The City and its issuers stayed out of the new issuance market in January to accommodate significant budget news from the State and City of New York.  On January 13th the Governor delivered the State of the State and Executive Budget address, and on January 21st the Mayor presented the Preliminary Fiscal Year 2017 Budget and FY 2016-2020 Financial Plan. Because these announcements can provide important information for our bond investors, we need to give the market time to study the news as well as give ourselves time to update bond disclosure documents prior to a new sale.  Our sales calendar will pick up in February and March.  

State of New York Executive Budget

Governor Andrew Cuomo presented his State of the State and Executive Budget Address on January 13th, and detailed materials are available on the State Division of the Budget website. The proposed budget is for the State fiscal year beginning April 1, 2016, and it now enters the State legislative process. New York City is always affected by State budgets but it is too soon to know what the adopted State budget will contain or the effects on the City.

Mayor’s Fiscal Year 2017 Preliminary Budget

On January 21st, Mayor Bill de Blasio presented the Fiscal Year 2017 Preliminary Budget, the Preliminary Financial Plan for fiscal years 2016 through 2020, the Fiscal Year 2017 Preliminary Capital Budget and the January 2016 Capital Commitment Plan.  The financial plan reflects balanced budgets for both the current fiscal year 2016, which ends June 30th, and fiscal year 2017, as required by law.  The preliminary expense budget for FY 2017 is $82.1 billion, with a City-funded portion of $59.9 billion.  You may also download the financial plan summary which provides an overview of New York City’s fiscal position.  The next step in the budget adoption process will be the Mayor’s Executive Budget proposal to be released in late April or early May, which will lead to a new budget before the start of Fiscal Year 2017 on July 1, 2016. 

The Comptroller is mandated by the city Charter to review and comment on the Mayor’s preliminary budget and financial plan.  The review is currently underway and we anticipate the Comptroller’s report to be released during the latter part of February or early March.

Looking Ahead

February and March will be busy months for the City of New York and its issuers.  First up will be the Transitional Finance Authority (TFA) offering $1 billion of future tax secured bonds, which are primarily payable from the City’s personal income tax revenue.  Individual investors will have an opportunity to purchase the bonds on Friday, February 5th and Monday, February 8th with final pricing Tuesday, February 9th.

In addition, the City currently expects to offer General Obligation, Municipal Water Finance Authority and TFA Building Aid Revenue Bonds over this two-month period. Information on how to buy New York City bonds is available on the Comptroller’s website.  There, you can subscribe to receive sale announcements and other City publications and reports.  The New York State Comptroller also maintains a website with a preliminary forward calendar for major State and City issuers.

As always, we appreciate your interest in New York City bonds.  Please contact us if you have any questions or suggestions as to how we can improve our investor communications. 

Carol S. Kostik
Deputy Comptroller for Public Finance