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Bayonne City Government that Works! NEW JERSEY DEPARTMENT OF THE TREASURY LOCAL GOVERNMENT BUDGET REVIEW CITY OF BAYONNE CHRISTINE TODD WHITMAN Governor ROLAND MACHOLD Acting State Treasurer JANE M. KENNY Commissioner Department of Community Affairs NOVEMBER, 1999 GOVERNMENT THAT WORKS OPPORTUNITIES FOR CHANGE The Report of the City of Bayonne New Jerseyans deserve the best government their tax dollars can provide. Governor Whitman is committed to making state government leaner, smarter and more responsive by bringing a common sense approach to the way government does business. It means taxpayers should get a dollar’s worth of service for every dollar they send to government, whether it goes to Trenton, their local town hall or school board. Government on all levels must stop thinking that money is the solution to their problems and start examining how they spend the money they now have. It is time for government to do something different. Of major concern is the rising cost of local government. There is no doubt that local government costs and the property taxes that pay for them have been rising steadily over the past decade. Prior to Governor Whitman’s taking office in 1994, the state had never worked as closely with towns to examine what is behind those costs. That is why she created the Local Government Budget Review (LGBR) program. Its mission is simple: to help local governments and school boards find savings and efficiencies without compromising the delivery of services to the public. The LGBR program utilizes an innovative approach combining the expertise of professionals, primarily from the Departments of Treasury, Community Affairs and Education, with team leaders who are experienced local government managers. In effect, it gives local governments a comprehensive management review and consulting service by the state at no cost to them. To find those “cost drivers” in local government, teams review all aspects of local government operation, looking for ways to improve efficiency and reduce costs. In addition, teams also document those state regulations and mandates which place burdens on local governments without value-added benefits and suggest, on behalf of local officials, which ones should be modified or eliminated. Teams also look for “best practices” and innovative ideas that deserve recognition and that other communities may want to emulate. Based upon the dramatic success of the program and the number of requests for review services, in July, 1997, Governor Whitman ordered the expansion of the program, tripling its number of teams in an effort to reach more communities and school districts. The ultimate goal is to provide assistance to local government that results in meaningful property tax relief to the citizens of New Jersey. THE REVIEW PROCESS In order for a town, county or school district to participate in the Local Government Budget Review program, a majority of the elected officials must request the help of the review team through a resolution. There is a practical reason for this: to participate, the governing body must agree to make all personnel and records available to the review team, and agree to an open public presentation and discussion of the review team’s findings and recommendations. As part of each review, team members interview each elected official, as well as, employees, appointees, members of the public, contractors and any other appropriate individuals. The review teams examine current collective bargaining agreements, audit reports, public offering statements, annual financial statements, the municipal code and independent reports and recommendations previously developed for the governmental entities, and other relative information. The review team physically visits and observes the work procedures and operations throughout the governmental entity to observe employees in the performance of their duties. In general, the review team received full cooperation and assistance of all employees and elected officials. That cooperation and assistance was testament to the willingness, on the part of most, to embrace recommendations for change. Those officials and employees who remain skeptical of the need for change or improvement will present a significant challenge for those committed to embracing the recommendations outlined in this report. Where possible, the potential financial impact of an issue or recommendation is provided in this report. The recommendations do not all have a direct or immediate impact on the budget or the tax rate. In particular, the productivity enhancement values identified in this report do not necessarily reflect actual cash dollars to the municipality, but do represent the cost of the entity’s current operations and an opportunity to define the value of improving upon such operations. The estimates have been developed in an effort to provide the entity an indication of the potential magnitude of each issue and the savings, productivity enhancement, or cost to the community. We recognize that all of these recommendations cannot be accomplished immediately and that some of the savings will occur only in the first year. Many of these suggestions will require negotiations through the collective bargaining process. We believe, however, that these estimates are conservative and achievable. LOCAL GOVERNMENT BUDGET REVIEW EXECUTIVE SUMMARY CITY OF BAYONNE Governing Body By waiving health benefits for part-time elected officials, the city could save $35,640. Restructuring council clerical support to part-time job sharing would save $85,407. Clerk Reduction of one clerical employee would save $45,909, improving budget estimations for election costs would save at least $16,118, and restructuring ABC licensing fees would result in revenue enhancement of $113,000. Automating the city’s code book would cost $10,000 - $20,000. Legal A restructuring of the legal staff could result in savings of, approximately, $68,424. Insurance A variety of health plan cost savings initiatives would yield an estimated $2,851,583 in savings to the city. Administration The city should eliminate the annual stipends for employee licensure for a savings of, approximately, $13,500. Agency aide positions should be eliminated for $171,029 in estimated savings. Personnel A restructuring of the personnel staff could yield an estimated savings of $60,719. Purchasing Participation in a municipal purchasing cooperative could result in savings of $111,272. Purchasing an on-line purchasing module would cost, approximately, $5,000. Finance By obtaining competitive rates and ensuring accounts are interest bearing, the city could increase interest earnings up to $64,000 per year. Posting the general ledger and conducting reconciliation services in-house would save $13,000. Tax Assessment Reorganization of staff and elimination of one assessing clerk yields savings of $42,189. Handling 80% of the city’s tax appeals in-house would result in savings of, approximately, $131,882. Economic Development Reorganization of economic development agencies along with aggressive marketing of loan programs would result in cost savings of $285,000. Community Development Suggested reorganization and the implementation of an annual residential rental registration program is estimated to produce a net savings of $294,916. Parking Authority Bringing the Parking Authority under the city and implementing productivity enhancements would result in a net revenues to the city of, approximately, $782,481. Courts Reorganization of staff, better cash management, elimination of the alcohol counselor and collection of delinquent funds would result in a savings of $241,127. Implementation of a CCTV arraignment program would have a one-time cost of $27,463. Using a per diem system for public defender services would yield a savings of $31,100. Public Works The team suggests a number of items for the city’s consideration from reorganization of supervisory staff, to shared services with the board of education for vehicle maintenance, to competitively contracting custodial and maintenance services, which are valued at an estimated $1,199,216. We strongly recommend hiring an engineer to act as superintendent of public works in the event the present superintendent leaves. We also recommend the hiring of an assistant engineer for a total additional cost of, approximately, $70,000. Recreation The institution of fees for users could yield at least $124,052 in annual revenues. Police Reorganization, enhanced productivity, eliminating crossing guard health benefits, and changes in work hours are estimated to produce a net savings of $1,230,916. Fire Recommendations regarding reorganization, changes in work hours, and eliminating one ladder truck company results in a net savings of $2,906,105. EMS By modifying the bid specifications in the contract, the city could save at least $378,261. Health By revising fees, instituting once a week trash collection, and eliminating commercial pickup, the city could realize estimated annual savings of $526,390. Library Using community volunteers to staff a small branch and closing a low usage branch would result in net savings of $107,700. Onetime Savings/ Annual Savings/ Areas Involving Monetary Recommendations Expense Expense Totals Governing Body Waive the provision of receiving health benefits $35,640 Eliminate two clerical positions $85,407 $121,047 Clerk's Office Automate code book ($20,000) Eliminate one clerical position $45,909 Improve estimations of election expenses $16,188 Review and revise liquor licenses $113,000
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