Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 89

Future debt service is calculated using rates in effect at March 31, 2019 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, 2019 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

2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025-2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

2 $

1 $

3 4 3 2 2 7

3 3 2 2 7

1

—00000 —00000 —00000 —00000

19 $

2 $

21

Refunding During the fiscal year ended March 31, 2019, the State, acting through certain public authorities, refunded $1.3 billion in existing fixed rate bonds related to lease/purchase and other financing arrangements by issuing refunding bonds in a par amount of $1.2 billion at a $137 million premium and releasing a net amount of $42 million from reserves and debt service accounts. The result will produce an estimated gain of $131 million in future cash flow, with an estimated present value gain of $146 million. The differences between Dormitory Authority PIT General Purpose Bond Series 2018A . . . $ Dormitory Authority PIT General Purpose Bond Series 2018B . . . Dormitory Authority Sales Tax Bond Series 2018C . . . . . . . . . . . Dormitory Authority Sales Tax Bond Series 2018D . . . . . . . . . . . Dormitory Authority Sales Tax Bond Series 2018E . . . . . . . . . . . Dormitory Authority Sales Tax Bond Series 2018F . . . . . . . . . . . Dormitory Authority Sales Tax Bond Series 2018G . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ In prior years, the State defeased certain of its obligations under lease/purchase and other financ- ing arrangements, whereby proceeds of new obliga- tions were placed in an irrevocable trust to provide for all future debt service payments on the defeased 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 out- flows of resources. The accounting gain was $5.7 million, of which $5.3 million was deferred and will be amortized as an adjustment to interest expense in future years. The accounting loss was $37 million, of which $34.6 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

383 $

414 $

33 $

43

50 491 18 138 20 78

49 563 18 157 23 90

3

3

64

65

1

2

24

28

4 2

3 2

1,178 $

1,314 $

131 $

146

obligations. At March 31, 2019, approximately $232 million of such defeased obligations were outstanding. The assets and liabilities related to these defeased obligations are not reported in the accompanying basic financial statements.