Message From the Chair

Message From the Chair

Sunset view of Brooklyn Bridge and New York City

© NYC & Company/Julienne Schaer

The TFA is a public benefit corporation whose primary purpose is to finance a portion of New York City’s capital improvement plan. The New York State Legislature approved the law authorizing the creation of the NYC Transitional Finance Authority on March 5, 1997 (Chapter 16 of the Laws of 1997, the “Act”). The Act included governance by a Board of five directors consisting of the following officials of the City: the Director of Management & Budget (who also serves as Chairperson), the Commissioner of Finance, the Commissioner of Design & Construction, the Comptroller, and the Speaker of the City Council.

The Act has been amended several times to increase the amount of debt the TFA is authorized to issue. Most recently, the Act was amended in 2009 which permitted the TFA to have outstanding $13.5 billion of Future Tax Secured Bonds (excluding Recovery Bonds). In addition, the TFA may now issue additional Future Tax Secured Bonds provided that the amount of such additional bonds, together with the amount of indebtedness contracted by the City of New York, does not exceed the debt limit of the City of New York. As of June 30, 2018, the City’s debt-incurring margin within the debt limit of the City was $27.2 billion.

In addition, legislation enacted in April 2006 enables the Authority to have outstanding up to $9.4 billion of bonds, notes or other obligations for purposes of funding costs of the five-year educational facilities capital plan for the City school system, which are to be paid for from New York State Building Aid to be received by the Authority subject to annual appropriation by the New York State Legislature.

In Fiscal Year 2018, the TFA issued $3.8 billion of Future Tax Secured Bonds and $2.1 billion of Building Aid Revenue Bonds for new money, refunding, and reoffering purposes. As of June 30, 2018, the TFA had $34.7 billion of Future Tax Secured Bonds (excluding Recovery Bonds) and $7.9 billion of Building Aid Revenue Bonds par outstanding. The TFA had $682 million of Recovery Bonds par outstanding to pay costs related to or arising from the World Trade Center attack on September 11, 2001.

The above was extracted from TFA’s Annual Report for FY2018. Please review TFA’s most recent Official Statements for updated information.