City of Fort Worth
5
• FY2010 Budget $1.2B
• Staff Size 6425 Employees
• Organization 18 City Depts
• Population 720,000 Residents
5
Major Attractions
Museum District Texas Motor Speedway
Cowboys of Color Rodeo
Bass Performance Hall
Historic Stockyards District
Colonial Tournament
Zoo 6
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1950 1960 1970 1980 1990 2000 2010 2020 2030
POPULATION GROWTH
1950-2030
Sources: U.S. Census Bureau, 1950-2000; NCTCOG, 2001-2030.
720,250
717th Largest City in America
5 Year ForecastGeneral Fund
9
$400
$450
$500
$550
$600
$650
$700FY
09
FY10
FY11
FY12
FY13
FY14
Millions
Revenues Baseline Expenditures
Gap = $59M
9
Bucket Descriptions
• Bucket A – Service Reductions
• Bucket B – Citywide Initiatives
• Bucket C – Organizational Changes
• Bucket D – Enhance Revenues
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• Closed 6 of 7 swimming pools
• Reduced hours at community centers
• Eliminated one Code Compliance District
• Reduced mowing of parks, medians and right of way
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Bucket A – Service Reductions
Bucket B – Citywide Initiatives
• Instituted 8 Furlough Days
• Revised funding for healthcare benefits
• Reduced funding to Ambulance Authority
• Reduced purchases for city vehicles
• Reduced misc. discretionary spending13
• Moved Departments / Functions out of the General Fund into Enterprise Funds
• Accelerated Outsourcing Efforts
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Bucket C – Organization Changes
• Assessed payment to Enterprise Funds
• Suspended our Policy on Gas Well Revenues
• Hired a collection agency to pursue delinquent court fines
• General fee increases (Library, Parks, Meters)
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Bucket D – Enhance Revenues
Overview of FY2010Budget Recommendations
Service Reductions
Organizational Changes
Citywide Initiatives
C
B
Enhance Revenues
$59 millionbudget shortfall
A$16 m
$25 m
$3 m $15 mD
16
Updated 5 Yr Financial Forecast
General Fund
17
$400
$450
$500
$550
$600
$650
$700
Millions
Revenues Baseline Expenditures
17
Gap = $25MBalan
ced
Observation• June 1, 2009
January 2006, North American International Auto
Show – Speaker: Jerry York
• Key points:1. Be realistic about revenue expectations
2. Cut product offerings. Offer fewer and better products
3. Use a “clean sheet of paper” approach. No sacred cows
4. Make tough decisions. If something isn’t core, sell or close it.
5. Time is of the essence.
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GM vs Ford1. Be realistic about revenue expectations
A. GM – focused on sales volume, selling cars at a loss
B. Ford – reengineered operations, focused less on market share
2. Cut product offerings. Offer fewer and better productsA. GM – Closed 1 brand (Oldsmobile)
B. Ford – Shifted focus from SUVs to small cars
3. Clean sheet of paper, no sacred cowsA. GM – No material changes in production
B. Ford – Cut material costs, made plants more flexible19
GM vs Ford4. Make tough decisions, sell it or close it
A. GM - Worked on green technology, hydrogen cars and solar panel (but maintained 60 models across 8 brands)
B. Ford – Sold Jaguar, Land Rover and Aston Martin (generated cash)
5. Time is of the essenceA. GM – Almost $50b in bailouts, filed bankruptcy 3 years
after speech
B. Ford – Solvent, improving quality and product offerings
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Implication / Application1. Be realistic about revenue expectations
Deal with the reality of a flat revenue stream.
2. Cut product offerings. Offer fewer and better products Determine what services you will provide and be the best at delivering
those offerings
3. Clean sheet of paper, no sacred cows Every dept should be critically evaluated and challenged to improve
4. Make tough decisions, sell it or close it Programs that are not making a measurable impact should be eliminated
5. Time is of the essence Act now 21
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