That's true, but it's not necessarily easy.
We tend to forget that city bureaucracies tend to build up over decades. The problems with restructuring in an environment like that are manifold; not just because of turf protection (which is a real issue), but also because the governmental entities are more like an organism than a set of well-defined departments -- it's often difficult to tell where one department stops and the next one starts.
Wrong. These bureaucracies build up because we have allowed city, state, and federal employees to become unionized. Fire em all and start over.