Summary
Cash Balances[1]
The City began 1Q19 with $9.394 billion in cash-on-hand, roughly the same amount as in 1Q18. Total receipts in the quarter rose 13.7%, while expenditures increased 6.5%. Overall, cash expenditures exceeded cash receipts by $1.072 billion in 1Q19. The quarter finished strong with $8.322 billion in cash, an increase of $1.429 billion or 20.7% from the prior fiscal year. The average cash balance rose from $8.883 billion in 1Q18 to $8.964 billion in 1Q19.
Cash Receipts
Cash receipts totaled $24.456 billion in 1Q19, averaging $388 million a day. During the same period last year, cash receipts totaled $21.513 billion and averaged $341 million a day. Federal and state aid increased a whopping 76.5%, while miscellaneous revenue rose 9.3% and total taxes rose 8.5%.
The cash receipts figure includes the retention of real property and personal income tax revenues for GO and TFA PIT debt service payments. Debt service funding is recorded as a negative inflow (rather than a positive expense). In 1Q19, debt service retention decreased total cash revenue by $486 million, compared to $905 million during the same period last year.
Total tax receipts measured $13.266 billion, up 8.5% compared to the same period last year. Real property tax, the City’s largest source of tax revenue, was up 18.5%. Personal income tax grew 7.2% and sales tax increased 6.5%. Overall, tax revenue accounted for 54.2% of total cash receipts in 1Q19.
The combined 1Q19 total of Federal and State aid amounted to $5.9 billion compared to $3.4 billion during the same period last year. Federal welfare rose $917 million, State higher education rose $856 million, and State education aid rose $502 million, versus a year ago. Most of these payments were “prior aid” funds, which were originally scheduled to be remitted to the City last year.
Cash Expenditures
Cash expenditures, including capital, totaled $25.529 billion in 1Q19, averaging $405 million a day. During the same period last year, cash expenditures totaled $23.962 billion and averaged $380 million a day. Personal service (PS) expenditures were up 2.6% compared to last year. Payroll increased 2.3%, while other personal services—primarily pensions and other fringe benefits—rose 3.7%. Other-than-personal-service (OTPS) expenditures rose 18.1% versus a year ago. In the OTPS category, medical assistance spending showed the most growth (up 28.3%) followed by vendor and other (up 17.5%) and other social services (up 14.3%). When the impact of CapEx is removed, 1Q19 net expenditures reflect a gain of 6.8% versus a year ago.
Capital Expenditures (CapEx)[2]
CapEx totaled $2.435 billion in 1Q19, up 3.7% from $2.347 billion in 1Q18. City-funded CapEx increased 3.0% while Non-City-funded CapEx grew 10.2%.
Reimbursements trailed eligible CapEx during 1Q19, resulting in a loss of $242 million to the Central Treasury. As a quarterly metric, the CapEx reimbursement rate is a volatile statistic. However, over the long-term, CapEx and the related reimbursements offset each other. Over the past ten 1Q periods, the reimbursement rate averaged 106%.
Financings
In FY19, the City plans to issue $6.6 billion in GO, TFA FTS, and TFA BARBs bonds for new money capital purposes. In comparison, in FY18 the City sold $7.4 billion in new money debt across the three credits.
During 1Q19, the City closed four bond sales. The first transaction was a new money and refunding sale of approximately $1 billion of TFA Building Aid Revenue Bonds. The TFA BARBs sale was comprised of $929 million of tax-exempt fixed rate bonds, and $115 million of taxable fixed rate bonds. The refunding achieved $120.9 million in budget savings, or $113.1 million on a present-value basis.
The second transaction was a new money sale of approximately $1.4 billion of TFA FTS bonds. The TFA FTS sale included $850 million of tax-exempt fixed rate bonds, $300 million of taxable fixed rate bonds, and $200 million of tax-exempt variable rate bonds.
The third transaction was a refunding sale of $831 million of GO bonds. The GO sale was comprised of $771 million of tax-exempt fixed rate bonds, and $60 million of taxable fixed rate bonds. The refunding achieved $101.3 million in budget savings, or $95.7 million on a present-value basis.
The fourth transaction was a new money sale of approximately $1.5 billion of TFA FTS bonds. The TFA FTS sale included $750 million of tax-exempt fixed rate bonds, $500 million of taxable fixed rate bonds, and $275 million of tax-exempt variable rate bonds.
Rounding of Large Numbers in the Quarterly Cash Report
When dealing with numbers as large as those considered in this report, it becomes necessary, for conservation of space, to round representative figures to the nearest tenths, hundredths, or thousandths. Adding such a series of rounded figures often leads to a circumstance whereby components, when added together, appear not to equal the given total. Examples occur throughout this report and are the result of rounding, not miscalculation.
Cash Balances
The City began 1Q19 with $9.394 billion in cash-on-hand, roughly the same amount as in 1Q18. Total receipts in the quarter rose 13.7%, while expenditures increased 6.5%. Overall, cash expenditures exceeded cash receipts by $1.072 billion in 1Q19. The quarter finished strongly with $8.322 billion in cash, an increase of $1.429 billion or 20.7% from the prior fiscal year. The average cash balance rose from $8.883 billion in 1Q18 to $8.964 billion in 1Q19.
Cash Receipts
Receipts at a Glance
Cash receipts totaled $24.456 billion in 1Q19, averaging $388 million a day. During the same period last year, cash receipts totaled $21.513 billion and averaged $341 million a day. Federal and state aid increased a whopping 76.5%, while miscellaneous revenue rose 9.3% and total taxes rose 8.5%.
