Summary

Cash Balances

At the end of the third quarter of FY18 (January through March 2018; hereafter 3Q18), the City recorded an unrestricted cash balance of $9.953 billion, $1.850 billion below last year’s figure.[1]  The average 3Q daily cash balance increased each year between FY12 and FY16, reaching $11.775 billion in 3Q16.  During 3Q18, the average daily cash balance measured $7.877 billion, the lowest since FY13.

As usual for this time of the year, cash balances were slipping for most of the quarter. This trend reversed in mid-March due to the arrival of real estate taxes payable by April 1. The period finished strong with the receipt of $3.8 billion in State aid, which included the “Spring Advance,” a component of State education aid.

Receipts in 3Q18 exceeded expenditures by $3.026 billion.  In comparison, receipts exceeded expenditures in 3Q14, 3Q15, 3Q16, and 3Q17 by $2.911 billion, $3.169 billion, $2.112 billion, and $1.454 billion, respectively.

The City of New York began FY18 (in July 2017) with $9.341 billion in cash-on-hand.  From July 3 to December 4, 2017, the cash balance declined by $8.320 billion, reaching a low point of $1.022 billion for the year.

However, the cash balance recovered quickly at the end of December thanks to incoming real property and income tax receipts as New Yorkers rushed to prepay their taxes before a federal tax overhaul kicked in and capped deductions for state and local taxes.  At the end of 3Q18, the City’s unrestricted cash balance stood at $9.953 billion, compared to $11.803 billion at the same time last year.  FYTD18, receipts exceeded expenditures by $611 million.

Cash Receipts

Total receipts in 3Q18 totaled $27.103 billion, up 12.5% versus a year ago.  The City collected a record of $15.3 billion in tax revenues in 3Q18, $2.5 billion more than at the same time last year.

Tax receipts were strong across all categories, with the exception of STAR, which declined 6.9%.  Real property tax collections rose 19.1%, and PIT receipts increased 35.9% due to a combination of factors, many of which are non-recurring. Sales tax receipts increased 9%.  Business taxes, the general corporation tax and the unincorporated business tax, grew 1.2% and 7.7%, respectively.  Commercial real estate and the tourism industry also performed well.  Commercial rent tax increased 14%.  Hotel occupancy tax rose 14.8%.  Overall, tax revenues represented 56.6% of total receipts in 3Q18.

During the first half of FY18, NYS and federal governments delayed payments to NYC for social welfare programs.  In 3Q18, the City received the missing funds: $1.2 billion in federal welfare aid and $674 million in NYS welfare aid came in.  In contrast, in 3Q18, the City received $257 million in federal education aid, compared to $1.1 billion in the previous year.  In 3Q17, the large amount was due to the late arrival of $389 million in Title I funding in March, 2017.

FYTD18 cash receipts totaled $72.302 billion, up $3.918 billion from the previous year.  Removing the effect of CapEx reimbursements, net cash receipts increased 4.7%.

FYTD18 tax receipts rose 8.7% versus a year ago. Real property and personal income taxes grew 6% and 23.8%, respectively.   Sales tax increased 6.3%.  The largest drag on tax receipts was STAR, which slipped 39.2% versus a year ago.  The decline in STAR was due to the restructuring of the NYS School Tax Relief program.  Previously, NYC PIT payers received a tax credit on their local income taxes and the City was paid by the State for the cost of offering this tax credit.  Retroactive to January 1, 2017, the NYC PIT payers have this credit applied to their NYS taxes and the reimbursement payment has been eliminated.  Real-estate transaction tax, which includes the mortgage recording and the real property transfer taxes, declined 9.3%, indicating that the residential housing market in NYC has softened.

FYTD18 the City received $14.5 billion in Federal and State Aid, 5% less than at the same time last year. Federal education aid was down 42.1% compared to FYTD17.  NYS higher education and welfare receipts were down 28.3% and 21.2%, respectively, compared to FYTD17.  Overall, Federal and State Aid accounted for 20% of total receipts in FYTD18.

Cash Expenditures

Cash expenditures, including capital, totaled $24.077 billion in 3Q18, averaging $388 million daily. During the same period last year, cash expenditures totaled $22.645 billion and averaged $365 million daily.  Personal service expenditures grew 3.5% versus a year ago.  The gross payroll increased 4.5% mostly due to holiday payments made to police, fire, and correction officers.  Other-than-personal-service expenditures (OTPS) remained unchanged compared to the same period last year.  Public assistance and medical assistance were up 8.9% and 5.1%, respectively, while other social services and vendor and other spending fell 9.4% and 1%.  The expenditure category titled “All Other” increased by over $1 billion.  The main factor driving the growth in “All Other” outlays was spending on City-funded capital projects, which increased 28.4% compared to the same period last year.

