City Council:
AN ORDINANCE AUTHORIZING THE REVIEW,
EVALUATION, AND FURTHER DEVELOPMENT
OF A PROPOSED EARLY RETIREMENT OR
SEPARATION PLAN AND LONG-RANGE FINANCIAL
PLAN FOR THE CITY OF MOUNT VERNON, IN
COOPERATION WITH CAPITAL MARKETS ADVISORS, LLC
Whereas, in correspondence dated September 4, 2026, the Comptroller formally requested authorization for the appropriate City officials, in cooperation with the Office of the Mayor, the City’s Municipal Advisor, Capital Markets Advisors, LLC, and such other professional advisors as may be authorized by the City, to continue the review, analysis, and evaluation of the draft Early Retirement or Separation Plan, which shall collectively be known as the “Early Retirement or Separation Plan and Long-Range Financial Plan Review Ordinance”; and
Whereas, the City of Mount Vernon (the “City”), through the Office of the Mayor and appropriate City departments and officials, has been working in cooperation with Capital Markets Advisors, LLC (“CMA”), the City’s Municipal Advisor, on two special financial and operational planning initiatives designed to evaluate the City’s fiscal condition, workforce structure, long-term financial sustainability, and opportunities for responsible cost management; and
Whereas, the first initiative consists of a proposed Early Retirement or Separation Plan (the “Separation Plan”), which has been developed in draft form for review and consideration by the City; and
Whereas, in connection with the development of the proposed Separation Plan, CMA analyzed substantial City workforce and financial data, including staffing within the City’s governmental and administrative departments, as well as the Police and Fire Departments; and
Whereas, CMA evaluated various potential options for the Separation Plan, including financial payouts based upon years of service and other incentives or inducements intended to encourage eligible employees to retire or separate from City service; and
Whereas, the analysis also considered the potential financial and operational effects associated with vacancies resulting from employees who retire or separate from City service, including employees who may not otherwise qualify for retirement under the New York State retirement system but who may elect to participate in the Separation Plan in exchange for a lump-sum payment or other authorized incentive; and
Whereas, multiple potential Separation Plan structures were developed and evaluated for four employee categories, including Employees Eligible for the New York State Employees’ Retirement System (“ERS Retirees”), ERS Separations, Police Officers, and Firefighters; and
Whereas, the draft Separation Plan further evaluates projected participation levels, the anticipated costs to the City, potential savings and fiscal benefits to the City, anticipated changes in staffing levels, and the operational implications associated with implementation of the proposed Separation Plan; and
Whereas, the City desires to thoroughly review and evaluate the draft Separation Plan, including its legal, financial, labor, personnel, budgetary, and operational implications, before determining whether any such plan should be formally adopted or implemented; and
Whereas, the second initiative consists of a proposed Long Range Financial Plan for the City (the “Financial Plan”), which is intended to provide a comprehensive framework for evaluating the City’s present and projected financial condition and for supporting sound, sustainable, and responsible financial management; and
Whereas, long-range financial planning is recognized as an important component of sound municipal financial management and may be viewed favorably by credit rating agencies as evidence of effective management, financial planning, fiscal discipline, and long-term financial stability; and
Whereas, the draft Financial Plan is intended to evaluate the City’s financial position under various scenarios at both summary and detailed levels; identify short-term and long-term financial goals and objectives; and provide a framework for evaluating the financial consequences of various policy and operational decisions; and
Whereas, the draft Financial Plan further analyzes the cash-flow impact of identified initiatives under various scenarios and compares such impacts against status quo and base-case financial scenarios; and
Whereas, the draft Financial Plan reviews existing City financial policies and plans and may recommend or develop additional financial policies and strategies designed to promote sound financial management, fiscal sustainability, and appropriate financial controls; and
Whereas, the draft Financial Plan also analyzes key credit-related characteristics and other financial considerations relevant to the City’s overall fiscal condition and long-term financial outlook; and
Whereas, the City recognizes the importance of carefully evaluating both the Separation Plan and the Financial Plan in conjunction with one another, including the potential relationship between workforce changes, personnel expenditures, operating costs, revenues, reserves, cash flow, debt obligations, and the City’s long-term financial position; and
Whereas, the City intends to solicit and consider comments and recommendations from appropriate City officials, departments, employees, collective bargaining representatives, professional advisors, and other stakeholders, as appropriate and permitted by law, prior to taking any further legislative action concerning either plan; and
Whereas, the draft Separation Plan is being circulated for review and comment, with comments requested by September 30, 2026, and the draft Financial Plan is being circulated for review and comment, with comments requested by October 23, 2026; and
Whereas, presentations concerning the draft Separation Plan and draft Financial Plan are anticipated to be scheduled for appropriate City officials and governing bodies in the coming weeks; and
Whereas, the City Council finds that continued review, analysis, and evaluation of these proposed initiatives are in the best interests of the City and its residents and will assist the City in evaluating potential strategies for improving fiscal stability, financial planning, workforce management, and long-term municipal operations; and
Whereas, the City Council further finds that any ultimate adoption or implementation of an Early Retirement or Separation Plan, including any incentive payments or modifications to employee benefits or terms and conditions of employment, shall remain subject to all applicable provisions of New York State law, the City Charter and Code, collective bargaining agreements, retirement system requirements, applicable personnel rules and regulations, budgetary appropriations, and any other required governmental approvals;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, NEW YORK, AS FOLLOWS:
Section 1. Title. This Ordinance shall be known and may be cited as the “Early Retirement or Separation Plan and Long-Range Financial Plan Review Ordinance.”
