The city is paying a consultant at least $200,000 to make recommendations aimed at improving tax collections and lowering overhead costs, like utility and gasoline bills.
“This is something of a first,” said mayoral spokesman Mark McDonald.
The city will pay FTI Consulting $200,000 in addition to a 3 percent “success fee,” according to McDonald. For instance, if the company saves the city $10 million, it will earn a success fee of $300,000. That fee is capped at $700,000, though, which would require the company tracking down more than $23 million in savings actually implemented by the city.
In a press release, Mayor Nutter said that FTI Consulting will "ensure that Philadelphia's tax dollars will be put to best use."
As of June, property-tax deadbeats owed more than $515 million to the city and school district. Also, as It’s Our Money reported, taxpayers paid hundreds of thousands of dollars for a politically-connected business owner’s utilities. The business leases a city-owned property.
FTI Consulting is scheduled to provide a report to the city by November.