FYTD18 total expenditures rose 5% versus a year ago. Gross payroll increased 5.6%, while other personal service expenditures jumped 2.4%.  OTPS outflows rose 3.1%, boosted by increases in spending on public assistance (up 12.9%), medical assistance (up 4%), and vendor and other payments (up 2.6%). “All Other” spending rose 11.1%, mostly due to higher City-funded capital spending and a positive Fund 700 adjustment.  When the impact of CapEx is removed, FYTD18 net expenditures reflect a gain of 4.6% versus a year ago.

Capital Expenditures (CapEx) and Reimbursements

CapEx totaled $2.827 billion in 3Q18, up 16.4% from $2.428 billion in 3Q17.[2] City-funded CapEx increased 28.4% while non-City-funded CapEx declined 52.1%.

During 3Q18, eligible CapEx exceeded reimbursements, decreasing the City’s cash balance by $837 million.  Eligible CapEx exceeded reimbursements in seven out of the last ten 3Q periods (FY09-FY18), resulting in a total drain of $1.653 billion to the Central Treasury.

FYTD18, total CapEx increased 8.3% versus a year ago.  The City-funded CapEx jumped 20.9%, while non-City CapEx declined 48.9%.

FYTD18 reimbursements exceeded eligible CapEx by $372 million, or 5.6%.  Over the long term, CapEx and reimbursements offset each other.  Over the past ten FYTD periods they have been closely paired, with reimbursements exceeding CapEx by only 6.2%.

Financings

In FY18, the City plans to issue $7.3 billion in GO, TFA FTS, and TFA BARB bonds for new money capital purposes.  The City issued $5 billion of new money debt FYTD18.

Two transactions closed in 3Q18.  The first transaction was a new money sale of $1.2 billion GO bonds.  The GO sale was comprised of $700 million of tax-exempt fixed rate bonds, $250 million of taxable fixed rate bonds, $50 million of tax-exempt variable rate bonds, and $200 million of tax-exempt index floating rate bonds.  The second transaction was a TFA BARBs sale of approximately $1.1 billion of new money and refunding bonds.  The TFA BARBs sale was comprised of $1 billion of tax-exempt fixed rate bonds, and $73 million of taxable fixed rate bonds.  The refunding achieved $86.8 million in budget savings, or about $83.1 million on a present-value basis.

The pace of bond issuance in FYTD18 exceeded last year’s pace.  In FYTD18 the City issued $8.4 billion in new money and refunding bonds versus $6.2 billion in FYTD17.

Notes

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 any debt service funding.

Note that totals may not equal sum of components due to rounding.

Cash Balances

January 2018 – March 2018 (3Q18)

Chart 1. Daily Cash Balances in the NYC Central Treasury, 3Q13, 3Q17, & 3Q18 ($ in millions)


At the end of the third quarter of FY18 (hereafter 3Q18), the City recorded an unrestricted cash balance of $9.953 billion, $1.850 billion below last year’s figure.  The average 3Q daily cash balance increased each year between FY12 and FY16, reaching $11.775 billion in 3Q16.  During 3Q18, the average daily cash balance measured $7.877 billion, the lowest since FY13.

As usual for this time of the year, cash balances were slipping for most of the quarter. This trend reversed in mid-March due to the arrival of real estate taxes payable by April 1. The period finished strong with the receipt of $3.8 billion in State aid, which included the “Spring Advance,” a component of State education aid.

Receits in 3Q18 exceeded expenditures by $3.026 billion.  In comparison, receipts exceeded expenditures in 3Q14, 3Q15, 3Q16, and 3Q17 by $2.911 billion, $3.169 billion, $2.112 billion, and $1.454 billion, respectively.

Table 1. Cash Position in the NYC Central Treasury, 3Q, 2009 – 2018
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Opening Balance a $2,820 $5,092 $6,144 $6,354 $6,196 $8,537 $9,199 $11,604 $10,349 $6,926
Total Receipts 22,492 18,439 20,967 20,004 22,179 22,377 25,740 23,557 24,099 27,103
Total Expenditures b 17,550 17,343 19,011 18,615 19,621 19,466 22,571 21,445 22,645 24,077
Closing Balance $7,762  $6,188  $8,101  $7,742 $8,754 $11,448 $12,368 $13,716 $11,803 $9,953
Avg. Daily Balance $5,536 $5,426 $5,806 $5,709 $6,461 $9,029 $10,692 $11,775 $9,993 $7,877
a. Opening balances are before City audits.
b. Total expenditures include capital expenditures.

