INTEREST RATES FOR ASSUMED AMORTIZATIONS

Interest Rates for Assumed Amortizations
  Stage Date of Calculation6 Other Than Big 5 Buffalo Rochester Syracuse Yonkers NYC8
Big 4  
Retro Projects1,4,5                
  Prelim. Spring 2002 4.50%          
  Final3 Sep-2002 4.50%2 4.75% 4.25% 5.38% 4.63%  
Prospective Projects1,7
CAD*
7/1/01 - 6/30/02
Prelim. Spring 2002 4.50% 4.75% 4.25% 5.38% 4.625%11 6.38%
Final3 Sep-2002 4.50%2 4.75% 4.25% 5.38% 4.625%11 5.13%
CAD*
7/1/02 - 6/30/03
Prelim. Sep-2002 4.50%2 4.75% 4.25% 5.38% 4.63% 5.25%
Final Sep-2003 3.875%9 4.38% 3.875%15 3.875%10 3.88% 4.88%
CAD*
7/1/03 - 6/30/04
Prelim. Sep-2003 3.875%9 4.38% 1.88% 3.88% 3.88% 4.00%
Final Sep-2004 3.875%13 4.750%12 3.25% 3.88% 3.88% 4.75%
CAD*
7/1/04 - 6/30/05
Prelim. Sep-2004 3.875%13 4.750%12 3.25% 3.88% 3.88% 4.63%
Final Sep-2005 3.875%14 4.625%12 3.13% 4.00% 2.25% 4.38%
CAD*
7/1/05 - 6/30/06
Prelim. Sep-2005 3.875%14 4.625%12 3.13% 4.00% 2.25% 4.38%
Final Sep-2006 4.000%16 4.750%12 3.88% 4.50% 3.88% 5.25%
CAD*
7/1/06 - 6/30/07
Prelim. Sep-2006 4.000%16 4.750%12 3.88% 4.50% 3.88% 5.25%
Final Sep-2007 3.875%17 4.375%12 3.875%18 4.13% 4.38% 4.63%
CAD*
7/1/07 - 6/30/08
Prelim. Sep-2007 3.875%17 4.375%12 3.88% 4.13% 4.38% 4.63%
Final Sep-2008 3.625%19 4.750%12 3.00% 4.75% 4.13% 20
CAD*
7/1/08 - 6/30/09
Prelim. Sep-2008 3.625%19 4.750%12 3.00% 4.75% 4.13% 20
               

* Commissioner's Approval Date (The statewide average interest rate for prospective projects will be assigned to projects based on CAD, and will remain the same for the term of the assumed amortization, except as indicated in note #3 below.)

Notes

  • 1 Retro projects: Existing projects subject to retroactive assumed amortization are projects approved prior to December 1, 2001 by the Office of Facilities Planning and for which debt (bonds, bond anticipation notes or capital notes) was issued prior to such date.

    Prospective projects: Projects subject to prospective assumed amortization are projects approved on or after December 1, 2001 by the Office of Facilities Planning or projects approved prior to December 1, 2001 but for which no debt (bonds, bond anticipation notes or capital notes) was issued prior to such date.

  • 2 This statewide average rate was calculated in September 2002 based on amortization schedules for all amortized debt incurred by school districts between 7/1/01 and 6/30/02, excluding debt issued by DASNY.

  • 3 Pursuant to Education Law 3602 6.e.(5)(c), at least at the end of each ten year segment of an assumed amortization established for a retro or prospective project, the remaining scheduled assumed semi-annual payments will be revised based on the interest rate applicable for the current year, if the difference between the current year interest rate and the interest rate upon which the original assumed amortization is based exceeds one quarter of one-one hundredth.

  • 4 Assumed aidable debt service associated with retro projects, where debt associated with such projects has been refinanced via an agreement with the Dormitory Authority of the State of New York (DASNY), will be calculated using the interest rate applicable to the obligations issued by DASNY.

  • 5 Assumed aidable debt service associated with the costs of refinancing debt for retro projects, where refinancing has occurred via an agreement with the Dormitory Authority of the State of New York (DASNY), will be calculated using the interest rate applicable to the obligations issued by DASNY.

  • 6 Pursuant to Education Law Section 3602b6.e.5 (6) amortization schedules for all debt incurred between July 1 and June 30 of each school year (excluding debt issued by DASNY) must be received by SED by September 1. Example: Information on borrowings between 7/1/02 and 6/30/03 must be on file with SED by 9/1/03.

  • 7 If a district enters into an agreement with DASNY for the purpose of financing a prospective project, the DASNY interest rate will be used in the calculation of the assumed amortization schedule for the project.

  • 8 New York City rates are calculated pursuant to Education Law Sections 3602 6.e.(1) and 3602 6.e.(2).

  • 9 Explanation of calculation.  The statewide interest rate (3.875%) is calculated from all bonds and BANS issued from July 1, 2002 through June 30, 2003 (NYC, other BIG5 districts and DASNY borrowings not included).

    The interest to be paid (from each amortization schedule) is summed. Any accrued interest or premiums are deducted and the resulting amount is added to the statewide interest paid accumulator. This accumulator is the numerator for the statewide calculation.

    The denominator comes from a calculation that involves the year of amortization and the principal payment for that year. These fields are multiplied together and the result for each line of the amortization schedule is summed to a total field for the debt instrument. This total field is then added to a statewide total field for principal * year.

