Institutional Federal Compliance Report 2021

Following is a summary of the future minimum rental payments for lease/purchase and contractual obligation financing arrangements, including fixed rate interest at rates ranging from 1 percent to 6.8 percent and variable rate interest at rates ranging from 1.2 percent to 2.3 percent (amounts in millions): 86 • Notes to Basic Financial Statements __________________________________________________________________________ Net Swap Fiscal Year Principal Interest Amount Total 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,696 $ 1,627 $ 23 $ 4,346 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,930 1,508 22 4,460 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,409 1,366 20 4,795 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,599 1,222 17 3,838 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,311 1,109 14 3,434 2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,956 4,045 44 14,045 2029-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,529 1,964 13 8,506 2034-2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,115 730 —00000 3,845 2039-2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,137 217 —00000 1,354 2044-2048 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 33 —00000 342 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,991 $ 13,821 $ 153 $ 48,965

Future debt service is calculated using rates in effect at March 31, 2018 for variable rate bonds. The net swap payment amounts were calculated by sub- tracting the future variable rate interest payment subject to swap agreements based on rates in effect at March 31, 2018 from the synthetic fixed rate amount intended to be achieved by the swap agreements. The actual amounts of future interest to be paid are affected by changes in variable interest rates. The actual amounts of future net swap payments are also affected by changes in published indexes—the London Interbank Offered Rate (LIBOR) and the Securities

Industry and Financial Markets Association (SIFMA) Swap Index, which are floating rates. The State is also committed under numerous Cus- tomer Installation Commitments with the New York Power Authority (NYPA) for energy efficiency projects, and other capital leases for computer network and telecommunications equipment. Debt service expen- ditures for capital lease obligations during the year were $2 million. Following is a summary of the debt service payments for the remaining lease periods of these capital leases (amounts in millions):

Fiscal Year

Principal

Interest

Total

2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

2 $ —00000 $

2 2 2 2 1 4

2 2 2 1 4

—00000 —00000 —00000 —00000 —00000

13 $

— 00000 $

13

Refunding During the fiscal year ended March 31, 2018, the State, acting through certain public authorities, refunded $2.1 billion in existing fixed rate bonds related to lease/purchase and other financing arrangements by issuing refunding bonds in a par amount of $1.9 billion at a $275 million premium and releasing a net amount of $132 million from reserves and debt service accounts. The result will produce an estimated gain of $196 million in future cash flow, with an estimated present value gain of $202 million. The differences between Dormitory Authority PIT General Purpose Bond Series 2017A . . . $ Dormitory Authority PIT General Purpose Bond Series 2017B . . . New York Local Government Assistance Corporation Bond Series 2018A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Urban Development Corporation PIT General Purpose Bond Series 2017CD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Issue Description

the reacquisition prices and the net carrying values of the refunded bonds generated deferred accounting gains and losses, resulting in deferred inflows and outflows of resources. The accounting gain was $4.2 million, of which $3.9 million was deferred and will be amortized as an adjustment to interest expense in future years. The accounting loss was $7 million, of which $6.6 million was deferred and 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

Gain

Gain

1,068 $

1,162 $

112 $

122 55

427

504

59

256

333

13

12

105

114

12

13

1,856 $

2,113 $

196 $

202