Government that Works! CITY OF CAMDEN

Government that Works!

NEW JERSEY DEPARTMENT OF THE TREASURY

LOCAL GOVERNMENT BUDGET REVIEW

CITY OF CAMDEN

CHRISTINE TODD WHITMAN Governor

BRIAN W. CLYMER Treasurer

HARRIET DERMAN Commissioner

Department of Community Affairs JANUARY, 1996

GOVERNMENT THAT WORKS

OPPORTUNITIES FOR CHANGE The report of the City of Camden Budget Review Team

New Jerseyans deserve the best government that their tax dollars can buy. Governor Christie 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 more money is the solution to their problems, and start examining how they spend the money they have now. The State's taxpayers cannot afford to keep sending money to their government. It is time for government to do something different.

There is no doubt that local government costs -- and the property taxes that pay for them -- have been rising steadily over the last decade. Until now, the State has never worked with towns to examine what is behind those rising costs. That is why the Local Government Budget Review Program was created by Governor Whitman and State Treasurer Brian W. Clymer. Its mission is simple: to help local governments find savings, without compromising the delivery of services to the public.

The Local Government Budget Review Program fulfills a promise Governor Whitman made in her first budget address, when she offered the State's help to local governments looking to cut costs. This innovative approach combines 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 management review and consulting service provided to them at no cost by the state.

To find those "cost drivers" in local government, the teams will review all aspects of the local government operation, looking for ways to improve efficiency and reduce costs. The teams will also document those State regulations or legislative mandates which place an unnecessary burden on local governments, and suggest which ones should be modified or eliminated. Finally, the teams will note where local governments are utilizing "Best Practices" -- innovative ideas that deserve recognition and that other municipalities may want to emulate.

This intensive review and dialogue between local officials and the review team is designed to produce significant insight into what factors are driving the costs of local governments, and provide necessary tools to bring meaningful property tax relief to the State.

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 the review of the City of Camden, team members interviewed each elected official, as well as municipal employees, appointees, members of the public and municipal audit reports, public offering statements, annual financial statements, the municipal code and independent reports and recommendations previously developed for the community. The review team physically visited and observed the work procedures and operations throughout the municipal government to observe employees in the performance of their duties.

In general, the review team received cooperation and assistance of employees and elected officials. That cooperation and assistance was testament to the willingness on the part of many 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. These estimates have been developed in an effort to provide the community an indication of the potential magnitude of each issue and the savings or cost to the community. We recognize that all of these recommendations can not 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 that the estimates are conservative and achievable.

LOCAL GOVERNMENT BUDGET REVIEW EXECUTIVE SUMMARY CITY OF CAMDEN

Mayor's Office Consideration should be given to the reduction of two clerical and one community outreach staff positions. Savings would be approximately $114,910 in salaries and benefits.

Finance It is recommended that the city hire a Fund Accountant and an Internal Auditor to improve compliance and accounting functions. The total estimated cost for these positions is $84,500.

Aggressive investment practices should be instituted, which would yield approximately $110,229 in investment income. It is estimated that an additional $42,500 in interest on bail accounts could be earned if permitted by the judiciary.

Cash contributions to private and non-profit agencies should be terminated. Savings would be approximately $53,900.

Revenue Collection The team believes that the longevity payment being made to the department head who was only rehired seven months ago should be eliminated. This would be a savings of $2,688 at the current rate.

Interest earned from the completion of a tax sale earlier in the year would generate approximately $50,000 in increased interest revenue.

The review team believes that costs for the lien compilation contract are unnecessary, since the staff should take responsibility for the work involved for a savings of approximately $157,000.

The value of tax abatements unsupported by documentation is $814,520. Appropriate and timely agreements must be in place prior to the granting of such abatements.

The city should stop the practice of canceling taxes by resolution. This has cost the city $460,000 in FY 95, alone.

Past due rents should be determined and collected by the city. Estimated rents due total $128,000.

The city should consider the addition of two meter inspectors to assist in the water billing operations. The estimated cost of this staff is $72,995.

Tax Assessor The city should not contract for work related to county tax appeals. Staff should be responsible for this work for a savings of $87,500.

The improper tax exemptions granted for the Broadway Townhouse properties should be removed from the tax records and full taxes should be charged. This would yield approximately $47,000 annually in additional tax revenue.

Purchasing It is suggested that the position of Supervising Program Analyst be eliminated at a salary and benefit savings of approximately $58,522.

The team recommends the possible addition of up to two staff positions at an estimated cost of $65,000 in salary and benefits.

Division of Engineering and Construction Management The city should gradually increase the size of its engineering staff at a cost of approximately $286,000 in salary and benefits.

Police Department The city should consider an assessment of fines for false alarms, which would result in additional revenue of $38,400.

The recommended purchase of adequate body armor would cost an estimated $84,600.

Additional compensation for certain titles should be discontinued. This would save approximately $15,000.

The elimination of the duplication of Crossing Guard posts would yield a savings of approximately $60,000. This action would not result in the loss of adequate safety measures for the children.

Fire Department There is an urgent need to reduce overtime costs. Strict procedures against overtime abuse would save the city an estimated $1.3 million.

An estimated savings of approximately $35,100 in salary and benefits could be realized through the future replacement of the Chief Fire Apparatus Officer with a civilian instead of a firefighter.

Approximately $125,000 could be saved through the relocation of an engine company.

The addition of up to two clerical positions is suggested. The approximate cost of this would be $59,800.

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