PITMAN
FISCAL RECOVERY PLAN APPROVED BY STATE OFFICIALS!
MAYOR
& COUNCIL WAIVE HEALTH BENEFITS AND TAKE 15% PAY
CUT SAVING $116,473!
TOTAL
EXPENDITURE REDUCTIONS TOTAL OVER $800,000!
NORTH
ARLINGTON - In the most sweeping reorganization and
overhaul of local government (see
summary of cost reduction program - click
here), Mayor Russ
Pitman received state approval to go ahead with his
plan to layoff personnel and consolidate the borough's
day to day operations (see
letter from state of New
Jersey - click here).
Pitman's
plan to reduce the size of government and thus stabilize
the borough's tax levy will yield a net savings
of $222,435 in fiscal 2004.
Pitman's
plan to reorganize the government has met stiff opposition
from the borough's unions and Republican Party.
Neither Republican members Susan King or Joseph Whittles
support the Mayor's efforts to control spending and
stabilize the borough's tax rate.
In
a letter to state officials dated March 17th, Borough
Administrator Robert M. Landolfi detailed
North Arlington's ongoing financial crisis.
"This
layoff plan is necessitated by the substantial financial
crisis which has rendered the Borough of North Arlington
almost paralyzed due to a massive debt burden
of more than twenty-six million dollars, with annual
debt service payments of $2.56 million. This annual
obligation exceeds 15% of the Borough's total budget
projected for 2004."
"Annual
contractual obligations combined with significant revenue
loss in the Borough will result in massive tax increases
that will create a detrimental economic impact on the
community."
Landolfi
detailed the expiration of host fees from the borough's
revenue equation.
"For
example, the Borough is facing a significant loss of
host community benefit fees generated from a landfill
operation. This revenue is expected to decrease from
$2.9 million in 2003 to $1 million in by the end of
2005."
Landolfi
also detailed to state officials the efforts made to
reduce costs across the board beyond municipal employees.
"The
Borough has undergone substantial budget analysis
to reduce spending in areas other than personnel. For
example, the Borough has implemented reductions in areas
of discretionary spending such as the library budget
and cuts in volunteer budgets for fire and ambulance
services. In addition, the Mayor and Council of North
Arlington have agreed to waive their health benefits
for annualized savings of $107,376.00. The governing
body is also proposing they take a reduction in salary
and wages of 15% for total annualized savings of $9,097.50."
Landolfi's
letter was clear why these drastic actions were taking
place.
"The
layoff plan, as specifically set forth below, is submitted
for the purpose of restoring fiscal responsibility and
efficiency to the Borough of North Arlington."
According
to the Landolfi letter and attachment sent to state
officials for approval, the borough made its demands
very clear to avoid municipal layoffs.
"On
March 11, 2005 the Borough met with Robert Witkowski,
the representative of Local #1. the Blue & White
Collar Workers Union. At this meeting, the Borough
representatives thoroughly laid out the plan for affected
positions as incorporated in the attached layoff plan.
The Borough also explained to the union representatives
the other budget reductions which were occurring in
the Borough in additional to layoffs. Further, the Borough
presented a list of demands including biweekly payment,
elimination of salary increases for 2004 and/or 2005,
agreement to forego health benefits for those with spouses
who work for government entities, payment of $500 per
month for family benefits, and introduction of a furlough
arrangement which would consist of non-paid vacation."
While
Republicans have opposed Pitman's plan to turnaround
the borough's finances, they have failed to offer
a single alternative, suggestion or proposal.
"It's
easy for Susan King to get up and praise these employees.
But it's empty rhetoric. She was Finance Chair and did
nothing to address the borough's cash flow dilemma.
She created the financial problems the borough faces
to today and now she's decided not to seek reelection.
It's hypocritical and quite frankly, typical of someone
who cannot offer a tangible solution for the very problems
she created," said one Democratic observer familiar
with the layoff plan.
Since
1999, the borough's municipal tax levy has increased
$2.5 million dollars or 37% while the school district's
tax levy has increased $3.5 million or 30.3%. The total
tax levy (schools, county and municipality) has increased
$6.1 million dollars or 29.6%.
"People
want property tax relief. Everywhere I go, everyone
I talk to tells me the same thing. I just received another
letter from a distressed senior (An Honest Senior -
click here). We need to make every
effort to reduce costs and stabilized taxes. This is
the single most important issue facing this community,"
observed Mayor Russ Pitman.
