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Special Advisor Report Richard Tremitiedi March 17 2008
1. 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
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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
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