Special Advisor Report Richard Tremitiedi March 17 2008

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Information about Special Advisor Report Richard Tremitiedi March 17 2008
News & Politics

Published on February 19, 2009

Author: kgardiner67

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Special Advisor Report Richard Tremitiedi March 17 2008

Special Advisor Report – Richard Tremitiedi March 17, 2008 To: Honorable Mayor David Roberts From: Richard Tremitiedi, Special Advisor Date: March 17, 2008 Subject: Efficiency, Economic and Quality of Life Recommendations Relative to my role as a special consultant to the mayor and after attending council meetings, budget workshops, and select discussions with professionals, administrative and elected officials, please be advised as follows: (1) To help the city deliver municipal services in a more cost effective manner it is recommended that a detailed operational audit of all city departments be performed by an experienced, recognized authority. Since considerable funds have already been expended or encumbered from the current fiscal year’s budget, this longer term forensic approach presents a realistic time frame for planning to curtail future expenditures. The council has listened to one presentation on this service. The recommended time frame should be approximately 6 months. (2) Since public safety is of paramount importance and represents approximately $30 million of our current budget, special unbiased advice is recommended for the Department of Public Safety. For the Police Department, such assistance is available from the New Jersey State Department of Community Affairs, Division of Local Government Services and John Jay College of Criminal Justice, New York, N. Y. The Fire Department can get input from the State of New Jersey Department of Community Affairs, Division of Local Government Services in coordination with the Division of Fire Safety, New Jersey City University and John Jay College. The completed time frame should be 6 months to one year. Accreditation For a longer process and commitment to excellence, accreditation for the Police and Fire Departments is highly recommended. For the Police Department, the New Jersey State Police Chief’s Association has a special program for New Jersey. For the Fire Department, there is the Center for Public Safety Excellence, a non-profit 501 (C) (3) corporation, which provides training and career resource services to fire service agencies throughout the United States. This organization began in 1986 when the International Association of Fire Chiefs and the International City-County Management Association developed concepts for continuous improvement of the fire service. The time frame should be two to five years for completion. (3) All the budgetary recommendations of the City Council, especially those of the Finance Committee which was submitted to the Business Administrator should be followed-up. Particular attention should be given to: Reducing the cost of medical benefits to city employees Audit of the city’s transportation fleet Increased revenues from recyclables Reducing the cost of special service contracts Page 1 of 2

Special Advisor Report – Richard Tremitiedi March 17, 2008 (4) Parking Utility surplus revenue should be used to provide parking solutions, i.e. to purchase property (lots) and to pay off its internal debt and not to be used as a revenue source to fund the operations of city government. In addition a separate account should be established and yield the best possible interest. The cash receipts from the parking meter collections should have proper internal controls and be deposited as per law and city auditor recommendations. (5) There should be serious negotiations with New Jersey Transit on the development of railroad property. The objective is for the city to receive funds to provide parks and recreational space such as basketball and tennis courts as well as soccer and baseball fields. Affordable housing can also be included in the mix. (6) PILOT payments, also known as abatements, should be scheduled more carefully and should be of shorter duration. This is important so as to not overburden the conventional tax payer who could be adversely affected with any future increases in the school or county tax levy. This will also soften the shock to some owners of the older buildings that may be adversely impacted with any future re-evaluation of property in Hoboken. (7) The sale of city assets should be avoided. When such sale is deemed necessary, all revenues should be used to provide for long lasting capital improvements. The experience of the Observer Highway garage sale, the proceeds of which were used to “plug” previous budget deficits should serve as an abject lesson. For years we have been paying bond interest which currently amounts to approximately $108,000 per month and may now have to borrow an additional $4 million to have the anticipated sales proceeds included as revenue in this fiscal year’s budget, which is still not adopted. In the final analysis, our dilemma is the same as the State of New Jersey – we spend too much! We are spending more than our revenues! Of course, we must strive to increase revenue; however, controlled spending is the area that must be given top priority in order to have a balanced path to fiscal responsibility. When preparing the new fiscal year’s budget, it is a good budgetary practice to forecast two to three years into the future. Accordingly, every department and division head must manage with this in mind and be held strictly accountable. It is up to the Mayor and City Council to lead by example and exact the control and discipline that is necessary to oversee this great city. As always, I am available to provide additional explanation or information as may be required. Richard Tremitiedi 2 Constitution Court Unit 509 Hoboken, N.J. 07030 201-222-9050 Page 2 of 2

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