Board of Estimate & Contract:
RESOLVED, that an ordinance adopted by the City Council on April 23, 2025, and signed by the Mayor on April 24, 2025, authorizing the Mayor to Enter into a Payment Plan Agreement with the New York State Department of Civil Service for Outstanding Health Insurance Premium Arrears; (Terms of Agreement. The payment plan shall:
• Commence on April 25, 2025, and conclude on March 30, 2030;
• Include monthly installment payments of $209,570.61;
• Be in addition to the City’s ongoing obligation to make current NYSHIP premium payments during the term of the agreement;
(Budget Appropriation. The Comptroller is hereby authorized and directed to take all necessary steps to ensure that funds are appropriated and disbursed in accordance with the payment plan and the City’s financial policies); be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE MAYOR
TO ENTER INTO A PAYMENT PLAN AGREEMENT
WITH THE NEW YORK STATE DEPARTMENT OF
CIVIL SERVICE FOR OUTSTANDING HEALTH
INSURANCE PREMIUM ARREARS
Whereas, in a letter dated April 15, 2025, the Comptroller requested authorization for the Mayor of the City of Mount Vernon to enter into a Payment Plan Agreement with the New York State Department of Civil Service, substantially in the form attached hereto and made a part of this Ordinance, to address the City’s outstanding health insurance premium liabilities from the 2021 fiscal year; and
Whereas, the City of Mount Vernon participates in the New York State Health Insurance Program (NYSHIP) and is obligated to make timely premium payments as a condition of participation; and
Whereas, due to limited cash flow and ongoing fiscal challenges, the City has carried a liability related to unpaid health insurance premiums incurred during the 2021 fiscal year; and
Whereas, since January 2022, the Comptroller's Office has engaged in regular communication with the New York State Department of Civil Service to address the outstanding arrears and to keep the City’s participation in NYSHIP in good standing; and
Whereas, the New York State Department of Civil Service has agreed to enter into a payment plan agreement with the City of Mount Vernon, commencing April 25, 2025, and concluding on March 30, 2030, to resolve the outstanding premium liability in a fiscally responsible manner; and
Whereas, the negotiated agreement includes monthly installment payments of $209,570.61, to be made in addition to the City’s regular monthly health insurance premiums, and this arrangement is deemed reasonable and necessary to maintain vital health insurance benefits for City employees and retirees; and
Whereas, the City Comptroller recommends that the City Council approve the agreement and authorize the Mayor to execute said agreement to avoid further financial and administrative complications; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain and enact:
Section 1. Authorization. The Mayor of the City of Mount Vernon is hereby authorized and directed to enter into a Payment Plan Agreement with the New York State Department of Civil Service, substantially in the form attached hereto and made a part of this Ordinance, to address the City’s outstanding health insurance premium liabilities from the 2021 fiscal year.
Section 2. Terms of Agreement.
The payment plan shall:
• Commence on April 25, 2025, and conclude on March 30, 2030;
• Include monthly installment payments of $209,570.61;
• Be in addition to the City’s ongoing obligation to make current NYSHIP premium payments during the term of the agreement;
• Be subject to such additional terms and conditions as set forth by the New York State Department of Civil Service and agreed to by the City.
Section 3. Budget Appropriation. The Comptroller is hereby authorized and directed to take all necessary steps to ensure that funds are appropriated and disbursed in accordance with the payment plan and the City’s financial policies.
Section 4. Effective Date. This Ordinance shall take effect immediately upon approval by the Board of Estimate and Contracts.