Board of Estimate & Contract:
RESOLVED, that a resolution adopted by the City Council on November 6, 2025, and signed by the Acting Mayor on November 6, 2025, authorizing the Issuance of Tax Anticipation Notes (TANs) in Anticipation of the Collection of Real Property Taxes for the Fiscal Year 2025 (COMP2025-20) - (aggregate principal amount not to exceed Seven Million Dollars ($7,300,000), pursuant to the Local Finance Law, to provide funds in anticipation of the collection of real property taxes levied for the fiscal year ending December 31, 2025); be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE ISSUANCE
OF TAX ANTICIPATION NOTES (TANs) IN
ANTICIPATION OF THE COLLECTION OF REAL
PROPERTY TAXES FOR THE FISCAL YEAR 2025
Whereas, in correspondence dated November 4, 2025, the Comptroller formally requested authorization to issue Tax Anticipation Notes (TANs) of the City, in an aggregate principal amount not to exceed Seven Million Dollars ($7,300,000), pursuant to the Local Finance Law, to provide funds in anticipation of the collection of real property taxes levied for the fiscal year ending December 31, 2025; and
Whereas, the City of Mount Vernon (“the City”) anticipates the collection of real property taxes for the fiscal year ending December 31, 2025; and
Whereas, in order to meet current financial obligations and maintain continuity of operations, it is necessary for the City to obtain interim financing in anticipation of such tax receipts; and
Whereas, the Comptroller of the City of Mount Vernon has recommended that the City issue Tax Anticipation Notes (“TANs”) in the aggregate principal amount of up to Seven Million Dollars ($7,300,000) pursuant to the provisions of the Local Finance Law of the State of New York; and
Whereas, such notes shall be issued in anticipation of the collection of the City’s real property taxes for Fiscal Year 2025, and shall be retired upon the receipt of said taxes or by other available funds, as permitted by law; and
Whereas, the City currently has approximately $3,217,895.14 in unpaid 2025 property taxes outstanding and over $50 million in earlier years’ taxes outstanding, which the Comptroller’s Office is actively pursuing through payment plans and tax lien sales to facilitate the repayment of such notes; and
Whereas, the issuance of TANs provides a prudent, short-term financial solution to address the City’s cash flow needs while ensuring that all municipal obligations are met in a timely manner.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Mount Vernon, in the County of Westchester, State of New York, as follows:
Section 1. Authorization. The Comptroller of the City of Mount Vernon is hereby authorized to issue Tax Anticipation Notes (TANs) of the City, in an aggregate principal amount not to exceed Seven Million Dollars ($7,300,000), pursuant to the Local Finance Law, to provide funds in anticipation of the collection of real property taxes levied for the fiscal year ending December 31, 2025.
Section 2. Maturity and Repayment. Said notes shall mature within the period prescribed by Section 24.00 of the Local Finance Law and shall be paid upon the collection of such taxes or by other available funds of the City. In the event that all taxes anticipated to be collected have not been received by the time of maturity, such notes may be renewed as permitted by law until full repayment can be made.
Section 3. Terms and Sale. The Comptroller is authorized to determine the form, date, terms, and conditions of the notes, and to sell the notes at private or public sale in such manner as the Comptroller deems in the best interest of the City, subject to the approval of the City Council and compliance with all applicable laws and regulations.
Section 4. Use of Proceeds. The proceeds of the notes authorized herein shall be used solely for the purpose of meeting the City’s current operating expenses and financial obligations pending receipt of real property tax revenues.
Section 5. Full Faith and Credit. The full faith and credit of the City of Mount Vernon are hereby irrevocably pledged to the payment of the principal of and interest on the notes authorized by this Ordinance.
Section 6. Severability. If any clause, sentence, paragraph, or part of this Ordinance shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof.
Section 7. Effective Date. This ordinance shall take effect immediately upon adoption by the City Council and subsequent approval by the Board of Estimate & Contract.