Resource Guide For Dealing With Budget Cuts: Strategies for Cities
Source: Minnesota League of Cities, Revised May 2004
........ As another strategy, cities may choose to enter service contracts with private or not-for-profit firms. Privatization can bring about savings through more efficient delivery of a service. By opening up local provision of services to competition in the marketplace, cost savings and increased responsiveness may be realized. Further, local governments may be able to access expertise and technology resources available in the private sector. None of these benefits are certainties however, and cities should be cautious when considering privatizing services or functions.