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Posted by Russo Civic Association on June 04, 2004 at 17:08:25:
City Council
City of Hoboken
94 Washington Street
Hoboken, NJ 07030
Theresa Castellano
Carol Marsh
Michael Russo
Anthony Soares June 3, 2004
Director Susan Jacobucci
NJ Division of Local Government Services
101 South Broad Street
PO Box 800
Trenton, NJ 08625-0800
Dear Director Jacobucci:
We are in receipt of your letter of June 1, 2004. We note with concern that it does not seem to be informed by the serious issues we raised in our letter of May 24, 2004. A copy of that letter is attached for your convenience.
Responding to your latest letter, we are troubled by some the assumptions you make. While it is true that “New Jersey Statutes provide municipalities with the legal power to make budgetary changes when situations arise that are unexpected or beyond the control of the elected officials,” neither of those two essential conditions – “unexpected” nor “beyond the control”- have been demonstrated in this case.
These overexpenditures do not appear to have been unexpected. For many months now, as discussed in our May 24th letter, this administration has been questioned closely about the serious possibility that this particular line item was being overspent. While it is possible that recent billings have shown dramatic and unforeseen increases, necessitating an emergency appropriation, no such evidence has been presented to the council nor have we seen an analysis of expenditures from this account throughout the year. Without these showings, we cannot support a conclusion that these costs were unexpected; nor would we expect the Division to sustain our conclusion were we to do so. This problem was also not “beyond the control of the elected officials.” The Mayor, in the budget that he presented to the Council (which provided for no increase over last year’s expenditure for Group Health Insurance) and those Council people who voted to adopt that budget, failed to provide adequately for the true cost of running the City. As you know, improper budgeting is not a valid reason for an emergency appropriation.
We are of course vitally concerned with the City’s fiscal integrity and have demonstrated that concern repeatedly. We have written several letters to your office detailing facts and circumstances which could reasonably have justified an investigation by your office under the provisions of NJSA 52:27BB-47.
Instead, your office has demanded that the Council approve emergency appropriations
You cite as your authority for this demand NJSA 52:27BB-48. But this statute is limited:
52:27BB-48. Special investigation; enforcement of orders
The director may issue such orders as he may find appropriate to correct errors, inaccuracies or omissions in the report of audit or recommendations, illegal financial practices, or irregularities in the conduct of financial affairs, disclosed at an investigation made in accordance with section forty-seven of this act. Orders may be enforced in accordance with sections fifty and fifty-two of this act.
The statue authorizes the enforcement of such orders against improper actions “disclosed at an investigation made in accordance with section forty-seven of this act”. In this instance, no such investigation has occurred. Therefore your authority to make the demands contained in your letter is not supported.
Even if you had the authority to order an emergency appropriation in this case, doing so would be inappropriate, as an investigation would demonstrate. First, failure to pass such an appropriation will not jeopardize the health and safety of Hoboken residents. The contracts which impact these line items are already in effect and, even if they were approved based on faulty representation, they must ultimately must be paid. Interruption of coverage is not an option. To the extent that contracts have been adopted which exceed the line items provided for their payment, the fiscal irregularity and violation of budget law has already occurred. Passing an emergency appropriation at this point would only serve to relieve the Mayor, the Business Administrator, and the CFO of their responsibilities. Rather than try to retroactively justify their actions by emergency appropriations, the fiscal integrity of Hoboken would be better served by holding these individuals accountable for what they have done. As for the budget transfers, we would carefully consider those presented to us once we have received a full and complete accounting, certified by our independent auditors, of the actual state of each line item on the SFY2004 budget. We note that by statute such transfers can be made through September 30, 2004, both reducing the need for urgency and creating the possibility for a full, certified accounting prior to taking action.
We do wish to thank you for your involvement. Should you elect to conduct an investigation under the provisions of NJSA 52:27BB-47, we would applaud that decision, but would encourage you seek information from all involved parties prior to recommending further action. We are confident that any recommendations based on such an investigation would be consistent with statute and meet with our support. We look forward to your future correspondence.
Sincerely,
Theresa Castellano Carol Marsh
Hoboken City Councilwoman Hoboken City Councilwoman
Michael Russo Anthony Soares
Hoboken City Councilman Hoboken City Councilman
cc: Mayor David Roberts Hand Delivered
James Farina – City Clerk Hand Delivered
Ruben Ramos Jr, Council President Hand Delivered
Richard Del Boccio – 2nd Ward Hand Delivered
Chris Campos – 4th Ward Hand Delivered
Michael Cricco – 5th Ward Hand Delivered
Nino Giacchi – 6th Ward Hand Delivered
Louie Piccardo – Interim CFO Hand Delivered
Matty Cannorozzi – Comptroller Hand Delivered
Lou Roberts – Ernst & Young Metro Park 99Wood Avenue South, Iselin, NJ 08830-0471
Randy Nelson – RMA Ernst & Young Metro Park 99 Wood Avenue South, Iselin, NJ 08830-0471
Marc Pfeiffer – DLGS 101 South Broad Street, Trenton, NJ 08625-0800
Judith Tripodi – DLGS 101South Broad Street, Trenton, NJ 08625-0800
Susan Bass Levin – DCA Commissioner, 101 South Broad Street, Trenton, NJ 08625-0803
Mr. Charles Guhr – Commissioner 205 E. Syracuse Avenue, Wildwood Crest, NJ 08260
Mr. Richard F. Turner Commissioner 400 Park Avenue, Weehawken, NJ 07087
Ms. Charlotte DeFilippo Commissioner 65 King Street, Hillside NJ 07205
Mr. Scott R MacFadden Commissioner 401 Chambers Bridge Road, Brick NJ 08723
Honorable John H Ewing Commissioner P O Box 352, Bedminster, NJ 07921
Mr. James Harkness Commissioner 50 West State Street Suite 1010 Trenton, NJ 08608-1220
Mr. Ted Light Commissioner 22 Ocean Lane South Seaside Park, NJ 08752
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