Board of Estimate and Contract:
RESOLVED, that an Ordinance adopted by the City Council on October 19, 2026, and signed by the Mayor on October 20, 2026, authorizing the Execution of a Stipulation of Settlement Between the City of Mount Vernon and the Mount Vernon City School District Regarding Uncollected School District Taxes for the 2020-2021 and 2021-2022 School Years - (the City Council acknowledges the outstanding amounts identified in the proposed Stipulation of Settlement as follows:
A. School Year 2020-2021
1. Uncollected school tax principal: $1,493,963.54.
2. Interest and fees due from taxpayers: $986,016.02.
3. Total outstanding amount: $2,479,979.56.
B. School Year 2021-2022
1. Uncollected school tax principal: $1,665,123.01.
2. Interest and fees due from taxpayers: $899,166.54.
3. Total outstanding amount: $2,564,289.55.
The combined total of the outstanding amounts identified for both school years is $5,044,269.11, subject to the terms and conditions of the executed Stipulation of Settlement. The City is hereby authorized to make payments to the School District in accordance with the payment schedule set forth in Schedule A of the Stipulation of Settlement, consisting of monthly installments of $450,000.00 and a final payment of $472,564.48, with the schedule commencing July 1, 2026, and continuing through June 1, 2027, as provided in the agreement); be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE EXECUTION
OF A STIPULATION OF SETTLEMENT BETWEEN
THE CITY OF MOUNT VERNON AND THE MOUNT
VERNON CITY SCHOOL DISTRICT REGARDING
UNCOLLECTED SCHOOL DISTRICT TAXES FOR
THE 2020-2021 AND 2021-2022 SCHOOL YEARS
Whereas, by correspondence dated October 16, 2026, the Comptroller has respectfully requested authorization for the City Council to approve the Stipulation of Settlement between the City of Mount Vernon, acting through the Office of the City Comptroller, and the Mount Vernon City School District, concerning the reconciliation, collection, and payment of uncollected school district taxes for the 2020-2021 and 2021-2022 school years, substantially in the form presented to the City Council, subject to review and approval as to form by the Corporation Counsel; and
Whereas, the City of Mount Vernon, through the Office of the City Comptroller, is responsible for addressing certain uncollected school district taxes pursuant to applicable provisions of the New York State Real Property Tax Law, including § 1332; and
Whereas, the City of Mount Vernon and the Mount Vernon City School District (the “School District”) have proposed a Stipulation of Settlement to reconcile, document, and establish a payment schedule for outstanding school tax obligations relating to the 2020-2021 and 2021-2022 school years; and
Whereas, the parties have identified the following outstanding amounts for the 2020-2021 school year:
• Uncollected school tax principal: $1,493,963.54;
• Interest and fees due from taxpayers: $986,016.02;
• Total outstanding amount: $2,479,979.56; and
Whereas, the parties have identified the following outstanding amounts for the 2021-2022 school year:
• Uncollected school tax principal: $1,665,123.01;
• Interest and fees due from taxpayers: $899,166.54;
• Total outstanding amount: $2,564,289.55; and
Whereas, the combined outstanding amounts identified for both school years total $5,044,269.11, consisting of uncollected school tax principal in the amount of $3,159,086.55 and interest and fees due from taxpayers in the amount of $1,885,182.56; and
Whereas, the proposed Stipulation of Settlement provides for monthly payments by the City to the School District in the amount of $450,000.00, with a final payment of $472,564.48, pursuant to the payment schedule set forth in Schedule A attached to the agreement, commencing July 1, 2026, and continuing through June 1, 2027; and
Whereas, formalizing the parties’ respective obligations through a written agreement will establish a clear and accountable framework for tracking payments, reconciling outstanding balances, and monitoring compliance with the agreed-upon terms; and
Whereas, the City Comptroller has referred the proposed Stipulation of Settlement to the City Council under Referral No. COMP2026-19 for its consideration and approval; and
Whereas, the City Council finds that authorizing the proposed Stipulation of Settlement, subject to review and approval as to form by the Corporation Counsel, is in the best interests of the City of Mount Vernon and will promote responsible financial management and accountability; now, therefore, be it
ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, NEW YORK, AS FOLLOWS:
Section 1. Authorization of Stipulation of Settlement. The City Council hereby authorizes and approves the Stipulation of Settlement between the City of Mount Vernon, acting through the Office of the City Comptroller, and the Mount Vernon City School District, concerning the reconciliation, collection, and payment of uncollected school district taxes for the 2020-2021 and 2021-2022 school years, substantially in the form presented to the City Council, subject to review and approval as to form by the Corporation Counsel.
