Fiscal Year 2019 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 received $324.8 million from draws on bond anticipation notes (“BANs”) issued to the New York State Environmental Facilities Corporation (“EFC”).

On August 2, 2018, NYW issued to EFC $319.7 million of fixed rate Second Resolution bonds, Fiscal 2019 Series 1. EFC funded this transaction from the proceeds of Fiscal 2018 Series A bonds issued to the public. Fiscal 2019 Series 1 bonds refunded the following fixed rate Second Resolution bonds: $137.2 million of Fiscal 2008 Series 1, $156.5 million of Fiscal 2008 Series 2, and $71.7 million of Fiscal 2013 Series 1.The bonds have a final maturity of 2037.

On August 15, 2018, NYW converted $150 million of tax-exempt Second Resolution bonds, Fiscal 2008 Series BB, and $50 million of tax-exempt Second Resolution bonds, Fiscal 2016 Series AA, from variable rate demand bonds to index rate bonds through a private placement transaction.

On August 21, 2018, NYW issued $264.0 million of refunding tax-exempt fixed rate Second Resolution bonds, Fiscal 2019 Series AA. The bonds refunded $300.0 million of First Resolution adjustable rate bonds, Fiscal 2008 Series B. The bonds have a final maturity of 2024.

On September 13, 2018, NYW issued $100.0 million of adjustable rate tax-exempt Second Resolution bonds, Fiscal 2019 Series BB. The proceeds from the sale funded capital projects. The bonds have a final maturity of 2051.

On November 29, 2018, NYW issued $485.1 million of fixed rate Second Resolution bonds, Fiscal 2019 Series 2 and Series 3 to EFC. EFC funded Fiscal 2019 Series 2 from the proceeds of its Fiscal 2018 Series B bonds and provided a direct loan for Fiscal 2019 Series 3. The proceeds of NYW’s Fiscal 2019 Series 2 and Series 3 were used to redeem certain outstanding BANs. The bonds have a final maturity of 2048.

On December 12, 2018, NYW issued $300.0 million of index rate tax-exempt Second Resolution bonds, Fiscal 2019 Series CC through a private placement. The proceeds of the bonds funded capital projects. The bonds have a final maturity of 2051.

On January 24, 2019, NYW issued $475.0 million of fixed rate tax-exempt Second Resolution bonds, Fiscal 2019 Series DD. The proceeds funded capital projects. The bonds have a final maturity of 2049.

On March 20, 2019, NYW issued $415.6 million of tax-exempt fixed rate Second Resolution bonds, Fiscal 2019 Series EE. The bonds refunded the following Second Resolution fixed rate bonds: $318.4 million of Fiscal 2009 Series EE, $63.6 million of Fiscal 2009 Series FF, and $87.2 million of Fiscal 2009 Series GG. The bonds have a final maturity of 2040.

On April 17, 2019, NYW issued $500.0 million of tax exempt fixed rate Second Resolution bonds, Fiscal 2019 Series FF. The bonds refunded the following Second Resolution fixed rate bonds: $41.4 million of Fiscal 2009 Series FF, $300.4 million of Fiscal 2009 Series GG, and $100.9 million of Fiscal 2010 Series AA.

On May 16, 2019, NYW applied $175.4 million to defease $94.8 million of Fiscal 2010 Series FF, $70.8 million of Fiscal 2011 Series GG, $2.8 million of Fiscal 2012 Series FF.

On June 20, 2019, NYW applied $500 million to defease $302.9 million of Fiscal 2011 Series EE, $115.0 million of Fiscal 2012 Series BB and $52.6 million of Fiscal 2012 Series CC.