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In a public-private partnership, ownership of the assets remains with the municipality, while the private company takes over day-to-day operations and management of municipal services, which may include water and wastewater services.
Why would a municipality contract with a private company to manage its water and wastewater services? A private company brings in a level of specialization that is usually impractical or too expensive for a it to develop alone. In general, the benefits of public-private partnership include:
Experience and knowledge
When a municipality enters into a public-private partnership contract, there are many benefits to both the local government and the local community and ratepayers. A private company brings in a level of specialization that often is too expensive for a municipality to develop alone. Private companies also bring the years of experience gained from working with other municipalities with similar and unique challenges. The employees of the municipality are able to benefit from the experience through advanced training and education.
Environmental stewardship
Environmental stewardship often is the reason a municipality selects a partner. A private company will work closely with environmental stakeholders and government regulators to keep the municipality’s water and wastewater system in compliance with stringent regulations at all times. In addition, a reputable company will pay any regulatory fines incurred during their management of a municipal facility.
Capital infusion
Private companies can help plan, manage and pay for capital improvements, such as construction of new treatment facilities, upgrades of existing plants and general improvements of the grounds and land surrounding a treatment facility. Funds from the company, factored into the company’s contract, can alleviate a municipality’s need to issue bonds or raise user fees for capital improvements to its water and wastewater system.
Enhanced staff training and career opportunities
A corollary of the private company’s knowledge is the fact that municipal employees typically receive enhanced educational and training opportunities. This translates into better-run, more efficient and environmentally sound facilities for the community. From the employee’s standpoint, private companies often provide improved compensation plans and opportunities for professional growth, including fully paid medical and dental insurance, pension plan vesting, performance bonuses and opportunities for promotions to further motivate employees and provide incentives for professional growth. |