Section 2. Acknowledgment of Outstanding Tax Obligations. The City Council acknowledges the outstanding amounts identified in the proposed Stipulation of Settlement as follows:
A. School Year 2020-2021
4. Uncollected school tax principal: $1,493,963.54.
5. Interest and fees due from taxpayers: $986,016.02.
6. Total outstanding amount: $2,479,979.56.
B. School Year 2021-2022
4. Uncollected school tax principal: $1,665,123.01.
5. Interest and fees due from taxpayers: $899,166.54.
6. Total outstanding amount: $2,564,289.55.
The combined total of the outstanding amounts identified for both school years is $5,044,269.11, subject to the terms and conditions of the executed Stipulation of Settlement.
Section 3. Authorization of Payment Schedule. The City is hereby authorized to make payments to the School District in accordance with the payment schedule set forth in Schedule A of the Stipulation of Settlement, consisting of monthly installments of $450,000.00 and a final payment of $472,564.48, with the schedule commencing July 1, 2026, and continuing through June 1, 2027, as provided in the agreement.
All payments shall be processed and accounted for in accordance with applicable law, the terms of the executed agreement, and established City financial procedures.
Section 4. Authorization of Mayor and City Comptroller. The Mayor of the City of Mount Vernon and the City Comptroller are hereby authorized to execute the Stipulation of Settlement, substantially in the form presented, and to take such further actions as may be necessary and appropriate to carry out its terms, subject to review and approval as to form by the Corporation Counsel.
Section 5. Compliance and Financial Accountability. The Office of the City Comptroller shall maintain appropriate records of payments made pursuant to the Stipulation of Settlement and shall monitor compliance with the agreed-upon payment schedule and financial obligations. The City Comptroller shall ensure that such payments are properly recorded and reconciled in accordance with applicable law and City financial procedures.
Section 6. Severability. If any clause, sentence, paragraph, section, or provision of this Ordinance is adjudged by a court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Ordinance, but shall be confined in its operation to the clause, sentence, paragraph, section, or provision directly involved in the controversy in which such judgment shall have been rendered.
Section 7. Effective Date. This Ordinance shall take effect immediately upon adoption by the City Council and subsequent approval by the Board of Estimate and Contract.STIPULATION OF SETTLEMENT-DISTRICT TAXES
This Stipulation of Settlement is entered into by and between the BOARD OF EDUCATION OF MOUNT VERNON CITY SCHOOL DISTRICT (hereinafter referred to as “the DISTRICT”), having its principal offices located at 165 North Columbus Avenue, Mount Vernon, New York, and the CITY OF MOUNT VERNON and DARREN MORTON, as Comptroller for the City of Mt. Vernon (hereinafter collectively referred to as “the CITY”), having offices located at City Hall, 1 Roosevelt Square North, Mount Vernon, New York.
WHEREAS, the City is required by Real Property Tax Law §1332 to make the District whole for School District real property taxes that remain uncollected upon the return of the tax warrant; and
WHEREAS, the Board of Education notified the City of uncollected real property taxes for the 2020-2021 and 2021-2022 school years, and
WHEREAS, the CITY has advised the District that it is unable to make the District whole for uncollected property taxes as required by law; and
WHEREAS, the Parties desire to establish a payment plan under which the City shall make payments to the District in fulfillment of its obligation to make the District whole for uncollected taxes, interest, and penalties as required by law;
NOW, THEREFORE, IN LIGHT OF THE FOREGOING, IT IS HEREBY STIPULATED BY AND BETWEEN THE PARTIES that:
1. As of the date of this agreement, the Parties agree that the amount of uncollected taxes for the 2020-2021 school year is $1,493,963.54. The parties further agree that there is presently due from the taxpayers interest and fees upon such principal amount of $986,016.02, for a total amount of $2,479,979.56 pertaining to the 2020-2021 school year.
2. As of the date of this agreement, the Parties agree that the amount of uncollected taxes for the 2021-2022 school year is $1,665,123.01. The parties further agree that there is presently due from the taxpayers’ interest and fees upon such principal amount of $899,166.54, for a total amount of $2,564,289.55 pertaining to the 2021-2022 school year.
3. The Parties agree that the CITY shall pay the DISTRICT for the unpaid taxes and interest in monthly installments of $450,000, in accordance with the spreadsheet attached hereto as Schedule A. The first payment made on July 1, 2026 is acknowledged. Subsequent payments shall be made on the 15th day of each month thereafter through June 1, 2027, which final payment shall be in the amount of $472,564.48. All payments made by the City pursuant to this agreement shall state “2020-2021 and 2021-2022 unpaid taxes” on the check or ACH payment, and on any related communication to the District. The failure to include said language shall not be considered a material breach of this agreement. City shall be allowed to cure said defect without penalty.
