Fiscal Year 2026 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 bond anticipation notes (“BANs”) 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.

On August 5, 2025, NYW issued $707 million tax-exempt fixed rate Second Resolution bonds, Fiscal 2026 Series 1, Series 2, Series 3 and Series 4 to the Environmental Facilities Corporation. The proceeds were used to fund construction funds and refund bonds and bond anticipation notes. The proceeds generated $136 million to fund construction funds. Two hundred and fifty-nine million dollars in proceeds were used to refund the Corporation’s Series 2015 A Bonds and the associated Authority bonds Fiscal 2016 Series 1 and Fiscal 2016 Series 2. Three hundred and thirty-one million dollars of proceeds were used to refinance BANs.

On December 2, 2025, NYW issued $1.03 billion of tax-exempt fixed rate Second Resolution bonds, Fiscal 2026 Series AA. $627 million dollars of proceeds from the sale funded capital projects of the System. A portion of the bonds also refunded the following Second Resolution bonds: $211 million of Fiscal 2018 EE bonds, $47 million of Fiscal 2020 DD bonds, $75 million of Fiscal 2021 CC bonds, $88 million of Fiscal 2022 BB bonds, and $50 million of Fiscal 2022 CC bonds. The bonds have a final maturity of 2055. On February 5, 2026, NYW issued $825 million of tax-exempt fixed rate Second Resolution bonds, Fiscal 2026 Series BB. The proceeds of the bonds were used to fund capital projects of the system. The bonds have a final maturity of 2056.

On February 5, 2026, NYW also issued $175 million of tax-exempt adjustable-rate Second Resolution bonds, Fiscal 2026 Series CC. The proceeds of the bonds were used to fund capital projects of the system. The bonds have a final maturity of 2056.

On March 17, 2026, the Authority issued $382.7 million in bonds to the Corporation. These bonds (Fiscal 2026 Series 5 and Fiscal 2026 Series 6) bonds were issued to refund outstanding bonds. Proceeds of these transactions were used to refund the Corporation’s Series 2016 A bonds and the associated Authority bonds Fiscal 2016 Series 5 and Fiscal 2016 Series 6.

On April 7, 2026, NYW issued $904 million of tax-exempt fixed rate Second Resolution bonds, Fiscal 2026 Series DD. The proceeds of the bonds refunded the following Second Resolution bonds: $161 million of Fiscal 2007 Subseries CC-1 bonds, $201 million of Fiscal 2009 BB bonds, $68 million of Fiscal 2013 Series DD bonds, $59 million of Fiscal 2015 Series FF bonds, $29 million of Fiscal 2015 GG bonds, $52 million of Fiscal 2015 Series HH bonds, $245 million of Fiscal 2017 Subseries CC-1 bonds, as well as $190 million of General Resolution Fiscal 2016 Series A bonds. The bonds have a final maturity of 2046.

On April 7, 2026, NYW remarketed $100 million of tax-exempt adjustable-rate Second Resolution Fiscal 2022 Series DD bonds into fixed-rate mode. Premium from the remarketing was used to defease $12.5 million of principal. The bonds have a final maturity of 2033.

On April 7, 2026, NYW also issued $200 million of tax-exempt adjustable-rate Second Resolution bonds, Fiscal 2026 Series EE, and $204 million of tax-exempt adjustable-rate Second Resolution bonds, Fiscal 2026 Series FF. The proceeds of the bonds refunded $403 million of Second General Resolution Fiscal 2010 Subseries AA-1 Build America Bonds. The bonds have a final maturity of 2041.

On June 9, 2026, NYW applied $116 million to defease $123 million in bonds from Fiscal 2022 Series 4, Fiscal 2022 Series 7, Fiscal 2023 Series 1, Fiscal 2023 Series 2, Fiscal 2023 Series 5, Fiscal 2023 Series 6, Fiscal 2024 Series 1, Fiscal 2026 Series 2, Fiscal 2026 Series 3, Fiscal 2026 Series 4, and Fiscal 2026 Series 6. The escrow for this in-substance defeasance will mature on June 15, 2030. Additionally, on June 9, 2026, NYW applied $488 million to defease $459 million in bonds from Fiscal 2018 Series BB, Fiscal 2023 Series DD, Fiscal 2024 Series BB, Fiscal 2025 Series AA, Fiscal 2025 Series CC, and Fiscal 2025 Series DD. The escrow for this legal defeasance will mature on June 15, 2031.

To provide new money funding, over the course of the fiscal year, NYW drew $124.6 million on BANs issued to the New York State Environmental Facilities Corporation.