July 2017 – March 2018 (FYTD18)

Chart 2. Daily Cash Balances in the NYC Central Treasury, FYTD, 2013, 2017, & 2018 ($ in millions)

 

Table 2. Cash Position in the NYC Central Treasury, FYTD09 – FYTD18
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Opening Balance a $4,988 $5,839 $4,604 $5,041 $6,297 $7,944 $9,858 $9,502 $11,719 $9,341
Total Receipts 57,303 55,004 59,639 59,072 60,126 64,039 66,066 71,229 68,384 72,302
Total Expenditures b 54,529 54,655 56,142 56,370 57,669 60,535 63,556 67,015 68,300 71,691
Closing Balance $7,762 $6,188 $8,101 $7,742 $8,754 $11,448 $12,368 $13,716 $11,803 $9,953
Avg. Daily Balance $5,453 $4,963 $4,602 $5,013 $5,766 $7,161 $8,963 $10,216 $9,551 $7,000
a. Opening balances are before City audits.
b. Total expenditures include capital expenditures.

The City of New York began FY18 (in July 2017) with $9.341 billion in cash-on-hand.  From July 3 to December 4, 2017, the cash balance declined by $8.320 billion, reaching a low point of $1.022 billion for the year.

However, the cash balance recovered quickly at the end of December thanks to incoming real property and income tax receipts as New Yorkers rushed to prepay their taxes before a federal tax overhaul kicked in and capped deductions for state and local taxes.  At the end of 3Q18, the City’s unrestricted cash balance stood at $9.953 billion, compared to $11.803 billion at the same time last year.  FYTD18, receipts exceeded expenditures by $611 million.

Cash Receipts

January 2018 – March 2018 (3Q18)

Receipts at a Glance

Table 3. Cash Receipts by Category, 3Q, FY09 – FY18
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Real Property Tax $5,153 $3,176 $3,295 $3,399 $3,643 $3,789 $3,879 $4,464 $4,601  $5,482
Other Taxes 6,196 6,258 6,457 6,636 7,614 8,481 8,538 8,423 8,265 9,846
Total Taxes 11,349 9,434 9,752 10,035 11,257 12,270 12,417 12,887 12,866  15,328
Federal and State Aid 6,315 5,258 7,021 6,615 6,485 6,476 6,099 6,624 7,480 7,693
Debt Service Funding (31) 0 (650) (907) (1,127) (966) (657) (899) (1,050) (1,075)
Miscellaneous 1,569 1,462 1,525 1,726 1,945 1,944 1,872 1,491 1,610 1,633
Intergovernmental Aid 0 24 14 0 0 1 0 2 0 0
Other 3,290 2,261 3,305 2,534 3,619 2,652 6,009 3,452 3,193 3,524
3Q Total $22,492 $18,439 $20,967 $20,003 $22,179 $22,377 $25,740 $23,557 $24,099 $27,103
Total, Net of CapEx Reimbursements $20,041 $17,098 $18,583 $18,478 $20,097 $20,618 $23,451 $21,619 $22,445   $25,221

Total receipts in 3Q18 totaled $27.103 billion, up 12.5% versus a year ago.  The City collected a record $15.3 billion in tax revenues in 3Q18, $2.5 billion more than at the same time last year.

Tax receipts were strong across all categories, with the exception of STAR, which declined 6.9%.  Real property tax collections rose 19.1%, and PIT receipts increased 35.9%. The increase in PIT receipts is driven in large part by non–recurring factors related to Federal tax reform – Public Law 115-97, the Tax Cuts and Jobs Act (TCJA). These include the shifting of income into FY 2018 due to the anticipation and enactment of the TCJA and the limitation of SALT deductibility, and two specific tax provisions: the Repatriation of Non-Qualified Deferred Compensation and the Transition Tax on Foreign Earnings.  In addition, this year’s Wall Street bonuses grew 17% from the previous year, and lower tax rates on pass-through corporations led the self-employed and others with business income to shift profits from 2017 to 2018.[3]

Sales tax receipts increased 9%.  Business taxes, the general corporation tax and the unincorporated business tax, grew 1.2% and 7.7%, respectively.  Commercial real estate and the tourism industries also performed well:  commercial rent tax receipts increased 14%, and hotel occupancy tax receipts rose 14.8%.  Overall, tax revenues represented 56.6% of total receipts in 3Q18.

