New York City’s Debt Limit

Below is a general discussion of constraints on the City’s ability to borrow. More detailed information on these limitations is included in the City’s most recent Official Statement. This document can be obtained by contacting our office or a Nationally Recognized Municipal Securities Information Repository.

The New York State Constitution provides that, with certain exceptions, the City may not contract indebtedness, including contracts for capital projects to be paid with the proceeds of City bonds in an amount greater than 10% of the average full value of taxable real estate in the City for the most recent five years. Certain indebtedness, such as Tax Anticipation Notes, Revenue Anticipation Notes and long-term indebtedness issued for certain types of public improvements and capital projects are considered excluded debt. The City's statutory authority for variable rate debt is limited to 20% of the debt limit.

As of 12/31/07, the remaining City debt-incurring power under the debt limit was approximately $18.3 billion. At that time, gross outstanding debt, less exclusions, was approximately $33.9 billion.