Case Study

Austin, TX Water and Wastewater Utility
Management Review

PFM completed a management review of portions of the City of Austin's Water and Wastewater Utility. The assessment covered five key areas of the Utility: Capital Improvement Program Management; Field Operations; Engineering; General Administration; and Procurement and Warehousing. The General Administration component included finance and budget, accounting, human resources, fleet services, information technology, and customer service.

Working under the direction of an oversight group led by the City Manager's office, PFM evaluated the Utility's performance in each of the study areas, and provided specific suggestions for improved efficiency and service. Where possible, comparisons were drawn to national standards and the performance of peer utilities in Texas and nationally. After the study began, PFM was also asked to identify potential cost savings for the Utility.

PFM's management recommendations were presented to Austin's City Council in February 2003, and covered issues from revenue enhancement opportunities to overtime reduction in field units to budget development and oversight practices. PFM's suggestions for $5.2 million in spending reductions and revenue increases were accepted by the Utility and were integrated into its next budget submission.