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MEMORANDUM OF UNDERSTANDING. Setting forth minimum conditions on the reccipt of Transitionsl Ail to Localities by the ‘municipality of CITY OF TRENTON WHEREAS, the Director of the Division of Local Covemment Serves (the ‘rector’ has determined that City of Trenton (the "Muniipelite) Ten sceoue feel sisiress an avard of $22,000,000. of Transitional Aid to Localties Teansion Aid?) ‘ppropriate, all in accordance with the criteria set forth in PL 2011, c8S. the “State Buse”) and ater reviewing an application submited by the Municipals: on September 3, 2olisand WHEREAS, the State Budget conditions Transition Ail on such requirements forders. and oversight asthe Director deems necessary including the implementation oF 4govemmen, administrative, and operational eiieney and overs measures necessary for the fiscal recovery ofthe Municipality: NOW THEREFOR, BE IT RESOLVED, (D This Memorandum of Understanding (the “Memorandum sets forth the ‘minimum conditions. requirements, orders, and oversight required as a condition of receiving Tatton Aids and (2) The Municipaity shall comply with the conltions set rth below in addition to all laws, regulations Local Finance Notices, and any government admnistatve and operational ffisieney, and oversight measures acevsary for the fiscal recovery of the Municipality as the Director may onder ffm time to ne pursuant tothe State Budget or any ater law. Submission ofa Transition Plan The Municipality shall submit pln on or kefore June 30, 2012 detailing how it intends to eliminate its reliance on Transition Aid (the “Transition Plan") In no case shall the Transition Plan provie fora phase out ofthe aid over a period of mere than thee yews, The ‘Transition Plan must set forth a reasonable eduction in reliance on such funding ithe State Fiscal Year 2013 Budget. ‘The Transition Plan shall discuss initiatives to being structural balance tothe Municipality’ finances and shall inch, but not be Tinted tall of the followings ‘+ An acknowledgement that the Municipaiy needs to rece is reianee on Transition Aid: and +A plan w reduce staffing costs through layoffs. atriton, restructuring, of other Personne ations: and ‘plan to eliminate or reduce the costs of services or activ corthat are of fo prio: and + A plan wo maximize recurring revenues, inclung but ot linited to: updating fees, fines and penalties: maximizing enforcement of revenue delinquencies: sling ‘ulus fand and property: and encouraging sustainable and table devclopment ang + A plan to address findings contained in various audits, investigations, and repos with respect to the Municipality, incloding municipal adits. appicable State not deemed essential CCompirller and State Auditor reports and audits, federal program audits, and other nuit as identied by the Director ‘Special Conditions om Certain Hires. This provision reflects a ne effort w rcrut and retain a teary of invidals who san bring’ quality management and structural integrity hack 10 the City on behalf of is residents. The process st forth erein establishes a process fr the hing oF individuals to serves the Business Administrator and department heads Immediately afte exceution of this MOU, the Division shall witely adverse and solicit plicams to serve as the Business Adminstrator, Police Director and the heads ofthe: {aw Deparment; Deparment of Public Works; Department of Recreation, Natura Resources, and Culture: Department of Inspections: Deparament of Finance! and the Department of Housing and Eeonomie Development The Division shall eview applications and interview candiatesss appropriate Upon the

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