Institutional Federal Compliance Report 2021

Future debt service on the bonds issued by DASNY for CUNY Senior Colleges, together with the net swap amount, is calculated assuming current interest rates remain the same. 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 LIBOR and the SIFMA floating rate. The following represents a year-end summary at June 30, 2018 for SUNY and CUNY of future minimum debt service payments on capital lease com- mitments, mortgage loan commitments, certificates of participation, other State-supported debt and other long-term debt for business-type activities (amounts in millions): ______________________________________________________________________________________________ STATE OF NEW YORK • 91

SUNY

CUNY

Total

Fiscal Year

Principal

Interest

Principal

Interest

Principal

Interest

2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2029-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2034-2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2039-2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2044-2048 . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

72 $

29 $

3 $

2 $

75 $

31 28 25 23 22 73 26 21 14

61 55 48 44

27 24 22 20 62 17 15 12

3 3 2 2

1 1 1 2 9 6 2

64 58 50 46

188 36

59

11

247 42 23 30 57

6

8 8

15 22

57

8

—00000

—00000

8

577 $

236 $

115 $

35 $

692 $

271

The liabilities for lease/purchase debt, capital leases, mortgage loans, certificates of participation, other State-supported debt and other long-term debt are reported as obligations under lease/purchase and other financing arrangements in the Enterprise Funds. Debt service expenditures (principal and interest) for all of the aforementioned obligations during the year ended June 30, 2018 totaled $1.3 billion. During SUNY’s fiscal year ending June 30, 2018, Personal Income Tax (PIT) and Sales Tax Revenue Bonds were issued with a par amount of $1.37 billion at a premium of $175.5 million for the purpose of financing capital construction and major rehabilitation for educational facilities. PIT bonds were also issued with a par amount of $410 million at a premium of $73.8 million in order to refund $449.5 million of SUNY’s existing educational facilities obligations. The result will produce an estimated savings of $75.8 million in future cash flow, with an estimated present value gain of $71.8 million. In prior years, SUNY defeased various obligations, whereby proceeds of new obligations were placed in an irrevocable trust to provide for all future debt service payments on the defeased obligations. Accord- ingly, the trust account assets and liabilities for the defeased obligations are not included in SUNY’s finan- cial statements. As of March 31, 2018, outstanding

educational facility obligations of $519.5 million and outstanding residence halls obligations of $328.3 million were considered defeased. During CUNY’s fiscal year ending June 30, 2018, DASNY issued bonds for new construction with a par value of $346.4 million and original issue premium of $38 million, and issued refunding bonds with a par value of $272.4 million and original issue premium of $46.8 million on behalf of CUNY Senior Colleges. Bond proceeds of $315.6 million were used to defease $293.2 million of existing debt. Under the terms of the resolutions for the defeased bonds, bond proceeds were paid directly to the bondholders of the defeased bonds. As a result, the refunded debt is considered defeased. The economic gain related to the defeased bonds amounted to $40 million. The excess of the bond proceeds over the amount of debt defeased of $22.4 million and the remaining unamortized premium and discount of $8 million are deferred and amortized in a systematic and rational manner over the remaining life of the old debt or new debt, whichever is shorter. There were no remaining unamortized bond issue costs, underwriter discounts, or any other related costs affiliated with the refunded debt. At June 30, 2018, a total of $283.4 million of pre- viously defeased CUNY Senior Colleges debt was still outstanding.