NYC Bonds

Filtration Waiver Renewal Attests to High Quality of NYC Tap Water

The New York City Department of Environmental Protection received a 10-year waiver renewal to deliver unfiltered drinking water to New York City. This waiver, known as a Filtration Avoidance Determination or “FAD”, was first issued in 1993 and has been renewed periodically. From DEP: “Over the past 25 years, the City’s watershed protection programs have been praised as a worldwide model for protecting the quality of drinking water at its source. These efforts, paired with a robust program of water quality testing and infrastructure improvements, have allowed the City to avoid the construction of a costly filtration plant for its Catskill and Delaware supplies.” Read the full press release.

The Comptroller’s Public Finance Bureau works with the City’s Municipal Water Finance Authority to execute thoughtful, cost-effective debt issuances and refundings.

Pepacton Reservoir, part of the Catskill and Delaware Watersheds that supply most of New York City’s tap water.

New York Water Board Forgoes Rate Increase

The New York State Court of Appeals recently upheld the NYC Water Board’s ability to implement a 2.1 percent rate increase for FY 2017. However, the system’s financial condition since the court challenge, including higher-than-projected cash balances, made the increase unnecessary. The Board voted not to increase rates retroactively for FY 2017 or for the current FY 2018. The Board anticipates a resumption of the traditional rate setting process in April 2018 for FY 2019.

Federal Infrastructure Proposals

The White House is reportedly planning to release its infrastructure plan in the coming weeks. We will continue monitoring proposals as they become available.

NYC Bond Fact

The City borrows for capital projects in accordance with its capital plan and budget and Comptroller’s Directive #10, which allows for borrowing on projects with a useful life of five years or longer and costing $35,000 or more. This helps ensure the City’s long-term financial health by using capital borrowing to fund substantial projects with long useful lives.

Looking Ahead

The City plans to offer approximately $1.4 billion of tax-exempt and taxable General Obligation bonds the week of February 20. The issue is expected to include fixed rate new money and reoffered bonds, as well as variable rate new money bonds. Subscribe to our mailing list for details on the bond sale, including how to participate in the part of the order period when individual investors have priority.

As always, we appreciate your interest in New York City bonds.

Carol S. Kostik
Deputy Comptroller for Public Finance