Case Study

Name: City of Springfield, Massachusetts Date: 2005 - ongoing Project: Parking System Assessment

Summary: IMG evaluated the current condition of the City of Springfield’s parking functions and made recommendations to improve the financial performance of the Springfield Parking Authority and the City of Springfield by maximizing its parking assets.

Issue: The City of Springfield identified parking as an area with opportunities for enhancing revenue. IMG was requested to review all functions associated with on- and off-street parking, including equipment, operations, internal controls, staffing, collection, ticket processing, and organization.

Solution: After performing due diligence, building a financial pro forma, benchmarking activities, and performing a SWOT analysis, IMG developed recommendations to increase the City’s cash flow, improve the level of service, and better protect its parking assets. IMG identified numerous opportunities for financial benefit including in-sourcing excess police forces, implementing a PILOT, selling underperforming parking assets, developing a renewal and replacement fund, and outsourcing O&M operations.

Value Created: IMG’s recommendations provided the opportunity to improve the integrity of overall parking operations and to increase the maintenance of parking assets. By implementing all recommendations, the City was expected to increase combined annual revenue by $930,000 (a 19% increase) and through the sale of under-performing assets, receive $4.5 million in one-time benefits. In addition, over $1,000,000 of new income could potentially to flow to the City’s general fund.