Board of Estimate & Contract:
RESOLVED, that a resolution adopted by the City Council on March 27, 2024, and signed by the Mayor on March 28, 2024, authorizing the issuance of Serial Bonds for Collective Bargaining Wage (“CBA”) Stipulation Settlement Obligations (aggregate principal amount of up to $15,800,000), be and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE
ISSUANCE OF SERIAL BONDS FOR
COLLECTIVE BARGAINING WAGE (“CBA”)
STIPULATION SETTLEMENT OBLIGATIONS
Whereas, by letter dated March 20, 2024, the Comptroller has requested legislation authorizing the issuance of serial bonds of the City in the aggregate principal amount of up to $15,800,000, according to the Local Finance Law, to finance the costs of certain settled claims against the City, including any preliminary and incidental costs related thereto (the “Project”); and
Whereas, there are several settled and pending claims against the City of Mount Vernon, including collective bargaining stipulation agreements for the 2017 - 2023 wages for three (3) Unions: Local 456 Teamsters, Civil Service Employees Association (“CSEA”), and Police Benevolent Association (“PBA”); and
Whereas, it is necessary to finance the costs of these settled claims and associated expenses through the issuance of serial bonds; and
Whereas, the City Council must grant permission for the Comptroller to issue serial bonds pursuant to the Local Finance Law for this purpose; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain, and enact:
Section 1. Authorization. The City Council hereby grants permission for the Comptroller to issue serial bonds of the City in the aggregate principal amount of up to $15,800,000 to finance the costs of certain settled claims against the City, including any preliminary and incidental costs related thereto (the “Project”).
Section 2. Purpose. The purpose of issuing these serial bonds is to settle current and pending claims against the City, including collective bargaining stipulation agreements for the 2017 - 2023 wages for the three (3) Unions.
Section 3. Funding Source. The funds for the repayment of these serial bonds shall be sourced from the $2.9 million appropriated in the 2023 adopted Budget for “Contingency - Collective Bargaining Agreements.” Funds from this contingency line will be transferred to the debt service line to pay the principal and interest of the bonds, without increasing the tax rate.
Section 4. Implementation. Upon approval of this ordinance, the City will commence the process for the issuance of serial bonds, subject to financial capacity and approval from financial institutions.
Section 5. Attachments. Attached to this ordinance are a resolution for consideration and an estimated debt service schedule based on current market conditions.
Section 6. Effective Date. This ordinance shall take effect upon its approval by the Board of Estimate & Contract.