Taxes

Table 4. Tax Receipts, 3Q13, 3Q17, & 3Q18
($ in millions) FY13 FY17 FY18 % Change FY18/FY13 % Change FY18/FY17
Real Property Tax $3,643 $4,601 $5,482                 50.5%                 19.1%
Personal Income Tax 2,721 3,391 4,607              69.3              35.9
Sales Tax 1,445 1,511 1,647              14.0                9.0
General Corporation Tax 1,190 1,125 1,138                (4.4)                1.2
Unincorporated Business Tax 517 770 829               60.3                7.7
Mortgage and Real Property Transfer Taxes 547 653 590                7.9                 (9.6)
Commercial Rent Tax 192 214 244              27.1                14.0
Banking Corporation Tax 481 30 212              (55.9)              606.7
STAR 219 203 189               (13.7)                 (6.9)
Hotel Occupancy Tax 115 122 140               21.7               14.8
All Other Taxes 187 246 250               33.7                 1.6
3Q Total $11,257 $12,866 $15,328 19.1%    36.2%

Selected Cash Receipts

Table 5. Selected Cash Receipts, 3Q, 2014 – 2018
($ in millions) FY14 FY15 FY16 FY17 FY18
Real Property Tax $3,789 $3,879 $4,464 $4,601 $5,482
Personal Income Tax 2,966 3,205 3,144 3,391 4,607
NYS Education Aid 3,397 3,209 3,683 3,917 3,777
Sales Tax 1,496 1,579 1,716 1,511 1,647
Federal Welfare   752   627   654   550 1,221
General Corporation Tax 1,614 1,282 1,303 1,125 1,138
Unincorporated Business Tax 568 517 556 770 829
NYS Welfare 530 479 498 446 674
NYS Higher Education Aid 566 603 619 606 599
Mortgage and Real Property Transfer Taxes 656 803 804 653 590
Senior College Fees 527 481 502 485 507
Fines and Forfeitures 236 240 262 265 302
Federal Education Aid   439   432   376   1,069 257
Commercial Rent Tax 204 192 206 214 244
Banking Corporation Tax 417 429 108 30 212

 

Federal and State Aid

Chart 3. Federal & State Aid to NYC, 3Q, FY14 – FY18 ($ in billions)

Chart 4. Federal & State Aid as % of Total Cash Receipts, 3Q, FY14 – FY18

 

Chart 5. Components of State Aid, 3Q, FY14 – FY18 ($ in billions)

Chart 6. Components of Federal Aid, 3Q, FY14 – FY18 ($ in billions)

During the first half of FY18, payments to NYC for social welfare programs by both the New York State and federal governments were delayed.  In 3Q18, the City received the missing funds: $1.2 billion in federal welfare aid and $674 million in NYS welfare aid came in.  In contrast, in 3Q18, the City also received $257 million in federal education aid, well below the $1.1 billion in the previous year.  In 3Q17, the large amount was due to the late arrival of $389 million in Title I funding in March, 2017.

July 2017 – March 2018 (FYTD18)

Receipts at a Glance

Table 6. Cash Receipts by Category, FYTD, 2009 – 2018
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Real Property Tax $11,620 $11,566 $12,422 $13,419 $13,544 $14,739 $15,152 $16,548 $17,162 $18,187
Other Taxes 16,860 15,687 16,879 17,696 19,058 20,753 22,133 22,786 22,388 24,790
Total Taxes 28,480 27,253 29,301 31,115 32,602 35,492 37,285 39,334 39,550 42,977
Federal and State Aid 13,634 13,437 15,893 14,819 14,880 14,659 14,568 15,239 15,254 14,474
Debt Service Funding (31) 0 (916) (1,053) (2,784) (1,991) (3,394) 229 (1,993) (2,314)
Miscellaneous 4,397 4,721 4,612 4,738 4,975 5,339 5,199 5,361 4,830 5,253
Intergovernmental Aid 228 280 14 1 1 1 0 6 59 0
Other 10,595 9,313 10,735 9,451 10,451 10,539 12,409 11,060 10,684 11,912
FYTD Total $57,303 $55,004 $59,639 $59,071 $60,125 $64,039 $66,067 $71,229 $68,384 $72,302
Total, Net of CapEx Reimbursements $49,772 $48,602 $51,911 $53,010 $53,922 $57,957 $60,794 $65,456 $62,370 $65,323

FYTD18 cash receipts totaled $72.302 billion, up $3.918 billion from the previous year.  Removing the effect of CapEx reimbursements, net cash receipts increased 4.7%.

