City Council:
AN ORDINANCE AUTHORIZING A LETTER OF
UNDERSTANDING BETWEEN THE CITY OF
MOUNT VERNON AND THE MOUNT VERNON
CITY SCHOOL DISTRICT REGARDING THE
COLLECTION, RECONCILIATION, AND
PAYMENT OF UNCOLLECTED SCHOOL TAXES
Whereas, in correspondence dated September 4, 2026, the Comptroller formally requested authorization for the City of Mount Vernon, acting through the Office of the City Comptroller, to enter into a Letter of Understanding with the Mount Vernon City School District concerning the collection, reconciliation, and payment of uncollected school taxes, substantially in the form presented to the City Council and attached hereto as Exhibit A, subject to such non-substantive modifications as may be approved by the Corporation Counsel; and
Whereas, the City of Mount Vernon, through the Office of the City Comptroller, and the Mount Vernon City School District (“School District”) are responsible for certain administrative and financial processes relating to the collection, reconciliation, and payment of school taxes; and
Whereas, the City Comptroller has referred to the City Council, under Referral No. COMP2026-13, a proposed Letter of Understanding (“LOU”) between the City of Mount Vernon and the Mount Vernon City School District concerning the collection, reconciliation, and payment of uncollected school taxes; and
Whereas, New York State Real Property Tax Law § 1332 establishes procedures relating to the collection of school taxes in a city school district, including the reporting of unpaid taxes, verification of unpaid tax statements, enforcement and collection of unpaid school taxes, and payment of amounts collected to the school district; and
Whereas, the proposed LOU is intended to establish a clear, documented, and accountable administrative framework for addressing school taxes that remain uncollected following the School District’s tax-collection period and for carrying out the respective responsibilities of the City and the School District in accordance with applicable law; and
Whereas, the proposed LOU provides for the annual certification of school taxes by the School District no later than June of the applicable year; and
Whereas, following such certification, the City and School District will continue the applicable collection process for the prescribed two-year period, after which the School District will cease its collection activities and formally communicate the final collection date to the Office of the City Comptroller; and
Whereas, the proposed LOU requires the School District to complete a reconciliation of collected taxes, outstanding balances, and necessary adjustments within one (1) month following the cessation of its collection activities; and
Whereas, the proposed LOU further provides for a collaborative reconciliation process between the School District and the Office of the City Comptroller, including the review and verification of payments received, resolution of discrepancies, and maintenance of records necessary for financial reporting, accounting, and audit purposes; and
Whereas, following completion of the collaborative reconciliation process, the District Treasurer and/or the District Treasurer’s designee will review, validate, and finalize the reconciliation; and
Whereas, upon completion and validation of the reconciliation, the Office of the City Comptroller will remit to the School District the amounts determined to be due in accordance with the reconciled records, with payment to be made within thirty (30) days following completion of the reconciliation; and
Whereas, in the event that the City is unable to remit the full amount determined to be due within such thirty (30) day period, the City and School District will establish a mutually agreed-upon payment plan; and
Whereas, the City Council finds that establishing a formal written framework governing the collection, reconciliation, documentation, and payment of uncollected school taxes will promote sound financial management, transparency, accountability, accurate recordkeeping, and compliance with applicable New York State law; and
Whereas, the City Council further finds that entering into the proposed LOU is in the best interests of the City of Mount Vernon and its taxpayers;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, NEW YORK, AS FOLLOWS:
Section 1. Authorization of Letter of Understanding. The City of Mount Vernon, acting through the Office of the City Comptroller, is hereby authorized to enter into a Letter of Understanding with the Mount Vernon City School District concerning the collection, reconciliation, and payment of uncollected school taxes, substantially in the form presented to the City Council and attached hereto as Exhibit A, subject to such non-substantive modifications as may be approved by the Corporation Counsel.
