© NYC & Company/Julienne Schaer
The New York City Transitional Finance Authority (the “TFA”) issues Future Tax Secured Bonds, secured by City of New York (the “City”) Personal Income Tax revenues and City Sales Tax revenues (“Statutory Revenues”), to fund general capital purposes of the City. The TFA also issues Building Aid Revenue Bonds (“BARBs”), secured by state building aid payable to the City, to fund the City’s five year educational facilities capital plan. In addition, the TFA issued bonds to pay for costs related to or arising from the attack on the World Trade Center (“Recovery Bonds”). Such bonds are secured by Statutory Revenues. The TFA does not expect to issue additional Recovery Bonds.
The TFA also issues bonds for refinancing purposes from time to time. In compliance with the TFA’s indenture, the TFA’s ongoing activities include collecting state building aid and Personal Income Tax revenues, issuing Future Tax Secured Bonds and BARBs, applying revenues to pay principal and interest on such bonds, remitting to the City any revenues in excess of those needed by the TFA, complying with federal tax law in order to maintain the tax exemption of its tax-exempt bonds and the federal subsidy on its Build America Bonds and Qualified School Construction Bonds, and maintaining bank facilities and other contractual arrangements necessary to facilitate the ongoing marketing and placement of its floating rate debt. In addition, the TFA complies with annual continuing disclosure requirements, issues annual audited financial statements, and complies with state and local reporting requirements.
During the Fiscal Year ending June 30, 2021, the TFA issued $3.17 billion of new money Future Tax Secured Bonds as follows: $1.07 billion on September 24, 2020, $900 million on November 5, 2020, and $1.20 billion on February 11, 2021. The TFA reoffered approximately $640 million of Future Tax Secured floating rate bonds to fixed rate modes throughout the Fiscal Year. Moreover, TFA issued refunding Future Tax Secured Bonds as follows: $1.62 billion on September 1, 2020 and $1.23 billion on April 7, 2021. Additionally, the TFA issued $200 million of new money BARBs on October 22, 2020.