Nassau County Debt

The County issues debt to finance its long-term capital and short-term cash flow needs. It issues long-term bonds for capital projects included in the County’s capital plan, while it has also issued long-term working capital bonds to finance property tax refund payments, payments of judgments and settlements and employee termination costs.

The County borrows for cash flow purposes to help balance the uneven collection of revenues against more even expenditures. The County typically undertakes two cash flow borrowings a year: revenue anticipation notes in late spring and tax anticipation notes in late fall.

The County and related entities have various types of debt outstanding. The County has issued general obligation bonds to the public and to the New York State Environmental Facilities Corporation. The Nassau County Interim Finance Authority, a state authority, has issued revenue bonds secured by an intercept of the County’s local sales tax, and the Nassau County Sewer and Storm Water Finance Authority, also a state authority, has issued revenue bonds secured by County sewer and storm water assessments and other system revenues. Further, the County has guaranteed the bonds and related swaps of the Nassau Health Care Corporation. The County has also entered into a support agreement to make debt service payments directly on the Nassau Regional Off-Track Betting Corporation’s Revenue Bonds, Series 2005.