    The statewide rate calculation is the (numerator / denominator) times 100. The result is then rounded to the nearest 1/8 of one percent for the actual statewide interest rate: 3.875%.

    See following page for a sample calculation.

  • 10 This rate applies except for the following projects: 421800-0005-005 -  .04875; 421800-0014-005 - .04875.

  • 11 This rate applies except for the following projects: 662300-0031-003 - .03625; 662300-0202-008 - .03625; 662300-0233-004 - .03625.

  • 12 Pursuant to special legislation, the aid calculation for certain projects for the city of Buffalo may be based on a different interest ratio.

  • 13 This statewide average interest rate was calculated from all bonds and BANS issued from July 1, 2003 through June 30, 2004 (NYC, other Big 5 city districts and DASNY borrowings not included). (See Note #9 above for more detail.)

  • 14 This statewide average interest rate was calculated from all bonds and BANS issued from July 1, 2004 through June 30, 2005 (NYC, other Big 5 city districts and DASNY borrowings not included). (See Note #9 above for more detail.)

  • 15Pursuant to Education Law 3602.6e(5)(a) regarding the Big 4 interest rate calculations, the rate for Rochester for all projects with a CAD between 7/1/02 - 6/30/03 will be the 2002-03 Statewide Average Interest Rate.
    However, please note that the rate must be recalculated when all Final Cost Reports are submitted for all projects with a CAD falling in 2002-03. At that time, the rate will need to be recalculated to include all borrowings (BANS & Bonds) for the 2002-03 year.

  • 16This statewide average interest rate was calculated from all bonds and BANS issued from July 1, 2005 through June 30, 2006 NYC, other B5, City districts and DASNY borrowings not included). (See note #9 above for more detail)

  • 17This statewide average interest rate was calculated from all bonds and BANS issued from July 1, 2006 through June 30,2007 (NYC, other B5, City districts and DASNY borrowings not included). (See note #9 above for more details).

  • 18Pursuant to Education Law 3602.6e(5)(a) regarding the Big 4 interest rate calculations, the rate for Rochester for all projects with a CAD between 7/1/06-6/30/07 will be the 2006-07 Statewide Average Interest Rate.
    However, please note that the rate must be recalculated when all Final Cost Reports are submitted for all projects with a CAD falling in 2006-07. At that time, the rate will need to be recalculated to include all borrowings (BANS & Bonds) for the 2006-07 year.

  • 19This statewide average interest rate was calculated from all bonds and BANS issued from July 1, 2007 through June 30, 2008 (NYC, other B5 City Districts and DASNY borrowings not included). (see note #9 above for more details).

  • 20New York City rate not yet available.

Example of the Calculation of a Statewide Rate That Would Result
From a Sample of Two bonds and Two BANS


BOND-1 12 Year Amortization and BOND-2 15 Year Amortization
BOND-1 12 Year Amortization BOND-2 15 Year Amortization
No Accrued Interest
Amount: $10,175,000
Date: 9/10/2002
Accrued Interest $2,426
Amount: $14,000,000
Date: 5/29/2003
Year Principal Interest Principal*Year   Year Principal Interest Principal*Year
1 915,000 209,224 915,000   1 745,000 436,696 745,000
2 850,000 278,238 1,700,000   2 760,000 418,070 1,520,000
3 865,000 261,238 2,595,000   3 775,000 399,070 2,325,000
4 885,000 241,776 3,540,000   4 795,000 379,696 3,180,000
5 905,000 220,756 4,525,000   5 825,000 359,820 4,125,000
6 930,000 193,606 5,580,000   6 855,000 339,196 5,130,000
7 960,000 166,868 6,720,000   7 890,000 317,820 6,230,000
8 900,000 138,068 7,200,000   8 920,000 291,120 7,360,000
9 925,000 108,818 8,325,000   9 955,000 263,520 8,595,000
10 800,000 77,600 8,000,000   10 990,000 232,960 9,900,000
11 830,000 49,600 9,130,000   11 1,030,000 200,290 11,330,000
12 410,000 16,400 4,920,000   12 1,060,000 166,300 12,720,000
          13 1,095,000 130,526 14,235,000
          14 1,130,000 92,200 15,820,000
          15 1,175,000 47,000 17,625,000
          Sub Total 4,074,284  
          Minus Accrued Int 2,426  
Totals 1,962,192 63,150,000   Totals 4,071,858 120,840,000

BAN-1 and BAN-2
BAN-1 BAN-2
Amount: $2,640,000 Amount: $19,350,000
Date: 10/22/2002 Date: 6/17/2003
Year: 1 Year: 1
Principal: $2,640,000 Principal: $19,350,000
Interest: $37,488 Interest: $266,062
Principal*Year: $2,640,000 Principal*Year: $19,350,000
Total Interest: $37,488 Total Interest: $266,062
Total Principal*Year: $2,640,000 Total Principal*Year: $19,350,000

Bond and Ban Summary Table
BOND/BAN Interest Principal*Year
Bond-1 1,962,192 63,150,000
Bond-2 4,071,858 120,840,000
Ban-1 37,488 2,640,000
Ban-2 266,062 19,350,000
Totals 6,337,600 205,980,000

Rate calculation is (Total Interest/Total Principal*Year) * 100

  • Total Interest - 6,337,600
  • Total Principal*Year - 205,980,000
  • Calculated Rate - 3.077

Calculated Rate Rounded to nearest 1/8 = 3.125%

Calculated Statewide average rate rounded to nearest 1/8 = 3.875%

Last Updated: June 30, 2017