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MANAGEMENT DISCUSSION:
STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES

Total tax revenue increased by $428 million, or 2.4%, to $18,114 billion in ¬scal year
1996. Collections of real estate taxes in ¬scal year 1996 were 91.7% of the current ¬scal
year™s tax levy of $7.871 billion. The delinquency rate (an important indicator of ¬scal
health) was 3.8% in ¬scal year 1996, down from 5.0% in ¬scal year 1995. Real estate tax
collections remained constant at $7.5 billion in ¬scal year 1996. The tax levy remained
constant as well, $7.9 billion in ¬scal years 1995 and 1996.
Revenues from economically sensitive taxes on general sales, personal income, general
and ¬nancial corporation and unincorporated business income increased 9.6% in ¬scal
year 1996; these taxes decreased 1.7% in ¬scal year 1995. Individually, the taxes
changed as follows: general sales tax revenues up 4.6%, the ¬nancial corporation tax up
27.6%, unincorporated business income tax up 25.6%, personal income tax up 8.8%,
and general corporation tax up 11.4%. The large increase in Financial Corporation Tax is
predominantly due to the strength of the City™s Wall Street sector and to loan growth
stemming from a cut in the Federal Funds rate.
Federal, state and other categorical aid grew $147 million (1.4%) in ¬scal year 1996
over 1995. Unrestricted aid increased 3.0% from the ¬scal year 1995 level.
General fund expenditures and other ¬nancing uses in ¬scal year 1996 including
transfers for debt service, increased $480 million (1.5%) over ¬scal year 1995, to
$32.066 billion.
Excluding transfers for debt service, expenditures in ¬scal year 1996 increased by 0.7%
over ¬scal year 1995. Personal service expenditures including pensions and fringes
increased 2.1% in ¬scal year 1996. Employee salaries and wages in ¬scal year 1996
increased 1.9% over ¬scal year 1995; health insurance expenditures increased by 9.4%
and Social Security increased by 2.9%. Overtime expenditures increased 3.1% to $436
million from $423 million in ¬scal year 1995; pension costs increased 2.6% from ¬scal
1995, to $1.415 billion. The number of full-time City employees was 236,674 on June
794 Case: The City of New York




64 Part 4 Additional Cases




30, 1996, an increase of 2,065 from June 30, 1995. The most signi¬cant headcount
increases occurred in the Fire Department (3,393), the Police Department (549), the
Department of Corrections (288) and the Department of Finance (254). The most signi¬-
cant decreases occurred in the Board of Education (1,407), the Department of Homeless
Services (365), and the Department of Housing and Preservation and Development (126).
Other than personal services related expenditures excluding Medicaid, Welfare and Debt
Service increased 4.8% in ¬scal year 1996 over ¬scal year 1995.
Transfers for debt service on long-term debt increased by $285 million, or 12.5%, to
$2,574 billion in ¬scal year 1996.

STATEMENT OF SOURCES AND USES OF CASH 1995“96 (in millions)
City of New York




1996 1995
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .
Summary of General Fund Operations
Revenues $32,071 $31,591
Expenditures Before Transfers (29,492) (29,297)
Surplus Before Debt Service and Other Transfers 2,579 2,294
Transfers for Debt Service and Other Purposes (2,574) (2,289)
Surplus from General Fund Operations 5 5
Adjustments to Bring Operations to a Cash Basis
Increase in Payables 1,659 1,305
Increase in Receivables (967) (897)
Provision for Disallowances of Federal and State Aid 40 21
Less Disallowances Paid (28) (10)
Cash Provided by Operations 709 424
Other Sources of Cash
Proceeds from Sale of City Bonds 2,594 2,242
Decrease (Increase) in Amounts Restricted Pending Expenditure (282) 221
Seasonal Borrowings 2,400 2,200
Total Other Sources of Cash 4,712 4,663
Other Uses of Cash
Repayment of Seasonal Borrowings (2,400) (2,200)
Federal and State Financed Capital Disbursements (375) (331)
Less Reimbursements 244 810
City-Financed Capital Construction (3,421) (3,344)
Increase in Other 258 427
Total Other Uses of Cash (5,694) (4,638)
Net Increase (Decrease) in Cash (273) 449
Cash, Beginning of Year 748 299
Cash, End of Year $475 $748
.........................................................................................................................
795
Case: The City of New York




65
Part 4 Additional Cases




EXHIBIT 2
Real Estate Tax Levies, Values, and Tax Collections, The City of New York

Comparison of Real Estate Tax Levies, Tax Limits, and Tax Rates
Average Tax Rate
Rate per $100 of per $100 of
Operating Limita
Fiscal Year Total Levy Full Valuation Assessed Valuation
......................................................................................................................................
1993 $8,392.59 $11,945.09 $1.609 $10.599
1994 8,113.2 13,853.8 1.30 10.37
1995 7,889.8 13,446.5 1.14 10.37




City of New York
1996 7,871.4 8,633.4 1.88 10.37
1997 7,835.1 7,857.3 2.46 10.37
......................................................................................................................................
a. The State Constitution limits the amount of revenue which the City can raise from the real estate tax for operating purposes (“the
operating limit”) to 2.5% of the average full value of taxable real estate in the City for the current and the last four years less interest
on temporary debt and the aggregate amount of business improvement district charges subject to the 2.5% tax limitation. The most
recent calculation of the operating limit does not fully reflect the current downturn in the real estate market, which is expected to
lower the operating limit in the future.