Taxes

Table 7. Major Tax Receipts, FYTD, 2013, 2017, & 2018
($ in millions) FY13 FY17 FY18 % Change FY18/FY13 % Change FY18/FY17
Real Property Tax $13,544 $17,162 $18,187                34.3%                   6.0%
Personal Income Tax 6,289 8,152 10,090             60.4               23.8
Sales Tax 4,413 4,972 5,285             19.8                6.3
General Corporation Tax 2,698 3,258 3,315             22.9                1.7
Mortgage and Real Property Transfer Taxes 1,395 2,019 1,831              31.3                (9.3)
Unincorporated Business Tax 1,138 1,535 1,786               56.9              16.4
Commercial Rent Tax 539 639 703               30.4               10.0
Banking Corporation Tax 1,241   411   531               (57.2)               29.2
Hotel Occupancy Tax 380 434 445               17.1                    2.5
STAR 407 311 189                 (53.6)                 (39.2)
All Other Taxes 746  657 615               (17.6)                 (6.4)
FYTD Total $32,602 $39,550 $42,977 31.8%   8.7%

 

FYTD18 tax receipts rose 8.7% versus a year ago. Real property and personal income taxes grew 6% and 23.8%, respectively.   Sales tax increased 6.3%.  The largest drag on tax receipts was STAR, which slipped 39.2% versus a year ago.  The decline in STAR was due to the restructuring of the NYS School Tax Relief program.  Previously, NYC PIT payers received a tax credit on their local income taxes and the City was paid by the State for the cost of offering this tax credit.  Retroactive to January 1, 2017, the NYC PIT payers have this credit applied to their NYS taxes and the reimbursement payment has been eliminated.  Real-estate transaction tax, which includes the mortgage recording and the real property transfer taxes, declined 9.3%, indicating that the residential housing market in NYC has softened.

Selected Cash Receipts

Table 8. Selected Cash Receipts, FYTD, 2014 – 2018
($ in millions) FY14 FY15 FY16 FY17 FY18
Real Property Tax $14,739 $15,152 $16,548 $17,162 $18,187
Personal Income Tax 6,915 7,472 7,838 8,152 10,090
NYS Education Aid 6,136 6,346 6,694 7,033 7,067
Sales Tax 4,674 4,910 5,322 4,972 5,285
General Corporation Tax 3,055 2,833 3,185 3,258 3,315
Federal Welfare 2,493 2,513 2,418 2,164 2,172
Mortgage and Real Property Transfer Taxes 1,794 2,185 2,280 2,019 1,831
Unincorporated Business Tax 1,202 1,297 1,328 1,535 1,786
Water and Sewer Fees 1,361 1,536 1,397 1,226 1,375
NYS Welfare 1,171 1,057 1,250 1,131 889
Federal Education Aid 1,158   779   1,308   1,400 814
Fines and Forfeitures 704 751 875 796 800
Commercial Rent Tax 565 596 636 639 703
Senior College Fees 715 668 715 633 672
NYS Higher Education Aid   860 1,291 931 916 658
Banking Corporation Tax 1,160 1,441   747   411 531
Hotel Occupancy Tax 395 426 429   434 445

 

Federal and State Aid

Chart 7. Federal & State Aid to NYC, FYTD, FY14 – FY18   ($ in billions)

Chart 8. Federal & State Aid as % of Total Cash Receipts, FYTD, FY14 – FY18

Chart 9. Components of State Aid, FYTD, FY14 – FY18 ($ in billions)

Chart 10. Components of Federal Aid, FYTD, FY14 – FY18  ($ in billions)

FYTD18 the City received $14.5 billion in Federal and State Aid, 5% less than at the same time last year. Federal education aid was down 42.1% compared to FYTD17.  NYS higher education and welfare receipts were down 28.3% and 21.2%, respectively, compared to FYTD17.  Overall, Federal and State Aid accounted for 20% of total receipts in FYTD18.

Cash Expenditures (Including Capital)

January 2018 – March 2018 (3Q18)

