New York City sells bonds to borrow the money needed to pay for construction and repair of capital projects such as roads, bridges and schools. The reason the City borrows to pay for these projects is that they will last for many years. Since future taxpayers will share in the benefit of a school building for many years, it is reasonable that future taxpayers help to pay for the construction.

The Comptroller and the Mayor share the responsibility for issuing City General Obligation bonds and notes. Working with the Mayor’s Office of Management and Budget, the Comptroller’s Public Finance staff determines and approves structures, terms, and conditions for all City debt (please see Overview of Bond Issuance for more information on the process of bond issuance.) The Comptroller also approves debt issued by the NYC Transitional Finance Authority, the NYC Municipal Water Finance Authority, TSASC., Inc, the NYC Housing Development Corporation, theTrust for Cultural Resources and the Health and Hospitals Corporation.

For residents of New York City, City bonds are usually triple-tax exempt. That means that investors who buy the bonds do not have to pay federal ,New York State or  New York City income taxes on the interest they receive. Investors should check with their financial advisors or brokers regarding tax status.

New York City does not sell bonds directly to the public. Bonds are sold through registered broker dealers only.  A list of those dealers that sell New York City GO, TFA and Water bonds at initial offering can be accessed through the link.  Bonds may be available at other times from these or other firms.

Before purchasing a New York City bond, one should read the City’s Official Statement for that specific bond issue, which includes more complete information on the City’s finances. Official Statements for current City bond offerings are available through the broker-dealers who participate in the sale of that bond issue.

Official Statements for most completed offerings are available through the Bond Archive link, however these documents are provided for historical reference only.  Please read the disclaimer in the Archive access process carefully.

New York City’s Debt Limit

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 25% of the debt limit.

More detailed information on City borrowing limitations and other debt issuance parameters is included in the City’s Official Statement.