New York

New York’s rate of borrowing is unsustainable, according to a report released by Comptroller Thomas DiNapoli Friday.

WASHINGTON — A new public power utility may be created in New York for the first time in over 10 years if a measure introduced in the state Legislature is approved. It would serve the far upstate counties of St. Lawrence and Franklin, and kick off with an initial bond deal of around $90 million.

As the trickle of taxable Build America Bonds coming to market turned into a flood last year, issuers’ underwriting-designation policies followed the course charted by the corporate market. In recent months, signs have emerged that the tide is turning and there is no agreement on whether or not that’s a good thing.

While much has been made of a deficit-borrowing proposal in New York, less attention has been paid to how those bonds would force fiscal discipline through bond covenants.

New York City is in the market this week with two bond deals that when completed will total $1.26 billion of taxable and tax-exempt debt.

Negotiations to end a dispute over development at the World Trade Center site in Lower Manhattan continued Thursday ahead of an arbitration deadline today. In January, an arbitration panel gave developer Silverstein Properties Inc. and the Port Authority of New York and New Jersey 45 days to reach an agreement on how to proceed with the construction of three towers.

A financial oversight board would have the power to effectively prevent New York from issuing state-backed debt if the state’s budget isn’t balanced, under a plan proposed yesterday by Lieut. Gov. Richard Ravitch.

New York Comptroller Thomas ­DiNapoli yesterday called for a constitutional amendment to require most state-backed debt be approved by voters and issued by his office.

New York Gov. David Paterson has long railed against deficit borrowing to help the state out of its fiscal mess, but such a plan could be under discussion, the governor said yesterday.

Assessments levied on New York’s industrial development agencies have economic development officials and some lawmakers up in arms. Bills due at the end of March began going out to the state’s 116 IDAs last month. The assessments were included in the state’s fiscal 2010 budget and were intended to raise $5 million for the general fund.

The recession has dealt New York City’s economy a better hand than expected, but city officials yesterday painted New York State’s budget problems as the wild card still in the deck.

The New York City Housing Authority’s bid for tens of millions of dollars of additional annual federal subsidies to shore up its financially troubled public housing relies on the issuance of about half a billion dollars of bonds.

New York’s projected deficit in the current fiscal year and fiscal 2011 grew by $850 million since last month, according to consensus revenue projections released by the Legislature and governor’s office late Monday night.

The Dormitory Authority of the State of New York plans to market $634.4 million of personal income tax bonds this week as the state reels from Gov. David Paterson’s decision Friday not to run for election in November.

The Port Authority of New York and New Jersey yesterday took a step toward cashless tolling at its six state border crossings. The agency approved the design and construction of a new $175 million toll collection system at its monthly board meeting.

The New York City Housing Development Corp. yesterday approved selling $535 million of tax-exempt and taxable bonds to finance the acquisition and rehabilitation of public housing so that it becomes eligible for federal funding.

The Dormitory Authority of the State of New York yesterday gave final approval to up to $778 million of bonds to refund certain state-backed debt.

A record year of Wall Street profits and large bonuses will boost New York’s tax revenue but won’t erase the state’s fiscal problems, Comptroller Thomas DiNapoli warned yesterday.

New York’s Metropolitan Transportation Authority approved the sale next month of $500 million of dedicated tax fund bonds at its finance committee meeting yesterday. Pending approval by the full board tomorrow, most or all of the bonds will be marketed as taxable Build America Bonds.

Westchester County last week completed its first competitive deal under a pilot program that allows it to sell bonds using only an Internet auction platform.