Fiscal Year 2018 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 notes and long-term bonds. NYW 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 portfolios 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 $571.77 million against bond anticipation notes (“BANs”) issued to the New York State Environmental Facilities Corporation (“EFC”).

On July 11, 2017, NYW issued $162.41 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series AA through a competitive sale. The bonds refunded portions of NYW’s Fiscal 2008 Series A. The bonds have a final maturity of 2038.

On October 12, 2017, NYW issued $383.98 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series BB. The proceeds of Fiscal 2018 Series BB funded capital projects and refunded NYW’s adjustable rate bonds, Fiscal 2006 Series AA-2 and Fiscal 2006 Series AA-3. The bonds have a final maturity of 2046.

On November 29, 2017, NYW issued $398.52 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series CC. The proceeds from the sale of the Fiscal 2018 Series CC funded capital projects and refunded Fiscal 2012 Series GG and Fiscal 2014 Subseries CC-2. The bonds have a final maturity of 2048.

On December 14, 2017, NYW issued $669.44 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series 1 and Fiscal 2018 Series 2 to EFC. The sources of funds from EFC were its tax-exempt bonds Series 2017 E for Fiscal 2018 Series 1 and a direct loan for Fiscal 2018 Series 2. The proceeds of the NYW bonds were used to redeem certain outstanding BANs. The bonds have a final maturity of 2047.

On March 20, 2018, NYW issued $494.99 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series DD, which were priced through a competitive sale. The bonds refunded portions of NYW’s Fiscal 2008 Series DD, Fiscal 2009 Series A, and Fiscal 2009 Series AA. The proceeds also funded capital projects. The bonds have a final maturity of 2048.

On April 18, 2018, NYW issued $458.92 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series EE. The bonds refunded portions of NYW’s Fiscal 2008 Series DD, Fiscal 2009 Series A, Fiscal 2009 Series CC, and Fiscal 2009 Fiscal DD. The bonds have a final maturity of 2040.

On May 17, 2018, NYW applied $844.21 million to defease a portion of Fiscal 2011 Series GG, Fiscal 2012 Series AA and Fiscal 2013 Series CC.

On June 19, 2018, NYW reoffered $150 million of adjustable rate tax-exempt First and Second Resolution Bonds, Fiscal 2003 Subseries F-1A and Fiscal 2015 Subseries BB-4, respectively. Barclays Bank Plc provided liquidity facilities for the reoffered bonds.

On June 28, 2018, NYW issued $373.60 million of fixed rate tax-exempt Second Resolution Bonds, Fiscal 2018 Series FF. The bonds refunded portions of NYW’s Fiscal 2008 Series DD, Fiscal 2009 Series A, Fiscal 2009 Series AA, Fiscal 2009 Series CC and Fiscal 2009 Series DD. The bonds have a final maturity of 2040.