Section 2. Purpose and Scope. The purpose of the Letter of Understanding is to establish a consistent, transparent, and documented administrative framework governing the respective responsibilities of the City and the Mount Vernon City School District with respect to:
1. The annual certification of school taxes;
2. The continuation and cessation of school-tax collection activities;
3. The reconciliation of school-tax collections and outstanding balances;
4. The identification and resolution of discrepancies;
5. The validation and finalization of reconciled school-tax accounts;
6. The remittance of amounts determined to be due to the School District; and
7. The maintenance of appropriate financial and accounting records.
Section 3. Annual Certification and Collection Period. The Mount Vernon City School District shall complete certification of the applicable fiscal year's school taxes no later than June of such year, consistent with applicable law and the procedures established by the Letter of Understanding.
Following certification, the City and School District shall continue applicable collection activities for the period prescribed by law and the LOU. Upon expiration of the applicable two-year collection period, the School District shall cease its collection activities and provide the Office of the City Comptroller with written notice of the final collection date.
Section 4. Reconciliation of School Tax Collections. Within one (1) month following the cessation of the School District's collection activities, the School District shall complete a reconciliation of school-tax accounts, including, as applicable:
1. Taxes collected;
2. Outstanding and unpaid balances;
3. Payments received;
4. Adjustments and credits;
5. Discrepancies requiring resolution; and
6. Other information is reasonably necessary to establish the final amount due.
The Office of the City Comptroller and the School District shall cooperate in reviewing and reconciling such accounts and shall maintain appropriate documentation to support the reconciliation.
Section 5. Validation and Finalization. Upon completion of the collaborative reconciliation process, the District Treasurer and/or the District Treasurer's designee shall review, validate, and finalize the reconciliation.
The finalized reconciliation shall constitute the basis for determining the amount, if any, due and payable by the City to the Mount Vernon City School District, subject to applicable law and the terms of the Letter of Understanding.
Section 6. Payment of Amounts Due. Upon completion and validation of the reconciliation, the Office of the City Comptroller is authorized and directed to remit to the Mount Vernon City School District the amounts determined to be due in accordance with the reconciled records.
Payment shall be made within thirty (30) days following completion and validation of the reconciliation, subject to the availability of legally appropriated funds and all applicable legal requirements.
In the event the City is unable to remit the full amount within such thirty (30) day period, the City and the School District shall establish a mutually agreed-upon payment plan, consistent with applicable law.
Section 7. Compliance with New York State Law. Nothing contained herein or in the Letter of Understanding shall be construed to supersede, modify, or impair any requirement of New York State law, including New York State Real Property Tax Law § 1332, or any other applicable statute, regulation, rule, or lawful requirement governing the collection, enforcement, reconciliation, or payment of school taxes.
In the event of a conflict between the Letter of Understanding and applicable law, applicable law shall control.
Section 8. Authorization of City Comptroller. The City Comptroller is hereby authorized to execute the Letter of Understanding on behalf of the City of Mount Vernon and to take all actions reasonably necessary to implement the terms thereof, subject to review and approval as to form by the Corporation Counsel.
The City Comptroller is further authorized to execute such amendments, certifications, notices, reconciliations, payment documents, and other administrative documents as may be necessary to effectuate the purposes of the Letter of Understanding, provided that no such amendment materially alters the obligations of the City without further authorization from the City Council where required by law.
Section 9. Recordkeeping and Audit. The Office of the City Comptroller shall maintain appropriate records and supporting documentation relating to school-tax collections, reconciliations, adjustments, payments, and payment plans established pursuant to the Letter of Understanding.
Such records shall be maintained in accordance with applicable City policies, statutory requirements, and generally accepted governmental accounting and record-retention practices and shall be available for review and audit as required by law.
Section 10. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect any other provision or application of this Ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable.
Section 11. Implementation. The Mayor, City Comptroller, Corporation Counsel, and all other appropriate City officers and departments are hereby authorized and directed to take all actions necessary and appropriate to implement and carry out the purposes and provisions of this Ordinance and the Letter of Understanding authorized herein.
Section 12. Effective Date. This Ordinance shall take effect immediately upon its adoption by the City Council and subsequent approval by the Board of Estimate and Contract.