MUNICIPAL FINANCE
Albert Moncure, Jr. , Chief
Olivia O’Neill, Deputy
The Municipal Finance Division serves as counsel to the City on all bond transactions. Funds raised from issuing
bonds have been used on projects ranging from water pollution control to the Nets sports arena in Brooklyn to
new school construction. Each year, the Division oversees billions of dollars in ?nancial transactions.
Build America Bonds
Division attorneys have played a major role in the
issuance of Build America Bonds (BABs) authorized by
the American Recovery and Reinvestment Act of 2009.
This new type of non tax-exempt municipal bond can
be issued for purposes very similar to those for which
traditional tax-exempt municipal bonds are issued.
Instead, the federal government provides a direct
subsidy to the issuer in the amount of 35% of the interest
cost of the borrowing. As a result, while the costs to the
issuer remain similar to the costs of tax-exempt bonds,
access has been created to a new universe of buyers
who do not need tax-exemption and in the past had
not bought municipal bonds. In addition, because
many municipal issuers have sold BABs this year instead
of traditional tax-exempt bonds, there is less supply in
the tax-exempt market and therefore lower tax-exempt
interest rates. The City and the New York City Transitional
Finance Authority have issued, respectively, $800 million
and nearly $690 million of BABs in 2009. Since these bonds
are a new form of security, the Division addressed novel
tax, pricing and other issues in connection with their sale
and issuance.
Helping the City Finance Water
Pollution Control Projects
The Division participated in the issuance of interestfree bond anticipation notes by the New York City
Municipal Water Finance Authority to the New York State
Environmental Facilities Corporation (EFC). Pursuant
to this transaction, the EFC will advance up to $217
million received from the federal government via the
American Recovery and Reinvestment Act to the City
for construction of water pollution control projects, with
an additional incentive if the City completes the projects
on schedule.
Representing the City’s Interests in the Nets
Basketball Arena Development
Attorneys worked with the Economic Development
Division to represent the City and the New York City
Economic Development Corporation in connection with
the successful tax-exempt ?nancing for the professional
basketball arena for the Nets basketball team. The arena
will be located in a major mixed-use development
project planned for a 22-acre site in the Atlantic Yards
Terminal area of Brooklyn. The ?nancing participants
included the Empire State Development Corporation as
owner of the project site and public developer of the
project, as well as the private developer and a potential
investor in the arena and the team.
PENSIONS
Inga Van Eysden, Chief
Carolyn Wolpert, Deputy
The Pensions Division represents the City’s ?ve pension funds in litigation challenging individual and class-wide
bene?t determinations, and provides pension-related counseling and advice to City agencies. With close to
600,000 active and retired members and approximately $100 billion in assets, the City funds are cumulatively one
of the largest public pension funds in the country. Division attorneys draft and comment on proposed legislation;
assist in the implementation of new laws; and in conjunction with outside counsel, represent the City funds in
securities fraud cases.
Fighting Securities Fraud
With outside counsels’ assistance, attorneys investigate
and prosecute securities fraud actions seeking to
recover losses that the funds have sustained while
investing assets in various companies.
Countrywide Financial Corporation
Representing the New York City pension funds in
their capacity as lead plaintiff with the New York
State Common Retirement System, Division attorneys
continued work on the class-action lawsuit against
Countrywide Financial Corporation – formerly the
largest mortgage lender in the United States. On
behalf of the class, the City and the State assert claims
against Countrywide’s former executives, along with
50 other defendants that include Wall Street’s largest
investment banks, for securities law violations and
fraud that led to signi? cant losses by Countrywide
shareholders.
Wachovia Corporation
The New York City pension funds serve as lead plaintiff
in the class action securities fraud c