Cash Expenditures at a Glance

Table 9. PS & OTPS, 3Q, FY09 – FY18
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Gross Payroll $5,824 $5,603 $5,747 $5,959 $6,047 $6,146 $6,840 $6,792 $6,798 $7,101
Other PS 2,877 2,983 3,580 3,265 3,479 3,575 3,782 3,999 4,188 4,271
Total PS $8,701 $8,586 $9,327 $9,224 $9,526 $9,721 $10,622 $10,791 $10,986 $11,372
  % of 3Q Total Exp 50% 50% 49% 50% 49% 50% 47% 50% 49% 47%
  # of Bi-weekly Payrolls 6 6 6 7 7 7 7 6 6 6
Public Assistance 560 590 630 583 603 598 681 727 836 910
Medical Assistance 1,309 1,037 1,061 1,486 1,239 1,554 1,470 1,639 1,418 1,490
Other Social Services 567 458 612 593 646 565 584 660 667 604
Vendor and Other 3,409 3,306 4,037 3,757 4,401 4,163 4,428 4,798 5,291 5,239
Total OTPS $5,845 $5,391 $6,340 $6,419 $6,889 $6,880 $7,163 $7,824 $8,212 $8,243
  % of 3Q Total Exp 33% 31% 33% 34% 35% 35% 32% 36% 36% 34%
All Other $3,004 $3,366 $3,344 $2,972 $3,205 $2,865 $4,786 $2,830 $3,447 $4,462
  % of 3Q Total Exp 17% 19% 18% 16% 16% 15% 21% 13% 15% 19%
Total Expenditures $17,550 $17,343 $19,011 $18,615 $19,621 $19,466 $22,570 $21,445 $22,645 $24,077
Total Expenditures,
Net of CapEx
$15,608 $15,083 $16,676 $16,485 $17,396 $17,403 $20,532 $19,221 $20,217 $21,249

Cash expenditures, including capital, totaled $24.077 billion in 3Q18, averaging $388 million daily. During the same period last year, cash expenditures totaled $22.645 billion and averaged $365 million daily.  Personal service expenditures grew 3.5% versus a year ago.  The gross payroll increased 4.5% mostly due to holiday payments made to police, fire, and correction officers.  Other-than-personal-service expenditures (OTPS) remained unchanged compared to the same period last year.  Public assistance and medical assistance were up 8.9% and 5.1%, respectively, while other social services and vendor and other spending fell 9.4% and 1%.  The expenditure category titled “All Other” increased by over $1 billion.  The main factor driving the growth in “All Other” outlays was spending on City-funded capital projects, which increased 28.4% compared to the same period last year.

“All Other” Spending

Table 10. Major Components of “All Other” Spending, 3Q17 & 3Q18
 ($ in millions) FY17 FY18 Difference
Transit Authority $0 $3 $3
Housing Authority 59 112 53
Lump Sum Payments 470 622 152
H+H 411 190 (221)
Refunds 234 298 64
City-Funded Capital 2,067 2,654 587
Non-City-Funded  Capital 361 173 (188)
Fund-700 Adjustment (201) 65 266

July 2017 March 2018 (FYTD18)

Cash Expenditures at a Glance

Table 11. PS and OTPS Cash Expenditures, FYTD09 – FYTD18
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Gross Payroll $18,109 $17,433 $17,868 $17,910 $18,059 $18,241 $19,598 $21,112 $20,859 $22,035
Other PS 8,555 9,312 9,609 9,959 10,445 10,808 11,393 11,852 12,657 12,966
Total PS $26,664 $26,745 $27,477 $27,869 $28,504 $29,049 $30,991 $32,964 $33,516 $35,001
  % of 3Q Total Exp 49% 49% 49% 49% 49% 48% 49% 49% 49% 49%
Public Assistance 1,769 2,003 1,912 1,806 1,793 1,867 1,964 2,106 2,357 2,661
Medical Assistance 3,689 3,475 3,572 4,398 4,327 4,317 4,347 4,522 4,052 4,213
Other Social Services 1,877 1,881 1,862 1,775 1,841 1,801 1,858 1,967 2,067 1,941
Vendor and Other 10,531 10,290 11,256 11,492 12,127 12,932 13,994 14,708 16,020 16,441
Total OTPS $17,866 $17,649 $18,602 $19,471 $20,088 $20,917 $22,163 $23,303 $24,496 $25,256
  % of 3Q Total Exp 33% 32% 33% 35% 35% 35% 35% 35% 36% 35%
All Other $9,999 $10,261 $10,064 $9,030 $9,076 $10,568 $10,402 $10,748 $10,288 $11,434
  % of 3Q Total Exp 18% 19% 18% 16% 16% 17% 16% 16% 15% 16%
Total Expenditures $54,529 $54,655 $56,142 $56,370 $57,669 $60,534 $63,555 $67,015 $68,300 $71,691
Total Expenditures,
Net of CapEx
$47,821 $47,167 $48,813 $50,092 $51,514 $54,193 $57,946 $60,815 $61,860 $64,717

 

FYTD18 total expenditures rose 5% versus a year ago. Gross payroll increased 5.6%, while other personal service expenditures jumped 2.4%.  OTPS outflows rose 3.1%, boosted by increases in spending on public assistance (up 12.9%), medical assistance (up 4%), and vendor and other payments (up 2.6%). “All Other” spending rose 11.1%, mostly due to higher City-funded capital spending and a positive Fund 700 adjustment.  When the impact of CapEx is removed, FYTD18 net expenditures reflect a gain of 4.6% versus a year ago.