Section 2. Authorization to Review and Evaluate Draft Separation Plan. The City Council hereby authorizes and directs the appropriate City officials, in cooperation with the Office of the Mayor, the City’s Municipal Advisor, Capital Markets Advisors, LLC, and such other professional advisors as may be authorized by the City, to continue the review, analysis, and evaluation of the draft Early Retirement or Separation Plan.
Such review may include, but shall not be limited to:
1. The eligibility requirements apply to participating employees;
2. Proposed financial incentives, lump-sum payments, or other inducements;
3. Potential participation levels;
4. Estimated costs and savings to the City;
5. The effect of retirements and separations on City staffing levels;
6. Potential vacancies and the need for, and cost of, backfilling positions;
7. The impact on the Police and Fire Departments;
8. The impact on administrative and governmental departments;
9. Retirement system considerations;
10. Collective bargaining and labor relations considerations;
11. Budgetary and cash-flow implications; and
12. The overall operational impact of any proposed plan.
Section 3. Review of Employee Categories. The City shall consider the potential applicability and financial and operational impact of the draft Separation Plan upon the employee categories analyzed by CMA, including:
1. Employees eligible for retirement under the New York State Employees’ Retirement System;
2. Employees separating from City service who may not otherwise qualify for State retirement but may participate in an authorized separation incentive;
3. Police Officers; and
4. Firefighters.
Nothing herein shall be construed to establish eligibility for participation in any retirement or separation program unless and until such eligibility is established by subsequently adopted legislation, applicable law, collective bargaining agreement, retirement system requirements, or other appropriate authorization.
Section 4. Authorization to Review and Evaluate Long Range Plan. The City Council hereby authorizes and directs the appropriate City officials, in cooperation with CMA and other authorized professional advisors, to continue the review and evaluation of the draft Long Range Financial Plan.
The review shall include consideration of:
1. The City’s current and projected financial position under various scenarios;
2. Short-term and long-term financial goals and objectives;
3. Cash-flow impacts associated with proposed initiatives;
4. Comparisons between status quo, base-case, and alternative financial scenarios;
5. Existing financial policies and plans;
6. Potential new financial policies and management strategies;
7. Revenue and expenditure projections;
8. Operating and personnel costs;
9. Reserves and cash-flow considerations;
10. Debt and other financial obligations;
11. Key credit-related characteristics; and
12. Other factors relevant to the City’s long-term financial stability and creditworthiness.
Section 5. Professional Advisory Services. The City is authorized to continue utilizing the services of Capital Markets Advisors, LLC, in its capacity as the City’s Municipal Advisor, to assist with the review, analysis, presentation, refinement, and further development of the draft Separation Plan and draft Financial Plan, subject to the terms of any existing agreement, applicable procurement requirements, and available appropriations.
Any additional services, compensation, or amendments to an existing agreement shall be subject to all applicable City procurement procedures and required approvals.
Section 6. Presentation and Further Review. The appropriate City officials are authorized to coordinate presentations concerning the draft Separation Plan and draft Financial Plan before the City Council, the Board of Estimate and Contract, and/or such other appropriate City bodies, committees, departments, or officials as may be necessary or appropriate.
Such presentations shall provide an opportunity for review, questions, comments, and recommendations concerning the proposed initiatives.
Section 7. Comments and Recommendations. The City shall consider comments and recommendations concerning the draft Separation Plan received on or before September 30, 2026, and comments and recommendations concerning the draft Financial Plan received on or before October 23, 2026, together with any subsequent comments deemed relevant by the appropriate City officials.
The receipt and consideration of comments shall not constitute final approval or adoption of either plan.
Section 8. No Final Implementation Authorized. Nothing contained in this Ordinance shall be construed as the final adoption or implementation of the proposed Early Retirement or Separation Plan or the Long-Range Financial Plan.
Any future implementation of either plan, or any component thereof requiring legislative, contractual, budgetary, personnel, labor, or other governmental authorization, shall be subject to separate approval and compliance with all applicable laws, rules, regulations, collective bargaining agreements, and City requirements.
Section 9. Legal and Financial Review. Prior to any final implementation of the Separation Plan, the City shall obtain such legal, financial, personnel, labor, retirement system, and operational review as may be necessary or appropriate to determine the legality, fiscal impact, feasibility, and operational consequences of the proposed plan.
Section 10. Severability. If any provision of this Ordinance, or the application thereof to any person or circumstance, is adjudged invalid by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining provisions, which shall remain in full force and effect.
Section 11. Effective Date. This Ordinance shall take effect immediately upon adoption by the City Council and approval in accordance with applicable law.
Section 12. Authorization of Necessary Actions. The Mayor, City Comptroller, Corporation Counsel, Human Resources Director, and all other appropriate City officers and employees are hereby authorized and directed to take such actions and execute such documents as may be necessary or appropriate to carry out the purposes and intent of this Ordinance, subject to applicable law and any further approvals required by the City Charter, City Code, or other governing authority.