Fiscal Year 2016 Current Activities and Operations

The operations of the New York City Municipal Water Finance Authority (“NYW”) consist of executing the requirements of the New York City Municipal Water Finance Authority Act, NYW’s bond resolutions and other governing documents. NYW finances the ongoing capital needs of the water and sewer system of the City of New York (the “System”) with proceeds from the issuance of commercial paper notes, bond anticipation notes (“BANs”) and long-term bonds. The Authority uses these proceeds to reimburse the City of New York’s general fund for capital expenditures incurred on behalf of the System. NYW complies with federal tax law to preserve the tax exemption of its debt. NYW also maintains various contractual obligations necessary to achieve efficient and cost-effective financing and administers its outstanding debt and investments portfolio by monitoring and directing application of funds to meet debt service on its bonds and notes.

NYW issued $200 million of commercial paper notes Series 1. NYW also drew down $877.9 million against BANs issued to the New York State Environmental Facilities Corporation (“EFC”).

On July 2, 2015, NYW issued $219.8 million and $161.1 million of refunding and new money tax-exempt fixed rate Second Resolution Bonds, Fiscal 2016 Series 1 and Fiscal 2016 Series 2, respectively. The sources of funds for Series 1 were from tax-exempt bonds issued by EFC (2015 A). The sources of funds for Series 2 were from a direct loan from EFC. The proceeds from Series 1 were used to refund Fiscal 2006 Series 1 bonds and for new money to pay for capital projects. The proceeds from Series 2 were used for new money to pay for capital projects. The bonds have a final maturity of 2045.

On October 29, 2015, NYW issued $250 million of new money tax-exempt adjustable rate Second Resolution Bonds, Fiscal 2016 Series AA. The bonds are backed by liquidity facilities from three banks. The bonds have a final maturity of 2048.

On November 24, 2015, NYW issued $349.8 million of new money and refunding tax-exempt fixed rate Second Resolution Bonds, Fiscal 2016 Series BB. The bonds refunded portions of NYW’s Fiscal 2012 Series GG and funded new money projects. The bonds have a final maturity of 2046.

On March 17, 2016, NYW issued $196.6 million of refunding tax-exempt fixed rate First Resolution bonds, Fiscal 2016 Series A, through a competitive sale. The bonds refunded portions of NYW’s Fiscal 2006 Series C and Fiscal 2006 Series D. The bonds have a final maturity of 2036.

On March 17, 2016, NYW issued $438.8 million of refunding tax-exempt fixed rate Second Resolution bonds, Fiscal 2016 Series CC. The bonds refunded portions of NYW’s Fiscal 2006 Series B, Fiscal 2006 Series C, Fiscal 2006 Series D, Fiscal 2007 Series AA, and Fiscal 2007 BB. The bonds have a final maturity of 2038.

On June 29, 2016, NYW issued $501.0 million and $277.6 million of refunding and new money tax-exempt fixed rate Second Resolution Bonds, Fiscal 2016 Series 5 and Fiscal 2016 Series 6, respectively. The sources of funds for Series 5 were from tax-exempt bonds issued by EFC (2016 A). The sources of funds for Series 2 were from a direct loan from EFC. The proceeds from Series 5 were used to refund Fiscal 2006 Series 2 and Fiscal 2006 Series 3 and for new money to pay for capital projects. The proceeds from Series 6 were used for new money to pay for capital projects. The bonds have a final maturity of 2046.