Mount Vernon leaders debate letter of understanding with school district as mayor warns of $5M annual cash‑flow burden

Mayor Leah Patterson Howard and Comptroller Camilla Martin framed a proposed letter of understanding that would formalize how city and school officials reconcile and pay uncollected school taxes. The comptroller explained the process: if the school district cannot collect taxes and submits reconciled accounts to the controller, the controller then has up to two years to collect; under state law the city must make the school district whole after that period. The council was told the agreement sets responsibilities and timelines to manage outstanding taxes while the city proceeds with in‑rem foreclosure and collection efforts.

The mayor defended the proposal as a procedural necessity and described the scale of the city's near‑term obligations: "I'm signing checks of about $450,000 a month as part of an agreement," she said, adding that amounts paid on that cadence translate to "almost $5,000,000 a year." She also described other legacy liabilities, including unpaid medical obligations from 2021 that the administration negotiated to repay over multiple years. Council members pressed for additional reports and clarity on cash‑flow projections; the board held the item for vote procedures and recorded roll calls where noted. The board scheduled follow‑up materials and said a formal settlement/agreement will return for final approval.