Public Finance Wrap-Up: December 2018
January 4, 2019
Comptroller Releases Annual Economy and Finances Report
The Comptroller’s Office released its annual State of the City’s Economy and Finances report on December 14. The report provides commentary on the City’s November 2018 Financial Plan and sets context for projected revenues and expenditures within the larger economy. In addition to a discussion of revenue assumptions and an analysis of the City’s expenditures, readers can access an archive of past reports dating back to 2002.
Capital Debt and Obligations Detailed in Reports
The Comptroller’s Office released its City Charter-mandated report on Capital Debt and Obligations on December 3. Accompanying it was the annual Report on the Status of Existing Capital Projects. Together, the reports provide information on the state of the City’s capital program. They detail the amount of debt the City may incur in upcoming fiscal years and show that the City’s outstanding debt is well below the allowable debt-incurring power for the current year. The Capital and Debt Obligations report also compares New York City’s position to that of other U.S. cities and provides details on the drivers of borrowing and factors that could influence future borrowing.
NYC Bond Fact – Happy Birthday to New York Water
The New York City Municipal Water Finance Authority (NYW) turned 33 years old in 2018. NYW closed the sale of its first bond deal on December 4, 1985. The $200 million transaction included $37,850,000 of serial bonds – sold at par and ranging in yield from 5.625% to 8.8% – and $162,150,000 of term bonds – sold at a discount with coupons of up to 9.25%. Ed Koch was Mayor at the time and Harrison Goldin was the City’s Comptroller. Marj Henning, who was then an associate at the law firm that served as NYW’s first bond counsel, worked on this inaugural transaction, drafting authorizing documents and agreements establishing the relationship among the City, NYW, and the Water Board.
Newtown Creek Wastewater Treatment Plant
The New York City Municipal Water Finance Authority (NYW) plans to offer $450 million in fixed rate tax-exempt new money bonds via negotiated sale the week of January 14. Sign up to receive notices of upcoming sales here.
As always, we appreciate your interest in New York City bonds.
Deputy Comptroller for Public Finance