Chicago-area finance chiefs work together on common issues.(News & Numbers)

The CFO Roundtable, a group of finance executives from city, county, and state agencies based in Chicago, meets once a month to discuss matters of mutual concern. Many of the group's efforts have focused on the potential for saving money through joint procurement, but the members also benefit from coming together to talk about common issues.

Most recently, members have been looking into possibilities for joint purchasing of electricity, natural gas, motor fuel, and vehicle maintenance. The goal is to save money through direct purchasing and also on administrative costs.

One example of a successful group effort is consolidating employee pharmaceutical purchases. When the agencies entered into a joint contract with a provider in 2004, roundtable members estimated that the group would save a combined $13 million to $14 million. One requirement the group insisted on was that the provider open a walk-in facility in the centrally located county administration building to make it easier for employees to get prescriptions filled; the location opened in late 2006. The group is now collectively bidding vision and dental benefits.

Group members also discuss their similar challenges and circumstances. "Just to talk through some of the issues has been helpful. We're all dealing with auditors, pension plans, OPEB problems--it's not so much big home runs but a lot of little singles we helped each other hit," says Joseph G. Costello, chief financial officer of the Regional Transportation Authority and a member of the group. "We operate in the same industry, but we don't compete, so it's kind of a unique opportunity. If you did this in the private sector, you'd be in trouble with antitrust regulators."

The group, whose chairman is Thomas J. Glaser, chief operating officer, Cook County Treasurer's Office, includes representatives from the Chicago Transit Authority, the Illinois Finance Authority, Chicago Public Schools, and the Chicago Housing Authority, along with other city and county agencies.

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