The cash receipts figure includes the retention of real property and personal income tax revenues for GO and TFA PIT debt service payments. Debt service funding is recorded as a negative inflow (rather than a positive expense). In 1Q19, debt service funding decreased total cash revenue by $486 million compared to $905 million during the same period last year.
Taxes[3]
Total tax receipts measured $13.266 billion, up 8.5% compared to the same period last year. Real property tax, the City’s largest source of tax revenue, was up 18.5%. Personal income tax grew 7.2% and sales tax increased 6.5%. Overall, tax revenue accounted for 54.2% of total cash receipts in 1Q19.
Federal and State Aid
The combined 1Q19 total of Federal and State aid amounted to $5.9 billion compared to $3.4 billion during the same period last year. Federal welfare rose $917 million, State higher education rose $856 million, and State education aid rose $502 million, versus a year ago. Most of these payments were “prior aid” funds, which were originally scheduled to be remitted to the City last year.
Cash Expenditures (Including Capital)
Cash Expenditures at a Glance
Cash expenditures, including capital, totaled $25.529 billion in 1Q19, averaging $405 million a day. During the same period last year, cash expenditures totaled $23.962 billion and averaged $380 million a day. Personal service (PS) expenditures were up 2.6% compared to last year. Payroll increased 2.3%, while other personal services—primarily pensions and other fringe benefits—rose 3.7%. Other-than-personal-service (OTPS) expenditures rose 18.1% versus a year ago. In the OTPS category, medical assistance spending showed the most growth (up 28.3%) followed by vendor and other (up 17.5%) and other social services (up 14.3%). When the impact of CapEx is removed, 1Q19 net expenditures reflect a gain of 6.8% versus a year ago.
Capital Expenditures
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. Beginning in 2Q07, Non-City-funded capital expenditures for education were financed by TFA Building Aid bonds and Expanding Our Children’s Education and Learning (EXCEL) capital grant funding from the Dormitory Authority of the State of New York (DASNY). Capital expenditures are initially paid from the New York City Central Treasury and then reimbursed from various capital accounts and State sources.
CapEx totaled $2.435 billion in 1Q19, up 3.7% from $2.347 billion in 1Q18. City-funded CapEx increased 3.0% while Non-City-funded CapEx grew 10.2%.
Reimbursements trailed eligible CapEx during 1Q19, resulting in a loss of $242 million to the Central Treasury. As a quarterly metric, the CapEx reimbursement rate is a volatile statistic. However, over the long-term, CapEx and the related reimbursements offset each other. Over the past ten 1Q periods, the reimbursement rate has averaged 106%.
Financings
In FY19, the City plans to issue $6.6 billion in GO, TFA FTS, and TFA BARBs bonds for new money capital purposes. In comparison, in FY18 the City sold $7.4 billion in new money debt across the three credits.
FY19 Projected and 1Q19 Actual GO, TFA FTS, and TFA BARBs New Money Issuance
| ($ in billions) | Projected New Money Issuance | 1Q19 New Money Issuance | Remaining New Money Issuance |
| GO | $2.4 | $0.0 | $2.4 |
| TFA FTS | $3.7 | $2.9 | $0.8 |
| TFA BARBs | $0.5 | $0.5 | $0.0 |
| Total | $6.6 | $3.4 | $3.2 |
Projected bond issuance is based on the OMB’s November 2018 Financial Plan.
During 1Q19, the City closed four bond sales. The first transaction was a new money and refunding sale of approximately $1 billion of TFA Building Aid Revenue Bonds. The TFA BARBs sale was comprised of $929 million of tax-exempt fixed rate bonds, and $115 million of taxable fixed rate bonds. The refunding achieved $120.9 million in budget savings, or $113.1 million on a present-value basis.
The second transaction was a new money sale of approximately $1.4 billion of TFA FTS bonds. The TFA FTS sale included $850 million of tax-exempt fixed rate bonds, $300 million of taxable fixed rate bonds, and $200 million of tax-exempt variable rate bonds.
The third transaction was a refunding sale of $831 million of GO bonds. The GO sale was comprised of $771 million of tax-exempt fixed rate bonds, and $60 million of taxable fixed rate bonds. The refunding achieved $101.3 million in budget savings, or $95.7 million on a present-value basis.
The fourth transaction was a new money sale of approximately $1.5 billion of TFA FTS bonds. The TFA FTS sale included $750 million of tax-exempt fixed rate bonds, $500 million of taxable fixed rate bonds, and $275 million of tax-exempt variable rate bonds.
Endnotes
[1] The data in this report are based on the book balances in the New York City Central Treasury as calculated by the Bureau of Budget, Office of the New York City Comptroller. Receipts are reported based on cash receipts and the analysis of bank deposits. Expenditures are reported according to warrants issued.
[2] City-funded capital expenditures are primarily financed from the proceeds of General Obligation (GO), New York City Transitional Finance Authority (TFA), and New York City Municipal Water Finance Authority (NY Water) debt. Capital expenditures are initially paid from the General Fund and then reimbursed from various capital accounts and State sources.
[3] In this report, tax receipts, with the exception of personal income tax, are gross of refunds. Real property tax and personal income tax are gross of debt service funding.
Daily Cash Balances in the NYC Central Treasury ($ in Millions)
Cash Position in the NYC Central Treasury
($ in Millions)
a. Opening balances are before City audits.
b. Total expenditures include capital expenditures.
($ in Billions)