City Surpasses Innovation and Efficiency Goals, Saving $25 Million

Nov. 22, 2010

The city of Phoenix has met its goal for saving money through innovation and efficiency measures seven months before the target date. The City Council will hear the details at 2 p.m. Tuesday, Nov. 23, in the City Council Chambers, 200 W. Jefferson St.

The city has saved $10,619,000 in the General Fund and more than $25 million overall for the 2009-10 and 2010-11 fiscal years. That exceeds the General Fund goal of saving $10 million.

“Through creativity and hard work, more than $10 million will go to parks, libraries, public safety, senior centers and other critical services,” said Mayor Phil Gordon. “Our hard-working employees and business partners are finding great solutions for continuing to provide excellent service to our community.”

A group of private-sector volunteers and city staff members has served on the Innovation and Efficiency Task Force since January. Work groups are focusing on consolidation, right sourcing, service cuts, revenue enhancements, cost recovery and process improvements. Total savings projected over five years is  more than $107 million.

“Our process is bringing together business and government leaders to work through complicated issues and ideas,” said Councilman Bill Gates, chairman of the City Council Finance, Efficiency and Innovation Subcommittee. “Their efforts are saving the taxpayers money, while improving the quality of life in Phoenix.”

Innovation and Efficiency work groups collaborated with all city departments to identify efficiency and cost-savings measures. Highlighted examples of savings include:

  • $1.4 million - elimination of 546 vacant General Fund positions, producing the city’s smallest workforce per capita in more than 40 years.
  • $1.7 million - consolidations of some departments and city functions.
  • $860,000 - transfering the “Reserve-A-Ride” program from the Human Services Department to Public Transit.
  • $85,000 – elimination of paper pay stubs.
  • $2.2 million – organizational reviews of all departments to streamline services, focussing on direct service to residents.
  • $797,000 – rebid of life insurance contracts.
  • Nearly $800,000 – from more than 100 private-sector business partners who agreed to reduce contract fees by three percent.


The Task Force and City Council subcommittee devoted to innovation and efficiency will continue their efforts, looking for additional ways to save money and improve service.

More information about the task force's activities is available at the Innovation and Efficiency website.

 

Media Contact:

Toni Maccarone 602-262-7177