Speaking at the Annual Mayor Luncheon to members of the Greater Philadelphia Chamber of Commerce, Mayor Michael A. Nutter announced the release of a report by FTI Consulting that estimates the City could save $85 million over five years through cost-saving measures and improved revenue collection. Discussing the recommendations made to the City by FTI Consulting, a global business consulting firm and efficiency expert, the Mayor said the City would implement many of the recommendations and that the City plans to take most of the savings in the upcoming Five Year Plan.
The report estimates that the City could conservatively save millions of dollars without impacting personnel or implementing tax increases. The current collection rates overseen by many City Departments are well below industry standards, according to the report. Mayor Nutter announced that the City is moving forward to establish a Chief Revenue Collections Officer, who will oversee all collection efforts and implement more efficient practices.
Another major FTI finding is that there may be a significant opportunity to reduce the cost of purchased goods by re-engineering the City’s purchasing process. FTI’s recommendations in this area include expanding the use of major category buyers with the goal of procuring the highest quality of goods and services at the lowest price, establishing key performance metrics for major vendors and investing in better technology. Other recommendations include reducing charges on the City’s phone bills, hedging fuel costs instead of solely buying in the spot market, and decreasing the space footprint which would enable a reduction in leased space.
Describing the Philadelphia of the future and the steps the City is taking now to build a stronger, healthier, safer and most prosperous Philadelphia, the Mayor said, “A generation from now, I see Philadelphia with a reputation as a major hub of global entrepreneurial talent, a generator of new ideas from our world-class University, health sciences and technology sectors and with a quality of life unmatched by most other cities in America.”