“All Other” Spending

Table 12. Major Components of “All Other” Spending, FYTD17 & FYTD18
($ in millions) FYTD17 FYTD18 Difference
Transit Authority   $251 $257 $6
Housing Authority     94 125 31
Lump Sum Payments 2,241 2,072 (169)
H+H  1,061 664 (397)
Refunds     720 772 52
City-Funded Capital    5,272 6,375 1,103
Non-City-Funded  Capital   1,168 597 (571)
Fund 700 Adjustment  (534) 219 753

 

Capital Expenditures

January 2018 March 2018 (3Q18)

CapEx totaled $2.827 billion in 3Q18, up 16.4% from $2.428 billion in 3Q17. City-funded CapEx increased 28.4% while non-City-funded CapEx declined 52.1%.

Chart 11. Total CapEx, 3Q, FY09 – FY18 ($ in millions)

Chart 12. Total CapEx as % of Total Expenditures, 3Q, FY09 – FY18

Table 13. Reimbursements to the NYC Central Treasury for CapEx, 3Q, FY09 – FY18
($ in millions) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Total
GO $969 $324 $927 $288 $476 $340 $25 $0 $936 $996 $5,281
NY Water 647 623 630 534 452 426 401 343 363 407 4,826
TFA 7 394 744 301 927 994 980 1,595 355 479 6,776
Sub-total 1,623 1,341 2,301 1,123 1,855 1,760 1,406 1,938 1,654 1,882 16,883
TFA Building Aid 828 0 83 402 227 0 883 0 0 0 2,423
DASNY 0 0 0 0 0 0 0 0 0 0 0
Sub-total 828 0 83 402 227 0 883 0 0 0 2,423
3Q Total $2,451 $1,341 $2,384 $1,525 $2,082 $1,760 $2,289 $1,938 $1,654 $1,882 $19,306
3Q Reimbursable Capital Expenditures $1,810 $2,125 $2,180 $1,949 $2,092 $1,939 $1,874 $2,025 $2,246 $2,719 $20,959
3Q Reimbursements Less 3Q Reimbursable Capital Expenditures $641 ($784) $204 ($424) ($10) ($179) $415 ($87) ($592) ($837) ($1,653)
3Q Reimbursements as a % of 3Q Reimbursable Capital Expenditures 135.4% 63.1% 109.4% 78.2% 99.5% 90.8% 122.1% 95.7% 73.6% 69.2% 92.1%
3Q Reimbursements as a % of Total 3Q Receipts 10.9% 7.3% 11.4% 7.6% 9.4% 7.9% 8.9% 8.2% 6.9% 6.9% 8.5%

During 3Q18, eligible CapEx exceeded reimbursements, decreasing the City’s cash balance by $837 million.  Table 13 shows that eligible CapEx exceeded reimbursements in seven out of the last ten 3Q periods (FY09-FY18), resulting in a total drain of $1.653 billion to the Central Treasury.

Chart 13. Bond-Funded Reimbursements for Eligible CapEx, 3Q, FY14 – FY18 ($ in millions)

July 2017 – March 2018 (FYTD18)

FYTD18, total CapEx increased 8.3% versus a year ago.  The City-funded CapEx jumped 20.9%, while non-City CapEx declined 48.9%.

Chart 14. Total CapEx, FYTD, FY09 – FY18 ($ in millions)

