11 Dec

BANKRUPTCY IN MOUNT VERNON?Comptroller Darren Morton’s Own Words Expose the Financial Collapse — and the Failure of Mayor Patterson-Howard and the City Council(PART 1 OF 2)

Originally published on 11/26/25 - https://conta.cc/4p5Q4ED

Comptroller Darren Morton went on Black Westchester's People Before Politics to “explain” Mount Vernon’s finances.

Instead, he confirmed what residents already feel in their tax bills and crumbling services:

The city is in deep financial distress.
There is no fund balance and almost no cushion.
The city is being held together with short-term debt and wishful thinking.
There is no serious economic development plan.
Core revenue and contract systems are broken.
And the Mayor, Comptroller, and City Council are all responsible.

Strip away the long explanations, and Morton's interview is one long confession.

1. “If the Budget Doesn’t Pass, the City Stops” — Because They Spent the Rainy-Day Fund

Morton admits that:

The city’s operations depend on this year’s taxes to pay this year’s bills.
In the past, when there were delays, the city could lean on its fund balance to cover cash shortfalls.
That cushion is now gone.

His words, repeated:

If the budget does not get passed in a timely fashion… we will not have the inflow of taxes or the cash to operate… We don’t have that luxury this year at all.

Why? Because, as Morton admitted earlier, the fund balance went from +$19 million to negative–$28 million in a few short years.

That is a $47 million collapse in reserves.

And no one in power — not the Mayor, not the Comptroller, not the City Council — has taken responsibility.

2. Broken Revenue and No Real Economic Development Plan

Morton walks through the revenue structure:

Major outside revenues: property taxes, sales tax, state aid, mortgage tax, transfer tax, utility/franchise taxes.
Department revenues: building, parking meters and fines, DPW permits and fines, recreation programs, police transport and detail charges.

Then comes the admission:

If departmental revenues are not coming in, we rely heavily on the other revenues… and they’re just coming in on mark. This year we also found a decline in sales and use tax… because people stopped buying stuff.

So:

City departments aren’t collecting the money they’re supposed to.
Sales tax has fallen.
The city is barely hitting the minimum on its major revenue streams.

When pressed about bringing in businesses and building a tax base, Morton admits:

The last serious economic development push was Ernie Davis and Best Buy, years ago.
There has been no consistent strategy since.
The solution now? Hire a Director of Economic Development and have the IDA pay part of the salary.

Translation:

Under Mayor Shawyn Patterson-Howard, there is no coherent economic development plan.
No major new anchors.
No serious business recruitment.
Just talk of maybe hiring someone soon.

Meanwhile, Yonkers and New Rochelle are building studios, attracting investment, and growing their tax bases. Mount Vernon is debating whether to post the job description.

3. Community Reinvestment Money on the Table — And City Hall Hasn’t Even Gone to Pick It Up

A viewer raises a crucial question:

Banks like TD Bank and Capital One have pledged tens of billions in community reinvestment funding.

Why isn’t Mount Vernon leveraging that?Morton’s answer:

I don’t have an answer for that… That’s probably more a question for the Mayor…

I can talk to them, but real engagement comes from the Mayor and probably the Council.

So:

Banks are legally obligated to reinvest in communities.
Billions are available nationally for housing, small business, and neighborhood revitalization.
Mount Vernon is in a fiscal crisis.
And City Hall has not aggressively pursued that money.

This is what failed leadership looks like:

money sitting on the table while the Mayor and Council talk about “hard choices” and “the need for tax increases.”

4. Debt, OPEB, Lawsuits, and Retro Pay — The Real Liabilities They’re Hiding Behind the Jargon

Morton addresses the city’s widely mentioned $600 million (and possibly near $1 billion) in obligations.

He tries to calm people by pointing out:

Much of that is OPEB (Other Post-Employment Benefits) — a long-term liability all municipalities carry.
Other cities like Yonkers, New Rochelle, and White Plains have hundreds of millions in OPEB too.

But then he lists the real dangers:

$11 million owed to New York State for health benefits that weren’t paid on time.
The Kayla Tennis lawsuit, which could cost $15–18 million with interest if the appeal fails.
Projects financed with bond anticipation notes (BANs) at higher interest, because the city has no credit ratingand no fund balance, and past administrations failed to do timely collective bargaining.

He admits:

Without using BANs, we would have had to raise taxes by about 19% in 2024 just to pay $15.8 million in retro contracts.

Translation:

Years of neglect, late contracts, and legal exposure are now landing on taxpayers’ backs.
The city has to use short-term, more expensive debt because it is too weak financially to borrow on normal terms.
The Mayor, Comptroller, and Council chose debt over telling residents the truth earlier.

TOMORROW IS PART 2 OF 2

HERE'S WHAT YOU CAN DO
DEMAND A NEW YORK STATE

TAKEOVER IMMEDIATELY!

Write to the New York State Comptroller
muni-newburgh@osc.ny.gov

https://www.governor.ny.gov/content/governor-contact-form?utm_source=chatgpt.com

Call at the NYS Comptroller's Regional Office 845-567-0858

Call the Governor's Office 518-474-8390

Comptroller Darren Morton Mount Vernon Ny Comptroller Darren Morton Black Westchester People Before Politics Darren Morton Alpha Phi Alpha Shawyn Patterson-Howard Mayor Shawyn Patterson-Howard

BANKRUPTCY IN MOUNT VERNON?Comptroller Darren Morton’s Own Words Expose the Financial Collapse — and the Failure of Mayor Patterson-Howard and the City Council(PART 1 OF 2)