5. Comp Time, Contracts, and the Culture of “We Gave It Away”

• Comp time was barely tracked.
• Employees were allowed to rack up large balances.
• Those hours accrue at future higher pay rates if not used or paid out promptly.

If Darren is hired at $58/hour and earns comp time then… but 10 years later he’s making $106/hour and the city pays that comp time at the higher rate — the city is paying the 10-year rate for time earned at the 1-year rate.

• This is insane.
• There were no effective safeguards.
• Regulations were “almost non-existent.”
• This problem has spanned multiple administrations — from Ernie Davis to Clinton, to Davis again, to Richard Thomas, and now Patterson-Howard.

“You negotiate contracts and you get nothing for it… If you’re just giving raises and not putting in safeguards to protect taxpayers, you’re not doing your job.”

6. PILOTs: Morton Admits the City Is Losing Tax Revenue — and Still Keeps Feeding Developers

Are they costing us money? How much tax revenue are we losing?

• Yes, there is lost tax revenue.
• That’s the nature of PILOTs — developers pay reduced taxes.
• Historically, the deals have not favored the city.
• Only recently has the city tweaked its UTEP (Uniform Tax Exemption Policy) to make them slightly better.
• He admits other cities (like Port Chester) structure PILOTs more effectively, with shorter terms and better returns.

• Some people believe PILOTs should be ended.
• He isn’t willing to go that far.
• He wants more market-rate housing, not just “affordable.”
• And yet 30-year PILOTs — which starve the tax base for a generation — are still part of the model.

• The city admits it is losing tax revenue.
• It concedes the deals were historically bad.
• It continues approving long-term concessions in a city already on financial life support.

7. Keeping City Workers in Mount Vernon: Good Ideas, No Action

• Partner with banks.
• Use foreclosed and in-rem properties.
• Create a homeownership program targeted at city workers (especially police and fire).
• Let them buy, fix, and live in Mount Vernon.
• Their salaries and tax dollars stay in the city.
• Their presence stabilizes neighborhoods and improves community policing.

• There might be a rule blocking employees from participating in auctions.
• He thinks it’s “counterproductive.”
• He has had “initial conversations” with Corporation Counsel about making it legal.
• But mostly, we hear about nuances and legal complications and past failures to act.

• It’s a smart idea.
• Other cities do it.
• It hasn’t been prioritized.
• Once again, leadership hides behind “process” instead of leading.

8. “Hope” and the Soft-Landing Spin

• Recovery is possible, but not fast.
• The city needs:
• A real economic development plan.
• Better daily budget management.
• A “right-sized” budget.
• Stronger enforcement on revenue departments.
• Tax increases are inevitable; the question is just how high.
• Even cutting non-essential positions might only move the tax rate “a point, maybe a point and a half” — not transform it.

“We are on the right pathway… If we continue to do what we are doing, we’ll be fine.”

• No fund balance.
• No credit rating.
• Incomplete audits.
• Heavy reliance on TANs and BANs.
• Weak revenue collection.
• No real business base growth.
• Bad contracts and comp time abuses.
• PILOTs that starve the tax base.
• A Mayor and Council that haven’t even fully engaged banks or regional partners.

THE BOTTOM LINE

Morton’s Words Confirm What City Hall Won’t Say Out Loud

• Mount Vernon is in severe financial distress.
• The fund balance is gone because prior leaders — including this administration — spent it.
• The city is being run month-to-month on borrowed money and shaky revenue.
• The Mayor and City Council have no credible economic development strategy.
• Contracting, comp time, and PILOT deals have been negotiated in ways that harm taxpayers.
• Banks and community reinvestment tools are underused.
• Workers can’t afford to live in the city they serve — and there’s no real program to change that.
• Taxpayers are being told to accept permanent tax increases to clean up a mess they did not create.

• Fixing what’s broken.
• Telling the full truth.
• Ending the games with budgets and PILOTs.
• Defending taxpayers — not political careers.

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