Fiscal Year 2017 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.

To provide new money funding, over the course of the fiscal year, NYW drew down $648.56 million against BANs issued to the New York State Environmental Facilities Corporation (“EFC”).

On October 6, 2016, NYW issued $201.00 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series AA, which was priced in a competitive sale. On the same date, NYW also issued $289.50 million of adjustable rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series BB backed by liquidity facilities from three banks. Both series provided tax-exempt new money funding for capital projects. The Series AA bonds have a final maturity of 2046 and the Series BB bonds have a final maturity of 2049. In addition, on October 6, 2016, the Authority reoffered $210.50 million of adjustable rate tax-exempt Second Resolution Bonds, Fiscal 2007 Series CC with two banks providing liquidity facilities for the reoffered bonds.

On December 15, 2016, NYW issued $415.65 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series CC. The bonds refunded portions of NYW’s Fiscal 2012 Series DD and Fiscal 2014 Series CC and funded capital projects. The bonds have a final maturity of 2046.

On February 9, 2017, NYW issued $336.54 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series DD. The proceeds from Fiscal 2017 Series DD funded capital projects. The bonds have a final maturity of 2047.

On February 9, 2017, NYW issued $336.54 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series DD. The proceeds from Fiscal 2017 Series DD funded capital projects. The bonds have a final maturity of 2047.

On March 23, 2017, NYW issued $392.09 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series EE. The bonds refunded portions of NYW’s Fiscal 2007 Series DD, Fiscal 2008 Series A, and Fiscal 2008 Series AA. The bonds have a final maturity of 2039.

On April 13, 2017, NYW issued $588.75 million, $273.80 million, and $336.34 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2017 Series 3, Fiscal 2017 Series 4, and Fiscal Series 5, respectively. The source of funds were tax exempt bonds issued by EFC (2017 A) for Fiscal 2017 Series 3, a direct loan from EFC for Fiscal 2017 Series 4, and taxable bonds issued by EFC (2017 B) for Fiscal 2017 Series 5. The proceeds from Fiscal 2017 Series 3 were used to pay for capital projects and to refund Fiscal 2007 Series 1, Fiscal 2007 Series 2, and Fiscal 2007 Series 3. The proceeds from Fiscal 2017 Series 4 funded new money projects. The proceeds from Fiscal 2017 Series 5 refunded Fiscal 2005 Series 2, Fiscal 2006 Series 1, Fiscal 2006 Series 2, and Fiscal 2007 Series 1. The refunding bonds have a final maturity of 2036 and the new money bonds have a final maturity of 2046.

In June 2017, NYW applied $992.20 million to provide for payment of future debt service on certain outstanding NYW bonds.