Chart 15. Total CapEx as % of Total Expenditures, FYTD, FY09 – FY18

Table 14. Reimbursements to the NYC Central Treasury, FYTD, 2009 – 2018 ($ in millions)
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Total
GO $3,510 $2,255 $2,571 $1,721 $898 $1,712 $382 $609 $2,468 $1,994 $18,120
NY Water 1,990 2,019 2,278 1,691 1,438 1,243 1,074 1,030 1,095 1,223 15,081
TFA 14 1,940 2,527 1,670 2,909 3,129 2,933 3,302 2,450 3,762 24,636
City-Funded
Sub-total
5,514 6,214 7,376 5,082 5,245 6,084 4,389 4,941 6,013 6,979 57,837
TFA Building Aid 1,649 182 352 979 957 0 883 832 0 0 5,834
DASNY 368 6 0 0 0 0 0 0 0 0 374
Non-City Sub-total 2,017 188 352 979 957 0 883 832 0 0 6,208
FYTD Total $7,531 $6,402 $7,728 $6,061 $6,202 $6,084 $5,272 $5,773 $6,013 $6,979 $64,045
YTD Reimbursable Capital Expenditures $6,275 $6,948 $6,863 $5,705 $5,662 $5,811 $5,128 $5,558 $5,772 $6,607 $60,329
YTD Reimbursements Less YTD Reimbursable Capital Expenditures $1,256 ($546) $865 $356 $540 $273 $144 $215 $241 $372 $3,716
YTD Reimbursements as a % ofYTD ReimbursableCapitalExpenditures 120.0% 92.1% 112.6% 106.2% 109.5% 104.7% 102.8% 103.9% 104.2% 105.6% 106.2%
YTD Reimbursements as a % of YTD Total Receipts 13.1% 11.6% 13.0% 10.3% 10.3% 9.5% 8.0% 8.1% 8.8% 9.7% 10.1%

FYTD18 reimbursements exceeded eligible CapEx by $372 million, or 5.6%.  Over the long term, CapEx and reimbursements offset each other.  Over the past ten FYTD periods they have been closely paired, with reimbursements exceeding CapEx by only 6.2%.

Chart 16. Bond-Funded Reimbursements for Eligible CapEx, FYTD, 2014 – 2018 ($ in millions)

Financings

In FY18, the City plans to issue $7.3 billion in GO, TFA FTS, and TFA BARB bonds for new money capital purposes.  The City issued $5 billion of new money debt FYTD18.

Table 15. FY18 New Money Projected vs. FYTD18 Actual New Money GO, TFA FTS, and TFA BARBs Issuance ($ in billions)
Projected New Money Issuance Actual New Money Issuance Remaining New Money Issuance
GO $3.3 $2.2   $1.1
TFA FTS $3.5  $2.3  $1.2
TFA BARBs $0.5 $0.5 $0.0
Total $7.3 $5.0 $2.3
Projected bond issuance is based on OMB’s April 2018 Executive Budget.

Two transactions closed in 3Q18.  The first transaction was a new money sale of $1.2 billion GO bonds.  The GO sale was comprised of $700 million of tax-exempt fixed rate bonds, $250 million of taxable fixed rate bonds, $50 million of tax-exempt variable rate bonds, and $200 million of tax-exempt index floating rate bonds.  The second transaction was a TFA BARBs sale of approximately $1.1 billion of new money and refunding bonds.  The TFA BARBs sale was comprised of $1 billion of tax-exempt fixed rate bonds, and $73 million of taxable fixed rate bonds.  The refunding achieved $86.8 million in budget savings, or about $83.1 million on a present-value basis.

Table 16. GO, TFA PIT, and TFA BARBs Bond Issuance, FYTD18 ($ in millions)
Closing Date Deal Purpose  TE Fixed TX Fixed* TE Variable Total Par
7/20/2017 TFA BARBs 2018 S-1 and S-2 Refunding $1,008 $0 $0 $1,008
8/10/2017 GO 2018 A Refunding $899 $0 $0 $899
8/17/2017 TFA FTS 2018 A New Money $1,000 $350 $0 $1,350
10/3/2017 GO 2018 B New Money $550 $250 $200 $1,000
10/26/2017 TFA FTS 2018 B New Money $850 $140 $0 $990
12/20/2017 GO 2018 C and D Refunding $944 $0 $0 $944
3/13/2018 GO 2018 E New Money $700 $250 $50 $1,200
3/22/2018 TFA BARBs 2018 S-3 and S-4 New Money/Refunding $1,002 $73 $0 $1,076
*Designates series of bonds that were sold via competitive sale
The table excludes conversions and re-offerings.

The pace of bond issuance in FYTD18 exceeded last year’s pace.  As shown in the following chart, in FYTD18 the City issued $8.4 billion in new money and refunding bonds versus $6.2 billion in FYTD17.

Chart 17. GO, TFA FTS, and TFA BARBs Issues, FYTD17 & FYTD18 ($ in billions)

Prepared by Irina Livshits, Division Chief

Andrew Rosenthal, Analyst; Michele Griffin, Analyst; and Alex Huang, Analyst

Published by the NYC Comptroller’s Office, Bureau of Budget

Preston Niblack, Deputy Comptroller for Budget

[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 based on 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] For more information, refer to Office of the New York City Comptroller, Comments on New York City’s Fiscal Year 2019 Executive Budget.