Case Study

Name: City of Waterbury, Connecticut Financial Assistance and Planning Board Date: 2003 - ongoing Project: Municipal Service Evaluation and Performance Improvement

Summary: In order to help Waterbury address it’s financial crisis, IMG evaluated various municipal services to identity opportunities for cost-savings and revenue enhancement. IMG recommended actions to the Waterbury Financial Assistance and Planning Board including business process reengineering; selling and leasing assets; and outsourcing of operations; and is currently managing the implementation of several recommendations.

Issue: In response to the City of Waterbury's fiscal crisis, the Connecticut State Legislature created the Waterbury Financial Assistance and Planning Board to help Waterbury return the city to financial stability. IMG was retained to assess the city's water system, solid waste system (including landfill and transfer station), parking services, and parks department.

Solution: IMG utilized its in-house expertise in municipal services to identify opportunities to enhance revenues, reduce expenses, and improve service in each area while meeting capital investment needs and current levels of demand. Costs and benefits of solutions such as reengineering, solicitation of private vendors for contract operations, and the sale or lease of municipal land were analyzed. IMG presented its evaluation to the State Financial Planning and Control Board and, as of 2005, is in the process of implementing several of the recommendations.

Value Created: IMG recommendations have lead to action plans. IMG enabled the Waterbury Financial Assistance and Planning Board to identify which municipal services could yield the greatest cost-savings or revenue generating opportunities. Based on IMG’s analysis, the Board retained IMG to complete detailed recommendations for reengineering the solid waste system which identified over $450,000 in operational cost savings annually; implement a public-private partnership for parking facilities, resulting in potential cash flow increases of over $700,000 annually; and outsourcing waste transfer operations, generating additional cash flow of at least $100,000 annually.