Financing
Financing Program
The city financing program projects $84.8 billion of long-term borrowing for the period from 2025 through 2029 to support the current city capital program. The portion of the capital program not financed by the New York City Municipal Water Finance Authority (NYW or the Authority) will be split between General Obligation (GO) bonds of the city and Future Tax Secured (FTS) bonds of the New York City Transitional Finance Authority (TFA).
The city and TFA expect to issue $36.7 billion and $35.7 billion, respectively, during the plan period. The city issuance supports 43 percent of the total and TFA FTS issuance supports another 42 percent of the total. NYW expects to issue approximately $12.5 billion which represents 15 percent of the total.
Financing Program
($ in millions)
| 2025 | 2026 | 2027 | 2028 | 2029 | Total | |
|---|---|---|---|---|---|---|
| NYC GO Bonds | $7,650 | $7,200 | $7,000 | $7,316 | $7,500 | $36,666 |
| TF FTS Bonds | 7,850 | 6,000 | 7,000 | 7,316 | 7,500 | 35,666 |
| NYW Bonds (1) | 2,229 | 2,000 | 2,577 | 2,692 | 2,967 | 12,465 |
| Total | $15,200 | $16,577 | $17,324 | $17,967 | $84,797 |
(1) Includes commercial paper and revenue bonds issued for the water and sewer system’s capital program. Figures do not include bonds that defease commercial paper or refunding bonds. Does not include bonds to fund reserves or cost of issuance.
Overview of the Financing Program
The following three tables show statistical information on debt issued and expected to be issued by the financing entities described above.
Debt Outstanding
($ in millions at year end)
| 2025 | 2026 | 2027 | 2028 | 2029 | ||
|---|---|---|---|---|---|---|
| NYC GO Bonds | $46,721 | $51,515 | $56,192 | $61,014 | $65,894 | |
| TFA FTS Bonds | 55,600 | 59,820 | 64,617 | 69,592 | 74,6282 | |
| Conduit Debt (1) | 1 | 793 | 725 | 655 | 586 | 511 |
| Total | $103,114 | $112,060 | $121,464 | $131,192 | $141,033 | |
| NYW Bonds | $34,372 | $35,912 | $38,093 | $40,187 | $42,488 | |
| TSASC Bonds | $879 | $854 | $827 | $800 | $773 |
Annual Debt Service Costs
($ in millions, before prepayments)
| 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|
| NYC GO Bonds | $4,331 | $4,640 | $4,945 | $5,424 | $5,865 |
| TFA FTS Bonds | 3,232 | 3,990 | 4,530 | 5,016 | 5,442 |
| Conduit Debt (1) | 91 | 111 | 108 | 103 | 112 |
| Total | $7,654 | $8,741 | $9,583 | $10,543 | $11,419 |
| NYW Bonds (2) | $1,957 | $2,069 | $2,134 | $2,469 | $2,681 |
| TSASC Bonds | $76 | $69 | $69 | $68 | $67 |
Debt Burden
| 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|
| Total Debt Service(3) as % of : | |||||
| a. Total Revenue | 6.4% | 7.6% | 8.2% | 8.8% | 9.3% |
| b. Total Taxes | 9.6% | 10.8% | 11.6% | 12.3% | 12.9% |
| c. Total NYC Personal Income | 1.0% | 1.0% | 1.1% | 1.2% | 1.2% |
| Total Debt Outstanding(3) as % of : | |||||
| a. Total NYC Personal Income | 12.8% | 13.4% | 13.9% | 14.3% | 14.7% |
(1) Conduit debt consists of bonds issued by the Dormitory Authority of the State of New York, New York City Educational Construction Fund, and New York City Industrial Development Agency for which the city is obligated to make payments for debt service, subject to appropriation.
(2) Includes First Resolution debt service and Second Resolution debt service net of subsidy payments from the NYS Environmental Facilities Corporation.
(3) Total Debt Service and Debt Outstanding include NYC GO, conduit debt, and TFA FTS bonds.
Currently the debt service for city GO, TFA FTS, and city appropriation debt, or conduit debt, excluding the effect of pre-payments, is 6.4 percent of the city’s total budgeted revenues in 2025. That ratio is projected to rise to 9.3 percent in 2029. As a percentage of tax revenues, the debt service ratio is 9.6 percent in 2025 and is projected to increase to 12.9 percent in 2029.
The primary issuers financing the city capital program have maintained credit ratings in the AA category or better by Moody’s, S&P, and Fitch, and in the case of the city, Kroll, as indicated in the table titled “Ratings”. These entities have maintained reliable market access, including during the economic uncertainty caused by the onset of COVID-19, to finance capital spending and undertake refinancing transactions. All of the outlooks are stable.
Ratings
| Issuer | Moody's | Standards and Poor's | Fitch | Kroll |
|---|---|---|---|---|
| NYC GO | Aa2 | AA | AA- | AA+ |
| TFA FTS-Subordinate(1) | Aa1 | AAA | AAA | |
| NYW First Resolution | Aa1 | AAA | AA+ | |
| NYW Second Resolution | Aa1 | AA+ | AA+ |
(1) TFA may also issue FTS-Senior bonds, although none are currently outstanding. The most recent ratings assigned to the Senior credit were triple-A from each of Moody's, S&P, and Fitch.