4. Should the CITY remit any payment to the DISTRICT that does not reflect state “2020-2021 and 2021-2022 unpaid taxes,” it will not effectuate a reduction of the base amount owed unless and until the CITY clarifies its intention for the payment to partially satisfy this Agreement.
5. The CITY may opt to remit to the DISTRICT more than $450,000.00 in any given month, but not less. Said additional amounts shall be applied to reducing the base amount owed hereunder.
6. In accordance with Real Property Tax Law Section 1332, the City shall pay to the School District, within 30 days of the City’s receipt of such funds, all school funds realized from the enforcement of such unpaid taxes, whether by a sale, assignment, foreclosure, settlement or otherwise resolution of a tax lien, in whole or in part, from unpaid School District taxes for the 2020-2021 and 2021-2022 tax years. Such funds collected shall be paid to the School District as an additional payment and shall not offset the then-current monthly payments required by this agreement but shall only reduce the final payment required herein. It is the intention of the parties that any monies collected pursuant to such enforcement efforts shall serve to accelerate the payments owed to the School District rather than used to pay the amounts required herein.
7. The CITY shall pay the full amount of the debt owed no later than June 1, 2027 unless the parties agree to otherwise.
8. Provided that the CITY continues to make monthly payments in a timely fashion as set forth above, the DISTRICT agrees not to seek, obtain, and/or enforce any judgment against the CITY in connection with this matter. Should the CITY fail to make a monthly payment within five (5) days of the date contemplated herein, the District shall notify the City, in writing (email to the Comptroller), that payment has not been received. If the City fails to make such payment within 10 business days of such notice, the City agrees to pay the District a late fee of $2,250 for that month, and each additional month thereafter that the payment remains unpaid. However, if the District files a cause of action for breach then the monthly penalty shall cease
9. Should the CITY fail to make two or more monthly payments as set forth above and fail to cure as provided herein, the DISTRICT may obtain a judgment seeking immediate payment of all remaining payments in the agreement, plus interest calculated at 9% per annum, and reasonable attorneys' fees. Interest shall accrue on the outstanding principal balance at the rate of nine percent (9%) per annum, calculated and compounded monthly. Notwithstanding anything contained herein, before a claim that the City has breached this agreement can be alleged, the District shall provide the City with written notice of the alleged breach and the City shall be allowed a period of not less than thirty (30) days to cure said alleged breach.
10. Upon expiration of this Agreement, and during the period in which the District and the City negotiate and reach an agreement on the school taxes owed for the upcoming academic year, the City shall continue to make payments of no less than $450,000.00 until the parties execute a new Settlement Payment Agreement. If, upon execution of the new Settlement Payment Agreement, it is determined that the City is entitled to a credit towards the monthly payment, it will be applied to future payments. Nothing herein shall relieve the City of its obligation under RPTL 1332 of its statutory obligation to make the District whole for uncollected taxes pertaining to any year other than the 2020-2021 and 2021-2022 school years. The District reserves all rights and remedies, at law or in equity, to enforce compliance with the law.
11. The signatories to this Agreement represent that all necessary actions have been taken and they each have full authority to execute this Agreement and to bind the respective parties to the terms set forth herein.
12. This Agreement may only be amended by the School District if such amendment is in writing and approved by a Board resolution, duly adopted at a public meeting of the Board of Education.
13. This Agreement contains the entire agreement of the parties concerning the tax years referenced herein.
Dated: August ___, 2026.
Donna Marable
President, Board of Education Mount Vernon City School District
Hon. Shawyn Patterson-Howard
Mayor, City of Mount Vernon
Dr. Darren Morton
Comptroller, City of Mount Vernon
SCHEDULE A
Payment Plan (July 2026 - June 2027)
|
Month |
6% Simple Interest |
9% Simple Interest |
|
Jul-2026 |
$450,000.00 |
$467,643.64 |
|
Aug-2026 |
$450,000.00 |
$467,643.64 |
|
Sep-2026 |
$450,000.00 |
$467,643.64 |
|
Oct-2026 |
$450,000.00 |
$467,643.64 |
|
Nov-2026 |
$450,000.00 |
$467,643.64 |
|
Dec-2026 |
$450,000.00 |
$467,643.64 |
|
Jan-2027 |
$450,000.00 |
$467,643.64 |
|
Feb-2027 |
$450,000.00 |
$467,643.64 |
|
Mar-2027 |
$450,000.00 |
$467,643.64 |
|
Apr-2027 |
$450,000.00 |
$467,643.64 |
|
May-2027 |
$450,000.00 |
$467,643.64 |
|
Jun-2027 |
$472,564.48 |
$467,643.67 |
|
Total Paid |
$5,422,564.48 |
$5,611,723.71 |