NYC-WTC_000195490

NYC 9/11 Public Portal Document

9, ADVANCE REFUNDINGS (REFINANCINGS OF EXISTING DEBT}: The City will continue its ct^nservative practice of requiring that advance refundings produce savings at least equal to 5 percent. .

Current federal government regulations for the use of tax-exempt municipal financing limit state and local governments to one advance refunding of previously issued debt (if issued after 1987, otherwise to two refundings). The 5 percent savings target utilized by the City on advance refundings ensures that should interest rates decline further in the future the City will be able to capture additional debt service savings for taxpayers. This sayings threshold also ensures that the savings obtained for taxpayers is in excess of five times the fees paid'to underwriters to execute the transaction.

10, INVESTOR REUNIONS: The City will continue to commit resources and utilize the latest technologies to ensure that the borrowings to fund its capital program will continue to be viewed by investors as representing state of the art investor relations techniques. 'f ! ' ■!

This will be a crucial factor in ensuring that the City’s borrowing costs areithe lowest possible in the marketplace. '

II, OTHER SOURCES OF II>^FORMATION FOR THE PUBLIC AND FOR INVESTORS ON NEW YORK CITY DEBT MANAGEMENT:

New York City has the most extensive and transparent reporting on financial management including debt management in the country. In January and April of each calendar year, the City publishes an extensive textual discussion as a part of the release of its Preliminary Budget (in January) and Executive Budget (in April), with a time horizon of four fiscal years. This text includes a lengthy textual presentation and review of both the City’s Capital Program and its Financing Program. Biennially, the City publishes in January and April respectively its Preliminary Ten Year Capital Strategy and then its Ten Yew Capital Strategy. The City also annually publishes its Asset Condition and Maintenance Schedules for Major Portions of the City’s Capital Plant. At the time of publication of the Ten Year Capital Strategy, the City publishes an additional report comparing (he recommended levels of funding in the Asset Condition and Maintenance Report with actual proposed budgeted funding levels. Annually in April, the Mayor publishes his Annual Statement of Debt Affordability and his Annual Capital Progratn Affordability Certificate. In June, after budget adoption, the Mayor publishes his Annual Declaration of Need and Proposed Transitional Capital Plan. In addition, the Cityi Comptroller publishes in December of each calendar year his Annual Report on Capital Debt and Obligations. j I

114 J

NYC-WTC_000195611