Board of Estimate & Contract:
RESOLVED, that an Ordinance adopted by the City Council on November 25, 2025, and signed by the Mayor on November 26, 2025, authorizing a Temporary Spending Freeze on Non-Essential Expenditures through February 2026; be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING A TEMPORARY
SPENDING FREEZE ON NON-ESSENTIAL
EXPENDITURES THROUGH FEBRUARY 2026
Whereas, in correspondence dated November 24, 2025, the Comptroller formally requested authorization to implement a temporary spending freeze on all non-essential expenditures across City operations effective immediately upon adoption of this Ordinance and continuing through February 29, 2026; and
Whereas, the Office of the Comptroller has advised the City Council that the City of Mount Vernon is currently experiencing significant cash-flow pressures as a result of delayed revenues, prior-year obligations, and insufficient available fund balance; and
Whereas, these fiscal challenges pose a direct risk to the City’s ability to meet critical financial obligations, including payroll, employee benefits, debt service, and other essential public services; and
Whereas, the Comptroller has recommended the implementation of immediate cost-containment measures to stabilize municipal finances and ensure continuity of necessary government operations; and
Whereas, the temporary suspension of non-essential and discretionary expenditures will allow the Administration to impose stronger internal controls and manage limited cash resources more effectively during this period of fiscal constraint; and
Whereas, the City Council finds that authorizing a temporary spending freeze is in the best interest of the City of Mount Vernon in order to promote fiscal stability while longer-term corrective measures are developed and implemented;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON:
Section 1. Authorization of Temporary Spending Freeze. The Mayor, Comptroller, and all relevant administrative departments are hereby authorized and directed to implement a temporary spending freeze on all non-essential expenditures across City operations effective immediately upon adoption of this Ordinance and continuing through February 29, 2026.
Section 2. Scope of the Spending Freeze:
(a) The spending freeze shall apply to all discretionary purchases, non-urgent operating expenses, and non-essential departmental expenditures.
(b) No new contractual commitments may be entered into during the freeze period unless expressly determined by the Administration to be essential to the maintenance of core City functions, public health, safety, or legal compliance.
(c) All departments shall comply with revised internal control procedures established by the Comptroller for the purpose of stabilizing cash flow and managing available financial resources.
Section 3. Exemptions. The following categories of expenditures are exempt from this spending freeze:
(a) Payroll and employee benefits;
(b) Emergency expenditures required for the protection of life, public safety, or critical infrastructure;
(c) Legally mandated or court-ordered payments;
(d) Any expenditure approved in writing by the Mayor and Comptroller as essential to City operations.
Section 4. Reporting Requirements. The Comptroller shall provide regular updates to the City Council regarding the fiscal impacts of the spending freeze, improvements to cash flow, and the status of financial conditions requiring ongoing monitoring.
Section 5. Duration. This Ordinance shall remain in full force and effect through February 29, 2026, unless amended or rescinded by further action of the City Council.
Section 6. Effective Date. This ordinance shall take effect immediately upon adoption by the City Council and subsequent approval by the Board of Estimate & Contract.