Institutional Federal Compliance Report 2021

Debt service expenditures (principal and interest) related to the above general obligation bonds during the year were approximately $336 million. Federal subsidies related to the interest payments made during the year on Build America Bonds were $3.6 million. The total amount of general obligation bonds autho- rized but not issued at March 31, 2018 was $2.6 billion. Debt service requirements for general obligation bonds in future years, which are financed by transfers from the General Fund to the General Debt Service Fund, are as follows (amounts in millions): ______________________________________________________________________________________________ STATE OF NEW YORK • 83 Fiscal Year Principal Interest Total 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200 $ 103 $ 303 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 96 275 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 88 250 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 81 238 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 74 220 2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652 277 929 2029-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 147 585 2034-2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 73 348 2039-2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 16 174 2044-2048 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 —00000 4 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,371 $ 955 $ 3,326

Debt service requirements were calculated based upon actual rates ranging from zero percent to 6.02 percent. During the fiscal year ended March 31, 2018, the State legally defeased $76 million in existing variable rate bonds by issuing general obligation refunding bonds in a par amount of $69 million at a $7 million premium and a cash contribution by the State of $738,000. The result will produce an estimated gain of $3.6 million in future cash flow, with an estimated

present value gain of $3.1 million. The differences between the reacquisition prices and net carrying values of the refunded bonds generated deferred accounting losses which are reported as deferred out- flows of resources. The total deferred accounting loss was $1.9 million, all of which will be amortized into interest expense in future years. The impact of the refunding issues is presented in the following table (amounts in millions):

Refunding Amount

Refunded Amount

Cash Flow

Present Value

Issue Description

Gain

Gain

General Obligation Bond Series 2018A . . . . . . . . . . . . . . . . . . . . $ General Obligation Bond Series 2018C . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

58 $

63 $

3 $

2 1 3

11

13

1

69 $

76 $

4 $

Obligations Under Lease/Purchase and Other Financing Arrangements

Note 7

Governmental Activities Debt The State has entered into contractual financing arrangements with certain public benefit corporations and other entities for various capital assets, local assis- tance payments and deficit financing. Under these agreements, generally, construction costs are initially paid by the State from appropriations (reported as capital construction expenditures in the governmental funds). These appropriations are then repaid to the State from the proceeds of bonds issued by the public benefit corporations or other entities (reported as financing arrangements in the governmental funds). The State becomes the tenant of the facility under a lease/purchase agreement, which provides for the payment of rentals sufficient to cover the related bond debt service and for the passage of title to the State after the bonds have been repaid.

The State has also entered into contractual oblig- ation financing arrangements (also referred to as “service contract bonds”) with certain public benefit corporations that have issued bonds to finance past State budgetary deficits, grants to local governments and various special project initiatives undertaken in partnership with private entities, including commercial enterprises, for both capital and operating purposes. The terms of these arrangements require the State to fund the debt service requirements of the specific debt issued by these entities. Chapter 59 of the Laws of 2000 enacted the Debt Reform Act (Act) which applies to all new State-sup- ported debt issued on and after April 1, 2000. The Act imposes statutory limitations which restrict the issuance of State-supported debt to capital purposes only and establishes a maximum term of 30 years for such debt.