Case Studies

  • City of Wilmington (DE)

    In 2002, the City of Wilmington faced a projected, long-term deficit.  To help the identify alternative revenue options that might improve the city’s structural position, PFM was engaged to survey comparable regional and national jurisdictions and to evaluate tax policy options, under the guidance of a Financial Advisory Committee of civic and business leaders appointed by the Mayor.  In this initial work, 71 alternatives were reviewed and prioritized.  Next, Delaware’s Governor appointed a Blue Ribbon Task Force to examine PFM’s work and to recommend consensus options.  PFM was engaged by the State Department of Finance to staff this panel of state and city legislative leaders, public officials, and civic representatives, which led to the enactment of state legislation authorizing multiple new revenue sources for the City.  By 2005, however, despite much needed relief provided by the Blue Ribbon Task Force revenue enhancements, the City’s long-term structural problems remained.  Accordingly, the Governor reconvened the Task Force to focus on additional approaches for ensuring the City’s financial viability, while maintaining economic competitiveness, including expenditure reductions.  With an annual budget of approximately $100 million, Wilmington was in particular need of stable and diversified revenues due to its high dependence on property taxes and volatile wage taxes.  In July 2005, the State of Delaware enacted $10 million in additional annual, recurring revenues for Wilmington, providing a strong platform for the City’s future growth. 

     

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    These materials are based on factual information from actual projects that The PFM Group of companies has engaged in for a client. They are for general information purposes only and are not intended to provide specific advice or a specific recommendation. The results of individual projects will vary significantly depending upon the size and structure of each transaction, permitted investments, prevailing market conditions at the time of the transaction, and other events or circumstances beyond our control. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in these case studies is not an offer to purchase or sell any securities.