Billable Assessed and Full Value of Taxable Real Estate
Billable Assessed
Valuation of Taxable
Real Estate Special Full Valuation
Fiscal Year (in millions) · Equalization Ratio = (in millions)
......................................................................................................................................
1993 $79,370.69 0.2965 $267,691.69
1994 78,364.6 0.2627 298,304.4
1995 76,202.4 0.2384 319,641.1
1996 76,029.4 0.2209 344,180.3
1997 75,668.5 0.2069 365,724.8
......................................................................................................................................


Real Estate Tax Collections and Delinquencies
Tax Collections Delinquent at Delinquency
Tax Levy as Percentage Fiscal Year End as Percentage
Fiscal Year (in millions) of Tax Levy (in millions) of Tax Levy
......................................................................................................................................
1990 $6,872.49 94.7% $230.29 3.35%
1991 7,681.3 93.7 315.7 4.11
1992 8,318.8 93.1 370.2 4.45
1993 8,392.5 92.5 411.2 4.90
1994 8,113.2 92.7 403.4 4.97
1995 7,889.8 93.5 381.6 4.84
1996 7,871.4 93.4 288.9 3.67
......................................................................................................................................
796 Case: The City of New York




66 Part 4 Additional Cases




EXHIBIT 3
The City of New York Financial Plan, 1997“2000

Fiscal Year
..........................................................................
(in millions) 1997 1998 1999 2000
................................................................................................................................
Revenues
Taxes:
General property tax $ 7,088 $ 7,244 $ 7,469 $ 7,752
Other taxes 10,407 10,837 11,352 11,897
Tax audit revenue 659 659 659 659
City of New York




Tax reduction program (25) (188) (366) (432)
Miscellaneous revenues 4,468 3,549 3,117 2,894
Unrestricted intergovernmental
aid 523 510 509 513
Anticipated state actions 50 ” ” ”
Other categorical grants 293 275 281 280
Interfund revenues 260 260 258 256
Less: Intracity revenues (647) (647) (646) (644)
Disallowances against
categorical grants (15) (15) (15) (15)
Total City Funds $23,061 $22,484 $22,618 $23,160
Federal categorical grants 3,771 3,600 3,586 3,582
State categorical grants 6,149 6,071 6,106 6,087
Total Revenues $32,981 $32,155 $32,310 32,829

Expenditures
Personal service $16,237 $16,813 $17,612 $18,812
Other than personal service 14,128 14,064 14,256 14,271
Debt service 2,735 3,015 3,124 3,241
MAC debt service funding 328 394 423 370
General reserve 200 200 200 200
Total Expenditures $33,628 $34,486 $35,615 $36,894
Less: Intracity Expenses (647) (647) (646) (644)
Net Total Expenditures $32,981 $33,839 $34,969 $36,250

De¬cit $0 $1,684 $2,959 $3,421
................................................................................................................................
797
Case: The City of New York




67
Part 4 Additional Cases




EXHIBIT 4
The City of New York Actual and Planned Capital Outlays, 1992-2000

Actual Capital Outlays (in millions)

1996 1995 1994 1993 1992
...................................................................................................................................................
Education $ 812 $ 881 $ 727 $ 758 $ 686
Environmental protection 1,135 819 768 934 1,046
Transportation 554 444 423 341 364
Transit authority 218 150 221 250 330
Housing 246 292 387 431 639




City of New York
All other 831 1,108 817 903 828
Total Expenditures $3,796 $3,694 $3,343 $3,617 $3,893
...................................................................................................................................................



Capital Commitment Plan, 1997“2000 (in millions)

1997 1998 1999 2000
...................................................................................................................................................
Education $ 713 $ 859 $ 799 $1,392
Environmental protection 1,385 1,270 1,488 518
Transportation 760 643 671 590
Transit authority 497 231 231 231
Housing 311 267 317 382
Sanitation 185 604 167 361
City operations/Facilities 1,321 630 650 587
Economic and port development 71 46 35 44
Reserve for unattained commitments (449) (107) (300) (244)

Total Commitments $4,793 $4,443 $4,058 $3,861

Total Expenditures $4,255 $3,958 $4,114 $4,179
...................................................................................................................................................
798 Case: The City of New York




68 Part 4 Additional Cases




MANAGEMENT DISCUSSION OF CAPITAL PROJECTS

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